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HomeMy WebLinkAboutC2018-358 - 5/22/2018 - Approved vvsc 4 • ill O I �, A SERVICE AGREEMENT NO. 1705 LIFE AND ADD INSURANCE EMPLOYEE BENEFITS 1852 THIS Life and ADD Insurance Employee Benefits Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation ("City") and Dearborn National Life Insurance Company ("Contractor), effective upon execution by the City Manager or the City Manager's designee ("City Manager"). WHEREAS, Contractor has bid to provide Life and ADD Insurance Employee Benefits in response to Request for Bid/Proposal No. 1484 ("RFB/RFP"), which RFB/RFP includes the required scope of work and all specifications and which RFB/RFP and the Contractor's bid or proposal response, as applicable, are incorporated by reference in this Agreement as Exhibits 1 and 2, respectively, as if each were fully set out here in its entirety. NOW, THEREFORE, City and Contractor agree as follows: 1. Scope. Contractor will provide Life and ADD Insurance Employee Benefits ("Services") in accordance with the attached Scope of Work, as shown in Attachment A, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety, and in accordance with Exhibit 2. The Services shall be further defined by the terms and conditions of the insurance policy, which is incorporated by reference in this Agreement as Exhibit 3 as if set out here in its entirety. 2. Term. This Agreement is for 36 months, with performance commencing upon the date of issuance of a notice to proceed from the Contract Administrator or Purchasing Division. The parties may mutually extend the term of this Agreement for up to two additional 12-month periods ("Option Period(s)"), provided, the parties do so in writing and prior to the expiration of the original term or the then- current Option Period. The City's extension authorization must be executed by the City Manager or designee. 3. Compensation and Payment. The total value of this Agreement is estimated at $2,060,000, subject to approved extensions and changes. Payment will be made for Services completed and accepted by the City within 30 days of acceptance, subject to receipt of an acceptable invoice. All pricing must be in accordance with the attached Bid/Pricing Schedule, as shown in Attachment B, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. 02018-358 5/22/18 Ord. 031443 Page 1 of 7 Dearborn National Life Insurance S('1MJNFfl 4. Contract Administrator. The Contract Administrator designated by the City is responsible for approval of all phases of performance and operations under this Agreement, including deductions for non-performance and authorizations for payment. The City's Contract Administrator for this Agreement is as follows: Name: Rose Bond Department: Human Resources Phone: 361 .826.3878 Email: RoseB2@cctexas.com 5. Insurance; Bonds. (A) Before performance can begin under this Agreement, the Contractor must deliver a certificate of insurance ("COI"), as proof of the required insurance coverages, to the City's Risk Manager and the Contract Administrator. Additionally, the COI must state that the City will be given at least 30 days' advance written notice of cancellation, material change in coverage, or intent not to renew any of the policies. The City must be named as an additional insured. The City Attorney must be given copies of all insurance policies within 10 days of the City Manager's written request. Insurance requirements are as stated in Attachment C, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. (B) In the event a payment bond, a performance bond, or both, are required of the Contractor to be provided to the City under this Agreement before performance can commence, the terms, conditions, and amounts required in the bonds and appropriate surety information are as included in the RFB/RFP or as may be added to Attachment C, and such content is incorporated here in this Agreement by reference as if each bond's terms, conditions, and amounts were fully set out here in its entirety. 6. Purchase Release Order. For multiple-release purchases of Services to be provided by the Contractor over a period of time, the City will exercise its right to specify time, place and quantity of Services to be delivered in the following manner: any City department or division may send to Contractor a purchase release order signed by an authorized agent of the department or division. The purchase release order must refer to this Agreement, and Services will not be rendered until the Contractor receives the signed purchase release order. 7. Quality/Quantity Adjustments. Any Service quantities indicated on the Bid/Pricing Schedule are estimates only and do not obligate the City to order or accept more than the City's actual requirements nor do the estimates restrict the City from ordering less than its actual needs during the term of the Agreement and including any Option Period. Substitutions and deviations from the City's product Page 2 of 7 requirements or specifications are prohibited without the prior written approval of the Contract Administrator. 8. Non-Appropriation. The continuation of this Agreement after the close of any fiscal year of the City, which fiscal year ends on September 30th annually, is subject to appropriations and budget approval specifically covering this Agreement as an expenditure in said budget, and it is within the sole discretion of the City's City Council to determine whether or not to fund this Agreement. The City does not represent that this budget item will be adopted, as said determination is within the City Council's sole discretion when adopting each budget. 9. Independent Contractor. Contractor will perform the work required by this Agreement as an independent contractor and will furnish such Services in its own manner and method, and under no circumstances or conditions will any agent, servant or employee of the Contractor be considered an employee of the City. 10. Subcontractors. Contractor may use subcontractors in connection with the work performed under this Agreement. When using subcontractors, however, the Contractor must obtain prior written approval from the Contract Administrator if the subcontractors were not named at the time of bid or proposal, as applicable. In using subcontractors, the Contractor is responsible for all their acts and omissions to the same extent as if the subcontractor and its employees were employees of the Contractor. All requirements set forth as part of this Agreement, including the necessity of providing a COI in advance to the City, are applicable to all subcontractors and their employees to the same extent as if the Contractor and its employees had performed the work. For purposes of this Agreement, "Subcontractors" do not include contracts of entities under contract with Contractor as of the effective date of this Agreement, or entities that will not perform work exclusively for this Agreement, or the affiliates of Contractor. 11. Amendments. This Agreement may be amended or modified only by written change order signed by both parties. Change orders may be used to modify quantities as deemed necessary by the City. 12. Waiver. No waiver by either party of any breach of any term or condition of this Agreement waives any subsequent breach of the same. 13. Notice. Any notice required under this Agreement must be given by fax, hand delivery, or certified mail, postage prepaid, and is deemed received on the day faxed or hand-delivered or on the third day after postmark if sent by certified mail. Notice must be sent as follows: Page 3 of 7 IF TO CITY: City of Corpus Christi Attn: Rose Bond Health Benefits Manager 1201 Leopard Street, Corpus Christi, Texas 78401 Phone: 361 .826.3878 Fax: N/A IF TO CONTRACTOR: Dearborn National Insurance Company Attn: Matt Aldridge National Account Sales Executive 1001 East Lookout Drive, Tower B - 14th Floor, Richardson, Texas 75082 Phone: 972.766.3203 Fax: 972.979.9747 14. CONTRACTOR SHALL FULLY INDEMNIFY, HOLD HARMLESS AND DEFEND THE CITY OF CORPUS CHRISTI AND ITS OFFICERS, EMPLOYEES AND AGENTS ("INDEMNITEES") FROM AND AGAINST ANY AND ALL THIRD- PARTY LIABILITY, LOSS, CLAIMS, DEMANDS, SUITS, AND CAUSES OF ACTION OF WHATEVER NATURE, CHARACTER, OR DESCRIPTION ON ACCOUNT OF PERSONAL INJURIES, PROPERTY LOSS, OR DAMAGE, OR ANY OTHER KIND OF INJURY, LOSS, OR DAMAGE, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, ATTORNEYS' FEES AND EXPERT WITNESS FEES, WHICH ARISE OR ARE CLAIMED TO ARISE OUT OF OR IN CONNECTION WITH A BREACH OF THIS AGREEMENT OR THE PERFORMANCE OF THIS AGREEMENT BY THE CONTRACTOR OR RESULTS FROM THE NEGLIGENT ACT, OMISSION, MISCONDUCT, OR FAULT OF THE CONTRACTOR OR ITS EMPLOYEES OR AGENTS. CONTRACTOR MUST, AT ITS OWN EXPENSE, INVESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT OR OTHER DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH COUNSEL SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL CHARGES OF ATTORNEYS AND ALL OTHER COSTS AND EXPENSES OF ANY KIND ARISING OR RESULTING FROM ANY SAID LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, SUITS, OR ACTIONS. THE INDEMNIFICATION OBLIGATIONS OF CONTRACTOR UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. Page 4 of 7 15. Termination. Termination of this Agreement, except in the case of non- appropriation, shall be in line with the terms and conditions of the policy documents. 16. Assignment. No assignment of this Agreement by the Contractor, or of any right or interest contained herein, is effective unless the City Manager first gives written consent to such assignment. The performance of this Agreement by the Contractor is of the essence of this Agreement, and the City Manager's right to withhold consent to such assignment is within the sole discretion of the City Manager on any ground whatsoever. Sale of Contractor or transfer of substantially all of the Contractor's assets shall not be considered an assignment. In the event of a sale or transfer, Contractor shall use its best efforts to have the acquiring entity assume all obligations under this Agreement. 17. Severability. Each provision of this Agreement is considered to be severable and, if, for any reason, any provision or part of this Agreement is determined to be invalid and contrary to applicable law, such invalidity shall not impair the operation of nor affect those portions of this Agreement that are valid, but this Agreement shall be construed and enforced in all respects as if the invalid or unenforceable provision or part had been omitted. 18. Order of Precedence. In the event of any conflicts or inconsistencies between this Agreement, its attachments, and exhibits, such conflicts and inconsistencies will be resolved by reference to the documents in the following order of priority: A. this Agreement (excluding attachments and exhibits); B. its attachments; C. the bid solicitation document including any addenda (Exhibit 1); then, D. the Contractor's bid response (Exhibit 2) and the Insurance Policy (Exhibit 3). E. Notwithstanding anything to the contrary, policy documents will control for issues of coverage, claims adjudication and claims administration. 19. Certificate of Interested Parties. Contractor agrees to comply with Texas Government Code Section 2252.908, as it may be amended, and to complete Form 1295 "Certificate of Interested Parties" as part of this Agreement. 20. Verification Regarding Israel. In accordance with Chapter 2270, Texas Government Code, the City may not enter into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The signatory executing this Agreement on behalf of the Contractor verifies that the company does not boycott Israel and will not boycott Israel during the term of this Agreement. Page 5 of 7 21. Governing Law.This Agreement is subject to all federal, State, and local laws, rules, and regulations. The applicable law for any legal disputes arising out of this Agreement is the law of the State of Texas, and such form and venue for such disputes is the appropriate district, county, or justice court in and for Nueces County, Texas. 22. Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement and supersedes all prior negotiations, arrangements, agreements and understandings, either oral or written, between the parties. 23. Specific Terms and Conditions. A set of Specific Terms and Conditions has been attached as Attachment D, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. The Contractor must comply with Attachment D while performing the Services. (SIGNATURE PAGE FOLLOWS) Page 6 of 7 CONTRACTOR Signature: Ala-htd- 5i:' )friiAtIdt-- Printed Name: /41G/4(4. W Ara-Mr-4 Title: Go 0 Date: 9/10/1P CITY OF CORPUS CHRISTI Signature -� Printed Name: 'M 4-r- P-..___L, Title: Ps- o , - - -,--.--,.._______ 7.2-..- Date: .--.-,Date: Q s l . ' ',et� a . •41` ATTEST: - '� RE:ECCA HUERTA CITY SECRETARY LPPRAdo,OVED S TO LEGAL FORM: ()O&M 449 -41 q 1510( Assistant City Attorney Date Attached and Incorporated by Reference: Attachment A: Scope of Work Attachment B: Bid/Pricing Schedule Attachment C: Insurance and Bond Requirements (\I (� CI • t ' I 0'3 IT COUNCIL 3_—......4,-.1.1 b. Attachment D: Specific Terms and Conditions - 7, 1 8 Incorporated by Reference Only: i� � MMS Exhibit 1 : RFB/RFP No. 1484 SECRETARY , Exhibit 2: Contractor's Bid/Proposal Response Exhibit 3: Insurance Policy Page 7 of 7 Attachment A - Scope of Work Health and Welfare Employee Benefits 1.1 Background The City of Corpus Christi (City) has been administering a self-funded plan for more than ten years. The medical claims are currently administered by United Healthcare and the Pharmacy Benefit Manager (PBM) under Express Scripts since 2015 and the group was self-funded with Humana immediately prior. The City has an onsite Wellness Clinic at City Hall in conjunction with Concentra under a contract that will continue until 2022. Developing a broader primary care presence is a goal of the City including targeting chronic disease states and comorbidities among their population. The group that will be covered consists of all eligible employees and at the current time there are 2,719 active employees which includes Pre-65 retirees. The coverages to be provided are as follows: • Life, Optional Life 1.2 Life General Requirements A. Contractor must be financially sound with an AM Best rating of A- or higher. B. Contractor must be able to implement the plan(s) with an effective date of October 1 , 2018. C. The City or its agent reserves the right to audit your performance by reviewing pertinent records and documentation, including clinical records, subject to appropriate confidentiality requirements. D. The City currently has two collective bargaining units, Police and Fire. Therefore, the life insurance contract must contain provisions for incorporating negotiated changes in the insurance benefit level. E. Employees who do not fall under the Police or Fire bargaining units are referred to in this document as "General employees." F. Eligibility and Participation 1 . All new full-time employees are enrolled on their hire date into the 100% City- paid Basic Life plan. 2. All new full-time employees are eligible to enroll in applicable voluntary life plans without evidence of insurability within the first 31 days of hire. Subsequent changes to coverage are permitted within 31 days of the date of a qualifying event or at the City's annual enrollment, but these changes are subject to evidence of insurability requirements. 3. The dependents of a new full-time employee are eligible for coverage on the same day that the employee becomes eligible for voluntary benefits without evidence of insurability if enrolled within the first 31 days of employment. Subsequent changes to coverage are permitted within 31 days of the date of a qualifying event or at the City's annual enrollment, but these changes are subject to evidence of insurability requirements. G. Plans Offered The City has three primary groups of employees, each of which is offered a slightly different benefit program. General employees (non-collectively bargained employees) 1. Life Insurance a. Basic Life: • Managerial: lx annual salary up to $100,000 plus AD&D in equal amount • Grandfathered: $50,000 plus $50,000 AD&D • Non-managerial, non-grandfathered: lx annual salary up to $50,000, plus AD&D in equal amount b. Supplemental Life: • lx Annual Salary up to $100,000 c. Optional Life • Employee must be enrolled in Supplemental Life • Available in $25,000 increments from $25,000 to $300,000 d Spouse Life • Employee must be enrolled in Supplemental Life and Optional Life • Coverage level of $25,000 or $50,000 e. Child Life • Employee must be enrolled in Supplemental Life and Optional Life • Coverage level of $5,000 or $10,000 per child Police Officers' Association Employees (collectively-bargained employees) 1. Life Insurance a. Basic Life: lx Annual salary up to $100,000 plus AD&D in an equal amount b. Supplemental Life: lx Annual Salary up to $100,000 c. Optional Life • Employee must be enrolled in Supplemental Life • Available in $25,000 increments from $25,000 to $300,000 d. Spouse Life • Employee must be enrolled in Supplemental Life and Optional Life • Coverage level of $25,000 or $50,000 e. Child Life • Employee must be enrolled in Supplemental Life and Optional Life • Coverage level of $5,000 or$10,000 per child Fire Fighters' Association Employees (collectively-bargained employees) 1 . Life Insurance a. Basic Life: lx Annual salary up to $100,000 plus AD&D in an equal amount b. Supplemental Life is not available to this group. c. Optional Life • Available in $25,000 increments from $25,000 to $300,000 d. Spouse Life • Employee must be enrolled in Optional Life • Coverage level of $25,000 or$50,000 e. Child Life • Employee must be enrolled in Optional Life • Coverage level of $5,000 or$10,000 per child H. Funding Sources Funding for the Basic life plan is provided by contributions from the City only. Funding for the voluntary life plans is provided by the employee only via payroll deduction. Attachment B - Schedule of Pricing Dearbofn National Prepared for: City of Corpus Christi Group Life and Accidental Death and Dismemberment Insurance Group Life and Accidental Death and Dismemberment Insurance plans provide security to those families that have suffered the loss of a loved one. Basic Life and Supplemental Life Rate and Cost Summary Proposed Effective Date*: October 01, 2018 Basic Life # of Lives Estimated Volume Rates Per Estimated $1,000 Monthly Monthly Premium 2,697 $131,378,000 $0.030 $3,941.34 Basic AD&D # of Lives Estimated Volume Rates Per Estimated $1,000 Monthly Monthly Premium 2,697 $131,378,000 $0.015 $1,970.67 Supplemental Life Employee Age Band Rates Per $1,000 Monthly Composite $0.143 Supplemental Dependent Life Spouse Age Band Rates Per $1,000 Monthly Below 20 $0.064 20-24 $0.064 25-29 $0.064 30-34 $0.085 35-39 $0.095 40-44 $0.105 45-49 $0.157 50-54 $0.284 55-59 $0.513 60-64 $0.692 65-69 $1.328 70-74 $2.153 75-79 $5.990 80-84 $5.990 85-89 $5.990 90-94 $5.990 95-99 $5.990 100 and above $5.990 Dependent Child(ren) Rates per $1,000 Life $0.026 Quote ID: 115596 3 of 32 Dearborn National Prepared for: City of Corpus Christi Rate Guarantee Period: 36 months *Quote valid for two months following the proposed effective date Enhanced Product Services Offered with Group Term Life Insurance • Travel Assistance Services (Available to groups with 50 or more lives; Not available in all states) • Beneficiary Resource Services DearbornCares"' provides an advance payment of the basic life benefit to help beneficiaries cover immediate expenses • Pays up to $10,000 of Employer-Paid Basic Life Insurance • Available for covered employees and retirees • Available on claims with 1 or 2 named beneficiaries • No death certificate required and check mailed within 48 hours of confirmation Important Notes: The above rates and premium estimates are based on the employee data submitted by you. Final rates and premiums will be based on the plan and employee data provided by you at inception. This proposal is subject to exclusions and limitations in the policy issued by us. In addition, if coverage was inforce prior to the effective date of coverage, the rates quoted are subject to revisions based on acceptance and review of the inforce carrier's policy. Changes in risk that may impact the rates quoted include, but are not limited to: • The composition of the group, employees or dependents, changes by more than 10% • The employer contribution changes • Any of the plan designs are changed • A change in applicable law requires a change in the insurance provided by the policy or the classes of persons eligible for insurance under the policy. Quote ID: 115596 4 of 32 Dearborn National` Prepared for: City of Corpus Christi Group Life Insurance Plan Design Summary Basic Term Life - Employee Eligibility All Active Full-Time Executive Management All Active Full-Time Police Employees Officers Number of Employees 74 454 Basic Life Benefit One (1) Times Annual Earnings One (1) Times Annual Earnings to $100,000 to $100,000 Minimum $10,000 $10,000 Maximum $100,000 $100,000 Benefit Rounding To Next Higher $1,000 To Next Higher $1,000 Definition of Earnings Earnings excl Comm & Bonus Earnings excl Comm & Bonus Guarantee Issue $100,000 $100,000 Portability Age 65 Age 65 Portability Maximum $100,000 $100,000 Conversion Included Included Accelerated Death Benefit* 75% of Benefit Amount 75% of Benefit Amount Maximum $375,000 $375,000 Age Reduction Schedule** None None Policyholder Contribution 100% 100% Participation Minimum 100% 100% *For groups with Basic and Supplemental or Voluntary Life coverage, the Accelerated Death Benefit maximum applies to all coverages **Benefits are reduced by the percentage indicated and are calculated from the original amount at the attainment of the age shown. Quote ID: 115596 5 of 32 Dearborn Nationale Prepared for: City of Corpus Christi Basic Term Life - Employee Eligibility All Active Full-Time All Other Active Full-Time Firefighters Employees Number of Employees 405 1,764 Basic Life Benefit One (1) Times Annual Earnings One (1) Times Annual Earnings to $100,000 to $50,000 Minimum $10,000 $10,000 Maximum $100,000 $50,000 Benefit Rounding To Next Higher $1,000 To Next Higher $1,000 Definition of Earnings Earnings excl Comm & Bonus Earnings excl Comm & Bonus Guarantee Issue $100,000 $100,000 Portability Age 65 Age 65 Portability Maximum $100,000 $50,000 Conversion Included Included Accelerated Death Benefit* 75% of Benefit Amount 75% of Benefit Amount Maximum $375,000 $375,000 Age Reduction Schedule** None None Policyholder Contribution 100% 100% Participation Minimum 100% 100% *For groups with Basic and Supplemental or Voluntary Life coverage, the Accelerated Death Benefit maximum applies to all coverages **Benefits are reduced by the percentage indicated and are calculated from the original amount at the attainment of the age shown. Quote ID: 115596 6of32 Dearborn National Prepared for: City of Corpus Christi Basic AD&D - Employee Eligibility All Active Full-Time Executive Management All Active Full-Time Police Employees Officers Basic AD&D Benefit Same as Basic Life Same as Basic Life Seat Belt Included Included Percentage 10% 10% Maximum $25,000 $25,000 Air Bag Included Included Percentage 5% 5% Maximum $5,000 $5,000 Education Benefit Included Included Percentage 3% 3% Annual Maximum $3,000 $3,000 Duration 4 Years 4 Years Repatriation Benefit Actual costs to Actual costs to $5,000 $5,000 Day Care Benefit Included Included Percentage 5% 5% Annual Maximum $2,500 $2,500 Duration 4 Years 4 Years Spouse Training Benefit $10,000 $10,000 Coma Benefit Included Included Percentage 2% 2% Maximum $1,000 $1,000 Duration 12 Months 12 Months Felonious Assault Benefit $25,000 $25,000 Quote ID: 115596 7 of 32 Dearborn NatIona1� Prepared for: City of Corpus Christi Basic AD&D - Employee Eligibility All Active Full-Time All Other Active Full-Time Firefighters Employees Basic AD&D Benefit Same as Basic Life Same as Basic Life Seat Belt Included Included Percentage 10% 10% Maximum $25,000 $25,000 Air Bag Included Included Percentage 5% 5% Maximum $5,000 $5,000 Education Benefit Included Included Percentage 3% 3% Annual Maximum $3,000 $3,000 Duration 4 Years 4 Years Repatriation Benefit Actual costs to Actual costs to $5,000 $5,000 Day Care Benefit Included Included Percentage 5% 5% Annual Maximum $2,500 $2,500 Duration 4 Years 4 Years Spouse Training Benefit $10,000 $10,000 Coma Benefit Included Included Percentage 2% 2% Maximum $1,000 $1,000 Duration 12 Months 12 Months Felonious Assault Benefit $25,000 $25,000 Quote ID: 115596 8 of 32 Dearborn Notional Prepared for: City of Corpus Christi Supplemental Life - Employee Eligibility All Active Full-Time Employees Excluding Firefighters Number of Employees 1,438 Supplemental Life Benefit Amounts from 1 to 1 times salary in increments of 1 times salary Minimum $10,000 Maximum $100,000 Benefit Rounding To Next Higher $1,000 Definition of Earnings Same as Basic Life Guarantee Issue $100,000 Grandfathering Included: $100,000 Waiver of Premium Included Elimination Period 6 Months Waiver Duration To Age 65 Portability To Age 65 Portability Maximum $100,000 Conversion Included Accelerated Death Benefit* Same as Basic Life Age Reduction Schedule** 35% at age 65 60% at age 70 70% at age 75 80% at age 80 Policyholder Contribution 0% Participation Minimum 64% *For groups with Basic and Supplemental or Voluntary Life coverage, the Accelerated Death Benefit maximum applies to all coverages **Benefits are reduced by the percentage indicated and are calculated from the original amount at the attainment of the age shown, Quote ID: 115596 9 of 32 Dearborn National` Prepared for: City of Corpus Christi Supplemental Dependent Life Eligibility All Active Full-Time Employees Spouse Benefit Amounts from $25,000 to $50,000 in increments of $25,000 Includes Domestic Partners Not to Exceed 100% of Employee Amount Spouse Guarantee Issue $50,000 Child Benefit Birth - 14 days $1,000 15 Days - 6 months $1,000 6 Months - Maximum Amounts from $5,000 to $10,000 in increments of $5,000 Child Maximum Age 26 Student Maximum Age 26 Child Guarantee Issue $10,000 Dependent Portability Included Dependent Conversion Included Age Reduction Schedule Same as Employee Quote ID: 115596 10 of 32 Dearborn h Nationar Prepared for: City of Corpus Christi Underwriting Considerations for Group Life Coverage Considerations Dearborn National agrees to pay up to $25,000 for implementation services provided by third parties. The services provided and the agreed upon payment must be reflected on an invoice from the third party vendor. Basic Life, Supplemental Life and Voluntary Life must sell as a package. Supplemental Life is the current Option 1. Voluntary Life is the current Option 2. All employees excluding firefighters must be enrolled in Supplemental Life to enroll in Voluntary Life. Firefighters may only enroll for Voluntary Life. Basic and Supplemental AD&D > Spouse Training: reimbursement of actual cost incurred in the 36 months following the employees death up to the lesser of$10,000 and 25% of the total AD&D coverage amount >Child Day Care: reimbursement of actual cost incurred in the 36 months following the employees death up to the lesser of$10,000 and 25%of the total AD&D coverage amount > Felonious Assault: an additional amount up to the lesser of$25,000 or 50% of the AD&D coverage amount if the employee dies as a result of a felonious assault while working > Coma: 2% of the total AD&D coverage amount up to a maximum of$1,000 per month for up to 12 months beginning on the 31st day of Coma Underwriting Conditions • Employees must be legally working in the United States in order to be eligible for coverage. • Insured Persons enrolling more than 31 days after their initial eligibility date must submit satisfactory Evidence of Insurability for all benefit amounts. • Coverage for amounts in excess of the Guarantee Issue amount is not effective until the date we approve the application. • This proposal illustrates the cost of the insurance program proposed and is based upon the information submitted. Any deviations in the program or information may require rate revisions. The actual cost will be determined after an application has been accepted and will depend upon data obtained when the program becomes effective. • Product features and provisions may be slightly different due to state requirements. When sold, the actual policy for the state in which the policy is issued will reflect the state's requirements. • This proposal provides only basic information on the features of our policy. In the event of conflict between this proposal and our policy, the terms of our policy will govern. The proposal is not intended to duplicate the terms and conditions of any existing contract. In the event of a conflict between this proposal and the incumbent contract, the terms of the proposal will govern. • The Supplemental Life guarantee issue amount shown in this proposal are offered to employees whose initial eligibility date (new hires) is on or after the effective date of coverage. • If the Supplemental Life Participation Minimum stated in the Plan Design Summary is met, all current amounts in force will be grandfathered, subject to the plan design maximums and the grandfathering limits stated in the Plan Design Summary. The Guarantee Issue amount shown in this proposal will only be offered to employees whose initial eligibility date (new hires) is on or after the effective date of coverage. Employees not previously covered, or those who have selected to increase their coverage, will need to provide satisfactory Evidence of Insurability. • Should the Supplemental Life Participation Minimum not be met, grandfathering will not apply and satisfactory Evidence of Insurability will be required for all amounts by all applicants, including those participating in the prior carrier's plan. Participation is measured based on the participation level achieved at initial enrollment with Dearborn National. A spouse application does not count toward the Participation Requirement. Transition of Coverage from Previous Carrier Most group life carriers have standardized provisions in their policies that address issues concerning employees who are not actively at work at the time of the transition. The provisions are designed to ensure that those employees do not lose their coverage if a condition of the new policy is that they be actively at work on the new policy's effective date. If the policy with the terminating carrier includes a Waiver of Premium provision, it is recommended that disabled employees file for Waiver of Premium with the terminating carrier. Assuming that Quote ID: 115596 11 of 32 Dearborn Natl0110,1 Prepared for: City of Corpus Christi such employees meet the requirements of the Waiver of Premium provision, the terminating carrier remains responsible for their coverage. Actively at Work Actively at work requirements will be waived, provided premiums are paid when due, for employees who: • Are covered with the terminating carrier on the day immediately preceding our policy effective date; and, • Were on lay-off, non-medical leave of absence or sabbatical leave; and were being provided an extension of benefits with the terminating carrier Coverage under the Dearborn National policy will continue for the balance of the time provided for under the terminating carrier's policy, not to exceed 12 months. Continuity of Coverage Any disabled employee who was insured for coverage with the terminating carrier, but not actively at work on the day immediately preceding our policy effective date may be covered, subject to premium payment. However, it is recommended that these employees file for Waiver of Premium with the terminating carrier. Totally disabled employees who have not been approved or who have not filed for Waiver of Premium with the terminating carrier will be covered until the earliest of: • The date the employee returns to active work; • The last day of the 12th month following the Dearborn National policy's effective date • The last day the employee would have been covered under the terminating policy had it not terminated • The date the employee is approved for Waiver of premium with the terminating policy • The date the Dearborn National policy terminates The coverage amount will be the lesser of: • the amount payable under the terminating policy; OR • the amount payable under the Dearborn National policy: • In force, paid or payable under the prior policy, or o Which would have been payable if timely election had been made under the terminating policy. Quote ID: 115596 12 of 32 Dearborn National` Prepared for: City of Corpus Christi Voluntary Life Insurance Voluntary Life Insurance plans provide security to those families that have suffered the loss of a loved one. Voluntary Life Rate and Cost Summary Proposed Effective Date*: October 01, 2018 Voluntary Life Employee Age Band Rates Per $1,000 Monthly Below 20 $0.064 20-24 $0.064 25-29 $0.064 30-34 $0.085 35-39 $0.095 40-44 $0.105 45-49 $0.157 50-54 $0.284 55-59 $0.513 60-64 $0.692 65-69 $1.328 70-74 $2.153 75-79 $5.990 80-84 $5.990 85-89 $5.990 90-94 $5.990 95-99 $5.990 100 and above $5.990 Rate Guarantee Period: 36 Months *Quote valid for two months following the proposed effective date Enhanced Product Services Offered with Group Term Life Insurance • Beneficiary Resource Services Important Notes: The above rates and premium estimates are based on the employee data submitted by you. Final rates and premiums will be based on the plan and employee data provided by you at inception. This proposal is subject to exclusions and limitations in the policy issued by us. In addition, if coverage was in force prior to the effective date of coverage, the rates quoted are subject to revisions based on acceptance and review of the inforce carrier's policy. Changes in risk that may impact the rates quoted include, but are not limited to: • The composition of the group, employees or dependents, changes by more than 10% • The employer contribution changes • Any of the plan designs are changed • A change in applicable law requires a change in the insurance provided by the policy or the classes of persons eligible for insurance under the policy. Quote ID: 115596 13 of 32 Dearborn National` Prepared for: City of Corpus Christi Group Life Insurance Plan Design Summary Voluntary Life - Employee Eligibility All Active Full-Time Employees Number of Employees 1,427 Voluntary Life Benefit Amounts from $25,000 to $300,000 in increments of $25,000 Guarantee Issue $300,000 Grandfathering Included: $300,000 Waiver of Premium Included Elimination Period 6 Months Waiver Duration To Age 65 Portability To Age 65 Portability Maximum $300,000 Conversion Included Accelerated Death Benefit* 75% of Benefit Amount Maximum $375,000 Age Reduction Schedule** 35% at age 65 60% at age 70 70% at age 75 80% at age 80 Policyholder Contribution 0% Participation Minimum 64% *For groups with Basic and Supplemental or Voluntary Life coverage, the Accelerated Death Benefit maximum applies to all coverages **Benefits are reduced by the percentage indicated and are calculated from the original amount at the attainment of the age shown. Quote ID: 115596 14 of 32 Dearborn National` Prepared for: City of Corpus Christi Underwriting Considerations for Group Life Coverage Considerations Basic Life, Supplemental Life and Voluntary Life must sell as a package. Underwriting Conditions • Employees must be legally working in the United States in order to be eligible for coverage. • Insured Persons enrolling more than 31 days after their initial eligibility date must submit satisfactory Evidence of Insurability for all benefit amounts. • Coverage for amounts in excess of the Guarantee Issue amount is not effective until the date we approve the application. • This proposal illustrates the cost of the insurance program proposed and is based upon the information submitted. Any deviations in the program or information may require rate revisions. The actual cost will be determined after an application has been accepted and will depend upon data obtained when the program becomes effective. • Product features and provisions may be slightly different due to state requirements. When sold, the actual policy for the state in which the policy is issued will reflect the state's requirements. • This proposal provides only basic information on the features of our policy. In the event of conflict between this proposal and our policy, the terms of our policy will govern. The proposal is not intended to duplicate the terms and conditions of any existing contract. In the event of a conflict between this proposal and the incumbent contract, the terms of the proposal will govern. • The Voluntary Life guarantee issue amount shown in this proposal are offered to employees whose initial eligibility date (new hires) is on or after the effective date of coverage. • If the Voluntary Life Participation Minimum stated in the Plan Design Summary is met, all current amounts in force will be grandfathered, subject to the plan design maximums and the grandfathering limits stated in the Plan Design Summary. The Guarantee Issue amount shown in this proposal will only be offered to employees whose initial eligibility date (new hires) is on or after the effective date of coverage. Employees not previously covered, or those who have selected to increase their coverage, will need to provide satisfactory Evidence of Insurability. • Should the Voluntary Life Participation Minimum not be met, grandfathering will not apply and satisfactory Evidence of Insurability will be required for all amounts by all applicants, including those participating in the prior carrier's plan. Participation is measured based on the participation level achieved at initial enrollment with Dearborn National. A spouse application does not count toward the Participation Requirement. Transition of Coverage from Previous Carrier Most group life carriers have standardized provisions in their policies that address issues concerning employees who are not actively at work at the time of the transition. The provisions are designed to ensure that those employees do not lose their coverage if a condition of the new policy is that they be actively at work on the new policy's effective date. If the policy with the terminating carrier includes a Waiver of Premium provision, it is recommended that disabled employees file for Waiver of Premium with the terminating carrier. Assuming that such employees meet the requirements of the Waiver of Premium provision, the terminating carrier remains responsible for their coverage. Actively at Work Actively at work requirements will be waived, provided premiums are paid when due, for employees who: • Are covered with the terminating carrier on the day immediately preceding our policy effective date; and, • Were on lay-off, non-medical leave of absence or sabbatical leave; and were being provided an extension of benefits with the terminating carrier Coverage under the Dearborn National policy will continue for the balance of the time provided for under the terminating carrier's policy, not to exceed 12 months. Continuity of Coverage Any disabled employee who was insured for coverage with the terminating carrier, but not actively at work on the day immediately preceding our policy effective date may be covered, subject to premium Quote ID: 115596 15 of 32 Dearborn NOtIOQUl Prepared for: City of Corpus Christi payment. However, it is recommended that these employees file for Waiver of Premium with the terminating carrier. Totally disabled employees who have not been approved or who have not filed for Waiver of Premium with the terminating carrier will be covered until the earliest of: • The date the employee returns to active work; • The last day of the 12th month following the Dearborn National policy's effective date • The last day the employee would have been covered under the terminating policy had it not terminated • The date the employee is approved for Waiver of premium with the terminating policy • The date the Dearborn National policy terminates The coverage amount will be the lesser of: • The amount payable under the terminating policy; OR • the amount payable under the Dearborn National policy. Reduced by any amount: • In force, paid or payable under the prior policy, or • Which would have been payable if timely election had been made under the terminating policy Quote ID: 115596 16 of 32 Attachment C - Insurance Requirements I. CONTRACTOR'S LIABILITY INSURANCE A. Contractor must not commence work under this agreement until all insurance required has been obtained and such insurance has been approved by the City. Contractor must not allow any subcontractor Agency to commence work until all similar insurance required of any subcontractor Agency has been obtained. B. Contractor must furnish to the City's Risk Manager and Director Human Resources, 2 copies of Certificates of Insurance (COI) showing the following minimum coverage by an insurance company(s) acceptable to the City's Risk Manager.The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on the Commercial Liability, Auto Liability, and Workers' Compensation policies. Project name and or number must be listed in Description Box of COI. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-written day notice of cancellation. Bodily Injury and Property Damage Per occurrence - aggregate Commercial General Liability including: $1,000,000 Per Occurrence 1 . Commercial ISO Form 2. Premises - Operations 3. Products/Completed Operations 4. Contractual Liability 5. Independent Contractors 6. Personal Injury- Advertising Injury AUTO LIABILITY (including) $1,000,000 Combined Single Limit 1 . Owned 2. Hired and Non-Owned 3. Rented/Leased PROFESSIONAL LIABILITY $1,000,000 Per Claim (Errors and Omissions) If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions . CRIME/EMPLOYEE DISHONESTY $1,000,000 Per Occurrence WORKERS'S COMPENSATION Statutory and complies with Part II of this Exhibit. Employers Liability $500,000/$500,000/$500,000 II. ADDITIONAL REQUIREMENTS A. Applicable for paid employees, Contractor must obtain workers' compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers' compensation coverage provided must be in an amount sufficient to assure that all workers' compensation obligations incurred by the Contractor will be promptly met. B. Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. C. Contractor shall be required to submit a copy of the replacement certificate of insurance to City at the address provided below within 10 days of the requested change. Contractor shall pay any costs incurred resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 D. Contractor agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: • Commercial General Liability and Auto Liability shall list the City and its officers, officials, employees, volunteers, and elected representatives as additional insureds; • Commercial General Liability shall be primary and noncontributory; and • Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; E. Within five (5) calendar days of a suspension, cancellation, or non-renewal of coverage, Contractor shall provide a replacement Certificate of Insurance. City shall have the option to suspend Contractor's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. F. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any insurance to the extent and within the time herein required, the City shall have the right to order Contractor to remove the exhibit hereunder, and/or withhold any payment(s) if any, which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. G. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractor's performance of the work covered under this agreement. H. It is agreed that Contractor's insurance shall be deemed primary and non- contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this agreement. I. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement. 2018 Insurance Requirements Purchasing Employer Sponsored Group Health Plan Benefits with Life, LTD and TPA Services 01/10/2018 sw Risk Management Attachment D - Warranty Attachment D is not applicable to this Agreement. No warranty is required. Attachment E - Specific Terms and Conditions 1 . Access to Information. If the City needs access to information in the Contractor's possession, for purposes other than an audit, but in order to administer the Plan, Contractor will provide the City access to that information if it is legally permissible, the information relates to Contractor's services under the Agreement, and the City provides reasonable advance notice and an explanation of the need for such information. 2. Confidentiality. Each party may have access to information that is confidential to the other party. Neither party will disclose the other party's confidential information to any third party or use the other party's confidential information for any purpose other than for the purposes of this Agreement, except as may be required by law or valid government or court order, which may include Texas Public Information Act (Ch. 552). The Contractor shall any information, other than that information covered by HIPAA, that the Contractor considers confidential or proprietary. If the City receives a valid request under the Texas Public Information Act for any information marked confidential or proprietary by the Contractor, the City shall request an opinion from the Texas Attorney General's Office as its ability to withhold the information from public inspection. The City shall inform the Contractor of the request in accordance with the Texas Public Information Act and inform the Contractor of its right to submit arguments to the Texas Attorney General's Office regarding the confidentiality of the confidential or proprietary information. 3. Audits and Records. The Contractor will keep all records relating to the Services provided under the Agreement for as long as it is required to do so by law. In no event shall the Contractor fail to keep the records for at least the term of the Agreement and 12 months following the termination of the Agreement. During the term of the Agreement, and at any time within 12 months following its termination, the City, or an independent auditor hired by the City, may audit the Contractor once each calendar year to determine whether the Contractor fulfilled the terms of this Agreement. The City must advise the Contractor in writing of its intent to audit. The place, time, duration, and frequency of all audits must be reasonable.