HomeMy WebLinkAboutR-2010-131 Hartford Life & Accident Insurance RESOLUTION NO. 2010-131
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 $48,000.00 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 $48,000.00 and supplemental coverage options to eligible
employees as specified in the documents attached to this Resolution and incorporated by this
reference.
Section 2. That funding for the cost of the City's life insurance program is planned
and shall be charged to the Health Insurance Fund, Life Insurance account #501-1800-519-4560.
Section 3. That all resolutions or parts of resolutions in conflict with this Resolution
are repealed to the extent of such conflict.
Section 4. That this Resolution shall be in force and take effect on October 1, 2010.
PASSED AND ADOPTED on August 10, 2010.
ATTEST: et�PRo•s FIRS
�� o Y
LOUISE STILSON, CMC C. K. MCELYE!!
CITY CLERK MAYOR-COMMISSIONER
APPROVED AS TO FO N O
BY: r >
THO ASJ ANS R
CITY AT ORNEY
z "
fl
THE RHODES INSURANCE GROUP
Managed Health Care & Group Insurance
July 19, 2010
Ms. Mary McDonald
Director, Human Resources & Risk Management
City of Dania Beach
100 W. Dania Beach Boulevard
Dania Beach, FL 33004
Re: Hartford Group Life & AD&D Renewal —October 1, 2010
Dear Mary,
We have completed our negotiations with the Hartford Insurance Company for the City of
Dania's Beach's group life & AD&D policy effective 10/1/10. The Hartford initially
communicated a requested increase of $0.02 per $1,000 of basic life benefit with all other rates
remaining the same. The current basic life rate is $0.15 per $1,000 of benefit. Based on our
review of the plan experience and our negotiations, Hartford has agreed to forego the rate
increase and guarantee the existing rates until 10/l/12. As part of this renewal agreement,
Hartford would like to offer a special open enrollment in the voluntary life coverage available to
the eligible employees. These benefits are fully paid for by the employees.
The current voluntary plan offers newly eligible employees the opportunity to purchase group
term life insurance in $10,000 increments up to $100,000 on a guaranteed issue basis. Hartford
is willing to expand the $100,000 to $110,000 for newly eligible employees and allow employees
who did not previously elect coverage to get at least $10,000 before requiring evidence of
insurability. This would allow any employee who did not elect the coverage initially and who
has acquired an illness that would not allow them coverage on a voluntary basis to get at least
$10,000 in October. Of course, any employee can select more than an additional $10,000 based
on medical evidence of insurability.
The Hartford group life and AD&D plan has been in in-force with the City of Dania Beach since
10/1/2007 when they were selected as a result of an extensive RFP process. Their rates have not
changed since inception of their plan. The current annual cost to provide this coverage to the
City is approximately $48,000. Based on the low rates obtained during the RFP process and the
special open enrollment offer, The Rhodes Insurance Group recommends acceptance of the
Hartford revised renewal to October 1, 2012.
Sincerely,
Lloyd F. Rhodes
1263 East Las Olas Boulevard,Suite 205,Fort Lauderdale,Florida 33301
Phone:(954)524-5075 Fax:(954)525-1248
www.therhodesinsurancegroup.com