Item C32
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: September 17-. 2003
Division: Manal!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 prol!ram October 1. 2003 throul!h
September 30. 2004.
ITEM BACKGROUND: Hartford Life Insurance policy oril!inally secured in FY 2000.
PREVIOUS RELEVANT BOCC ACTION: January 16. 2002 MCBOCC I!ranted approval of
recommendations rel!ardinl! the proposals received for Group Life Insurance (The Hartford Life
Insurance) from the RFP distributed July 13. 2001.
CONTRACT/AGREEMENT CHANGES: Term only.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST:
$158.000.00
BUDGETED: Yes -K- No
COST TO COUNTY:
$158.000.00
SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes No AMOUNTPERMONTH_ Year
APPROVED BY: County A~ OMBlPurchasing ~ Risk Management 4?-
DMSIONDIRECTORAPPROVAL: ,~~~O~
Sheila A. Barker
DOCUMENTATION:
Included
To Follow X
Not Required
DISPOSITION:
AGENDAITEM#~.?~~
Revised 1/03
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract #
Contract with: The Hartford Life Insurance Effective Date:October 1. 2003
Expiration Date:September 30,2004
Contract Purpose/Description:Approval to renew current Group Life and Accidental Death &
Dismemberment policy from October 1. 2003 through September 30, 2004.
Contract Manager:Maria Z. Fernandez
(Name)
4448
(Ext. )
Administrative Services
(Department)
for BOCC meeting on September 17, 2003 Agenda Deadline: September 2 2003
CONTRACT COSTS
Total Dollar Value of Contract: $158,000.00 Current Year Portion: $
Budgeted? Yes~ No 0 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.)
- - - -
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CONTRACT REVIEW
Division Director
Changes
Date In Ye~O~~lf f;j)!:;:
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Date Out
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Risk Management
O.M.B./Purchasing
County Attorney
Comments:_
OMB Form Revised 9/11195 MCP #2
.'
Gallagher Benefit Services, Inc.
A Subsidiary of Arthur J. Gallagher & Co.
July 2, 2003
Ms. Maria F emandez
Monroe County BOCC
The Historic Gato Cigar Factory
1100 Simonton Street
Room 2-268
Key West, FL 33040
Re: Hartford Life Renewal Effective 10/0112003
Dear Maria,
Enclosed please find the renewal for your Basic Life and AD&D coverage. Weare
pleased to notify you that your rates remain unchanged for the new policy year.
I believe you discussed the renewal with Rick yesterday, however, if you have any
questions about the renewal please feel free to call us.
Have a good summer!
/~}jt
Lf/1i; L;~
,~/ u
Mary Kay Lantz
Enclosure
One Boca Place
2255 Glades Road, Suite 400 E
Boca Raton, FL 33431
561.995.6706
Fax 561.995.6708
www.ajg.com
{JUl 7 2003
June 9, 2003
Mr. Rick Capizzi
Arthur Gallagher & Company -
One Boca Place
2255 Glades Road, Suite 400E
Boca Raton, FL 33431
Hartford Life
Subject:
Monroe County Board of County Commissioners, Group #303613
10/01/2003 Renewal Evaluation
Underwriting has completed the renewal evaluation for the above in-force account for the upcoming
10/1/03 rate change date. We currently underwrite their Basic Life, and AD&D coverage. Below we have
outlined the financial results to date, the in-force plan designs, and the renewal decisions regarding this
account.
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% @ age 70
Disability Provision PW60
Living Benefits 12 months
Contributions Employer Paid
Commission Schedule 10%
Funding method Fully Insured / Non Par
Evaluation
The financial results for the period 9/99 - 2/28/03 are as follows:
Bil/ed Premium $501,827
Common Premium $501,827
Paid Claims $349,645
IBNR $33,757
Incurred Claims $383,402
Incurred Loss Ratio 76.4%
Desired Loss Ratio 82.5%
Volume $31,664,400
Lives 1,643
Credibility 60%
In Force Rate .39/$1,000
Experience Rate .361 $1 ,000
Manual Rate .535/$1,000
Formula Rate .43/$1,000
% Change Needed 10.3%
Tampa Group Sales
500 N. Westshore Blvd., Suite 760
Tampa, FL 33609
Telephone 813 289 7565
Toll Free 800 249 7184
Facsimile 8132896247
Renewal Action
The Basic Life experience has spiked since the fast renewal. The paid loss ratio for the 6-month period is
152% and there were 7 new claims. With a formula rate of $.43, the current pricing is within 91 % of
needed. Therefore we have decided to maintain the current Basic Life rate for 1 year. However, if the
current claims trend continues, the rate will need to be increased.
Basic Life
AD&D
Current Rate
$.39 / 1000
$.02 / 1000
Renewal Rate
$.39 / 1000
$.02 / 1000
%Chanae
0%
0%
Volume
$31,664,400
$27,694,400
Monthlv Premium
$12,349.12
$553.89
If you have any questions or if you need any additional information, please do not hesitate to call me at
800-249-7184, ext. 5595.
Sincerely,
Nt ~j
Mary~y . ~
Account Manager
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