WASHINGTON COUNTIES RISK POOL

Transcription

1 WASHINGTON COUNTIES RISK POOL 2558 R.W. Johnson Road SW, Suite 106 Tumwater, Washington Created by Counties for Counties Phone: Website: TO: FROM: SUBJECT: Interested Firms or Individuals Washington Counties Risk Pool DATE: I. Overview The Washington Counties Risk Pool ( Pool ) is a self-insured, self-administered casualty cooperative that was formed August 18, 1988 when several Washington counties signed a required Interlocal (Cooperative) Agreement. The Pool was established to provide its member counties with joint programs and services including self-insurance, purchasing of insurance, and contracting for or hiring of personnel to provide administrative services, claims handling and risk management. The Pool operates under Washington s pooling laws, more specifically Chapter via Chapter RCW and Chapter WAC. Self-insured operations are regulated and overseen by the State Risk Manager and authorized self-insurance programs are subject to fiscal audits performed annually by the State Auditor. Twenty-eight Washington counties were members of the Pool between December 2006 and September 2010, the 46-month window anticipated for the initial claims examination under this solicitation. Included are: Adams, Benton, Chelan and Clallam, Clark, Columbia, Cowlitz and Douglas, Franklin, Garfield, Grays Harbor and Island, Jefferson, Kitsap, Kittitas and Lewis, Mason, Okanogan, Pacific and Pend Oreille, San Juan, Skagit, Skamania and Spokane, Thurston, Walla Walla, Whatcom and Yakima Counties. Klickitat and Whitman Counties were former Pool members, having terminated their memberships September 2003 and 2004 respectively; Thurston County withdrew for one year (Py1999); and Kitsap County is withdrawing October 1, Member counties acquire $20 million (with another $5 million optional) of joint 3 rd -party liability coverage for bodily injury, personal injury, property damage, errors and omissions, and advertising injury, and includes public officials errors and omissions on an occurrence basis. Members select occurrence deductibles annually of $10,000, $25,000, $50,000, $100,000, $250,000 or $500,000. The initial $10 million of coverage, less the retention (the greater of the member s deductible or $100,000), is fully reinsured. The remaining limit, up to $15 million, is acquired as following form excess insurance.

2 Member counties are required to timely submit all of their 3 rd -party liability claims, which typically total between 800 1,000 claims annually. About 40% of the claims are resolved without any incurred losses. The open file count remains fairly constant, between 400 and 500 claims. The Pool is governed by a board of directors consisting of one director (and at least one alternate director) designated by each member county. The board of directors, made up of both elected and appointed officials from the member counties, meets three times each year with the summer meeting being the Annual Meeting. The board is responsible for determining the 3 rd -party liability coverage being offered (approving the insuring agreement or coverage document), the reinsurance program to acquire, the excess insurances to be jointly purchased or offered for optional purchase, and approving the Pool s annual operating budgets and work programs, along with the member contribution/deposit/assessment formulas. Member oversight is furnished by an 11-person executive committee. The committee members are elected by the Pool s board of directors from its membership during each Annual Meeting to staggered 3-year terms. The committee meets several times throughout the year: to approve all disbursements and examine the Pool s financial health; to approve case settlements exceeding members deductibles by more than $50,000; to evaluate the Executive Director s performance, the Pool s operations and its program deliverables; and to participate in the standing committees (finance, personnel, risk management, and underwriting) for development or review/revision of the operational policies and coverage documents. More information can be found on the Pool s website at II. Invitation The Pool is seeking an independent qualified Firm or individual, defined in WAC (6) (d), to provide insurance producer services. The Washington Counties Risk Pool (WCRP) is seeking proposals and qualifications from qualified Firms (Firm) to provide insurance producer (broker) services. The Firm will be required to market, evaluate and monitor WCRP s reinsurance/excess casualty and property insurance programs, as well as its business coverages, throughout a period of three (3) years commencing in January 1, 2011, with an option for two (2) additional single-year extending terms. This RFP is not an authorization to approach the insurance marketplace on behalf of WCRP. Firms failing to comply with this condition will be disqualified. 2

3 II. Administrative Requirements A. RFP/Q Coordinator all communications regarding this RFP/Q must be directed to: Vyrle Hill, Executive Director Washington Counties Risk Pool 2558 R.W. Johnson Rd, SW, Suite 106 Tumwater, WA Phone: (360) B. RFP/Q Schedule Distribution and Advertisement Deadline for Receipt of Proposals September 24, 2010 at 3pm PDT Review / Evaluation of Proposals September 25 October 1, 2010 Proponent Interviews October 4-22, 2010 Finalist selection & notification November 5 & 8, 2010 Projected Contract Starting Date January 1, 2011 Proposals shall be submitted in writing and received in the Pool s office by 3:00 P.M., September 24, Proposals received after the deadline will be disallowed and not considered further. Proposals may be mailed or delivered in person or by common carrier to the address noted above in section III.A. Firms providing proposals that are incomplete or do not provide the information requested in this RFP may be disqualified. C. Proposal Format One original unbound copy of the proposal, signed by a person duly authorized by the Firm to contractually bind the Firm, plus five additional bound or unbound copies of the proposal must be received in the Pool s office by the deadline for receipt of proposals. The Firm must certify that its proposal will remain in effect for a minimum of 90 days after the proposal due date. The Firm s proposal, insofar as it is not inconsistent with the RFP/Q, will be incorporated into the final agreement by reference. Proposals shall include: 1. Resume(s) of Primary Account Executive(s) responsible for this account. 2. Names of the public entity pools with number of years directly served by the Account Executive(s) being proposed for the WCRP. 3

4 3. Names of any county or counties in Washington State serviced directly by Firm and /or serviced by another office of same/parent Firm. 4. Certificate of Insurance evidencing at minimum $5,000,000 per occurrence errors and omissions coverage for the Firm. 5. Flat Fee(s) for Scope of Work for the proposed three-year term and each subsequent single-year term extensions. 6. No need for proposals to affirmatively address each point in the scope of work. D. Process Proposals will be evaluated and selected using the criteria list in Section V Minimum Qualifications. References may be contacted. IV. Scope of Work Services Required If selected, producer will agree by written contract to provide the following services: 1. Assist WCRP in designing the most cost-effective risk-financing program for member 3 rd -party casualty and property exposures, including the review of retention levels and insurance limits. 2. Report to WCRP during the Spring Board Meeting producer s best guesstimate of insurance renewal outlook for the October 1 renewal. 3. Report to WCRP in early June an analysis of market conditions and recommendations for renewal in October. May be called upon to make (renewal) presentations to the WCRP Board at its autumn, spring and summer meetings. 4. Prepare renewal specifications for review by WCRP. Prepare a summary comparing prior years coverage with impending renewal proposals, identifying any differences. 5. Verify accuracy and adequacy of reinsurance/excess and property insurance contracts, endorsements and invoices. 6. Place any ancillary insurance needs of the WCRP membership, including special events, underground storage tanks, environmental pollution, marine, builder s risk, and other miscellaneous insurance. Facilitate procuring fidelity, performance, notary and other statutory bonds. 7. Assist WCRP in identifying and evaluating existing and emerging exposures of risk for each of its member counties. 4

5 8. Partner with WCRP claim staff as an advocate in presenting Pool claims to (re)insurance companies as requested. Provide technical assistance, as requested, on WCRP and member claims. 9. Provide property inflation factors by construction type and geographic region on an annual basis. 10. Maintain written records including records of marketing packages, policies, premiums, audits, loss data and any other pertinent information affecting coverage placed. 11. Be available to consult with WCRP s members, boards, committees and staff as necessary at own expense. The producer is an integral part of the professional team assembled on behalf of the membership of the Washington Counties Risk Pool and as such, the producer s input, recommendations and participation are a valued component of services provided to WCRP members. 12. Provide any other related services deemed appropriate by WCRP and/or Firm. V. Minimum Qualifications In order to be considered, Firms must meet the following qualifications: A. Five years in business as a licensed Washington producer with qualified principals or account executive(s) having a minimum of 5 years experience representing public entity pools. B. Annual premium volume representing public entity pools in excess of $10,000,000. C. Not directly representing any county in Washington State, except with the expressed permission of WCRP. D. Firm must carry appropriate business insurance (and provide applicable Certificate of Insurance) including $5,000,000 limit of professional liability, including errors and omissions insurance. VI. NON-COMPETE CLAUSE Producer must obtain prior approval from WCRP before conducting business with any county in Washington State excepting the work performed through WCRP and its members. 5

6 VII. OTHER TERMS AND CONDITIONS WCRP reserves the right to change the RFP/Q schedule, and/or recall or reissue this RFP/Q. Prior to the execution of an agreement, WCRP reserves the right to reject any or all proposals at any time, without penalty and without divulging the reasons for which the submittals were rejected or accepted. Firms are responsible for all errors or omissions in their proposals, and any such error or omission will not serve to diminish their obligation to WCRP. The Firm must certify that all statements contained in the proposal submitted are accurate and valid. The Firm s proposal, insofar as it is not inconsistent herewith, will be incorporated into the final agreement by reference. WCRP cannot be responsible for any proprietary information contained in the Firm s proposal disclosed under the Washington Public Disclosure law. The Washington Counties Risk Pool reserves the right to refuse any and all bids. And at its sole discretion, the Pool will determine who is qualified. 6