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FY2020-2022Contract County Of Monroe ,,,,o ,, : 5':. BOARD r 1via J.0F COIrphy,UNT n,strict COMMISSIONERS F'C x Mayor Pro Tern Danny L. Kolhage,District I The Florida Keys Michelle Coldiron,District 2 Heather Carruthers,District 3 miy/e1 David Rice,District 4 Monroe County Board of County Commissioners Office of the County Administrator The Historic Gato Cigar Factory 1100 Simonton Street,Suite 205 Key West,FL 33040 (305)292-4441 —Phone (305)292-4544.-Fax MEMORANDUM TO: Pam Hancock, Deputy Clerk FROM: Lindsey Ballard, Aide to County Administrator DATE: September 27, 2019 SUBJECT: Small Contract ee.c. %i`.1- i,/.L Q, Small contract for your records only. Enclosures: Zurich INS— 1 copy l o Z 4.6,1.i _/vtn_ er ov vim- w Pam Hancock From: Hall-Cynthia <Hall-Cynthia@MonroeCounty-FL.Gov> Sent: Monday, October 07, 2019 7:34 AM To: Pam Hancock Cc: Pam Radloff Subject: Re:Zurich Insurance Good morning. Page 7 of the document requires a client signature,so we are treating as a contract. It is a small contract because the premium is less than$50,000. Sent from my iPhone On Oct 2, 2019, at 10:08 AM, Pam Hancock<phancock@monroe-clerk.com>wrote: CAUTION:This email originated from outside of the County.Whether you know the sender or not, do not click links or open attachments you were not expecting. Good Morning Cynthia, I've received the attached document from Lindsey represented as a contract with Zurich. The documents appear to be a recommendations from Gallagher J. Bassett&Co.and Interisk Corporation recommending Zurich. There is no contract in any of this backup with Zurich. Am I missing something or will the contract be presented to the Board? <image001.png> Pamela q. Ilancock Kevin Madok,CPA Clerk of the Circuit Court&Comptroller Post Office Box 1980 Key West FL 33041-1980 (305)292-3550 <Small Contract.pdfs 1 Monroe County Purchasing Policy and Procedures ATTACHMENT D.6 COUNTY ADMINISTRATOR CONTRACT SUMMARY FORM FOR CONTRACTS LESS THAN$50,000.00 Contract with: L,cZ.,c Contract# Effective Date: } O UI 201 9 Expiration Date: 30 2022 Contract Purpose/Description: nT a i ijSelP.Lc. .,_ � w ��T /bur=-14A Face_ 7,11E/ Vot. .t�% ��[✓ic�Le J4). 44E— 2fiev_ze /Li��f7Gf>�T�YZ�. go,t�//. i i �6Lp� i,lPIV C'f 1L�i�1�✓� � 7 - .-T rr - - i/ , /9/, Contract issManager:Original Contract al Agreement Contract Amendment/Extension Renewal ,4/, fin v6Re Sr-L rfr-At .1 # / (Name) (Ext.) (Department/Stop#) CONTRACT COSTS Total Dollar Value of Contract: $ Current Year Portion: $ (must be less than$50,000) b7/Z7 i (If multiyear agreement then requires BOCC approval,unless the , total cumulative amount is less than $50,000.00). Budgeted? Yes'No ❑ Account Codes: .*,i -6,7 Z- ,17n V"' _ Grant: $ -6- - - - - County Match: $ ADDITIONAL COSTS Estimated Ongoing Costs: $ "d-/yr For: (Not included in dollar value above) (e.g.maintenance,utilities,janitorial,salaries,etc.) CONTRACT REVIEW Changes Date Out Date Iv Needed Revl r Department Head (z 3i� Yes❑No " 7/3 /5 \61) Risk Management -r I Yes❑Nog/ c)-3-1�l rA O.M.B./Purchasing 1/Z4/i�f Yes❑ No� Lk76fN 3nJ ).b 9by// �? County Attorney 1- Yes❑ No?� ` y 5-19 Comments: Page 81 of 92 ®, Arthur J. Gallagher& Co. September 20, 2019 Revised Proposal Mark A. Gongre Safety&Workers Comp Administrator Monroe County Board of County Commissioners 1100 Simonton, Suite 2-268 Key West, FL 33040 Re: Accidental Death & Dismemberment Effective Date: 10/1/19 Dear Mark: The Accidental Death and Dismemberment (AD&D) is due for renewal. As you requested, we have submitted for optional quotes. We have received quotes from the current carrier and an optional quote from ACE and Zurich. Quotes are attached. For you review, we have already provided the following: • Copies of the Hartford,ACE and Zurich quotes. • Policy comparison offered by ACE verses Hartford. On the comparison, those coverage where ACE is broader are indicated in GREEN. • ACE also offers the New Firefighters Cancer coverage where Hartford does not. Information on the Firefighters coverage is included for your information. We are not aware of any changes in your exposures to loss, nor are we aware of any changes in your business operations that would necessitate additional coverage options. Please notify us immediately if you are planning any new business operations. We would like to outline the following notable points for your consideration: • Any entity not named above, may not be an insured entity. This may include partnerships and joint ventures. • The current insurance carrier is Hartford Life and Accident Insurance Company. • The renewal premiums are as follows: Current Carrier 3 year prepaid 2 year prepaid 3 year prepaid Expiring Premium Hartford Life and Accident Ins. Co. *$11,964 Not available $9,678 Offer is for a 3 year prepaid policy term Offer for a 3 year policy term paid on 3 Annual Installment annual installments ($12,627) $4,209 *Increase in premium is due to the increase in the statutory benefits as of 7/1/19. Arthur J.Gallagher Risk Management Services,Inc. p 561 995 6706 2255 Glades Road',Suite 200E f 561.995 6708 Boca Raton,FL 33431 ajg.com 1 � et Arthur J. Gallagher& Co. Optional Carrier 3 year prepaid, 2 year prepaid Optional Quote -ACE American Ins. Co. Not available $8,195 Offer for a 2 year policy term prepaid policy Optional Quote -ACE American Ins. Co. Annual Offer for a 2 year policy term paid on 2 Installment annual installments. ($8,650) $4,325 Optional Carrier Optional Quote -Zurich $8,278 Not available Optional Quote—Zurich offer for a 3 year Annual policy term paid on annual installments Installment ($8,739) $2,913 • Policies not subject to a minimum earned premium. • Premium is based upon number of employees. Not subject to audit. Per application: 0 2019 Exposures: 127 Full Time and 63 Volunteers 0 2016 Exposures: 121 Full Time and 38 Volunteers • Significant policy exclusions include but are not limited to the following: Intentionally self-inflicted injury; Suicide; War or Act of War; Sustained while in Armed Forces. • Quote is based on renewal application and ACE application received. Please advise us of any significant changes in your exposures. • Claim Handling Instructions—Claims are to be reported IMMEDIATELY directly to the carrier. A claim form is provided with your policy. Please follow instructions on the form and mail directly to: Hartford Life Claims P.O. Box 2999 Hartford, CT 06104-299 Customer Service Unit 1-888-563-1124 (Note: If ACE or Zurich is chosen, we will provide the claim reporting instructions at binding). • Gallagher is responsible for the placement of the following lines of coverage: Crime, Accidental Death & Dismemberment and Airport Liability. It is understood that any other type of exposure/coverage is either self-insured or placed by another brokerage firm other than Gallagher. If you need help in placing other lines of coverage or covering other types of exposures, please contact your Gallagher representative. To renew this policy, please refer to the "Client Authorization to Bind Coverage" page attached. 1. Note any changes you desire to be made. 2. Date and sign. 3. Return prior to the effective date of coverage. Arthur J.Gallagher Risk Management Services,Inc. p 561 995 6706 2255 Glades Road,Suite 200E f 561 995 6708 Boca Raton,FL 33431 ajg.com 2 e% Arthur J. Gallagher& Co. We appreciate your business and look forward to working with you in the coming year. Please contact me if you have any questions. Sincerely, /Catl60 • Kathy Hill, CIC Client Service Manager, Senior • Arthur J.Gallagher Risk Management Services,Inc. p 561.995.6706 2255 Glades Road Suite 200E f 561.995.6708 Boca Raton,FL 33431 ajg.com -. 3 -- 4 1 Arthur J. Gallagher& Co. Compensation Disclosure Schedule Gallagher U.S. Wholesaler, owned MGA, or Estimated Comm Wholesaler, Intermediary Annual % or MGA or Name Premium Fee Intermediary Coverage(s) Carrier Name(s) 1 2 3 Accidental Death & Hartford Life& Direct $11,964 15% NA Dismemberment Accident Placement 3yr. prepaid Accidental Death & Chubb/ACE Direct $8,195 Dismemberment American Placement 2 yr. prepaid 15% NA Accidental Death & Zurich Direct $8,278 15% NA Dismemberment Placement 3 yr. prepaid 1. We were able to obtain more advantageous terms and conditions for you through an intermediary/wholesaler. 2. If the premium is shown as an indication: The premium indicated is an estimate provided by the market. The actual premium and acceptance of the coverage requested will be determined by the market after a thorough review of the completed application. 3. The commission rate is a percentage of annual premium excluding taxes &fees. Arthur J.Gallagher Risk Management Services,Inc. p 561 995 6706 2255 Glades Road I Suite 200E f 561.995.6708 Boca Raton,FL 33431 ajg.com -'4 -- °"";) Arthur J. Gallagher& Co. Important Disclosures IMPORTANT:The proposal and/or any executive summaries outline certain terms and conditions of the insurance proposed by the insurers,based on the information provided by your company. The insurance policies themselves must be read to fully understand the terms,coverages,exclusions,limitations and/or conditions of the actual policy contract of insurance. Policy forms will be made available upon request. We make no warranties with respect to policy limits or coverage considerations of the carrier. TRIA/TRIPRA Disclaimer—If this proposal contains options to purchase TRIA/TRIPRA coverage,the proposed TRIA/TRIPRA program may not cover all terrorism losses.While the amendments to TRIA eliminated the distinction between foreign and domestic acts of terrorism,a number of lines of coverage excluded under the amendments passed in 2005 remain excluded including commercial automobile,burglary and theft insurance;surety insurance,farm owners multiple perils and professional liability (although directors and officers liability is specifically included).If such excluded coverages are required,we recommend that you consider purchasing a separate terrorism policy.Please note that a separate terrorism policy for these excluded coverages may be necessary to satisfy loan covenants or other contractual obligations.TRIPRA includes a$100 billion cap on insurers'aggregate liability. The TRIPRA program increases the amount needed in total losses by$20 million each calendar year before the TRIPRA program responds from the 2015 trigger of$100 million to$200 million by the year 2020. TRIPRA is set to expire on December 31,2020.There is no certainty of extension,thus the coverage provided by your insurers may or may not extend beyond December 31,2020.In the event you have loan covenants or other contractual obligations requiring that TRIA/TRIPRA be maintained throughout the duration of your policy period,we recommend that a separate"Stand Alone"terrorism policy be purchased to satisfy those obligations. Compensation Disclosure 1. Gallagher Companies are primarily compensated from the usual and customary commissions,fees or,where permitted,a combination of both,for brokerage and servicing of insurance policies,annuity contracts,guarantee contracts and surety bonds(collectively"insurance coverages")handled for a client's account,which may vary based on market conditions and the insurance product placed for the client. 2. In placing,renewing,consulting on or servicing your insurance coverages,Gallagher companies may participate in contingent and supplemental commission arrangements with intermediaries and insurance companies that provide for additional compensation if certain underwriting,profitability,volume or retention goals are achieved.Such goals are typically based on the total amount of certain insurance coverages placed by Gallagher with the insurance company,not on an individual policy basis. As a result,Gallagher may be considered to have an incentive to place your insurance coverages with a particular insurance company.If you do not wish to have your commercial insurance placement included in consideration for additional compensation,contact your producer or service team for an Opt-out form. 3. Gallagher Companies may receive investment income on fiduciary funds temporarily held by them,or from obtaining or generating premium finance quotes,unless prohibited by law. 4. Gallagher Companies may also access or have an ownership interest in other facilities,including wholesalers, reinsurance intermediaries,captive managers,underwriting managers and others that act as intermediaries for both Gallagher and other brokers in the insurance marketplace some of which may earn and retain customary brokerage commission and fees for their work. If you have specific questions about any compensation received by Gallagher and its affiliates in relation to your insurance placements,please contact your Gallagher representative for more details. In the event you wish to register a formal complaint regarding compensation Gallagher receives from insurers or third-parties, please contact Gallagher via e-mail at Compensation_Complaints@ajg.com or by regular mail at: Chief Compliance Officer Gallagher Global Brokerage Arthur J.Gallagher&Co. 2850 Golf Rd. Rolling Meadows,IL 60008 Arthur J.Gallagher Risk Management Services,Inc. p 561.995.6706 2255 Glades Road I Suite 200E f 561.995.6708 Boca Raton,FL 33431 ajg.com — 5 -- ar" Arthur J. Gallagher& Co. Carrier Ratings and Admitted Status Proposed Insurance Companies A.M. Best's Rating& Admitted/Non-Admitted ** Financial Size Category* Hartford Life&Accident Ins. Co. A XV Admitted Chubb/ACE American Ins. Co. A++XV Admitted Zurich American Ins. Co. A+ Admitted *Gallagher companies use A.M. Best rated insurers and the rating listed above was verified on the date the proposal document was created. Best's Credit RatingsTM reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of Gallagher's service or its recommendations.A.M. Best is not responsible for transcription errors made in presenting Best's Credit RatingsTM. Best's Credit RatingsTM are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best. A Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. It is not a warranty of a company's financial strength and ability to meet its obligations to policyholders. Best's Credit RatingsTM are under continuous review and subject to change and/or affirmation. For the latest Best's Credit RatingsTM and Guide to Best's Credit Ratings, visit the A.M. Best website at http://www.ambest.com/ratings. **If coverage placed with a non-admitted carrier, it is doing business in the state as a surplus lines or non- admitted carrier, and is neither subject to the same regulations as an admitted carrier nor do they participate in any state insurance guarantee fund. Gallagher companies make no representations and warranties concerning the solvency of any carrier, nor does it make any representation or warranty concerning the rating of the carrier which may change. Arthur J.Gallagher Risk Management Services,Inc. p 561 995 6706 2255 Glades Road I Suite 200E f 561.995.6708 Boca Raton,FL 33431 ajg.com — 6 — ama oy Arthur J. Gallagher& Co. • Client Authorization to Bind Coverage Client: Monroe County Board of County Commissioners After careful consideration of your proposal dated September 20, 2019 we accept your insurance program subject to the following exceptions/changes: POLICY OPTIONS: YES NO =:OPTION DESCRIPTION Bind All Policies As Shown Herein indicate your choice below: Hartford Life&Accident Insurance Co.—3 year prepaid Hartford Life&Accident Insurance Co.—Annual installments Chubb/ACE American Insurance Co.—2 year prepaid Chubb/ACE American Insurance Co.—Annual installments Zurich American Insurance Co.—3 year prepaid Zurich American Insurance Co.—Annual installments na na Bind TRIA Terrorism Coverage As Quoted Except For the Following Policies Provide Quotations or Additional Information on the following Coverage Considerations: The above coverage may not necessarily represent the entirety of available insurance products. If you are interested in pursuing additional coverages other than those addressed in the coverage considerations included in this proposal, please list below: EXPOSURES AND VALUES We confirm the payroll, values, schedules, and other data contained in the proposal, and submitted to the underwriters, are compiled from our records and we acknowledge it is our responsibility to see that they are maintained accurately. If no updates were provided to Gallagher, the values, exposures and operations used were based on the expiring policies Gallagher has established security controls to protect Client confidential information from unauthorized use or disclosure. For additional information, please review Gallagher's Privacy Policy located at https://www.ajg.com/privacy-policy/. I have read, understand and agree that the above-information is correct and has been disclosed to us prior to authorizing Gallagher to bind coverage and/or provide services to us. Client Signatur cttn oun Administrator 9/25/2D Dated: Arthur J.Gallagher Risk Management Services,Inc. p 561.995.6706 2255 Glades Road I Suite 200E f 561.995.6708 MONROE COUNTY ATTORNEY Boca Raton,FL 33431 ajg.com p APP�I.OVFO A T OR Date: 1 9- al✓ — . O le • Arthur J. Gallagher& Co. Client Authorization to Bind Coverage Client: Monroe County Board of County Commissioners After careful consideration of your proposal dated September 20, 2019 we accept your insurance program subject to the following exceptions/changes: POLICY OPTIONS: YES NO OPTION DESCRIPTION Bind All Policies As Shown Herein indicate your choice below: Hartford Life&Accident Insurance Co.—3 year prepaid Hartford Life&Accident Insurance Co.—Annual installments Chubb/ACE American Insurance Co.—2 year prepaid Chubb/ACE American Insurance Co.—Annual installments Zurich American Insurance Co.—3 year prepaid Zurich American Insurance Co.—Annual installments na na Bind TRIA Terrorism Coverage As Quoted Except For the Following Policies Provide Quotations or Additional Information on the following Coverage Considerations: The above coverage may not necessarily represent the entirety of available insurance products. If you are interested in pursuing additional coverages other than those addressed in the coverage considerations included in this proposal, please list below: EXPOSURES AND VALUES We confirm the payroll, values, schedules, and other data contained in the proposal, and submitted to the underwriters, are compiled from our records and we acknowledge it is our responsibility to see that they are maintained accurately. If no updates were provided to Gallagher, the values, exposures and operations used were based on the expiring policies Gallagher has established security controls to protect Client confidential information from unauthorized use or disclosure. For additional information, please review Gallagher's Privacy Policy located at https://www.ajg.com/privacy-policy/. I have read, understand and agree that the above-information is correct and has •-en disclosed to us prior to authorizing Gallagher to bind coverage and/or provide services to us. c mg ounty •,,Ln»rator Client Signature 9/101;:20/9 Dated: Arthur J.Gallagher Risk Management Services,Inc. p 561 995 6706 MONROE COUNTY ATTORNEY 2255 Glades Road I Suite 200E f 561.995.6708 AP RAVED AS 0 F Boca Raton,FL 33431 ajg.com 1 _ Date: 20 County of Monroe ,ev ovt cxk The Florida Keys BOARD OF COUNTY COMMISSIONERS Mayor Sylvia J. Murphy. District 5 Mayor Pro Tem Danny L. Kolhage,District 1 Safety and Workers Compensation . °' Michelle Coldiron.District 2 1100 Simonton Street Heather Carruthers, District Key, West, Fl. 33040 David Rice,District 4 To: Bryan Cook, Employee Services Director From: Mark A. Gongre, Safety and Security Administrator Date: September 23, 2019 Re: AD&D Policy for MCFR Firefighters Attached please find the Purchasing request for an Accidental Death and Dismemberment policy for MCFR Firefighters. Our current policy expires on 10-01- 2019. This policy complies with Florida State Statute 112.191 that requires the benefits for all Full-time and Volunteer Firefighters. In addition, please see the attached recommendation from our Insurance Consultant, Sid Weber, recommending Zurich Insurance as well as the proposal from Gallagher Risk Management Services that describes the three quotes received in search of the coverage. The Zurich quote represents the lowest cost, best coverage for this Policy. Please contact me with any questions/concerns. Thank Yo , Mark A. Gongre s • • ti INTERISK CORPORATION Consultants 1111 North Westshore Boulevard Suite 208 Risk Management Tampa, FL 33607-4711 Employee Benefits Phone(813)287-1040 Facsimile (813)287-1041 September 20,2019 Mr.Mark A.Gongre Safety&Workers Comp.Administrator Monroe County 1100 Simonton St.,Suite 2-268 Key West,Florida 33040 Subject: Renewal of Accidental Death and Dismemberment Insurance Mark: The County's Accidental Death and Dismemberment(AD&D)policy expires on October 1,2019. The policy was purchased to respond to Florida Statute 112.191 which establishes benefits for firefighters that are injured killed while responding to an emergency. The expiring policy is provided by Hartford Life and Accident Insurance Company with a policy term of 10/1/16 to 10/1/19. The policy is subject to the following limits: Line of Duty $66,635 Fresh Pursuit $66,635 Unlawful&Intentional Acts $198,670 When the County purchased the expiring policy the limits were consistent with the eligible benefits specified in Florida Statute 112.191. The 3 year premium for the expiring policy was$9,678. Arthur J. Gallagher(Gallagher)serves as the County's agent for this policy. The Florida Legislature routinely increases the benefits specified in Florida Statute 112.191. The current benefits are as follows: Line of Duty $75,000 Fresh Pursuit $75,000 Unlawful&Intentional Acts $225,000 The wording of the current statutes are as follows. Line of Duty-FS 112.191(2)(a)—"The sum of$75,000 must be paid as provided in this section when a firefighter,while engaged in the performance of his or her firefighter duties,is accidentally killed or receives accidental bodily injury which subsequently results in the loss of the firefighter's life,provided that such killing is not the result of suicide and that such bodily injury is not intentionally self-inflicted" Fresh Pursuit-FS 112.191 (2)(b)-The sum of$75,000 must be paid as provided in this section if a firefighter is accidentally killed as specified in paragraph(a)and the accidental death occurs as a result of i' _ ' the firefighter's response to what is reasonably believed to be an emergency involving the protection of life or property or the firefighter's participation in a training exercise.This sum is in addition to any sum provided in paragraph(a)." Unlawful&Intentional Acts FS 112.191 (2)(c)—"If a firefighter,while engaged in the performance of his or her firefighter duties,is unlawfully and intentionally killed,is injured by an unlawful and intentional act of another person and dies as a result of such injury,dies as a result of a fire which has been determined to have been caused by an act of arson,or subsequently dies as a result of injuries sustained therefrom,the sum of$225,000 must be paid as provided in this section." Gallagher has obtained 3 proposals for the renewal of the County's AD&D policy. One was from Hartford (the incumbent insurer);the second was from ACE American Insurance Company;and the third was from Zurich Insurance Company.All 3 insurers enjoy a favorable rating from the A.M Best Company,the leading evaluator of insurance company operations. While the insuring agreement of the Zurich proposal is not consistent with the language of Florida Statute 112.191,it is believed it provides the benefits specified in the Florida Statutes. Hartford proposed terms and conditions that are consistent with the expiring policy. ACE and Zurich proposed terms and conditions that contain features/enhancements not currently in the expiring policy. None of the enhancements are viewed as being significant. However,Zurich has offered Fresh Pursuit limits of$150,000(compared to the statutory required limits of$75,000)and Unlawful and Intentional Acts limits of$275,000(compared to the statutory required limits of$225,000). Hartford proposed a 3 year policy(10/1/19—10/1/22). ACE proposed a 2 year policy(10/1/19—10/1/21). Zurich proposed a 3 year policy(10/1/19—10/1/22. Hartford proposed a prepaid premium of$11,964. As an option the County can select annual installments of$4,209 for a total of$12,627. ACE only proposed a two year policy. The County can either pay a single payment(for the entire 2 year period)amounting to $8,195. They can also elect to pay the premium in two equal installments of$4,325 for a total of$8,650. If ACE were able to offer a 3 year policy term the premium would have been approximately$12,975. Zurich proposed a 3 year prepaid premium of$8,278 with an option to pay the premium in 3 equal installments of$2,913 that equates to a total 3 year premium of$8,739. Zurich also proposed a 1 year policy for an annual premium of$3,066. It is being recommended that Monroe County select Zurich Insurance Company as their AD&D insurer for the policy term of 10/1/19 to 10/1/22 as being proposed by Arthur J.Gallagher. Please give me a call if you have any questions or wish to discuss this issue in more detail. Cordially, INTERISK CORPORATION Sidney G.Webber CPCU,ARM