REQUEST FOR PROPOSAL (RFP) FOR GROUP TERM LIFE PLAN FOR THE CITY OF GALESBURG, IL RFP Circulation Date: 6/5/14 Proposal Submission Deadline: 7/18/14
NOTICE Prospect: City of Galesburg, IL Deadline for Questions: Friday, June 27, 2014 Proposal Due Date: Friday, July 18, 2014 5:00 pm CST Interviews (if necessary): Week of July 21, 2014 Proposed Effective Date: October 1, 2014 The City (the City), is seeking proposals for the following plan: Exempt & Non-represented employees Group Term Life plan The Proposals are requested based on the census and amounts outlined below. Two copies of your sealed proposal must be marked Proposal for City of Galesburg Group Term Life Insurance Plan on the front and mailed to: Kraig Boynton Purchasing Agent City of Galesburg 55 W. Tompkins Street Galesburg, IL 61401 Oral, telephone, faxed and/or emailed proposals will not be accepted Proposals received after the deadline will not be considered All questions concerning this proposal must be submitted or emailed to: Kraig Boynton Purchasing Agent City of Galesburg 55 W. Tompkins Street Galesburg, IL 61401 kboynton@ci.galesburg.il.us 2
I GENERAL INFORMATION SECTION I INSTRUCTIONS 1. Companies are asked to submit their proposals based on the city's intention of entering into a contract, subject to: The right of the city to negotiate contract terms and changes to such terms; The right of the city to exercise an option of cancellation if, in the determination of the city, cancellation of the contract is deemed to be in the best interest of the city and/or its employees; The right of the successful proposer to cancel or otherwise not continue coverage, upon written notice to the city's Benefits Coordinator, at least 180 calendar days in advance of the intended effective date; and Any legislation, current or future, governing group insurance for political subdivisions of the State of Illinois. 2. The city reserves the right to determine whether any aspect of a proposal satisfactorily meets the criteria established in this RFP, to seek clarification from any proposer(s), to negotiate with any proposer(s) submitting a proposal, to reject any or all proposals with or without cause, and to cancel and/or amend, in part or entirely, the RFP. The city also reserves the right to negotiate contract terms with any number of companies as it deems in its best interest, whether or not such firm has submitted a proposal. Evaluations of proposals are for the sole benefit of the City of Galesburg. 3. This RFP does not commit the city either to award a contract or to pay for any costs incurred in proposal preparation. 4. The city shall be held blameless for any failure to solicit responses from potential vendors. 5. While the data contained in this RFP are correct to the best of the city's knowledge, proposers should promptly notify one of the individuals listed in Paragraph 2 of any ambiguity, inconsistency or error that may be discovered upon examination of this RFP. II PROPOSAL CONDITIONS In submitting a proposal, it is understood by the proposer that the right is reserved by the city, in its sole discretion, to accept any proposal, to reject any and all proposals, and to waive any informalities, formalities, or irregularities, whether minor or significant, that are perceived to be in the best interest of the city and/or its employees. Proposals which are incomplete or do not contain sufficient detail will be rejected. Proposers are legally responsible for their proposals. 3
III QUALI FIED PROPOSERS Proposals will be accepted only from companies and agents, brokers, agencies, or brokerage firms licensed to transact business in the State of Illinois and otherwise comply with any and all requirements of the State's Commerce Department. All state-mandates should be adhered to regardless of whether they are specifically outlined in the benefit description portion of this RFP. IV STATEMENT OF NON-COLLUSION By signing any proposal submitted in response to this RFP, the proposer swears (or affirms), under penalty for perjury, the following: I am an employee or agent of the proposing insurance company having authority to sign on its behalf; that the contents of the proposal(s) have not been and will not be communicated by the proposer or its employees or agents to any person not an employee or agent of the proposer. V CONTRACT AND CERTI FICATES The successful proposer, at its own expense, will provide a Master Policy for the city and certificates or booklet/certificates for each employee and will be expected to estimate how soon after the award of the contract this could be accomplished. The city distributes insurance certificates electronically to its employees. The carrier awarded the contract will be expected to pay for the mutually agreed upon and city approved marketing materials and enrollment forms. VI CONVERSION PRIVILEGE Illinois law requires offering covered individuals the ability to convert any coverage (excluding AD&D insurance), cited herein or proposed, within thirty-one (31) days of the date when insurance ends or is reduced due to a qualifying event, without evidence of insurability, provided the employee applies in writing and pays the first premium during the conversion period. Each proposer must submit a description of its current conversion program, including its administration, and a summary of the current premium rates. VII ASSUMPTI ON OF RISK The successful proposer(s) shall assume the city group at 12:01 a.m. on January 1, 2015 as presently existing and without medical restriction. This assumption of risk shall include coverage previously written medically and non-medically. A copy of your company's mostrecent annual report or financial statement. Commissions, overrides, fees or any other forms of remuneration paid to any agent, broker or third party must be fully and separately disclosed. Any amount and form of remuneration must be noted in the deviations. Nondisclosure of commissions, overrides, fees or any other forms of remuneration will void any proposal or contract. 4
VIII PROPOSAL EVALUATION PROCESS: City staff will review proposals using the evaluation criteria outlined in section (b) below. In addition, proposers may be asked clarifying questions or to make presentations of their proposals to the city as part of the proposal evaluation process. EVALUATION CRITERIA: Evaluation of the proposals may include, but is not necessarily limited to, the following factors: Ability of the proposer to provide with excellent service and efficient administrative and reporting capabilities. Competitiveness of premium rate proposed. Rate guarantees and/or rate caps proposed. Implementation and communication of the plan. Financial reliability, size, strength and stability of the company. Experience and general reputation of the company. DEVIATIONS FROM SPECIFICATIONS Any deviations from these specifications must be explained below. Deviations could include noncompliance with instructions; variations to the benefit structure are not permitted. If more space is required, please attach additional sheets of paper to this form. SIGNATURE PAGE I hereby certify that the attached proposal has been prepared in compliance with the specifications and that the Proposals are valid for a period of days. I further certify that any and all forms of compensation received by this company or any of its employees/partners/principals as the result of being awarded a contract with the City of Galesburg have been fully disclosed. Name Signature Title Company Date 5
SECTION III CLIENT PROFILE, PLAN DESIGN & CENSUS DATA The City of Galesburg is located in west central Illinois. The City has maintained a life insurance program for its Exempt and Non-represented personnel since the 1980 s. There are approximately 70 employees on the plan at the current time. The City is conducting the RFP as a due diligence evaluation of the marketplace and according to City policy. PLAN DESIGN The city is requesting proposals for 2 plan designs. One is term life insurance for the duration of active employment in the amount of 2 times annual salary, with a cap of $120,000 benefit. The second is the same term life insurance for the duration of active employment in the amount of 4 times annual salary, with a cap of $240,000 benefit. The one caveat is the city manager s contract specifies an amount equal to 2 times annual salary, no cap. His coverage amount is shown as last entry on the census. Census of current participants and amounts: Benefit Benefit Amount Amount Gender Age quote #1 quote #2 Female 43 $120,000.00 $240,000.00 Male 47 $118,000.00 $236,000.00 Female 36 $120,000.00 $240,000.00 Male 42 $120,000.00 $240,000.00 Male 43 $120,000.00 $240,000.00 Male 51 $120,000.00 $240,000.00 Male 55 $120,000.00 $240,000.00 Male 47 $120,000.00 $240,000.00 Male 34 $96,000.00 $192,000.00 Female 49 $120,000.00 $240,000.00 Male 54 $120,000.00 $240,000.00 Male 46 $120,000.00 $240,000.00 Male 33 $112,000.00 $224,000.00 Male 52 $120,000.00 $240,000.00 Male 56 $120,000.00 $240,000.00 Male 38 $120,000.00 $240,000.00 Male 71 $108,000.00 $216,000.00 6
Female 50 $120,000.00 $240,000.00 Female 57 $104,000.00 $208,000.00 Male 39 $120,000.00 $240,000.00 Male 50 $120,000.00 $240,000.00 Male 51 $120,000.00 $240,000.00 Female 32 $86,000.00 $172,000.00 Female 40 $86,000.00 $172,000.00 Male 40 $120,000.00 $240,000.00 Female 46 $120,000.00 $240,000.00 Male 41 $120,000.00 $240,000.00 Male 48 $120,000.00 $240,000.00 Male 37 $104,000.00 $208,000.00 Female 55 $90,000.00 $180,000.00 Male 41 $120,000.00 $240,000.00 Female 33 $94,000.00 $188,000.00 Male 57 $120,000.00 $240,000.00 Male 60 $120,000.00 $240,000.00 Male 52 $120,000.00 $240,000.00 Male 33 $120,000.00 $240,000.00 Male 44 $120,000.00 $240,000.00 Female 55 $104,000.00 $208,000.00 Female 50 $120,000.00 $240,000.00 Female 36 $120,000.00 $240,000.00 Male 57 $120,000.00 $240,000.00 Male 46 $120,000.00 $240,000.00 Male 30 $106,000.00 $212,000.00 Male 45 $120,000.00 $240,000.00 Male 38 $112,000.00 $224,000.00 Male 54 $120,000.00 $240,000.00 Female 53 $120,000.00 $240,000.00 Female 36 $115,000.00 $230,000.00 Male 31 $120,000.00 $240,000.00 Male 50 $120,000.00 $240,000.00 Female 50 $120,000.00 $240,000.00 Male 54 $120,000.00 $240,000.00 Male 59 $120,000.00 $240,000.00 Male 59 $119,000.00 $238,000.00 Male 30 $112,000.00 $224,000.00 7
Male 50 $120,000.00 $240,000.00 Female 55 $111,000.00 $222,000.00 Male 48 $120,000.00 $240,000.00 Male 51 $120,000.00 $240,000.00 Male 43 $120,000.00 $240,000.00 Male 55 $120,000.00 $240,000.00 Male 38 $120,000.00 $240,000.00 Male 56 $120,000.00 $240,000.00 Male 35 $120,000.00 $240,000.00 Male 52 $120,000.00 $240,000.00 Male 52 $120,000.00 $240,000.00 Male 54 $120,000.00 $240,000.00 Male 43 $120,000.00 $240,000.00 Female 50 $120,000.00 $240,000.00 Male 47 $264,000.00 $264,000.00 The Proposals are requested based on the census and amounts outlined above. Two copies of your sealed proposal must be marked Proposal for City of Galesburg Group Term Life Insurance Plan on the front and mailed to: Kraig Boynton Purchasing Agent City of Galesburg 55 W. Tompkins Street Galesburg, IL 61401 Oral, telephone, faxed and/or emailed proposals will not be accepted Proposals received after the deadline will not be considered All questions concerning this proposal must be submitted or emailed to: Kraig Boynton Purchasing Agent City of Galesburg 55 W. Tompkins Street Galesburg, IL 61401 kboynton@ci.galesburg.il.us 8