Addendum No. 1
RFP No. 07-115-3593
Third Party Administration (TPA) Services for the
Commission’s Self-Insured Auto and General Liability Claims
Following are the answers to questions submitted in response to the above-referenced RFP as of January 7, 2008. All of the questions have been listed verbatim, as received by the Pennsylvania Turnpike Commission.
1. What is the effective date of the contract?
April 1, 2008
2. Who is the current TPA?
Excalibur Insurance Management Services
3. How many open files are there currently?
50 files
4. Do you want pricing for existing, take over files or just for new claims?
New claims only
5. What is the break down of claims by category? Such as: General Liability and Auto Liability and Bodily injury
Calendar Auto Liability General
Year Claims (AL) Claims (GL) Bodily Injury (BI)
2004 15 227 20 2005 17 251 23 2006 17 174 10 2007 18 185 17
6. How much did you pay in losses for the current contract year?
See answer 9
7. How much was paid in losses in the last calendar year?
8. How much do you currently pay per claim?
Flat fee of $84,000 for first 200 claims per contract year and then a flat rate of $375 per claim for remainder of contract year.
9. What are your current claim incurreds across all policy years? Calendar Auto Liability General
Year Claims (AL) Claims (GL) Bodily Injury (BI)
2004 $28,061.67 $46,206.77 $7,385.35 2005 $13,350.19 $31,884.66 $500 2006 $18,922.74 $2,687.50 $0.00 2007 $32,458.60 $32,757.30 $1,500.00
Note: When suit is filed against the PTC on a claim, the TPA closes their file and the claim is handled by Commission attorneys. Therefore, these settlements are not included in the above figures since the litigation process and payments are managed by the Commission.
10. What were your claim counts for 2004,2005, 2006 and 2007 in total under this program and broken out by Auto Liability, General Liability, and Bodily injury?
See prior answers
11. I assume they are all 3rd party claims and no first party claims, such as comprehensive and collision? Is that correct?
Yes - all are 3rd party claims
12. What percentage of the claims would be GL and what percentage would be Auto?
See prior answers
13. Can you provide us with more information on specific claim type and average pay out per claim type?
Following are types of PTC claims: Object on Roadway
Snow pushed over Bridge/Shoulder/Medial onto vehicle below Rock Slide
Anti-skid Material Line Painting Construction Zone Dropping or flying object
Animal on Roadway
Pothole, Expansion Joint or other road surface condition Claimant slip/trip, fall
Wet or icy roadway
Toll equipment malfunction (i.e. lane gate, toll arm, etc.) Traffic congestion, backup
Highway Design Water/Salt Runoff Traffic Pattern
Spraying Paint/Chemicals Pedestrian injury
Bridge or Tunnel Material Fallen Tree
Traffic Sign Auto
The record system is not set up to show average pay out per claim type. However, we do show claims by category (i.e. General Liability and Auto Liability and
Bodily injury) – see answer 5
14. Provide any historical data regarding the average paid auto physical damage/property damage claim and the average paid on the general liability claims.
See prior answers
15. Is there a previous contract in place between the PA Turnpike Commission and a Third Party Administrator?
See prior answers
If so, what is the current pricing broken down by claim type?
See prior answers
What is the tail on the program?
Current TPA will handle the tail
If there is a tail of claims to be handled how are they broken down (Auto PD, Auto BI, GLPD and GLBI)?
16. If there is not a current contract in place how many of the projected new 250-300 claims are expected to be Auto PD related, how many are anticipated to be Auto BI related, how many are anticipated to be General Liability PD related and how many anticipated to be General Liability BI related?
See prior answers
17. When is field investigation preferred by the PA Turnpike Commission?
Depends on circumstances, severity, and/or potential loss exposure.
18. When are recorded statements preferred by the PA Turnpike Commission?
Depends on circumstances, severity and potential loss exposure.
19. When are signed statements preferred by the PA Turnpike Commission?
Depends on severity and potential loss exposure – mostly claims involving serious injuries and fatalities
20. We would also like to submit a request for a recent loss run.
No loss runs will be provided
21. Will the Pennsylvania Turnpike Commission be breaking down those numbers into what is general liability, and what is automobile liability, and if so, will that breakdown be in the form of loss runs to better understand the extent of the claims?
See prior answers
22. Who is the incumbent vendor that provides these services currently? Or is this a new requirement?
See prior answers
23. Is there an estimated value available for this contract? Or how much was budgeted for this project?
24. What are the contract terms?
The term of the contract is intended for three years. Standard PTC contract terms and conditions will apply and the successful vendor’s proposal will become part of the Agreement.
25. What territory does the Pennsylvania Turnpike encompass?
The Pennsylvania Turnpike system covers approximately 536 miles. A loss that occurs within that area would be part of the Turnpike’s territory.
All other terms, conditions and requirements of the original RFP dated December 21, 2007 remain unchanged unless modified by this Addendum.
