Item C46
. BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: September 18. 2002 Division: Manae:ement Services
Bulk Item: Yes -L No - Department: Group Insurance
AGENDA ITEM WORDING: Approval to renew with The Hartford Life Insurance for our
Group Life and Accidental Death & Dismemberment proe:ram October 1. 2002 throue:h
September 30. 2003.
ITEM BACKGROUND: Hartford Life Insurance policy orie:inallv secured in FY 2000.
PREVIOUS REVELANT BOCC ACTION: BOCC directed on March 13.2001 that a ReQuest
for Proposals be done. On January 16. 2002 BOCC e:ranted approval of recommendations
ree:ardine: the proposals received for Group Life Insurance (The Hartford Life Insurance) from
the RFP distributed Julv 13. 2001.
CONTRACT/AGREEMENT CHANGES: Term only (October 1. 2001 - September 30. 2002).
Rates remain the same.
STAFF RECOMMENDATIONS: Approval
TOTAL COST: $160.755.00 BUDGETED: Yes --X- No -
COST TO COUNTY: $160.755.00
REVENUE PRODUCING: Yes - No-X AMOUNT PER MONTH - Year
-
APPROVED BY: County Atty _ OMB/Purchasing _ Risk Management _
DIVISION DIRECTOR APPROVAL: ~ =Z-~---;;:O~-
. James L. Roberts
DOCUMENT A TION: Included X To Follow - Not Required_
DISPOSITION: AGENDA ITEM # C. L{ ~
Revised 2/27/01
July 3, 2002
Mr. Rick Capizzi
Arthur Gallagher & Company
One Boca Place
2255 Glades Road, Suite 400E
Boca Raton, FL 33431
RE: Monroe County Board of County Commissioners, Group #303613
10/01/2002 Renewal Evaluation
Hartford Life has completed the renewal evaluation for the above in-force account for the
upcoming 10/1/02 renewal. We currently underwrite Basic Life, and AD&D coverage. Below we
have outlined the financial results to date and the in-force plan designs.
BASIC LIFE . ?;L~;:.,;z':ffi~
Benefits
Class 1: AFT EES
Class 2: Retirees
Benefit Flat $20,000
Benefit Maximum $20,000
Guarantee Issue Amount $20,000
Cutback Schedule Class 1: 35% @ age 70, 50% @ age 75
Class 2: By 50% ~ aqe 70
Disabilitv Provision PW60
Livinq Benefits 12 months
Contributions Employer Paid
Fundinq method Fully Insured / Non Par
Evaluation The financial results for the period 10/99 - 3/02 are as follows:
Billed Premium $353,808
Common Premium $353,808
Paid Claims $170,000
Waiver Reserves $0
Waitina Period Reserves $22,796
Incurred Claims $192,796
Incurred Loss Ratio 55.6%
Desired Loss Ratio 80.8%
Volume $30,987,800
Lives 1,609
Credibilitv 54%
In Force Rate .39/$1,000
Manual Rate 0.537/$1,000
Formula Rate 0.392/$1,000
%Chanqe .5%
, .
The Basic Life is running well. We will be maintaining the current Basic Life rate as currently
priced.
Current Rate Renewal Rate % Chanae Volume Monthlv Premium
Basic Life $.39 /1000 $.39 /1000 0% $30,987,000 $12,084.93
AD&D $.02 /1000 $.02 /1000 0% $27,107,800 $542.16
If you should have any questions or need any additional information please feel free to call me
at 800-249-7184, ext. 5581.
Sincerely,
Melisa McGraw
Melisa McGraw
Account Manager