HomeMy WebLinkAboutR-2007-152 Hartford Life Insurance Bid Award RESOLUTION NO. 2007-152
A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA,
AUTHORIZING THE CITY MANAGER TO ACCEPT THE PROPOSAL TO
PROVIDE BASIC LIFE INSURANCE TO ELIGIBLE EMPLOYEES AND
RETIREES IN AN AMOUNT NOT TO EXCEED $18,300.00 AND
SUPPLEMENTAL COVERAGE OPTIONS TO ELIGIBLE EMPLOYEES
FROM THE HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY;
PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN
EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA:
Section 1. That the proper City officials are authorized to execute appropriate
documents to accept the proposal of the Hartford Life and Accident Insurance Company on
behalf of the City of Dania Beach to provide basic life insurance to eligible employees and
retirees in an amount not to exceed $18,300.00 and supplemental coverage options to eligible
employees as specified in the documents attached to this Resolution and incorporated by this
reference. Funds will be derived from the Insurance Fund.
Section 2. That all resolutions or parts of resolutions in conflict with this Resolution
are repealed to the extent of such conflict.
Section 3. That this Resolution shall be in force and take effect immediately upon its
passage and adoption.
PASSED AND ADOPTED on August 28, 2007.
W --
OB ATNTON71''
MAYOR—COMMISSIONER
AT EST:
-< )
LOUISE STILSON, CMC
CITY CLERK
APPROVED/ASS TO FORNDtRRECTNESS:
BY: r
THOMAS J. O
CITY ATTORNEY
THE RHODES INSURANCE GROUP
1263 East Las 01as Boulevard
Suite 205
Fort Lauderdale, Florida 33301
Telephone 954-524-5075
Fax 954-525-1248
August 2, 2007
Ms. Mary McDonald
Director, Human Resources & Risk Management
City of Dania Beach
100 W. Dania Beach Boulevard
Dania Beach, FL 33004
Re: Group Life RFP # 07-016
Dear Mary,
We have completed our analysis of the proposals received in response to the City of
Dania Beach's RFP for group life coverage. The RFP was sent to 18 companies qualified
to offer life & accidental death and dismemberment coverage to the City's employees.
Of those companies, five responded with proposals. Nine companies declined to quote,
and four—including the City's current insurer, Fort Dearborn —did not respond. A list of
the companies contacted and the status of their proposals is attached.
The five companies that provided proposals are CIGNA, Florida Combined Life (Blue
Cross Blue Shield), Hartford Life, Mutual of Omaha and Standard. Of these five
companies, Hartford, Mutual of Omaha and CIGNA provided the most competitive rates
and three-year rated guarantees. As allowed by Florida Statute 112.08 regarding the
public sector purchase of insurance we conducted simultaneous negotiations. An
analysis of the rates is included with the attached benefit descriptions.
Of the three proposals received we are recommending Hartford Life as the most
responsive and competitive. The highlights to the proposal are listed below.
• Estimated annual savings over the current plan of $7,090
• Rates are guaranteed for three years
• Benefits are equal to the existing plan
Specializing In Employee Benefits
Mary McDonald
Group Life RFP# 07-016 Recommendation
Page 2
• Certain plan enhancements are included such as a spouse education benefits, child
education benefit, day care benefit, rehabilitation benefits, adaptive home and vehicle
benefit, seat belt benefit, air bag benefit, and repatriation benefit. A brief description
of these benefits is attached.
• Voluntary life rates are the same as current.
We have attached the proposal status, benefit and premium comparisons and the
description of benefit enhancements. We recommend that the City of Dania Beach select
the Hartford Life plan effective October 1, 2007 for a minimum of three years with the
ability to renew annually thereafter subject to acceptable terms. Please contact me with
any questions you may have regarding our recommendation.
Sincerely,
(a�knma�am a
afe nFOdatl to adecoressar
.e tha W.I..
Lloyd F. Rhodes
attachments
City of Dania Beach
RFP #07-016 Group Life and AD&D
Status of Proposals
Company Status
I CIGNA proposal received
2 Florida Combined Life proposal received
3 Hartford Life Insurance proposal received
4 Mutual of Omaha proposal received
5 Standard Insurance Company proposal received
declined -
6 Aetna
not competitive
7 AIG American General declined -
underwriting guidelines
8 Boston Mutual declined -
cannot provide requested plan
declined -
9 Humana
not competitive
10 ING Employee Benefits declined -
not competitive
declined -
I1 Lincoln Financial Group
not competitive
declined-
12 Principal Life Insurance Company underwriting guidelines
declined-
13 Reliance Standard not competitive
14 UnumProvident Corporation declined -
not competitive
15 Assurant Employee Benefits no response
16 Fort Dearborn no response
17 MetLife no response
18 Sun Life Of Canada no response
Prepared by The Rhodes Insurance Group
7/18/2007
_ C
O 9
0
i n 3
zz
E ° 9
s 2
o o.
w
O
0 o y 0= aQ O E� v � O E v an
3 O n E
C V U 6.S 00 O O T O b X
n Eu
v - n
y "
.W p � 'F 5u > > o o _ m E u r= n u c a i'n•c E o
,o
4 ° o m ca E g'o
A `
e � QQvp � � = � �9oP � o cvvvac fi ? ee°ogD oo
'O 6 y a O W C b
m m U
d v o E v j $
Q o
e � Z ii
R 9 N 9 yv 9 W z a V E V 'y Q v E >
O
b v
a <
v o c = E c
i V a y y 9 y J T
a m o c 3 3
goo » am =
°'
T u�
� O
U
$ 3
v o =
o W c
6 „ v
'„J L W L L 9
sU
0
v •°a ° c � " ro iO °
6 R _
� E
rov v o `
� a
E_ W.
d '9
d Z n Z vL
G >
$ U Vu oUn oV E .� m °,0 �
9
U C T
O C "
O L
FO
O C T 9
Q � y
N
cw u9 = -ns '> 9 � c. o `onv oENwn y3 � v
33cE NEv ':� � o ,a � o cwcEc — Z, c
c
L L C V C a V L y E « D O O L
—6 A ry A
o �
Eo w O Y O O a N G 9
O,L N
V
" C4 ` c s n E
W ` V v
C
off "
v E c
° o v a o of E o
V o f v a E -
E E o
6 yyaa C ✓ � L v ° C
C c
C L y0. L O e L
« ` .v. o s a_ g EE E
O W O O 3 O N 9 � � ` C W .E O y 0'O V r >c c o s'
U SE
m s
�..c m w « v v v z
o ` ° 3 v v >. E 'Oc-n v T V
A U
LE
O yy _ O
O C C J > 0 6 E O O d 6 v L N
c
O '% E O .n C a
9 C
9 — y
O N G OV
` O n
T G V
0
� C
0
_ v
O r V y K p V O Aa VJ Vi _ U 'O N
co � E na 'c o
G - s
'c -" d
G Y s
E A o T c a T " evo
sE � v
q v v " > ✓�
.n V gry p 'E 3 V ymLL °` ry
o - � VN - aQOA o
c boa
" _ v H o
27s W
o c
_ s
v
c ` o
_ ? n
o ,
s �+
( a
P `
0
_ o
_ eo
o v
o E c C g a
-z $Y al n
o w
a D
O A o o a 5
°c v A $
3 I- o f
u 5
0 0 � a Ina E '
r a
w �
a >
9 v y C C ✓ � �
-
Ev
.pZ 4 ` OOVLC GZ mUO, C ' A _ = Q
° u o o m d H v E 5 c o r y .
E DPI
A
g c c
� v
3 0
0
S cl
u " o o v
o, x
c c v c C] o E m
a ZN m � 3 o v A -Ee
V `
v n
A o z
s
m 3 g Eia
u a v
m 3 E .c
OE ry
wGi m - � �° c m 'A Hoye n - E `o
6 f�{
O
V
a
n
0
z
C n 9 t O O
57
N O L. O,'i.
W �•: C _ n C J
v 2 v a E c
9
O
f-
T
a r
a o
o
6 p
� N
6 1�
City of Dania Beach
Group Life and AD&D RFP # 07-016
Benefit Enhancements
CIGNA • CIGNAssurance—provides financial, legal, and behavioral health services
for beneficiaries with claim payments of$5,000 or more
• Child Special Education Benefit— 5% of AD&D benefit up to $5,000 per
year, for a total of four years paid to dependents
FloridaCombinedNo enhancements pro
posed
Hartford • Spouse Education Benefit — expenses incurred for occupational,
professional or educational training for a spouse within two years of
member's death
• Child Education Benefit—tuition expenses incurred for each child that is a
full-time student or will become a full-time student within 12 months of
member's death
• Day Care Benefit—child care expenses incurred for children under age 7 at
time of member's death; maximum of 4 day care benefit payments for each
child
• Rehabilitation Benefit—expenses incurred within one year of an accident
that resulted in loss other than loss of life; includes training for an new
occupation as a result of the accident
• Adaptive Home and Vehicle Benefit—expenses incurred for injuries that
result in a loss requiring one-time alterations to member's home or
automobile to make it more accessible; costs must be incurred within two
years from date of accident
• Seat Belt Benefit—maximum of$10,000 or 10% of AD&D benefit
• Air Bag Benefit— maximum of$5,000 or 5% of AD&D benefit
• Repatriation Benefit—maximum of$5,000 or 5% of AD&D benefit to
include preparation and transportation of the body to place of burial or
cremation when death occurred outside territorial limits of the state or
country of your place of permanent residence
Mutual of Omaha • Living Care Benefit— 75% of the amount of life insurance but not to exceed
$500,000
• Seat Belt Benefit—additional 10% of AD&D benefit up to $50,000
• Airbag Benefit—additional 10% of AD&D benefit up to $50,000
• Education Benefit—additional 5% of AD&D benefit up to$5,000
• Common Carrier Benefit—additional 100% of AD&D benefit
Page 1 of 2
City of Dania Beach
Group Life and AD&D RFP # 07-016
• Worldwide Travel Assist
Standard
• Child Care Benefit—child care expenses incurred by spouse within 36 after
member's death for all children under age 13, not to exceed $5,000 per year
or cumulative total of$10,000 or 25% of AD&D benefit
• Higher Education Benefit— tuition expenses incurred per child within 4
years after member's death at an accredited institution, not to exceed $5,000
per year or cumulative total of$20,000 or 25% of AD&D benefit
• Career Adjustment Benefit—tuition expenses for training incurred by
spouse within 36 months after member's death, not to exceed $5,000 per year
or cumulative total of$10,000 or 25% of AD&D benefit
• Occupational Assault Benefit— lesser of$25,000 or 50% of AD71) benefit
when the loss is the result of an act of physical violence against you that is
punishable by law while actively at work
• Public Transportation Benefit—lesser of$200,000 or 100% of AD&D
benefit
• Repatriation Benefit— up to $5,000 or 10% of life insurance benefit for
expenses incurred to transport member's body to mortuary near primary
place of residence when death occurred more than 200 miles from primary
residence
• Seat Belt Benefit—lesser of$10,000 or AD&D benefit
• MEDEX Travel Assist—providers emergency services when traveling at
least 100 miles from home or internationally
Prepared by The Rhodes Insurance Group
7/31/07
Page 2 of 2
0
O L � T4.. YO ,VO O_L 0-00 � O oN EO POPPO �NO. V
U -w yl -w fA V3 Fq w N
v o o.o c 0 o f r n °Ow w
a E o o o
O TV E � X Q � Da O' v`
E vo noc c vEe _ � w
o -
6
Q
= N
u
❑ � V C N 6 Ta � E N a o � w w
O O O N
a w h Q o .n cs
µ0.w
p'O O C T pp C O
� O
9
W oi < oL
O Cy C A t C N
O ✓ T T g V % °_ V O N
� O^ � ♦ N t j C � L r
O a o`o °' ° a oc No - � e A aewy vwww
0
E :7
E u 'g m
W y d c 0. ° 5
V a` r
u N L E E
p rr N
O 'O
E
E N � y °' ❑ � �; � � c � � � a y
E
E m t 3v a s
a ° v a�
r
f
Q o
0 ° d
zro o oE
o
O a N v
U t0 CL U � t M Q y
y C 'O id
a Z •7 � ��" v o d .�
N C U N
p U ° •E y >' o
z Z >. E° 3 > 'a
U
0
was
ai
` N N
� O O
y C C
A O X K
U U
w° U z z ro
N
N
O
L
a;!7 o1sug (a)ji7 jujuawajddnS) ,GJMunlon E"
T
L
� r
N O
A O
0. N
� N
L`. N
e
u
T�
� O
� CC
u
L
E
p a V a V
W_
9
W
W
A x
A
U CCO m d
L.
v
• FL � 'a e a
� o
u r� W
0
Aw.
a z
z
V
A
r
v
� T
O V
L
� ro
U
G
zi
\
fE & B }G =
g
| ) ! § 25 2 !
! }
! ) z � ! i ! # ! ■ . - - _ � , , ! - -
. - l � A: ! _ • � ® : § E ! § = � ! ! !
0
v
s
C
� a
O C
�m O
C �
U
X N
N U
C �
ro
o ti
C ti
O y
_ �
'O �
m -a'i
`o r
� F
o �
� � o
�.: � o
O d N
a N
City of Dania Beach
Group Life RFP # 07-016
Voluntary Life Premium
Fort Mutual of Florida
Age Dearborn - Hartford Omaha CIGNA Standard Combined
Current Life
< 30 0.09 0.09 0.09 0.09
30-34 0.10 0.10 0.10 10.00
35-39 0.14 0.14 0.14 0.14
40-44 0.21 0.21 0.21 0.21
45-49 0.38 0.38 0.38 0.38
50-54 0.58 0.58 0.58 0.58
55-59 0.94 0.94 0.94 0.94
60-64 1.07 1.07 1.07 1.07
65-69 1.51 1.51 1.51 1.51
70+ 3.52 3.52 3.52 3.51
Child rate 0.60 0.60 0.60
per $5,000
CIGNA & Mutual of Omaha - dependent life terminates at age 70