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<br />Risk Management Appendix
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<br />Routine* Service Agreements With Sovereign Entities and Political Subdivisions of the State of North Dakota:
<br />Parties: State - State of North Dakota, its agencies, officers and employees
<br />Governmental Entity - The Governmental Entity executing the attached document, its agencies, officers
<br />and employees
<br />Governments - State and Government Entity, as defined above
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<br />Each party agrees to assume its own liability for any and all claims of any nature including all costs, expenses and
<br />attorney's fees which may in any manner result from or arise out of this agreement.
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<br />Each party shall secure and keep in force during the term of this agreement, from insurance companies, government
<br />self-insurance pools or government self-retention funds, authorized to do business in North Dakota, the following
<br />insurance coverages:
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<br />1) Commercial general liability and automobile liability insurance - minimum limits of liability required of the
<br />Governmental Entity are $250,000 per person and $500,000 per occurrence. The minimum limits of liability
<br />required of the State are $250,000 per person and $1,000,000 per occurrence.
<br />2) Workers compensation insurance meeting all statutory limits.
<br />3) The policies and endorsements may not be canceled or modified without thirty (30) days prior written notice to
<br />the undersigned State representative.
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<br />The State reserves the right to obtain complete, certified copies of all required insurance documents,
<br />policies, or endorsements at any time.
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<br />Each party that hires subcontractors shall require any non-public subcontractors, prior to commencement of work set
<br />out under an agreement between that party and the non-public subcontractor, to:
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<br />Defend, indemnify, and hold harmless the Governments, its agencies, officers and employees, from and against
<br />claims based on the vicarious liability of the Subcontractor or its agent, but not against claims based on the
<br />Government's contributory negligence, comparative and/or contributory negligence or fault, sole negligence, or
<br />intentional misconduct. The legal defense provided by the Subcontractor to the Governments under this provision
<br />must be free of any conflicts of interest, even if retention of separate legal counsel for the Governments is
<br />necessary. Subcontractor also agrees to defend, indemnify, and hold the Governments harmless for all costs,
<br />expenses and attorneys' fees incurred if the Governments prevail in an action against Subcontractor in establishing
<br />and litigating the indemnification coverage provided herein. This obligation shall continue after the termination of
<br />this agreement.
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<br />Subcontractor shall secure and keep in force during the term of this agreement, from insurance companies,
<br />government self-insurance pools or government self-retention funds authorized to do business in North Dakota: 1)
<br />commercial general liability; 2) automobile liability; and 3) workers compensation insurance all covering the
<br />Subcontractor for any and all claims of any nature which may in any manner arise out of or result from this
<br />agreement. The minimum limits of liability required are $250,000 per person and $1,000,000 per occurrence for
<br />commercial general liability and automobile liability coverages, and statutory limits for workers compensation. The
<br />Governments shall be endorsed on the commercial general liability policy and automobile liability policy as
<br />additional insureds. Said endorsement shall contain a "Waiver of Subrogation" waiving any right of recovery the
<br />insurance company may have against the Governments as well as provisions that the policy and/or endorsement
<br />may not be canceled or modified without thirty (30) days prior written notice to the undersigned representatives of
<br />the Governments, and that any attorney who represents the State under this policy must first qualify as and be
<br />appointed by the North Dakota Attorney General as a Special Assistant Attorney General as required under
<br />N.D.C.C. Section 54-12-08. Subcontractor's insurance coverage shall be primary (Le., pay first) as respects any
<br />insurance, self-insurance or self-retention maintained by the Governments. Any insurance, self-insurance or self-
<br />retention maintained by the Governments shall be excess of the Contractor's insurance and the Subcontractor's
<br />insurance and shall not contribute with them. Any deductible amount or other obligations under the Subcontractor's
<br />policy(ies) shall be the sole responsibility of the Subcontractor. This insurance may be in policy or policies of
<br />insurance, primary and excess, including the so-called umbrella or catastrophe form and be placed with insurers
<br />rated "A-" or better by A.M. Best Company, Inc. The Governments will be indemnified, saved, and held harmless to
<br />the full extent of any coverage actually secured by the Subcontractor in excess of the minimum requirements set
<br />forth above. The Government Entity that hired the Subcontractor shall be held responsible for ensuring compliance
<br />with the above requirements by all Subcontractors. The Governments reserve the right to obtain complete, certified
<br />copies of all required insurance documents, policies, or endorsements at any time.
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<br />.See North Dakota Risk Management Manual, section 5.1 for discussion of "unique" and "routine" agreements.
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<br />RM Consulted 2007
<br />Revised 6-07
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