Item C15BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: September 20, 2006 Division: Employee Services
Bulk Item: Yes X No — Department Employee Benefits Office
Staff Contact Person: Maria Z. Fernandez -Gonzalez
AGENDA ITEM WORDING: Approval to renew with The Hartford Life Insurance for our
Group Life and Accidental Death & Dismemberment policy October 1, 2006 through September
30, 2007.
ITEM BACKGROUND: Hartford Life Insurance policy originally secured in FY 2000
PREVIOUS RELEVANT BOCC ACTION: January 16, 2002 MCBOCC granted approval of
recommendations regarding the proposals received for Group Life Insurance (The Hartford Life
Insurance) from the RFP distributed July 13, 2001. BOCC approved renewal
CONTRACT/AGREEMENT CHANGES: Term only. No increase from FY 05/06 — rate was
guaranteed for two years.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: $161,200.00
COST TO COUNTY: $161,200.00
BUDGETED: Yes X No
SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes _ No X AMOUNT PER MONTH Year
APPROVED BY: County Atty zr�
OMB/Purchasing X Risk Management X
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, 2006
Expiration Date: September 30, 2007
Contract Purpose/Description: Approval to renew current Group Life and Accidental Death &
Dismemberment policy from October 1, 2006 through September 30 2007
Contract Manager:Maria Z. Fernandez
(Name)
for BOCC meeting on
4448 Employee Services Division
(Ext.) (Department)
Agenda Deadline: September 5, 2006
CONTRACT COSTS
Total Dollar Value of Contract: $161,200.00 Current Year Portion: $_
Budgeted? Yes® 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,
ate In
Division Director
Risk Management 660-
1 O.M.B./Purchasing
County Attorney
Comments:
✓ivies rorin rwviscu yi i iiyj Ivii.r ttz
CONTRACT REVIEW
Changes
Needed Reviewer
Yes❑ Nog _CkUa j j (jam
Yes❑ No
Yes❑ No
Yes❑ No
etc.
Date Out
C
UNTY So�MONROE
KEY WESTLORIDA 33040
(305)294-4641
Employee Services Division
Benefits Office
1100 Simonton Street, Suite 2-268
Key West, Florida 33040
Phone (305) 292-4448
Facsimile (305) 292-4452
To:
Thru:
From:
Date:
Re:
MEMORANDUM
Monroe County Board of Commissioners
Teresa E. Aguiar, Division Director, Empl
Maria Z. Fernandez -Gonzalez, Sr. Admini
September 1, 2006
BOARD OF COUNTY COMMISSIONERS
MAYOR Charles "Sonny" McCoy, District 3
Mayor Pro-tem Dixie M. Spehar, District I
George Neugent, District 2
Mario DiGennero, District 4
George Patton, District 5
G�
o tren
es
stra s
Renewal of Group Life and Accidental Death & Dismemberment Policy
Approval is being requested to renew with The Hartford Life Insurance for our Group Life and Accidental
Death & Dismemberment Policy effective October 1, 2006 through September 30, 2007.
The Hartford Life policy was originally secured in 2000. Proposal received from The Hartford Life Insurance
in response to an RFP in July of 2001 was accepted and the policy has been approved yearly by the Board.
Last year we had our premium increase for the first time in seven (7) years, increasing the basic life premium
from $.39 to $.44 per $1000 of volume, no increase in the AD&D premium. This rate was guaranteed through
September 30, 2007.
Hartford Life
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
I FORCE BENEFIT HIGHLIGHTS — BAS"IC LIFE a d AD&D
Eligibility / Class
Class 1: All active, full-time employees
Class 2: Retirees
Funding Method
Fully Insured/Non-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
Living Benefits Option
12 months
Commission Schedule
4% Commission
INFORCE.RATE _AND -PLAN HISTORY BASIC LIFE / AD&D
Date
Rate per $1,000 Volume
Reason
10/1/1999
$.39
inception
FORMULA. RATE CALCG LATIQN —BASIC LIFE / AD&D
Time Periods
10/1/2000 — 5/l/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
Credibility
66%
Formula Rate
$.487
RISK:/ EXPERIENCE ANALYSIS - BASIC LIFE / AD&D
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.
IT
PROPOSED RATES BASIC LIFE / AD&D ?'
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,
�Rary �Roffoy
Mary Molloy
Account Manager