Item C33
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: Julv 20. 2005
Division: Mana2:ement Services
Bulk Item: Y es ~
No
Department: Group Insurance
AGENDA ITEM WORDING: Approval to renew with The Hartford Life Insurance for our
Group Life and Accidental Death & Dismemberment policy October 1. 2005 throu2:h September
30. 2006.
ITEM BACKGROUND: Hartford Life Insurance policy ori2:inallv secured in FY 2000.
PREVIOUS RELEVANT BOCC ACTION: January 16. 2002 MCBOCC 2:ranted approval of
recommendations re2:ardin2: the proposals received for Group Life Insurance (The H'irtford Life
Insurance) from the RFP distributed Julv 13. 2001.
CONTRACT/AGREEMENT CHANGES: Term only. Increase in basic life premium from $.39
to $.44 per $1000 of volume. no increase in AD&D premium of $.02 per $1000 of volume. This
rate is 2:uaranteed for two years. *NOTE: This is the first premium increase in seven years.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST:
$161.200.00
BUDGETED: Yes ---X- No
COST TO COUNTY:
$161.200.00
SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes
NoX- AMOUNTPERMONTH_ Year
APPROVED BY: County Atty
OMB/Purchasing
Risk Management
DIVISION DIRECTOR APPROVAL:
~d.d t:?2!SC:L/~
Sheila A. Barker, Division Director Management Services
DOCUMENTATION:
Included X
To Follow
Not Required_
DISPOSITION:
AGENDA ITEM
Revised 1/03
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract #
Contract with: The Hartford Life Insurance Effective Date:October 1, 2005
Expiration Date:September 30,2006
Contract Purpose/Description:Approval to renew current Group Life and Accidental Death &
Dismemberment policy from October 1, 2005 through September 30, 2006.
Contract Manager:Maria Z. Fernandez
(N ame)
4448
(Ext. )
Administrative Services
(Department)
for BOCC meeting on July 20, 2005
Agenda Deadline: July 1, 2005
CONTRACT COSTS
Total Dollar Value of Contract: $161,200.00
Budgeted? Yes[2J No D Account Codes:
Grant: $_
County Match: $_
Current Year Portion: $_
502-08002-530450-_-_
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ADDITIONAL COSTS
Estimated Ongoing Costs: $~yr For:
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Date In
Changes
Needed~ //1 '/JReVie.~
YesD NOL::J \O./~?L {} ( Vk..-
Date Out
g
&.;2<1 CD
Division Director
Risk Management
County Attorney
Comments:
OMB Form Revised 9111/95 Mep #2
z
~~~~~~~~ Hartforatlf~
May 26, 2005
Rick Capizzi/Mary Kay Lantz
Gallagher Benefit Services, Inc.
2255 Glades Road, Suite 400E
Boca Raton, FL 33431
Subject:
Monroe County Board of County Commissioners, Policy #303613
Underwriting has completed the evaluation for the above named account for the upcoming October 1, 2005 renewal.
We currently underwrite their Basic Life/ AD&D coverages. Outlined below are the benefit highlights, the financial
results to date and renewal decisions.
BASIC LIFE and AD&D
Eligibility / Class j Class I; All active, full-time employees
Class 2: Retirees
Fundin!! Method ly InsuredINon-Par
Contributions Non-Contributory
Benefit $20,000
Benefit Maximum $20,000
Guaranteed Issue Amount $20,000
Cutback Schedule Class 1: 33% at 70,50% at 75
Class 2: 50% at 70
Disability Provision Standard prior to 60, Lifetime
Livin!! Benefits Option 12 months
Commission Schedule 4% Commission
Time Periods 10/1/2000 5/1/2005
Paid Premium $647,729
Common Premium $647,729
Paid Claims $649,644
IBNR Reserves $25,118
Incurred Claims $674,762
Incurred Loss Ratio 104.2%
Desired Loss Ratio 82.3%
Inforce Rate $.39
Experience Rate $.499
Credibilitv 66%
Formula Rate $.487
The Life Experience is running above desired. 2000 was the only full year in our experience that has run below
desired. Although, the formula rate is calling for a 25% rate increase, Underwriting has agreed to a 13% increase at
this renewal, and is willing to offer this rate for 2 years.
Quoted Rate per $1000 of Volume $.44
Annual Premium $155,063.04
Rate Guarantee 2 Years
AD&D Quoted Rate per $1000 of Volume $.02
AD&D Annual Premium $6,066.72
We value our relationship with both Monroe County Board of County Commissioners and Gallagher Benefit
Services and look forward to our continued efforts in providing Monroe County with a strong benefit plan for their
employees.
Please let us know if you have any questions regarding any of this information.
Sincerely,
:M.ary :M.o{[oy
Mary Molloy
Account Manager
2