Item C12BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date:
June 19,
2013
Division: Employee
Services
Bulk Item: Yes
X
No _
Department:_
Employee Benefits
Staff Contact Person/Phone #: Maria Gonzalez Ext. 4448
t"
AGENDA ITEM WORDING: Approval renew current Life Insurance and Accidental Death &
Dismemberment (AD&D) policy with Thy Hartford Life Insurance for one additional year at the rate of
$221,424.00.
ITEM BACKGROUND: Last RFP done June, 2010. Next RFP scheduled for early 2014. The rate
has increased 11% due to our experience rating (2008 through 2013).
PREVIOUS RELEVANT BOCC ACTION: Policy originally secured in 2000; RFPs advertised and
approved in 2001, 2007 and 2010.
CONTRACT/AGREEMENT CHANGES: Increase in Basic Life premium from .51 per $1,000 to
.57 per $1,000; AD&D premium remains at .02 per $1,000.
STAFF RECOMMENDATIONS: Approval
approx
TOTAL COST:$221,424 INDIRECT COST: BUDGETED: Yes No X
DIFFERENTIAL OF LOCAL PREFERENCE:
Approx. Internal Service Fund
COST TO COUNTY:_ $221,424 SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes _ No X AMOUNT PER MONTH Year
APPROVED BY: County Atty _�k OMB/Purchasing Risk Management
DOCUMENTATION: Included Not Required
DISPOSITION:
Revised 7/09
AGENDA ITEM #
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract #
Contract with: The Hartford Life Insurance Effective Date:October 1, 2013
Expiration Date:September 30, 2013
Contract Purpose/Description:Approval to renew current Group Life and Accidental Death &
Dismemberment policy from October 1, 2013 through September 30, 2014.
Contract Manager: 4448 Employee Services Division
Maria Gonzalez
(Name) (Ext.) (Department)
for BOCC meeting on June 19, 2013 Agenda Deadline: June 4, 2013
CONTRACT COSTS
Total Dollar Value of Contract: $221,424.00 Current Year Portion: $132,000.00
Budgeted? YesN No ❑ Account Codes: 502-08002-530450- -
Grant: $ - - - -
County Match: $ - - - -
ADDITIONAL COSTS
Estimated Ongoing Costs: $ /yr For:
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Changes Date Out
ate n Needed viewer
Division Director ' l 3 Yes❑ Nol f
Risk Management "�,� Yes[:] NoEr
O.M.B./Purchasing S 3/ 13 Yes[:] NoP3 yi n 6 & L13
County Attorney ab/� Yes[:] No[► t Sr 31 13
Comments:
OMB Form Revised 9/11/95 MCP #2
Basic Life Experience Analysis
Number
Total
Incurred
Constant
of
Total Paid
Number of
PW
Change in
Incurred
Loss
Period Premium
Claims
Claims
PW
Reserves
Reserves
Claims
Ratio
A. Paid Premium
$830,021
B. Constant Premium
$830,085
C. Incurred Claims
$1,113,912
D. Incurred Loss Ratio (CB)
1.342
Average Paid Claim Amount
$15,131
Claim Incidence Per 1,000 lives
9.98
Experience Rate
134.2% x 0.510
=
0.772
88.6%
Formula Rate
( 0.772 X
66%
) +
( 0.611 X
34% )
=
0.717
A r
7
THE HARTFORD
10/2012-3/2013
95,430
9
150,000
0
0
6,127
156,127
163.6%
10/2011-9/2012
186,113
20
274,214
0
0
11,562
285,776
153.5%
10/2010.9/2011
182,847
15
220,002
0
0
-890
219,112
119.8%
10/2009-9/2010
182,847
16
240,000
0
0
10,118
250,118
136.8%
10/2008-9/2009
182,847
11
190,054
0
0
12,725
202,779
110.9%
830,085
71
1,074,271
0
0
39,642
1,113,912
134.2%
Basic ADD Experience
Period
Premium
Claims
Loss Ratio
.. i
8
10/2012-3/2013
$3,026
0
0.0%
10/2011-9/2012
$6,039
0
0.0%
10/2010-9/2011
$6,021
0
0.0%
10/2009-9/2010
$6,021
20,000
332.2%
10/2008-9/2009
$6,021
20,000
332.2%
Total
$27,128
40,000
147.4%
Basic Life Premium Summary
Basic Life
Enrolled Lives
Volume
Rate Basis
Rate Guarantee
Proposed Enrollment Type
Monthly Renewal Premium
Basic ADD
Enrolled Lives
Volume
Rate Basis
Rate Guarantee
1,656
$31,482,600
Rates per $1,000
1 Year
N/A
$17,945
Rate(s) In -force Renewal
0.510 0.570
Proposed Enrollment Type
Monthly Renewal Premium
1,274
$23,347,608
Rates per $1,000
1 Year
N/A
$506.95
Rate(s) In -force Renewal
0.02 0.02
E
THE HARTFORD
Aggregate Summary for All Lines
Inforce Monthly
Renewal
Premium
Premium
Change
Basic Employee Life
$16,056
$17,945
12%