REQUEST FOR PROPOSALS
WORKERS’ COMPENSATION
& EMPLOYERS LIABILITY INSURANCE
CALHOUN COUNTY, TEXAS
Prepared by:Gray & Company, LLC 605 The High Road Austin, Texas 78746
Cell: (512) 496-3583
E-Mail: Don@Insconsultant.com Posting Date: January 29, 2016
Proposals Due: February 18, 2016 (10:00 AM, County Judge’s Office)
NOTICE
This “Request for Proposals” is being provided to interested agents, brokers and insurance pools and carriers solely for the purpose of obtaining insurance proposals for Calhoun County. The information contained herein is confidential and may not be used for any purpose other than preparing insurance proposals for Calhoun County.
RFPTABLE OF CONTENTS
PAGE #
Part I Introduction 1
Part II RFP Procedures 5
1. Proposal Due Date 5
2. Effective Date of Coverage & Term of Insurance Policies 6
3. Analysis of Proposals 7
4. Purchasing Decision 7
5. Insurer Eligibility 8
6. Communication with Gray & Company 9
7. Underwriting Inspection 9
8. Underwriting Information 10
9. Insurance Applications 10
10. Request For Proposals 10
11. Proposed Policy Language 11
12. Ancillary Services 11
13. Premium Guarantee 11
14. Proposal Opening & Negotiations 11
15. Premium Auditing 12
16. Issuance of Binders and Policies 12
17. Loss Runs 12
18. Reservation of Rights 12
19. Proposal Format 13
20. Qualifications of Agents and/or Brokers 13
21. References 13
22. Access to Insurance Markets 13
23. Rejections 14
24. Protest Procedures 14
25. Public Information Act 14
26. Performance Based Oversight Ratings 15
27. Interlocal Agreement 15
28. Memorial Medical Center 15
29. Certificate of Interested Parties (Form 1295) and related material 16
Part III Insurance Coverage & Proposal Questionnaire 17
Introduction 17
Responses to RFP Part II 18
“Proposal Opening” Announcement form 19
Workers’ Compensation 20
Agent/Representative Services 23
Insurer Services 24
Exhibits
Exhibit A
Attention to Preventing WC Injuries (Note: To obtain this Exhibit, please contact the Consultant by email)
Exhibit B
WC Underwriting Questionnaire (Note: To obtain this Exhibit, please contact the Consultant by email)
Exhibits C.1 &
C.2
C.1 - Payroll Data, C.2 – 2015 Final Payroll (Note: To obtain this Exhibit, please contact the Consultant by email)
Exhibit D
Loss Runs Prepared by Insurance Carriers (Note: To obtain this Exhibit, please contact the Consultant by email)
Exhibit E
Historical WC Premiums, Losses, and Loss Ratios by Year (2011-2015) (Note: To obtain this Exhibit, please contact the Consultant by email)
Exhibit F
Comprehensive Annual Financial Report (Fiscal Year 2104)
http://www.calhouncotx.org/trans/Financials/Calhoun%20County%20FS%20-%20FY2014.pdf
Exhibit G
2016 Budget
http://www.calhouncotx.org/trans/Budgets/2016%20Final%20Budget.pdf
Exhibit H
“Sample” Certificate of Interested Parties (Form 1295). (Not for actual use, refer to RFP Part II.29 for additional information).
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PART I
INTRODUCTION
Gray & Company, LLC has been retained by Calhoun County (herein after referred to as “the County”) to manage a request for Workers’ Compensation/Employers Liability insurance proposal process. At the County’s request and with the County’s assistance, we have prepared this Request for Proposals (RFP) for the purpose of obtaining competitive insurance proposals for the period of 4/1/2016-1/1/2017 (and up to four additional annual “calendar” terms if renewal indications and proposals are deemed to be competitive with market conditions at that time).
Proposals are to be submitted no later than February 18, 2016, no later than 10:00 AM as detailed in Part II of this RFP.
RFP “Quickstart”
The following is provided to familiarize proposers with some of the RFP’s key elements... • The County’s 2015 WC premium is near $133,000 and the projected 2016 payroll is
near $10.5M (both based on estimated payrolls) Although the County has submitted its 2015 “final” payroll figures to the insurer, the “final” premium has not yet been calculated by the insurer). The 2016 premium applies to the period of 1/1/16-17 and is not being provided by the RFP.
• Insurance markets are not being assigned by the County due to the difficulties involved in a political entity making such assignments. In addition, some of the sources expected to submit proposals do not present their proposals through insurance brokers.
• Review RFP Part III to become familiar with the coverage that is currently in force, the coverage to be proposed and particularly the “options” to be offered as available.
• RFP Part III requests proposals for insurance coverage that is equally as “broad” (or broader) as the coverage presently in force. In addition, the County desires to consider “options” to possibly enhance their coverage and pricing (i.e., refer to “options” requested on page 22). For example, proposals which offer multi-=year premium/rate stability are welcome. In addition, proposers are encouraged to offer options that allow the County to retain a larger portion of the risk than is currently retained by the County. This can accomplished through proposals that offer options for increased deductibles, to include the use of aggregate deductible “caps” that apply to a single line of coverage or to multiple lines of coverage.
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• Review the underwriting information that is provided within RFP’s exhibits and use this material to complete underwriting applications. Web links to Exhibits will be provided to each interested proposer. Request the links from the consultant Don Gray, ARM at don@insconsultant.com.
• The County’s Workers’ Compensation policy has been insured by the Texas Association of Counties Workers’ Compensation Self-Insurance Fund (TAC) for many years. TAC is a self-insured pool of counties and county-related governmental entities located in Texas who join together to jointly self-insure their WC exposures. Other than premium payments made by members, the pool is “non accessible”. Claim service is contracted to a third-party contractor. Administrative services and loss control services are provided by TAC’s staff. The pool is governed by a Board consisting of member representatives.
• Coverage is to apply to elected officials, jurors, election personnel and to law enforcement volunteers.
• In lieu of adhering to the experience modifier formula promulgated by the National Council on Compensation Insurance, TAC uses its own unique version of that formula. Further, TAC will not provide a copy of its experience modifier formula worksheet. As a result, if an experience modifier is to be used in developing pricing, proposers will need to develop their own experience modifiers.
• The County operates its road and bridge operations under the traditional “precinct system” basis. Each of the four County Commissioners manages the day to day operations of their respective road and bridge precincts.
• Part III of the RFP provides a questionnaire to be completed and submitted as part of each proposal. One of the purposes for Part III is to provide each proposer with a forum for demonstrating how the proposed coverage compares with the expiring coverage.
• Part III does not address claim services and loss control/prevention services. Proposers are encouraged to attach material to their proposals to fully describe these services.
• As with all purchases, it is important for the buyer to understand the product or service that is being purchased. For this reason, the RFP requires proposers to provide complete copies of the insurance policy being proposed.
• Exhibit E summarizes the County’s historical premiums, annual losses, and loss ratios by year and by line of coverage. Note in Exhibit E that the 5-year combined loss ratio is a favorable 63%. However, if not for three losses each valued at more
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than $50,000 which occurred in 2011, 2012 and 2013, the 5-year loss ratio would have been 19%. No losses of this size have occurred since 2/21/13.
• Exhibit H provides a Certificate of Interested Parties form that is required of business entities who are contracting with the County. Refer to Exhibit H and to item 29 on RFP page 17 for additional information.
Calhoun County, with its county seat in Port Lavaca, TX, provides its citizens the basic services provided by most county governments in Texas (i.e., law enforcement, jail, courts, juvenile probation, records management, collection of taxes, fines and fees, county roads and bridges, and emergency phone dispatching). Other services provided by the County include: a residential waste collection center, an airport operated by a third-party, a hospital, mosquito control, fair grounds, youth baseball fields, parks, beaches, recreational fishing piers, animal control, fire marshal, museum, emergency management, libraries, EMS services, etc. ). Food service in the jail/detention facilities is provided by County employees and inmates.
As described in more detail in RFP Part II, – Item 28, Memorial Medical Center (MMC) is owned by Calhoun County and operated as a separate cost center. Although the employees who work at MMC are actually employees of the County, MMC operates as a separate cost center (utilizing its own unique federal ID number for payroll tax purposes and purchasing its workers’ compensation insurance separate from that of the County). The workers’ compensation policy that is being sought by this RFP is not to apply to WC injuries of employees at MMC.
It is recognized that if compliance with rigid specifications were insisted upon, some insurers would not be in a position to offer their best or most competitive programs. It is our intent for this RFP to be viewed as general guidelines for coverage requirements and options. Interested parties are encouraged to offer coverage alternatives to improve the County’s coverage. Quotes for coverage that would serve to restrict the County’s coverage are not desired.
Gray & Company, LLC is not an insurance brokerage firm or agency, nor is it affiliated with any insurance carrier or claim administrator. We will show no bias to any proposer. The firm is to be considered as a disinterested party in the placement of the coverage. We will be pleased to discuss this RFP or review any alternate ideas concerning coverage requirements with interested parties participating in the proposal process.
It is Gray & Co.’s intention to treat each proposer equally. We trust it is recognized that considerable effort has been made by County staff in providing this underwriting data. The intent of this RFP is to:
1. Provide agents, brokers, and underwriters with the information that is needed to develop a competitive proposal.
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2. Receive proposals that contain the information necessary to perform a thorough analysis and comparison.
3. Provide the County with unbiased factual information for the purpose of making an informed purchasing decision.
We would welcome any suggestions or inquiries that might help us better achieve these goals. Questions concerning this RFP or requests for additional information should be directed in writing (e-mail preferred) to:
Don Gray, ARM
Gray & Company, LLC 605 The High Road Austin, Texas 78746
Cell: (512) 496-3583 E-Mail: Don@Insconsultant.com
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PART II
RFP PROCEDURES
NOTE: Please review these procedures CAREFULLY and contact Gray & Co. with any questions or requests for variances. Failure to adhere to these
procedures or to obtain approval for deviations may result in an incomplete evaluation of your proposal.
PROPOSAL:
►
SUBMIT 1 ORIGINAL & 1 PHOTOCOPY TO THE
COUNTY JUDGE, AND SUBMIT 1 PHOTOCOPY TO THE
CONSULTANT.
1. PROPOSAL DUE DATE & TIME: Proposals (one original and one photocopy) must be in the office of the County Judge, by 10:00 AM, February 18, 2016. The clock in the County Judge’s office is the official clock that will be used in determining the time that a bid is received and the time that bids will be opened. A late delivery with an early postmark will not suffice. Be sure you have allowed ample time for postal delivery. The County will not be responsible for the delivery of your proposal to the office of the County Judge. If you choose to send your proposal by postal delivery, then it is
recommended that you call the County Judge’s office at 361-553-4600 to verify receipt of your proposal prior to the opening date. Calhoun County accepts no financial responsibility for any cost incurred by any vendor in the course of
responding to these specifications. Calhoun County does not accept faxed or emailed proposals.
AllPROPOSALS ARE DUE on or before 10:00 AM, February 18, 2016 at the following address:
Michael J Pfeifer, County Judge Calhoun County Courthouse 211 South Ann Street
3rd Floor, Ste 301 Port Lavaca TX 77979
►Mark outside of envelope:
SEALED PROPOSAL – “Calhoun County Insurance RFP” Refer to item 14 below for “proposal opening” information.
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Consultant’s Photocopy of the Proposal
A complete photocopy of the proposal (clearly labeled “Calhoun County Insurance RFP”) should be provided to the consultant (Gray & Co.) via USPS, UPS or Federal Express physical delivery no earlier than the deadline indicated and no later than 24 hours following the deadline above at the following address:
Don Gray, ARM Gray & Company, LLC
605 The High Road, Austin, Texas 78746 512-496-3583
Email: Don@insconsultant.com
Proposals must meet these requirements to be considered. At this time, it is anticipated that the coverage will considered for awarding during the Commissioners’ Court meeting set for March 10, 2016, 10:00 AM.
A vendor may withdraw his/her proposal before County acceptance of his/her proposal without prejudice to himself/herself, by submitting a written request for its withdrawal to the County Auditor.
The Proposal must be signed and dated by an officer (or employee) who is duly authorized to execute this contract, that this company, corporation, firm, partnership or individual has not prepared this proposal in collusion with any other Vendor, and that the contents of this proposal as to prices, terms or conditions of said proposal have not been communicated by the undersigned nor by any employee or agent to any other person engaged in this type of business prior to the official opening of this proposal. Item 10 of the “Responses to RFP Part II” form provided within RFP Part III can be used to fulfill this requirement.
2. Effective Date of Coverage & Term of Insurance Policies
Policies are to be written on an annual or multi-year term beginning 12:01 AM on April 1, 2016. If coverage is written on a multi-year policy, the County retains the continuing right to terminate the policy at each annual anniversary without penalty inasmuch as the County does not have the authority to commit beyond the current budget period. However, the County may opt to not exercise its termination right.
The County desires an initial 9-month coverage period of 4/1/16-1/1/17 to be followed by annual “calendar year” coverage periods.
After awarding the initial placement of policies for the first annual or multi-year term, the County intends to continue renewing those policies to 1/1/2020 provided:
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a) The County is provided with a written “renewal indication” by each October 1 which is determined at that time to be competitive in relation to current market conditions and in relation to the County’s loss history.
b) The County is provided with a renewal proposal by November 15 which is determined at that time to be competitive in relation to current market conditions and in relation to the County’s loss history.
3. Analysis of Proposals
The County’s interest in conducting a fair and thorough comparison of all proposals should be indicated by their engagement of Gray & Co. to assist in this matter. Underwriters can be assured that their efforts in preparing a proposal that responds to the coverage requested in this RFP will be appreciated. It is suggested that proposals be reviewed prior to submission to ensure they provide the information requested in this RFP.
Part III of the RFP provides each proposer with a Questionnaire that details the insurance coverage that the proposer is presenting for the County’s consideration. Proposers are welcome to attach additional material to fully detail the proposal. The Questionnaire must be fully completed and submitted as part of each proposal. Proposals will be evaluated in a three-step process. First, proposals will be reviewed for basic information such as premiums, limits, deductibles, basic coverages, and other qualifying factors. Some proposals may be identified as not warranting further consideration at this point and set aside. Second, proposals determined by the consultant and the County as deserving further consideration will receive a more thorough evaluation (to include a review of the proposed policy language). The County, through its consultant, reserves the right to negotiate in writing with proposers during this stage of the evaluation without divulging specific information about the competition’s proposals. The third and final step of the process involves the consultant meeting with the Commissioners’ Court to review the proposals.
4. Purchasing Decision
Gray & Co. will discuss the strengths and weaknesses of all proposals with the members of the Calhoun County Commissioners’ Court. The decision for the awarding of placement of insurance will be made by Calhoun County Commissioners’ Court. Awards will be based on an evaluation of proposals using the following factors:
o Scope of coverage; o Anticipated net cost;
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o Financial stability and reputation of the insurer or pool;
o Insurer’s ability to provide loss control and claims services requested; o Service capability; and
o The opportunity for insurance policies to be placed with the same insurer when such would benefit the County
The Commissioners’ Court reserves the right to waive technicalities, reject any or all proposals, to accept the proposal deemed most advantageous to Calhoun County and to be the sole judge in determining which proposal will be most advantageous to Calhoun County.
Calhoun County is an Equal Employment Opportunity Employer. The County does not discriminate on the basis of race, color, national origin, sex, religion, age or handicapped status in employment or the provision of services.
5. Insurer Eligibility
Insurance Companies and “Pool” Re-insurers: To qualify, each insurer and risk sharing pool’s commercial re-insurers must have maintained a general policyholder's rating of "A-" or better and a financial rating of Class 10 or better since 1/1/14 as published by Best's Key Rating Guide, latest edition. Proposals from lower rated insurers will not be accepted.
Insurance companies should be authorized to do business in the State of Texas. In the event a non-admitted insurance company is proposed, your proposal should state your reasons for using the non-admitted insurance company and clearly spell out any premium tax arrangements and/or filing procedures that should be required in the event this insurance company was selected. Surplus lines tax and fees should be included in the proposed premiums (or detailed as their amount).
Intergovernmental Risk-sharing Pools/Reinsurers: Due to the absence of an A.M. Best rating, proposals submitted on behalf of "inter-governmental risk sharing pools" should include audited financial statements (complete with auditor’s notes). The most recent two years audited financial statements should be provided as part of each proposal. Statements should indicate whether loss reserves include IBNR and loss development factors as determined by an actuarial analysis. Also, statements should indicate whether loss reserves have been discounted for present value/investment income and should detail the pool’s reinsurance arrangements (i.e., insurer, attachment point, limits, facultative, etc.).The financial statements should reflect compliance with the ratios shown below:
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Ratio Formula Liability
Net Contributions Written to Surplus 2 maximum Net Reserves to Surplus 4 maximum Surplus to Retention 6 minimum Net Combined Ratio (Losses &
Expenses)
100% maximum
If not addressed in the financial statements, the proposal must detail the pool’s re-insurance protection such that it can be determined what portion of the risk is retained by the pool and what portion of the risk is reinsured. Details should include lines of coverage protected by re-insurance, re-insurance limits (per occurrence and in the aggregate), available aggregate limits, and policy periods. Prior to contracting to a risk sharing pool, it is important for the County to be aware of the pool’s financial abilities.
6. Communication with Gray & Company
Proposers should contact Gray & Co. (in lieu of the County) if any information is
needed about the County or the RFP process. Questions relating to loss exposures, the County’s operations, underwriting information, and RFP procedures should be presented in writing (Gray & Co. encourages use of e-mail
correspondence). While telephone inquiries are permitted, the proposer must agree to provide Gray & Co. with a written summary of the questions. Gray & Co. will respond to requests for additional underwriting information by issuing addendums to the RFP to be distributed to all proposers.
7. Underwriting Inspection
Inspections necessary for presenting a proposal will be arranged on a group appointment basis by contacting Gray & Co. Please provide detailed information as to the locations needed to be visited, persons to be interviewed, the type of any data needed, etc. You should allow five working days for an appointment to be arranged. The County’s intent is to schedule one date to accommodate all interested vendors at the same time.
10 8. Underwriting Information
Due care and diligence have been used in the preparation of this RFP, and the information contained herein is believed to be current and correct. The underwriting information has been provided by the County. However, the responsibility for determining the full extent of the exposure shall rest solely upon the proposer. It is incumbent upon proposers to fully review this RFP and to request from Gray & Co. any additional specific information required. The County, its representatives and Gray & Co. shall not be responsible for any errors and/or omissions in this RFP, nor for the failure on the part of the proposer to determine the full extent of the exposures. Requests for additional underwriting information should be made as soon as possible (preferably no later than February 8, 2016.
9. Insurance Applications
All underwriting data provided in this RFP has been prepared by the County and reviewed by the consultant. For the purpose of providing proposals, underwriters are to base their proposals on the underwriting data contained in this RFP and, if applicable, its addendums. Proposals that are based, to any degree, on any other sources of information should indicate the source and type of information as part of the proposal. Our intent is for all proposals to be based on identical underwriting data so that premiums can be fairly compared.
Proposers may indicate that proposals are subject to receipt of a fully completed application without material differences from data provided in the RFP. The County recognizes that the successful carriers may elect to revise or withdraw their proposals if the completed applications contain information that is not revealed in this RFP. Any underwriters that are not willing to accommodate the County on this matter (by requiring completion of a signed application) should provide a letter to Gray & Co. explaining why an exception should be made.
10. Request For Proposals
This RFP provides guidelines for the proposals desired. Any restrictions, deviations or other modifications that would restrict or broaden the coverage that is presently in force must be clearly noted in the proposals.
11 11. ProposedPolicy Language
Proposals presented to the County and to Gray & Co. MUST include a true and exact copy of the complete policy language which is being proposed for the County (including declaration pages, basic policy parts and endorsements, other than premium rating and schedules, and not requiring declaration pages to be completed). The policy language will be reviewed as part of the proposal analysis. The sample policy language must be consistent with the coverage that is being presented. The proposer must be certain that the actual policy, when issued, agree with the provided sample policy. The proposer will be responsible for all additional costs involved in correcting any discrepancies between the sample policy and the actual policy. The incumbent insurer is not required to provide a sample policy if the proposed policy is to be a duplicate of the policy presently in force.
12. Ancillary Services
All proposals should fully describe agent/broker/representative services, safety engineering and inspection services, exposure review services, assistance in drafting contractual insurance requirements, claims adjustment service, and other services that will be offered and provided by the proposing carriers or their agents/brokers. If independent firms are to be used, the name and address of the firm is to be indicated. The County intends to give due consideration to the ability of the insurance agent, broker and/or carrier to service this account. Supporting information detailing these abilities is recommended. The last two pages of RFP Part III have been reserved for use in describing the proposed services.
13. Premium Guarantee
All proposers should indicate the length of time over which proposed annual premium, premium rates, factors, and discounts are to be guaranteed. RFP Part III features a field to be used for this purpose.
14. Proposal Opening & Negotiations
The proposals will be publicly opened in the County Judges office (County courthouse, 211 South Ann, 3rd floor, Suite 301 in Port Lavaca) on February 18, 2016, 10:00 AMin a manner which avoids disclosure of the proposal contents to competing proposers. Other than reading aloud the information contained on each proposal’s “Proposal Opening” Announcement form (provided on page 19), the contents of the proposals will not be disclosed by the County or by the consultant until the negotiation period ceases. Following the initial review of the proposals, the County and/or Gray & Co. may elect to
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meet with or contact the “top ranked” proposers (each separately, possibly by telephone or email) for the purpose of:
1. Clarifying any aspects of the proposal, 2. Meeting the agents and underwriters, and/or
3. Discussing areas where the proposal might be able to be improved.
During the negotiation phase, neither the County nor Gray & Co. will share any specific information with proposers in regard to the competitiveness of premiums or coverage offered by proposers. Proposers who are determined by Gray & Co. to be “top ranked” should assume that their premiums and coverage terms are competitive. Insurers should do their best to initially offer their most competitive pricing and coverage terms so they will qualify as being “top ranked”.
15. Premium Auditing
Proposals should specify whether proposed premiums are subject to audit. If not indicated, it will be assumed that premiums are not subject to audit.
16. Issuance of Binders and Policies
Proposals must include an agreement from the agent, broker and/or carrier that binders detailing coverage to be provided will be delivered to the County prior to the effective date of coverage. Further, the agreement should confirm that completed policies will be delivered to the County within 15 calendar days following the inception of coverage (unless delayed due to the fault of the County). Item 7 in the “Responses to RFP Part II” portion of RFP Part III is to be used for this purpose.
17. Loss Runs
Proposals should include an agreement that the agent, broker or carrier(s) will furnish a monthly report of all claims indicating property or persons involved, date of loss or accident, amount paid and amount reserved. This report must be furnished within 30 days of the end of each report quarter to Human Resources and to the County Auditor. The claims report should continue to be provided until all claims are closed, even after the expiration of the policy period. Item 4 in the “Responses to RFP Part II” portion of RFP Part III is to be used for this purpose.
18. The County’s Reservation of Rights
The County reserves the right to reject any and all parts thereof or to waive informalities, irregularities and errors in the proposals as long as such are technical in
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nature and not material. Finally, the County reserves the right to cancel, amend or discontinue at its discretion all or any part of the insurance coverages or services utilized in accordance with the provisions of each insurance policy. It is not incumbent on the County to accept the lowest priced proposal(s) received.
19. Proposal Format
The questionnaires provided in Part III (Insurance Coverage & Proposal Questionnaire) must be completed and submitted (with sample polices) as part of your proposal. The Certificate of Compliance is required by state law when a County enters into a The questionnaires provides a standard format to present proposed terms, limits, sublimits, coverage conditions, exclusions, annual premiums and optional coverages. It can be completed by hand and, for the most part, can be answered by responding “Yes”, “No”, “Included” or “Not Included” or by writing a numerical limit or premium. Completion of the table provides the proposers with a forum that points out how the proposed coverage compares to the current coverage.
20. Qualifications of Agents and/or Brokers
Proposers should state whether they meet the following qualifications and be prepared to give satisfactory evidence upon request:
Agents, Brokers, and Pool administrators must maintain an Errors & Omissions policy with limits of at least $1,000,000 per occurrence, available aggregate limits of at least $1,000,000 and a maximum deductible not to exceed $10,000 while writing the County’s coverage. Exceptions will be considered on a case-by-case basis. Item 5 in the “Responses to RFP Part II” portion of RFP Part III is to be used for this purpose.
21. References
Proposing agents, brokers, pool administrators, and insurers must list three client references that can be contacted by the County or by Gray & Company for the purpose of discussing the proposer’s service abilities. References should include firm name, contact name, contact’s title, mailing address, email address and telephone #). Item 2 in the “Responses to RFP Part II” portion of RFP Part III is to be used for this purpose.
22. Access to Insurance Markets
This RFP assumes that no insurance brokers have submitted underwriting information to any insurance underwriters from sources outside this RFP in advance of the RFP’s release. Further, insurance markets are not being assigned by the County (due to the difficulties involved in a political entity making such assignments).
14 23. Rejections
All disputes concerning this RFP will be determined by Commissioners’ Court or their designated representative.
24. Protest Procedures
Any actual or prospective vendor who believes they are aggrieved in connection with or pertaining to a proposal may file a protest. The protest must be delivered in writing to the County Auditor’s Office, in person or by certified mail return receipt requested prior to award. The written protest must include:
1. Name, mailing address and business phone number of the protesting party;
2. Appropriate identification of the proposal being protested; 3. A precise statement of the reasons for the protest; and
4. Any documentation or other evidence supporting the protest and any alleged claims.
All protests will be held in Calhoun County, Texas. The Auditor’s Office will attempt to resolve the protest, including at the Auditor’soption, meeting with the protesting party. If the protest is successfully resolved by mutual agreement, written verification of the resolution, with specifics on each point addressed in the protest, will be forwarded to Commissioners’ Court.
If the Auditor’s Office is not successful in resolving the protest, the protesting party may request in writing that the protest be considered by Commissioners’ Court. Applicable documentation and other information applying to the protest will be forwarded to Commissioners’ Court, who will promptly review such documentation and information.
If additional information is desired, Commissioners’ Court may notify the necessary party or parties to the protest to provide such information. The decision of Commissioner’s Court will be final.
25. Public Information Act
All governmental information is presumed to be available to the public. Certain exceptions may apply to the disclosure of certain information. Governmental bodies
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shall promptly release requested information that is not confidential by law, either constitutional, statutory, or by judicial decision, or information for which an exception to disclosure has not been sought.
26. Performance Based Oversight Ratings
Proposers must attach Performance Based Oversight rating certificates as issued by the Texas Department of Insurance for the three most recent years.
27. Interlocal Agreement
Governmental risk pools must attach a complete copy of the proposed Interlocal Agreement contract for review and consideration.
28. Memorial Medical Center
This RFP is not seeking proposals for WC insurance that applies to Memorial Medical Center and its staff.
Calhoun County owns and operates Memorial Medical Center (MMC) in Port Lavaca (a 25 bed hospital). MMC operates as a separate cost center
(department) within the County's financial records. MMC's financial records are incorporated into the County's annual audited financial statement (the County's annual audit report describes MMC as being a "discrete
component unit" of the County).
The County is 100% responsible for MMC's losses and debts and the County owns 100% of the facility. As with all Calhoun County departments, MMC's budget and expenditures must be approved by the County
Commissioners Court. MMC's board members are appointed by the County Commissioners Court.
While Calhoun County is the taxing entity (MMC is not a separate taxing entity, it is part of the County), the County's goal is for the revenues generated by MMC to sustain MMC's operating expenses (cost
center).However, the County is responsible for funding any MMC shortfalls. To further operate as a separate cost center, MMC has obtained its own federal tax ID number. Still, MMC's employees are employees of the County and the County Treasurer remits MMC’s IRS 941 payroll taxes to IRS under the hospital’s federal tax ID number. Since MMC is owned and
operated by the County, MMC is eligible to have its retirement plan provided by the Texas County & District Retirement System (which is only authorized by the State legislature to provide retirement plans to political subdivisions).
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As a distinct cost center for financial record keeping purposes, the County has allowed MMC to purchase its own WC insurance policy (separate from the policy the County purchases from TAC to cover the County's non-hospital operations). This approach assures the County that MMC’s loss experience and WC premiums can be charged directly to MMC and will not have any impact on the County’s WC policy.
29. Certificate of Interested Parties
As per Section 2252.908 of the Government Code, state law states that a County may not enter into a contract with a “business entity” unless a Certificate of Interested Parties (Form 1295) has been completed and provided for review by the County at the time the contract is considered for action by a Commissioner’s Court. The term “business entity” includes a sole proprietorship, partnership or corporation (whether for profit or not for profit). As a result, any proposer who qualifies as a “business entity” and who would need to enter into contract with the County in order to provide the proposed services and insurance protection is required to file a Form 1295.
While a “sample” Form 1295 is provided in Exhibit H for illustrative
purposes only, the actual Form 1295 must be accessed and filed via
the Texas Ethics Commission website. The Texas Ethic
Commission’s Form 1295 web link is:
https://www.ethics.state.tx.us/TECCertInt/pages/login/certLogin.jsf
A business entity must use the application at the Texas Ethics
Commission website to enter the required information on Form 1295
and print a copy of the completed form, which will include a
certification of filing that will contain a unique certification number.
An authorized agent of the business entity must sign the printed
copy of the form and have the form notarized. In responding to this
RFP, the completed Form 1295 with the certification of filing must be
included within the business entity’s proposal.
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PART III
INSURANCE COVERAGES & PROPOSAL QUESTIONNAIRE
Calhoun County desires proposals for Workers’ Compensation/Employers Liability insurance coverage that is equally as “broad” (or broader) as the coverage presently in force. In addition, the County desires to consider several options to possibly change their coverage (i.e., “Optional Enhancements”). Proposers are encouraged to offer options that allow the County to retain a larger portion of the risk than is currently retained by the County. This can accomplished through proposals that offer options for increased deductibles, to include the use of aggregate deductible “caps” that apply to a single line of coverage or to multiple lines of coverage.
The coverage presently in force is summarized on the following pages in a “table” format. Please review the information provided below before reviewing or completing the following Proposal Questionnaire.
1. The Proposal Questionnaire serves four basic purposes.
• First, it provides proposes with details about the coverage currently in force and its pricing. Since the RFP requests pricing for coverage similar to the coverage currently in force, this Questionnaire provides proposers with details about the coverage presently in force.
• Second, the Questionnaire provides the proposer with a format to be used in detailing the proposed coverage (including coverage options.)
• Third, the completed Questionnaire will be used in evaluating the proposals (Therefore, full completion is required)
• Fourth, the Questionnaire submitted by the successful proposers will be compared to the insurance policies ultimately issued to make certain that the policies agree with the Proposal Questionnaire. 2. You are welcome to the complete the Questionnaire by hand. It is not necessary to type the responses.
3. The proposal must include a true and exact copy of the complete policy language that would be found in WC policy issued to Calhoun County (including declaration pages, all endorsements, terms and conditions). “Sample” or “Specimen” policy language is not requested unless it is intended to be an exact match to the policies that would be issued to Calhoun County.
4. Please attach complete copies of the underwriter’s “quote” sheet(s).
5. Please attach any additional proposal material that you care to provide with the Proposal Questionnaire, especially relating to coverage enhancements being offered that are not addressed in the questionnaires. For example, proposers are encouraged to attach information that details the claim service and loss control services provided by the proposer. .
6. Quoted premiums must include any applicable surplus lines and/or fees.
7. The “Contact Person, Email address and Phone Number” field at the top of each coverage section in Part 3 should provide information about the person to be contacted by the consultant with any questions about the proposed coverage.
Please contact Don Gray of Gray & Co. if you have any questions regarding the completion of the Proposal Questionnaire. (512-496-3583; don@insconsultant.com).
Questionnaire Key
RFP = Request for Proposals Incl = Included
BI = Bodily Injury NI or Not Incl = Not Included PD = Property Damage E = Excluded
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Responses to RFP Part II (Very important!)
1. Have you enclosed true and exact copies of proposed policy language in each copy of your proposal as per RFP Part II-11?(including all endorsements, terms and conditions, not required to complete declaration pages and schedules)?
2. Reminder: Attach a listing of references in accordance with RFP II-21.
3. Do proposing insurers satisfy the “insurance eligibility” provisions of item II-5 in the RFP? 4. Does the insurer agree to provide loss runs in accordance with RFP II-19?
5. Do the agent/brokers/representatives who will service the proposal meet the requirements of RFP II-20?
6. Have you attached copies of the underwriter's quotations, as requested above?
7. Does the proposer agree to provide binders detailing coverage to the County prior to the effective date of coverage?
Does the proposer agree to provide completed insurance policies to the County within 15 calendar days following the inception of coverage (unless delayed due to the fault of the County)?
8. Have you attached the proposer’s Performance Based Oversight rating certificates as issued by the Texas Department of Insurance for the three most recent years, as requested in Part II-26? 9. In the case of governmental risk pools, have you attached the proposer’s Interlocal Agreement
as requested Part II-27?
10. Certificate of Interested Parties –
If the proposer qualifies as a “business entity” and would need to enter into a contract with the County in order to provide the services and insurance protection is required present a completed Form 1295 (notarized). The form and certification of filing must be provided as part of the proposal.
Is the proposer a “business entity” who desires to contract with the County? ANSWER “YES” or “NO”: _______________
If “YES”, is a notarized Form 1295 and the certificate of filing attached as part of the proposal? ________
11. The Proposal must be signed and dated by an officer (or employee) below who is duly authorized to execute this contract, and by signature below confirms that this company,
corporation, firm, partnership, risk pool or individual has not prepared this proposal in collusion with any other Vendor, and that the contents of this proposal as to prices, terms or conditions of said proposal have not been communicated by the undersigned nor by any employee or agent to any other person engaged in this type of business prior to the official opening of this
proposal.
Signature: _______________________
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“Proposal Opening” Announcement Form
The following table must be completed and attached to each proposal in a very obvious position so that it can be quickly and easily retrieved and read aloud during the
“Proposal Opening” session.
Insurance Policy Proposer (agent, broker, etc.) Insurer(s)
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Workers’ Compensation
Proposing Insurer:
Current A.M. Best Rating Level (i.e., A-): Current A.M. Best Financial Size (i.e., XV): Admitted/Non-Admitted in Texas:
Contact Person, Email address and Phone Number: DESCRIPTION TAC WC
Self-Insurance Pool
Expiring Limits & Coverage
Proposed Coverage (indicate ”Included” (I) or “Not Included” (NI) as compared to the expiring coverage
COMMENTS
Coverage “A” (Workers’ Compensation) Statutory limits Coverage “B” (Employers Liability) $1M/$2M Network name and website Alliance,
www.pswca.org Elected and appointed officials Included
Volunteers – Firefighters and EMS Not Included Volunteers – Law Enforcement Included Volunteers – other than Law
Enforcement
Not Included Election personnel and jurors Included
Memorial Medical Center and its staff Not included Not included
Name and location of the claim servicing firm
Attach details about the claim servicing abilities of the proposed claim service firm, to include on-line reporting and access by the County
Premium and Policy Period
Premium for coverage outlined above (this 2015 premium includes package discounts for placing other lines of coverage with the WC insurer)
$131,802 (1/1/15-16)
$__________ (4/1/16 -1/1/17) Experience Modifier used in calculating
the premium above (Note: the 1.06 modifier was calculated using the incumbent insurer’s “in-house” experience modifier formula and was not calculated using an NCCI
approved formula or factors. A NCCI modifier is not available. )
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Describe the basis of the experience modifier being used to develop the premium above and the basis of the modifiers to be used in quoting renewals (i.e., use of the NCCI formula and factors, “in-house” modifier).
Premium based on $___________ in total WC payroll and _________ employees
$10,211,694 estimated WC
payrolls, 274 employees
(to be based on 3/4ths of the estimated 2016 WC payrolls)
Policy Period 1/1/15-16
Premium rates, modifiers, credits, discounts, and factors are fixed for what period of time? (MULTI-YEAR
PROPOSALS ARE ENCOURAGED)
Is the proposed premium subject to change based on annual “final year end” payrolls?
Is the annual premium fixed at the quoted dollar amount for a period of time? If so, for how long?
Is there an opportunity for the County to receive Dividends? If “yes”, please detail the basis of how dividends are determined and provide a table which expresses the proposer’s total gross annual dividends as a % of the
proposer’s total gross annual premium by year for the past 5 years. Please address the degree to which Calhoun County’s losses would impact the dividend distribution formula.
No
Subject To
Is the proposed coverage and pricing “subject to” any conditions?
Is Premium Subject to Audit? No Other than premiums to be paid by the
County, does the proposer have the ability to access the County in any manner for its loss experience or for the loss experience of others? If “yes”, please explain in detail.
22 Deductible
Deductible None
Options
DESCRIPTION ADJUSTMENT
to premium quoted above (indicate “-“ for return
premium or “+” for additional premium)
DEDUCTIBLE (if different from
deductibles provided above)
COMMENTS (indicate “Not proposed” if the option is not being
proposed or “Included” if coverage is provided at no
change in the premium provided
above).
Quote the premium credit that would apply if a $25,000 deductible (per occurrence) were to be purchased. Quote the premium credit that would apply if a $100,000 deductible (per occurrence) were to be purchased. Quote the premium credit that would apply if a $25,000 deductible (per occurrence) with a $100,000 cap on deductibles per policy period were to be purchased.
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Agent/Representative Services
Please use the space below to provide a detailed listing of services to be provided by the proposing insurance agent/broker or insurer representative in serving Calhoun County. Indicate whether the services are provided at no additional cost to the County or to be provided on a fee basis.
Suggested services to be proposed include the following: 1. Negotiating coverage and price with underwriters 2. Maintaining insurer relations
3. Promptly advise the County Auditor of any changes in AM Best ratings of the insurers who provide coverage to the County purchased through this RFP (and of a pool’s reinsurers) 4. Evaluating new exposures and adding coverage, as needed
5. Handling mid-year coverage disruptions 6. Issuing certificates of insurance
7. Verifying rates and premiums
8. Providing the County Auditor with suggested budget figures for insurance premiums 9. Delivering binders prior to renewal dates each year
10. Checking policy wording and accuracy
11. Delivering policies within 15 calendar days following the inception of coverage and mid-term endorsements (hard copies and electronic copies) except when delayed by the County. 12. Answering coverage questions
13. Attending meetings with the County or others 14. Premium billing
15. Checking premium billings for accuracy 16. Assisting with claim questions
17. Furnish a monthly report of all claims indicating property or persons involved, date of loss or accident, amount paid and amount reserved. This report must be furnished within 30 days of the end of each report month to County Auditor. The claims report should continue to be provided until all claims are closed, even after the expiration of the policy period.
18. Review open claims via telephone or in person with the Human Resources Office on a monthly basis.
19. Checking premium exposure audits for correctness 20. Loss control advice
21. Make certain that the County is aware of all loss control/engineering services that can be provided by the insurers who write the County’s WC policy
22. Auditing claims handling 23. Other services?
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Insurer Services
Please use the space below to provide a detailed listing of services to be provided by the proposing insurer in serving Calhoun County. Indicate whether the services are provided at no additional cost to the County or to be provided on a fee basis.
EXHIBIT H
CERTIFICATE OF INTERESTED PATIES
(FORM 1295)
Form provided by Texas Ethics Commission www.ethics.state.tx.us Adopted 10/5/2015
FORM
1295
CERTIFICATE OF INTERESTED PARTIES
OFFICE USE ONL OFFICE USE ONLOFFICE USE ONL OFFICE USE ONL OFFICE USE ONLYYYYY
6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct.
AFFIX NOTARY STA M P / SEAL ABOVE
Title of officer administering oath Printed name of officer administering oath
Signature of officer administering oath
Sworn to and subscribed before me, by the said _______________________________________________, this the ______________ day of ________________, 20 _______ , to certify which, witness my hand and seal of office.
Signature of authorized agent of contracting business entity
ADD ADDITIONAL PAGES AS NECESSARY
Name of Interested Party
Nature of Interest (check applicable) City, State, Country
(place of business)
Controlling Intermediary
4
Name of governmental entity or state agency that is a party to the contract for which the form is being filed.
2
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the goods or services to be provided under the contract.
Complete Nos. 1 - 4 and 6 if there are interested parties.
Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties.
1 Name of business entity filing form, and the city, state and country of the business entity's place of business.
