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Agenda 07/13/2021 Item #16E11 (Agreement #21-029-NS w/Standard Insurance Co.)07/13/2021 EXECUTIVE SUMMARY Recommendation to approve the purchase of Group Life insurance, Accidental Death insurance, Long Term Disability insurance, and Short-Term Disability Claims and Family Medical Leave Act Administration Services, collectively referred to as Agreement No. 21-029-NS, from the Standard Insurance Company for a three-year period effective January 1, 2022, in the estimated annual amount of $808,780, and authorize the Chair to sign the attached Master Agreement. OBJECTIVE: To provide a competitive, best value Group Life and Disability insurance program as part of the County’s comprehensive group insurance package and administer the County’s self -insured Short- Term Disability, Family Medical Leave Act (“FMLA”), and Medical Leave of Absence (“MLOA ”) programs. CONSIDERATIONS: The Risk Management Division administers a Group Insurance Program for the County’s eligible employees and participating constitutional officer employees. As part of this program, the County provides two times salary life and accidental death insurance and a 40% short and long-term disability benefit. Employees can purchase additional short and long-term disability coverage up to a maximum benefit of 66 2/3% of salary (a 26 2/3% buy-up benefit). The short-term disability benefit is self-funded. All other benefits are fully insured. Employees may also purchase additional voluntary life and accidental death coverage on themselves and their dependents. Due to the nature of disability claims, the life insurance, long term disability insurance and short-term disability administration programs must be integrated and purchased from the carrier chosen. The current Group Life and Disability program is underwritten by Reliance Standard and expires on December 31, 2021. In anticipation of this expiration, Willis Towers Watson Midwest, Inc., the County’s retained Benefits Brokerage and Actuarial firm, solicited providers by reaching out to eight carriers. Proposals were received from four carriers including the incumbent, Reliance Stand ard. The estimated program cost for each firm, based upon current enrollment is shown below. Carrier Total Annual Cost Cost Difference from Lowest Proposal Standard Insurance Company $808,780 NA Reliance Standard $975,265 $166,485 Lincoln $1,035,076 $226,296 Voya $1,051,475 $242,695 After reviewing the terms and pricing of each proposal, the list was narrowed to The Standard and Reliance Standard, the latter being the current provider. Both carriers guaranteed rates for three years. The above total annual cost is based the carriers providing Group Life Insurance, Accidental Death and Dismemberment Insurance, and Long-Term Disability Insurance (the “Insurance”), as well as providing administrative services in the handling of Short-Term Disability and Absence Management Claims (FMLA, etc.)(“Claims Management”). The rates for the Group Insurance and Claims Management services are more specifically set forth in the Standard Insurance Company’s attached proposal. Staff completed an interview with The Standard to assess its ability to manage and integrate the Short- Term Disability and Absence Management (FMLA) claims administration services administration portions with the County’s practices and procedures. Upon completion of that interview, staff is recommending that the performance of those services and the acquisition of the Group Life Insurance be awarded to Standard Insurance Company. 16.E.11 Packet Pg. 2136 07/13/2021 The attached Agreement with the Standard Insurance Company, includes: the Master Service Agreement, which provides general terms and conditions concerning the issuance of service agreements involving the Absence Management Service Agreement (FMLA, etc.), and the Disability Program Administrative Services Agreement (pertaining to the Short-Term Disability program), both of which are attached as Exhibits to the Master Service Agreement; and all of which will commence effective January 1, 2022 (collectively referred to as Agreement No. 21-029-NS for SAP contract management tracking purposes), with an agreement term of three years. In addition, the Standard Insurance Company has provided additional ancillary documents, including the Application for Group Insurance for Use in Florida, Self - Funded Plan Application, and STD FICA & W2 Tax Reporting Service Agreement, collectively the “Ancillary Documents,” which have been reviewed and approved by the County Attorney’s Office. FISCAL IMPACT: The total estimated annual cost of the Group Life, Disability insurance program, FMLA and MLOA Administration is $808,780 based upon current reportable payroll. There are sufficient funds available in Fund 517, Group Health and Life, for this purchase. Rates are guaranteed for three years. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: To approve the purchase of: (1) Group Life insurance, Accidental Death insurance, and Long Term Disability insurance, and (2) Short Term Disability Claims and Family Medical Leave Act Administration Services, collectively referred to as Agreement No. 21 -029-NS, from the Standard Insurance Company, with an effective date of January 1, 2022, and authorize the Chair to sign the attached Master Agreement, and delegate signature authority to the Director of Risk Management to sign the Ancillary Documents. Prepared by: Jeff Walker, CPCU, ARM, Director, Risk Management Division ATTACHMENT(S) 1. 21-029-NS TheStandard_VendorSigned (PDF) 2. Ancillary Documents_Insurance Applications (PDF) 3. Collier County Board of Commissioners - GL Cert (PDF) 16.E.11 Packet Pg. 2137 07/13/2021 COLLIER COUNTY Board of County Commissioners Item Number: 16.E.11 Doc ID: 16328 Item Summary: Recommendation to approve the purchase of Group Life insurance, Accidental Death insurance, Long Term Disability insurance, and Short-Term Disability Claims and Family Medical Leave Act Administration Services, collectively referred to as Agreement No. 21 -029-NS, from the Standard Insurance Company for a three-year period effective January 1, 2022, in the estimated annual amount of $808,780, and authorize the Chair to sign the attached Master Agreement. Meeting Date: 07/13/2021 Prepared by: Title: Benefits Analyst – Risk Management Name: Sonja Sweet 06/23/2021 8:19 AM Submitted by: Title: Division Director - Risk Management – Risk Management Name: Jeff Walker 06/23/2021 8:19 AM Approved By: Review: Risk Management Jeff Walker Director Review Completed 06/23/2021 9:48 AM Procurement Services Ana Reynoso Level 1 Purchasing Gatekeeper Completed 06/23/2021 10:06 AM Procurement Services Sue Zimmerman Additional Reviewer Completed 06/23/2021 10:16 AM Procurement Services Sandra Herrera Additional Reviewer Completed 06/23/2021 10:27 AM Agenda Clerk Preview Michael Cox Agenda Clerk Preview Completed 06/26/2021 7:15 AM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 06/28/2021 10:30 AM Office of Management and Budget Laura Wells Level 3 OMB Gatekeeper Review Completed 06/28/2021 10:49 AM Office of Management and Budget Laura Wells Additional Reviewer Completed 06/28/2021 11:48 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/28/2021 3:38 PM County Manager's Office Sean Callahan Level 4 County Manager Review Completed 06/30/2021 5:20 PM Board of County Commissioners Geoffrey Willig Meeting Pending 07/13/2021 9:00 AM 16.E.11 Packet Pg. 2138 16.E.11.aPacket Pg. 2139Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2140Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2141Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2142Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2143Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, 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Insurance and FMLA 16.E.11.aPacket Pg. 2177Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2178Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2179Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2180Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2181Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2182Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2183Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2184Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2185Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.aPacket Pg. 2186Attachment: 21-029-NS TheStandard_VendorSigned (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.bPacket Pg. 2187Attachment: Ancillary Documents_Insurance Applications (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.bPacket Pg. 2188Attachment: Ancillary Documents_Insurance Applications (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.bPacket Pg. 2189Attachment: Ancillary Documents_Insurance Applications (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA 16.E.11.bPacket Pg. 2190Attachment: Ancillary Documents_Insurance Applications (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY 6/29/2021 Alliant Insurance Services,Inc. 701 B St 6th Fl San Diego CA 92101 Jim Biernat 415-946-7517 james.biernat@alliant.com License#:0C36861 Atlantic Specialty Insurance C 27154 STANFIN-01 Sentry Insurance Company 24988StanCorpFinancialGroup,Inc. (See Additional Named Insureds Below) 1100 SW Sixth Avenue Portland OR 97204 Federal Insurance Company 20281 Lloyd's of London 0 1617314933 A X 1,000,000 X 1,000,000 15,000 1,000,000 2,000,000 X Y Y 712-00-77-55-0014 7/1/2021 7/1/2022 2,000,000 A 1,000,000 X X X Y 712-00-77-55-0014 7/1/2021 7/1/2022 A X X 10,000,000712-00-77-55-0014 7/1/2021 7/1/2022 10,000,000 B B X90-16876-01 00 211 90-16876-02 00 211 7/1/2021 7/1/2021 7/1/2022 7/1/2022 1,000,000 1,000,000 1,000,000 C D Professional Liability Privacy/Cyber Liability 82086341 B0146CYUSA2101398 7/1/2021 7/1/2021 7/1/2022 7/1/2022 Limit Limit $5,000,000 $5,000,000 Named Insureds:StanCorp Financial Group,Inc.;Standard Insurance Company;The Standard Life Insurance Company;StanCorp Equities,Inc.;StanCorp Investment Advisers,Inc.;StanCorp Mortgage Investors,LLC;Standard Management,Inc.;Standard Retirement Services,Inc.;StanCorp Real Estate,LLC; StanCorp Insurance Company Inc.;Standard Insurance Company Continuing Health &Wealth Benefits Trust;StanCorp Mortgage Investors Pass-through,LLC As Required by Written Contract - Collier County Board of County Commissioners,OR,Board of County Commissioners in Collier County,OR,Collier County Government,OR,Collier County included as an additional insured under the captioned Commercial General Liability and Automobile Liability Policies on a primary and non-contributory basis if and to the extent required by written contract.For any and all work performed on behalf of Collier County.Contract/Project #:759079 and 759081 Collier County Board of Commissioners 3295 Tamiami Trail E. Naples FL 34112 16.E.11.c Packet Pg. 2191 Attachment: Collier County Board of Commissioners - GL Cert (16328 : Group Life, Accidental Death Insurance, Disability Insurance and FMLA