Agenda 11/18/2008 Item #16E 1
EXECUTIVE SUMMARY
Agenda Item No, 16E1
November 18, 2008
Page 1 of 6
Recommendation to approve the renewal of the Group Life, Long Term Disability,
and Short Term Disability Insurance programs with Sun Life Assurance Company
of Canada effective January 1, 2009 at the current rates, coverage terms and
conditions.
OBJECTIVE: To gain approval of the Group Life, Long Term Disability, and Short Term
Disability Insurance programs with Sun Life Assurance Company of Canada effective January
1, 2009 at the current rates, coverage terms and conditions,
CONSIDERATIONS: The Board of Commissioners through the Risk Management Department
administers a self-funded Short Term Disability program and fully insured Long Term Disability
insurance program for its eligible employees and participating constitutional officers, Coverage
is provided by Sun Life of Canada, The Board also provides Group Life and Accidental Death
insurance through Sun Life of Canada,
In August, 2008 staff requested renewal quotes through the County's contracted benefits
broker, Willis, Inc, for the January 1, 2009 renewal. On September 18, 2008 the renewal quotes
were received, Sun Life has agreed to hold the existing Long Term Disability insurance rates as
well as the Short Term Disability administration fee at the current level for a two year period,
Further, Sun Life offered to renew the Group Life and Accidental Death rates at the current level
for a two year period, The two year renewal offer is predicated upon the bundling of coverage
and services,
The staff of Risk Management and Willis reviewed the prior twelve month claim history and
determined that the loss ratio (Ioses/premiums) is commensurate with the renewal quote, Willis
also confirmed that the rates charged by Sun Life remain competitive with those charged by
competing carriers as well as rates charged to employers similar to Collier County in both size
and employee demographics,
Claims adjudication under the program has been prompt and Sun Life has been responsive to
service issues as they arise, Staff recommends that the renewal be approved,
FISCAL IMPACT: The estimated cost of the Long Term Disability, Short Term Disability, and
Group Life Insurance programs in 2009 is $1,033,639, These premiums are based upon ratable
payroll. This reflects a 0% rate increase, These rates are guaranteed for a 24 month period
beginning January 1, 2009 and ending December 31, 2010, The renewal proposal is attached,
Funds are available within Fund 517, Group Health and Life Insurance, for this purchase,
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with
this item,
LEGAL CONSIDERATIONS: There are no legal considerations associated with this item,
RECOMMENDATION: That ihe Board approves the 24 monih renewal oi ihe Group Life
Insurance, Long Term Disability Insurance and Short Term Disability Insurance programs with
Sun Life of Canada, Inc. effective January 1, 2009 at the current rates, coverage terms and
conditions,
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PREPARED BY: Jeffrey A Walker, CPCU, ARM, Director, Risk Management
Page 1 of 1
Agenda Item No. 16E1
November 18, 2008
Page 2 of6
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16E1
Recommendation to approve the renewal of the Group Life. Long Term Disability, and Short
Term Disability Insurance programs with Sun Life Assurance Company of Canada effective
January 1 2009 at the current rates, coverage terms and conditions.
Meeting Date:
11/18/20089:0000 AM
Prepared By
Jeffrey A. Walker, CPCU,
ARM
Risk Management Director
Date
Administrative Services
Risk Management
10120/20088,34:16 AM
Approved By
Jeffrey A. Walker, CPCU,
ARM
RiSk Management Director
Date
Administrative Services
Risk Management
10/20/20081:21 PM
Approved By
Len Golden Price
Administrative Services Administrator
Date
Administrative Services
Administrative Services Admin.
10128/2008 3:01 PM
Approved By
Jeff Klatzkow
Assistant County Attorney
Date
County Attorney
County Attorney Office
10129/2008 2:32 PM
Approved By
OMS Coordinator
Applications Analyst
Date
Administrative Services
Information Technology
11/3/20088:09 AM
Approved By
Laura Davisson
Management & Budget Analyst
Date
County Manager's Office
Office of Management & Budget
11/3/20088:17 AM
Approved By
James V. Mudd
Board of County
Commissioners
County Manager
Date
County Manager's Office
11/10/20081021 PM
file:IIC:\AgendaTest\Export\ 116-November%20 18.%202008\ 16,%20CONSENT%20AGL, 11/12/2008
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Agenda Item No. 16E1
November 18, 2008
Page 3 of 6
Sun Life Assurance Company of Canada
1715 North Westshore Blvd
Westshore Center, Suite 775
Tampa, FL 33607
Tel: 813-286-8620
Fax: 813-286-6496
September 17, 2008
Michael Meredith
Willis Employee Benefits
5551 Ridgewood Drive
Suite 205
Naples, FL 34108
Group Policy:
Group Office:
Dear Mr. Meredith:
Collier County Government - 061228
Tampa
Re:
Thank you for helping us provide Collier County Government with solid products and outstanding service
over the past year. We are pleased to present the enclosed renewal notification for Collier County
Government for the policy year ending December 31, 2008,
The enclosed rates are based on the current distribution of employees by age, gender and insurance amount.
These rates also reflect our current rating practices,
At Sun Life Assurance Company of Canada, we are proud to otfer customers our Four Marks ofYalue-a
combination of strength and ability unique in our industry:
. Our Financial Strength~ W e receive top ratings from independent rating agencies,
. Our Ability to Make Things Easy-Customers enjoy our local service, robust e-services, and
outstanding customer and claims service. ..guaranteed!
. Our Claims Expertise-Our expert analysts, innovative technology and universal claims promise give
employers and employees peace of mind,
. Our Solid Product Features---We offer everything a company needs to run a successful Life, Disability
or Stop-Loss plan,
It is our understanding, as the Agent of Record for Collier County Government, that you will communicate
this information to your customer immediately, It has been our pleasure to serve Collier County Government,
and we look forward to continuing our relationship with you and your customer in the coming year. If you
want to learn more about the value we provide our customers, or receive additional information about
products and services that may benefit Collier County Government, please call me at 813-286-8620,
Sincerely,
Jeffrey Hillgoth
Sales Representative
Underv-Titer: Connie Lopes
SLPC 13804
Sun Life Assurance Company of Canada
is a member of the Sun Life Financial group of companies.
www.sunlife-usa.com
Renewal Notification For
Collier County Government
Group Number - 061228
Effective 0110112009
Agenda Item No. 16E1
November 18, 2008
Page 4 of 6
Benefit Basic Employee Life Basic AD&D
Eligible Employees 2,256 2,256
Volume $206,603,997 $206,603,997
Rate Basis per $1,000 volume per $1,000 volume
Current Rate $0,285 $0,025
Current Annual Premium $706,586 $61,981
Renewal Rate $0.285 $0.025
Estimated Renewal Premium $706,586 $61,981
Guarantee 24 months 24 months
Comments:
Underwriter: Connie Lopes
SLPC13W4
Sun Life Assurance Company of Canada
is a member of the Sun Life Financial group of companies.
www.sunlife-usa.com
Renewal Notification For
Collier County Government
Group Number - 061228
Effective 0110112009
Agenda Item No. 16E 1
November 18, 2008
Page 5 of 6
Benefit L TD Core L TD Buy-Up
Eligible Employees 2,1 71 1.079
Volume $8,967,535 $4,555,378
Rate Basis % of covered payroll % of covered payroll
Current Rate 0,250% 0.340%
Current Annual Premium $269,026 $185,859
Renewal Rate 0.250% 0.340%
Estimated Renewal Premium $269,026 $185,859
Guarantee 24 months 24 months
Comments:
. We are pleased to continue your LTD rates, contingent upon the Life, AD&D and Sun Advisor renewing,
Underwriter: Jay Quartarone
SLPC 13804
Sun Life Assurance Company of Canada
is a member of the Sun Life Financial group of companies.
www.sunlife-usa.com
Benefit
Eligible Employees
Volume
Rate Basis
Current Rate
Current Annual Premium
Renewal Rate
Estimated Renewal Premium
Guarantee
Comments:
Renewal Notification For
Collier County Government
Group Number - 061228
Effective 0110112009
Agenda Item No. 16E1
November 18, 2008
Page 6 of6
Advice to pay Module 4
2,198
$0
per employee
$2.200
$58,027
$2.200
$58,027
24 months
. We are pleased to continue your Sun Advisor - Advice Plus rate for 24 months,
Underwriter: .tay Quartarone
SLPC13804
Sun Life Assurance Company of Canada
is a member of the Sun Life Financial group of companies.
www.sunlife-usa.com