Item C34
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: December 21. 2004
Division: Manae:ement Services
Bulk Item: Yes --X- 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. 2004 throue:h
September 30. 2005.
ITEM BACKGROUND: Hartford Life Insurance policy orie:inaIlv secured in FY 2000.
PREVIOUS RELEVANT BOCC ACTION: Januarv 16. 2002 MCBOCC 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. No rate increase.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST:
$158.000.00
BUDGETED: Yes --X- No
COST TO COUNTY:
$158.000.00
SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes No X AMOUNTPERMONTH_ Year
APPROVED BY: County Atty ~ OMB/Purchasing J Risk Management /
DIVISION DIRECTOR APPROVAL:
~~AL~ t1'/c~--Lh~
Sheila A. Barker
DOCUMENTATION:
Included -/
To Follow
Not Required_
DISPOSITION:
AGENDAITEM# r 34
Revised 1/03
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract #
Contract with: The Hartford Life Insurance Effective Date:October 1. 2004
Expiration Date:Seotember 30. 2005
Contract Purpose/Description:Approval to renew current Group Life and Accidental Death &
Dismemberment policy from October 1. 2004 through. September 30.2005.
Contract Manager:Maria Z. Fernandez
(Name)
4448
(Ext. )
Administrative Services
(Department)
for BOCC meeting on December 21. 2004 Agenda Deadline: November 30. 2004
CONTRACT COSTS
Total Dollar Value of Contract: $158.000.00
Budgeted? YesrgJ 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 ,/,' Review~
YesD No~~--..t-~ a~v-Jo...L'.../
Date Out
/.?-~/c y
\~'3--DLJ
Division Director
Risk Management JJ.-,?J . 01.(
O.M.B./Purchasing
County Attorney I~{ YesD No~
Comments:
OMB Form Revised 9/11/95MCP #2
11/18/04 18:19 FAX 813 289 8247
HARTFORD GRP SALES-TAlIPA
III 002/002
04128/2004
~
I-Iartford Life
Rick Capizzi
GaIlagher BOIlefit Services
2255 Glades Road, Suite 400B
Boca Raton, FI. 33431
RE: 10101104 renewal of Monroe Counry Boud of County Cammillioners, #303613
Dear Rick:
We 1bank you for the oppommity to IeI'Ve your insurance needs, aDd we look forward (0 CMrI;,"~g to do
10 farDWl)' yem to come. We have comp1e1ed our review of'thc group mlUQDce coverap(s) for Monroe
County Board of County COmmissiOlWS. Rates have been recale..1.~ bued on the most teeent available
CeDSUS Il!ld C1.Im:Dt plm. benefit stmctute.
I am pleased to info.nn you that tbcrc w.iJl be :no rate increase and'lbo rates will be cOI1tiDucd as follows:
Life $.39/51,000
AD&D S.02/S1,ooO
These rates will be cnnti~ed UDtiJ October I, 2005.
Pleue shsxe the above informatl.oJ1 with our c1iem and if you have any queatians, pleas. Can me at 800.
249.7184, m. 5595 ,
Sincerely,
:Mary 9ff.Oo;,y
Mary Molloy
Accoum Manager
GROUP SALBS DEPARTMENT
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 COlmty 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&Dcoverage.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% ail age 70
Disability Provision PW60
Livina Benefits .1.2,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:
-.
Billed 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
% Chanae Needed 10.3%
Tampa Group Sales
500 N. WestBhore Blvd., Suite 760
Tampa, FL 33609
Telephone 813 289 7565
Toll Free 800 249 7184
Facsimile 813 289 6247
Renewal Action
The Basic Life experience has spiked since the last 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
MonthlY 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 ~I
Mary~y . V
Account Manager
.-J..'
/
,..-
"
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.
:::'y;'\ "-~h, L,~; I;:
Benefits
Class 1: AFT EES
Class 2: Retirees
Benefit Flat $20,000
Benefit Maximum $2.0,000
Guarantee Issue Amount $20,000
Cutback Schedule Class 1: 35% @ age 70, 50% @ age 75
Class 2: By 50% @ age 70
Disability Provision PW60
Livina Benefits 12 months
Contributions Employer Paid -.
Fundina method Fully Insured I 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
Credibility 54%
In Force Rate .39/$1,000
Manual Rate 0.537/$1,000
Formula Rate 0.392/$1,000
%Chanae .5%
. -'
The Basic Life is running well. We will be maintaining the current Basic Life rate as currently
priced.
Basic Life
AD&D
Current Rate Renewal Rate % Chanoe Volume Monthlv Premium
$.39/1000 $.39/1000 0% $30,987,000 $12,084.93
$.0?!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,
MeUsa McGraw
Melisa McGraw
Account Manager
August 1, 2001
Ms. Sheila Barker
Senior Director - Human Resources
5100 West College Road
Public Services Bldg #208
Key West, FL 33040
RE: Monroe County Board of County Commissioners
Life/AD+D Policy #303613
Dear Sheila:
This letter will serve as notification that Hartford Life will continue the current Basic Life rate of
.3911000 and the current AD+D rate of .02/1000 for the policy year October 1, 2001 through
September 2002.
At your convenience, I would like a written confirmation of your acceptance prior to September
1, 2001. This will then be forwarded to Hartford Life in order to satisfy their compliance
responsibilities.
Please contact me at (561)995-6706 ext 603 with any questions.
~~
Rick Capizzi
Benefit Consultant
Gallagher Benefit Services