REQUEST FOR PROPOSALS for INSURANCE BROKERAGE SERVICES

REQUEST FOR PROPOSALS for INSURANCE BROKERAGE SERVICES February 1, 2012 through January 31, 2017 (Proposals due 4:00 PM on October 13, 2011) FOR THE CURATORS OF THE UNIVERSITY OF MISSOURI Prepared By: Office of Risk & Insurance Management 1105 Carrie Franke Drive Columbia, MO 65211 September 16, 2011 RFP#:2011-01

Request for Proposals Insurance Brokerage Services Table of Contents BID REQUEST AND BID CONDITIONS... 2 REQUEST FOR PROPOSAL... 4 I. General Information... 4 II. Background Information... 5 III. Performance Requirements... 7 IV. Submission Information... 8 BROKER PRE-QUALIFICATION QUESTIONNAIRE... 10 1

UNIVERSITY OF MISSOURI BID REQUEST AND BID CONDITIONS This Bid Request and Bid is made upon and subject to the following conditions, all of which are accepted by bidder. Upon acceptance by University, this Bid Request and Bid will become part of the issued agreement. Some of the items below apply to products rather than services. 1. No oral explanation in regard to the meaning of the specifications will be made, and no oral interpretation will be given before the award of the contract. If any person contemplating submitting a bid for this contract is in doubt as to the true meaning of any part of the specifications or any other proposed contract documents, he may submit to the University a written request for an interpretation thereof. The person submitting the request will be responsible for its prompt delivery. Any interpretation of the proposed documents will be made by addendum duly issued or delivered to each person receiving a set of such documents. The University will not be responsible for any other explanation or interpretations of the proposed documents. 2. The University reserves the right to reject any and all bids and to waive any informality in bids. 3. Whenever the name of a manufacturer or vendor is mentioned on the face hereon and words "or equal" do not follow, it shall be deemed that the words "or equal" shall follow such designation unless the context specifies "no substitution". University assumes that items bid as equal are equal. University reserves the right to return at the bidder's expense all items that are furnished which are not acceptable as equals to items specified by the Bid Request and Specifications, and vendor agrees to replace such items with satisfactory items at the original bid price. 4. All items bid shall be new unless otherwise specified by the University. 5. Bidder agrees to unconditionally guarantee all items bid upon against defects in material and workmanship for a period of one year from the date of acceptance by the University unless otherwise specified. 6. Unless it is so noted on the bid it will be deemed that the article furnished is that designated. If the vendor proposes to furnish an item of a different manufacturer or vendor other than the one specified on the face hereof, the manufacturer or vendor of the substituted items shall be noted and complete descriptive literature describing the items to be substituted must accompany the bid. 7. Materials and services furnished the University are not subject to either Federal Excise Taxes or the Missouri Sales Tax. Exemption certificates will be furnished on request. 8. Prices quoted are to be firm and final and prices shall be stated in units of quantity specified with packing and drayage charges included. 9. Shipments shall be marked as directed on the Purchase Order. 10. C.O.D. shipments will not be accepted. All shipping charges must be PREPAID. No packing or drayage charges will be allowed. 11. The University will not be responsible for articles or services furnished without a Purchase Order. 12. Risk of loss or damage to the goods prior to the time of their receipt and acceptance by the University is upon the vendor. 13. All invoices and correspondence shall show the Purchase Order Number. All invoices must be rendered in duplicate and contain full descriptive information on items or service furnished. Separate invoices shall be rendered for each order and forwarded to the University. 14. Vendor agrees to defend, protect and save the University harmless from all claims and actions arising out of patent infringement. 15. University reserves the right to cancel all or any part of orders if shipment is not made as promised. Vendor shall notify the University if shipment cannot be made as promised. Time of 2

proposed delivery must be stated in definite terms in the space provided. 16. The bidder hereby guarantees that no article listed herein is adulterated or misbranded within the meaning of the Federal Food, Drug and Cosmetic Act or an article which may not, under the provisions of Federal Law, be introduced into interstate commerce. 17. Samples, when required, are to be furnished prior to the date specified for receipt of bids. 18. In case of any doubt or difference of opinion as to the items to be furnished hereunder or the quality thereof, the decision of the UM Chief Procurement Officer shall be final and binding upon both parties. 19. The University reserves the right to award an order to the lowest aggregate bidder for all items or on an item basis, or a group of like items, whichever is found to be in the best interest of the University. If a split award is not acceptable to a bidder, it must be stated in the bid response. 20. In awarding the contract, the University may take into consideration the skill, facilities, capacity, experience, ability, responsibility, previous work, the financial standing of the bidder or bidders; the amount of other work being carried on by the bidder; the quality, efficiency, and construction of the equipment proposed to be furnished; the period of time within which the equipment is to be furnished and delivered; and the necessity of prompt delivery of the items herein described. The inability of any bidder to meet the requirement mentioned above may be cause for rejection of his bid. 21. In the event that time and materials are a portion of this bid, the University reserves the right to audit vendor's records concerning this bid. 22. All items or services to be furnished hereunder shall meet all applicable State and Federal requirements of the Occupational Safety and Health Standard. All alleged violations and deviations from said State and Federal regulations or standards of the items of services to be furnished hereunder, must be set forth on the Bid Form at the time of submission of the bid. Or if at any later date the items or services contained herein shall not meet all applicable state and federal requirements after the bidder is awarded the contract hereunder the bidder must notify the Campus Purchasing Manager, immediately by certified mail, return receipt requested. 23. The University serves from time to time as contractor for the United States Government. Accordingly, the provider of goods and/or services shall comply with federal laws, rules, and regulations applicable to subcontractors of government contracts including those relating to equal employment opportunity and affirmative action in the employment of minorities (Executive Order 11246), women (Executive Order 11375), persons with disabilities (29 USC 706 and Executive Order 11758), and certain veterans (38 USC 4212 formerly [2012]) contracting with business concerns with small disadvantaged business concerns (Publication L. 95-507). Contract clauses required by the Government in such circumstances are incorporated herein by reference. 24. The Curators of the University of Missouri have adopted a policy which is binding upon all employees and departments of the University, and which by contract shall be binding upon independent contractors and subcontractors with the University, whereby all other things being equal, and when the same can be secured without additional cost over foreign products, or products of other states, a preference shall be granted in all construction, repair and purchase contracts, to all products, commodities, materials, supplies and articles mined, grown, produced and manufactured in marketable quantity in the State of Missouri and to all firms, corporations or individuals doing business as Missouri, firms, corporations, or individuals. By virtue of the foregoing policy, preferences will be given to materials, products, supplies, or provisions, and all other articles produced, manufactured, mined or grown within the State of Missouri, and to all firms, corporations or individuals doing business as Missouri firms, corporations or individuals. Each bidder submitting a proposal agrees to comply with and be bound by the foregoing policy. 3

REQUEST FOR PROPOSAL Insurance Brokerage Services Property/Casualty & Health Related Coverages I. General Information A. The Curators of the University of Missouri (hereinafter referred to as the University) are seeking proposals from qualified firms to provide a full range of brokerage & risk management services including: marketing and placement of many insurance coverages and consulting on coverage issues and self-insurance operations. Three firms will be selected to fulfill these needs. B. The successful respondents will be required to enter into a five year contract commencing February 1, 2012. Prior to execution of the agreement the respondents shall provide a certificate of errors and omissions coverage with limits of $10,000,000 and A.M. Best rating of no less than A-, VIII. The University reserves the right to cancel the contract at the end of each annual period by giving at least 60 days prior written notice, or to cancel with cause at any time giving 60 days notice. C. To assist firms in preparing their proposals, general background information on the University is provided in Section II of this request. For additional information, contact: Ed Knollmeyer, Director, Office of Risk & Insurance Management 1105 Carrie Franke Drive Columbia, MO 65211 573-882-3735 The RFP may obtained electronically at www.umsystem.edu/rim. D. All proposals must be received no later than 4:00 PM Central Daylight Time, October 13, 2011, at the office of: Ed Knollmeyer, Director Office of Risk & Insurance Management 1105 Carrie Franke Drive Columbia, MO 65211 Four copies of each proposal shall be provided. Proposals shall be executed by an officer of the firm with the authority to execute a contract for this program. 4

E. The University reserves the right to waive formalities and reject any and all proposals. F. Although this request provides for a general format, it is not intended to limit a respondent's imagination and creativity in preparing a proposal the respondent feels will best serve the needs of the University. G. Note: The selection committee may consist of individuals not familiar with insurance brokers; therefore incumbent brokers should submit proposals assuming that the selection committee has no knowledge of your firm. II. Background Information A. The University s casualty/property insurance program is administered by the Office of Risk & Insurance Management with a staff of five full time employees. B. The University currently has over 28,000 full-time employees, but issues over 35,000 W-2's annually. In addition, the University uses the services of hundreds of volunteers at its four campus locations (Columbia, Kansas City, Rolla, and St. Louis), the Hospital, research centers, and its State-wide Extension Offices. C. The University currently owns and operates a fleet of approximately 1300 vehicles and owns and operates approximately 1500 buildings and structures. D. The University maintains several self-insured funds with retentions ranging from $100,000 to $5,000,000 including, but not limited to: Auto/General Liability Educators Legal Liability Auto Physical Damage Medical Malpractice Workers Compensation Business Personal Property E. The University purchases a broad portfolio of coverages that is summarized on the following page. 5

University of Missouri Major Product Groups/Approximate Premiums Paid General Liability Coverages Professional Coverages Excess AGL $ 601,116 Medical Malpractice $ 1,080,900 Non-owned Aircraft $ 16,425 Lawyers Professional $ 6,708 Broadcasters Liability $ 21,104 $ 1,087,608 Excess WC $ 549,028 ANI Liability $ 56,393 Inland Marine (including fire trainer) $ 50,937 D&0 and Fiduciary Coverages Foreign Liaibility $ 1,295,003 Educators Legal $ 311,794 $ 2,590,006 Fidelity Crime $ 42,320 Misc Bonds $ 6,712 $ 360,826 Life, Accident & Student Child Day Care $ 10,530 Property Insurance Athletic Accident $ 98,616 Master Property $ 2,717,787 Camp & Clinics $ 13,479 Reactor Property $ 57,134 Student Accident $ 8,157,426 $ 2,774,921 Student Travel $ 2,000 Helicopter Crew A&D $ 3,900 Sports Club $ 31,404 $ 8,317,355 Summary of all premiums General Liability $ 2,590,006 Life, Accident, Student $ 8,317,355 Professional Coverages $ 1,087,608 Property $ 2,774,921 D&O Fiduciary $ 360,826 $ 15,130,716 *The Curators of the University of Missouri currently purchases property coverage through a consortium and does not currently use a broker on this coverage. 6

III. Performance Requirements The successful brokers shall: 1. Provide broker services for the University of Missouri in accordance with the requirements and provisions stated herein. 2. Seek competitive programs and market coverages on an unbiased basis and in the best interest of the University. Provide detailed coverage comparisons for submitted proposals. 3. Conduct annual stewardship meetings/reviews summarizing activities and placements on behalf of the University. 4. Prepare an annual market analysis and forecast by insurance line. This summary will include information on trends, market availability, pricing, and long term market directions. 5. Assist the Office of Risk & Insurance Management in the design of policy forms and programs as needed. 6. Verify the accuracy and adequacy of all binders, policies, policy endorsements, invoices, and other insurance related documents as needed. 7. Issue certificates of insurance and answer coverage questions. 8. Assist in the preparation of underwriting data, statements of values, specifications, and other data required by insurers. 9. Assist the University in the preparing proofs of loss or claims reports, and in obtaining loss settlements from insurers. 10. Attend meetings as requested. 11. Be fully qualified and competent with proper license, knowledge, experience, and personnel. 12. Must identify all sources of revenue on any provided services/placements (new and renewal) including and not limited to: fees, commissions, contingency fees, and bonus or profit-sharing arrangements. Any undisclosed income must be returned to the University. Failure to disclose fees will be considered a material breach of contract. 7

IV. Submission Information A. Submission of Proposals 1. Submit four (4) copies of the proposal. 2. The proposal should be organized into distinctive sections that correspond with the individual evaluation categories described herein. Responses should be limited to 30 pages. 3. Each distinctive section should be titled with each individual evaluation category and all material related to that category should be included therein. 4. It is the responder s sole responsibility to submit information related to the evaluation categories and the University is not obligated to solicit such information if it is not included. The failure to submit such information may cause an adverse impact on the evaluation of the proposal. 5. Parts A and B of the pre-qualification questionnaire must be completed. B. Evaluation and Award Process 1. The University shall use its best judgment in conducting a comparative assessment of the proposal. 2. The University shall select finalists that appear to have the ability to service the University s needs. On-site visits may be scheduled with the finalists; these on-site visits are anticipated to take place the last week of October. The University may ask the finalist to travel to Columbia to present further detail and respond to questions. 3. Three brokers will be selected following the visits or interviews referenced above and notification will be made to all firms submitting proposals on or before January 27, 2012. C. Evaluation of Experience and Reliability 1. Prospective brokers should submit any information, which documents successful and reliable experience in past performances similar to those of the requirements of this proposal. 2. Provide the following information related for both the three largest current 8

accounts and any higher education institutions serviced by your office: a. Name, address, and the telephone number of the account and a representative who may be contacted. b. Dates of that relationship c. A brief written description of the services performed. 3. The above information may be shown on the form provided in the prequalification questionnaire or in a similar manner. D. Evaluation of Expertise of Your Firm s Personnel 1. The Proposal should include detailed information related to the experience and qualifications, including education and training, of the specific personnel who would service the University. 2. The above information may be shown on the form included in the prequalification questionnaire and detailed resumes should also be included. 3. A team organizational chart must be included. E. Evaluation of Method of Performance 1. Provide a narrative, which demonstrates the method manner in which you propose to satisfy these requirements. 9

BROKER PRE-QUALIFICATION QUESTIONNAIRE GENERAL INSTRUCTIONS Please fill out both Parts A and B of this Questionnaire as completely as possible. If requested, information provided in Part B will be treated as confidential by the University to the extent allowed by law. If your firm is a branch or a subsidiary of a larger/national agency, the information provided in reference to the questions in this questionnaire should reflect only the activities of and resources available at the office on behalf of which this proposal is being submitted, unless otherwise requested. If facilities or expertise from your parent or affiliated offices will be available and/or necessary in servicing our needs, please indicate this in your submission cover letter. Supplementary material on any of the questions below may be attached to this questionnaire. Note: this form may be either filled in or reproduced on your word processing system; however, please reproduce in the same order as it exists. PART A General Information About Your Office: 1. a. Name of Firm: Address: Telephone: Name of contact person and title in connection with this proposal: b. Also, please list subsidiary or associate companies of your firm which you wish to utilize in servicing the University account. c. Date submitting office was established: 10

d. If a subsidiary/branch/franchise of a national agency, provide the following information on the parent organization: Head Office: Date established: Number of offices in the U.S.: 2. Information on insurance your office carries to protect you and your clients. Limit Insurer/rating a. Error and Omission b. General Liability c. Other (specify below) Note: If any, of the above coverages is self-insured or include an SIR of more than $100,000, so indicate. Will you provide certificates of such insurance if selected? Yes No Staffing Pattern/Qualifications 3. Provide information on account executive(s) and support staff that you propose to assign to service this account. Attach detailed resumes of the account executive(s) and any backup staff you plan to use in servicing our account. Include in each resume the number of years experience in each of the following exposure areas; Real and Personal Property, Auto/GL, Medical Professional Liability, Worker s Compensation, and Pollution Liability. Also include in the resume all items listed below. a. Name b. Title c. Number of years in this capacity d. Educational background e. General professional experience f. Professional experience in servicing higher education institutions g. List State Broker Licenses, Property Casualty and/or Health & Life which are held individually. h. Office location 4. If applicable, describe the nature and level of staff resources and service capabilities readily available to you through your parent organization. 11

5. Major Insurance Markets--please indicate the principal insurance companies/markets that you represent and expect to use in servicing our needs: Note: List markets and premiums placed through your local office only. Your Estimated Market/Company Annual Premium Volume a. Property Insurance (1) (2) (3) (4) (5) b. Excess Liability Insurance (Auto/GL) (1) (2) (3) (4) (5) c. Worker s Compensation Coverage (1) (2) (3) (4) (5) d. Excess Medical Professional Liability (1) (2) (3) (4) (5) 12

e. Group Student Accident and Sickness Insurance (1) (2) (3) (4) (5) f. Boiler & Machinery (1) (2) (3) (4) (5) 6. Is your access to the excess or surplus lines markets via: a. Your own organization? b. An outside organization? c. Both? If external, which ones? 7. Do you provide adjustment assistance to your clients who sustain a commercially insured loss? yes no If yes, at what cost If yes, is the assistance provided by on-staff personnel at your office location? yes no If so, please include detailed resume of current claim adjuster(s). 13

8. Risk Management Services -Exposure Identification Services List the various risk management services available internally through your firm: i.e., exposure identification, property valuation, loss prevention and control services, etc. a. _ b. _ c. _ d. _ e. _ f. _ g. _ How are you compensated for the above services? The Curators may request a complete Analysis of Insurance Coverages, including but not limited to identifying coverage gaps, coverage overlaps, potential enhancements and savings opportunities. Specify a fee, if any, associated with this service. PART B If requested, information provided in this part of the Questionnaire will be treated as confidential to the extent allowed by law. Annual Gross Income 9. Please provide the following information for the last fiscal year of your operation: That of Your Office If a subsidiary, branch, or franchise, that of your Parent Organization a. Premiums b. Commissions c. Fees d. Other Income Please supplement the above by attaching financial statements of your local office for the last three years. 14

Related Experience 10. Please list by name, approximate annual premium for the last policy period and services rendered to your office s three: a. Largest account clients: (1) Name/Title of contact Phone # (2) Name/Title of contact Phone # (3) Name/Title of contact Phone # b. Higher education institution clients (1) Name/Title of contact Phone # (2) 15

Name/Title of contact Phone # (3) Name/Title of contact Phone # Miscellaneous 11. If you were requested to undertake a comprehensive review and evaluation of the University s current insurance program and future needs: a. How would you go about conducting such a review and evaluation? b. Would there be a fee? Proposal signed by: Title: Date: 16