City of Sunny Isles Beach Collins Avenue Sunny Isles Beach, Florida 33160

Transcription

1 City of Sunny Isles Beach Collins Avenue Sunny Isles Beach, Florida (305) City Hall (305) Fax MEMORANDUM TO: FROM: The Honorable Mayor and City Commission Priscilla Walker, Assitant to City Manager/Human Resources DATE: 12/15/2011 RE: Continuance of Medical Insurance Brokerage Services by Brown and Brown RECOMMENDATION: It is recommended that the City Commission consider the attached resolution approving the continuance of Brown and Brown Insurance as the City s medical insurance broker for the March 2012 plan year. REASONS: The City provides for group medical, dental, vision, life/ad&d, and long-term disability insurance for its employees. In order to ensure we offer the best coverage at the best price, the City secures an insurance broker to obtain insurance quotes on behalf of the City. In 2000 the City selected Brown and Brown Insurance Company to provide medical insurance broker services. Since that time Brown and Brown has worked diligently to ensure the City s insurance program meets the needs of the City and city employees and provides affordable options. Brown and Brown also keeps the City abreast of current, impending, and new insurance regulations and makes recommendations for changes as needed. Brown and Brown receives the standard commission as set by the respective carriers. They do not receive direct compensation from the City. ADDITIONAL INFORMATION: The City is scheduled to issue a formal Request for Proposals for a Medical Insurance Brokerage Services in mid-2012 for the March 2013 renewal period. It is anticipated that the awardee will be awarded a one year contract with three one-year renewal options. Staff contemplated issuing an RFP broker services for the March 2012 renewal cycle; however, after consulting with our independent insurance consultants (Siver and Siver) we have determined that we do not have sufficient time for the process. Section of Date 12/15/ the City Code provides that contracts for professional services are exempt from the

2 competitive bid requirements. FUNDING SOURCE: No funding source is available. ATTACHMENTS: Resolution Humana Workplace Voluntary Benefits Commission Schedule Listing of Coverages Date 12/15/

3 Attachment number 1 Page 1 of 2 RESOLUTION NO A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE CONTINUANCE OF BROWN AND BROWN BENEFIT CONSULTANTS AS THE CITY S MEDICAL INSURANCE BROKER FOR THE MARCH 2012 PLAN YEAR; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City provides for group medical, dental, vision, life/ad&d, and longterm disability insurance for its employees; and WHEREAS, on June 21, 2001, via Resolution No , the City Commission awarded a bid to Brown and Brown Insurance Company for comprehensive insurance and brokerage services in order for the City to improve its insurance coverage in the area of defending public officials, police officers, and general liability due to the growth of services in the City; and WHEREAS, since that time Brown and Brown has worked diligently to ensure the City s insurance program meets the needs of the City and City employees, provides affordable options, keeps the City abreast of current, impending, and new insurance regulations, and makes recommendations for changes as needed; and WHEREAS, Brown and Brown receives the standard commission as set by the respective carriers, they do not receive direct compensation from the City; and WHEREAS, the City is scheduled to issue a formal Request for Proposals for a Medical Insurance Brokerage Services in 2012 for the March 2013 renewal period, and after consulting with our independent insurance consultants (Siver and Siver), it was determined that there is not sufficient time for the process, and staff is requesting to waive the competitive bidding procedures; and WHEREAS, Section of the City Code provides that contracts for professional services are exempt from the competitive bid requirements. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of Continuance. The City Commission hereby approves the continuance of Brown and Brown Benefit Consultants as the City s medical insurance broker for the March 2012 plan year. Section 2. Authorization of City Manager. The City Manager is hereby authorized to do all things necessary to effectuate this Resolution. Section 3. Effective Date. This Resolution will become effective upon adoption. R2011- Brown & Brown Medical Brokerage Srvs 1 Date 12/15/

4 Attachment number 1 Page 2 of 2 PASSED AND ADOPTED this 15 th day of December Norman S. Edelcup, Mayor ATTEST: Jane A. Hines, CMC, City Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY: Hans Ottinot, City Attorney Moved by: Seconded by: Vote: Mayor Edelcup (Yes) (No) Vice Mayor Thaler (Yes) (No) Commissioner Aelion (Yes) (No) Commissioner Gatto (Yes) (No) Commissioner Scholl (Yes) (No) R2011- Brown & Brown Medical Brokerage Srvs 2 Date 12/15/

5 Page 1 of 9 Workplace Voluntary Benefits Commission Schedule Table of contents 4 General Compensation Policies... page 1 Life Products Commission Schedules... page 2-3 Disability Products Commission Schedules... page 3-5 Accident Products Commission Schedules... page 6 Critical Illness Products Commission Schedules... page 7-8 Supplemental Health Products Commission Schedules... page 8 For other Humana Specialty product commission rates please reference Humana s 2009 Producer Partnership Plan. Other Humana Specialty employer-sponsored or voluntary products include dental, vision, long and short term disability, life, AD&D, and stop loss. Workplace Voluntary Benefits Date 12/15/2011 Table of contents 64

6 Page 2 of 9 Workplace Voluntary Benefits Commission Schedule All commissions are expressed as a percentage of paid premium. Agents may elect to split commissions with other agents and/or enrollment entities who agree to perform mutually agreed upon enrollment services. The agreed upon commission splits are reflected as a split of premium and will show as such on the commission statements. The Workplace Voluntary Benefit plans listed are Vested Commission Policies, as defined in the Group Producing Agent or Agency Contract and amendments. After each policy in this Workplace Voluntary Benefits Commission Schedule is a number, usually four or five digits, in parenthesis. This number is the policy form number which is found on the policy and the marketing materials for the policy. Commissions shall be paid based upon the policy number as identified in this Workplace Voluntary Benefits Commission Schedule. Variations on commissions: In order to be flexible in the workplace market, we have three separate commission variations on many of our products. The Agent is allowed to select what type of commission payment they would like to have per group by indicating their selection on the New Case Commission Amendment (Form 4413). Standard or high/low this is the normal commissions offered with a high first year and a lower renewal rate. This allows the most commissions up front to help offset enrollment expenses. Levelized this allows the commission stream for an Agent to remain even for a period of time as defined in this Workplace Voluntary Benefits Commission Schedule. This allows for more stability in the commission flow for an established Agent. Combination this is a mixture of the standard and levelized commissions. This mixture allows for a higher first year commissions with more level renewal commissions. Underwriting terminology: SI Simplified Issue CGI Contingent Guaranteed Issue GI Guaranteed Issue 1 65

7 Page 3 of 9 Life products Secure Life Select (Paid up at 99) (00455) Basic Plan Only Rider Benefits Only Year Standard Combination Levelized Standard Combination Levelized 1 85% 62% 22.5% 85% 62% 22.5% % 12.5% 22.5% 8.5% 12.5% 22.5% 11+ 2% 2% 8.5% 2% 2% 8.5% Secure Life 65 (Paid up at 65)/Secure Life Plus (Paid up at 90) (00455) Basic Plan Only Rider Benefits Only Year Standard Combination Levelized Standard Combination Levelized 1 80% 58% 26% 80% 58% 26% % 17.5% 26% 17% 17.5% 26% % 17.5% 26% 8.5% 17.5% 26% 11+ 2% 2% 8.5% 2% 2% 8.5% CriticaLife Base Plan and Benefits (8013) Year Standard Levelized Combination 1 80% 30% 70% 2-5 7% 30% 12.5% % 30% 6.5% % 2.25% 2.25% CriticaLife Premium Discount Plan (8013) 18% 23% 28% 33% Year Premium Discount Premium Discount Premium Discount Premium Discount 1+ 12% 8% 4% 0% Whole Life (LPU 95)/Level Term Life (Individual Aegis) (LPU 95) (00800) (Individual Aegis) (20235) Year 5, 10, % 75% 85% 2-3 7% 6% 7% % 6% 7% % 2.5% 3% 10+ 3% 2.5% 3% 2 66

8 Page 4 of 9 Level Term Life (Group Aegis) (7003) Standard Standard Combination Combination Level Level Year 5, 10, 15 20, 30 5, 10, 15 20, 30 5, 10, 15 20, % 85% 52% 57.5% 20% 23% 2-5 8% 8% 16% 18% 20% 23% % 3.5% 9% 9% 20% 23% Disability products Disability Income Plus (8014) - Enhanced Version No Takeover 1-50% Takeover % Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 65% 55% 28% 56% 44% 23% 41% 31% 19% 2-5 8% 14% 28% 8% 14% 23% 8% 14% 19% % 8% 28% 8% 8% 23% 8% 8% 19% % 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE: If case uses increase premium option for takeover, use No Takeover commission rates. Disability Income Plus (8014) - MI & NH - Enhanced Version No Takeover 1-50% Takeover % Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 65% 55% 28% 57% 47% 25% 50% 41% 21% 2-5 8% 14% 28% 8% 14% 25% 8% 14% 21% % 8% 28% 8% 8% 25% 8% 8% 21% % 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE: If case uses increase premium option for takeover, use No Takeover commission rates. Disability Income Plus (8014) - CO - Enhanced Version No Takeover 1-50% Takeover % Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 54% 42% 23% 42% 30% 18% 30% 17% 12% 2-5 8% 14% 23% 8% 14% 18% 8% 14% 12% % 8% 23% 8% 8% 18% 8% 8% 12% % 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE: If case uses increase premium option for takeover, use No Takeover commission rates. Disability Income Plus (8014) - VT - Enhanced Version No Takeover 1-50% Takeover % Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 56% 47% 22% 43% 34% 18% 30% 21% 13% 2-5 5% 9% 22% 5% 9% 18% 5% 9% 13% % 8% 22% 5% 8% 18% 5% 8% 13% % 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE: If case uses increase premium option for takeover, use No Takeover commission rates. 3 67

9 Page 5 of 9 Disability Income Plus (8014) - ND - Enhanced Version No Takeover 1-50% Takeover % Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 65% 55% 28% 54% 43% 23% 42% 30% 18% 2-5 8% 14% 28% 8% 14% 23% 8% 14% 18% % 8% 28% 8% 8% 23% 8% 8% 18% % 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE: If case uses increase premium option for takeover, use No Takeover commission rates. Disability Income Plus (8000) - First Generation Standard Standard Levelized Levelized Combination Combination 5% 10% 5% 10% 5% 10% Year Standard Levelized Combination Discount Discount Discount Discount Discount Discount 1 55% 20% 27% 50% 45% 19% 16% 24% 20% % 20% 17% 10% 9% 19% 16% 15% 12% % 20% 17% 6% 5% 19% 16% 15% 12% 11+ 5% 20% 12% 4% 3.5% 19% 16% 10% 8% Disability Income Plus Takeover (8000) - First Generation Standard Standard Levelized Levelized Combination Combination 5% 10% 5% 10% 5% 10% Year Standard Levelized Combination Discount Discount Discount Discount Discount Discount % 10% 13.75% 25% 22.5% 9.5% 8% 22% 10% % 10% 17% 10% 9% 9.5% 8% 15% 12% % 10% 17% 6% 5% 9.5% 8% 15% 12% 11+ 5% 10% 12% 4% 3% 9.5% 8% 10% 8% Disability Income Plus (8000) - MN - First Generation Standard Standard Levelized Levelized Combination Combination 5% 10% 5% 10% 5% 10% Year Standard Levelized Combination Discount Discount Discount Discount Discount Discount 1 39% 12.5% 17.5% 31% 23% 10.5% 7% 15% 10% 2-3 8% 12.5% 11% 6% 5% 10.5% 7% 8.5% 7% % 12.5% 11% 4% 3% 10.5% 7% 8.5% 7% 11+ 3% 12.5% 8% 2.25% 1.75% 10.5% 7% 6% 6.5% Disability Income Plus Takeover (8000) - MN - First Generation Standard Standard Levelized Levelized Combination Combination 5% 10% 5% 10% 5% 10% Year Standard Levelized Combination Discount Discount Discount Discount Discount Discount % 6.25% 8.75% 15.5% 11.5% 5.25% 3.5% 7.5% 5% 2-3 8% 6.25% 11% 6% 5% 5.25% 3.5% 8.5% 7% % 6.25% 11% 4% 3% 5.25% 3.5% 8.5% 7% 11+ 3% 6.25% 8% 2.25% 1.75% 5.25% 3.5% 6% 6.5% 4 68

10 Page 6 of 9 Disability Income Advantage (GI Cases) (80315) Standard Levelized Combination Year Standard Takeover Levelized Takeover Combination Takeover 1 50% 25% 17.5% 12% 37.5% 18.75% % 3.5% 17.5% 12% 6.5% 6.5% % 3.5% 17.5% 12% 3.25% 3.25% % 1.75% 7% 7% 1.75% 1.75% Disability Income Advantage (SI/CGI Cases) (80315) Standard Levelized Combination Year Standard Takeover Levelized Takeover Combination Takeover 1 53% 26.5% 20% 8% 37.5% 18.75% % 11% 20% 8% 13% 13% % 7.5% 20% 8% 13% 13% % 3.5% 20% 8% 6.5% 6.5% % 1.75% 4% 4% 1.75% 1.75% Disability Income Advantage (GI Cases) (80315) - WV, MN, CO Standard Levelized Combination Year Standard Takeover Levelized Takeover Combination Takeover 1 40% 20% 12% 8% 30% 15% 2-5 3% 3% 12% 8% 6% 6% % 3% 12% 8% 3% 3% % 1.5% 6% 6% 1.5% 1.5% Disability Income Advantage (SI/CGI Cases) (80315) - WV, MN, CO Standard Levelized Combination Year Standard Takeover Levelized Takeover Combination Takeover 1 41% 20.5% 15% 7.5% 30% 15% % 8.5% 15% 7.5% 11% 11% 4-5 6% 6% 15% 7.5% 11% 11% % 3% 15% 7.5% 5% 5% % 1.5% 3% 3% 1.5% 1.5% Income Protector (80260) Year 1 55% % % 11+ 5% 5 69

11 Page 7 of 9 Accident products Group Accident Plus (7006) (8006) Year Standard Combination Levelized 1 55% 35% 20% 2-5 9% 17% 20% 6+ 4% 9% 20% Individual Accident Plus (60800) Year 1 55% 2-5 9% 6+ 4% Group/Individual Accident Plus (7006) (8006) (60830) - KY Year 1 33% 2-5 3% 6+ 2% 6 70

12 Page 8 of 9 Critical Illness products Critical Advantage (8011) Basic Plan Only Takeover Only Year Standard Combination Levelized Standard Combination Levelized 1 60% 42% 20% 30% 21% 10% % 15% 20% 11% 15% 10% % 8% 20% 8% 8% 10% 11+ 4% 4% 4% 4% 4% 4% Critical Illness (Synergis) (7004)) Year Standard Combination Levelized 1 65% 35% 20% 2-5 9% 25% 20% 6+ 9% 9% 20% Cancer Plus (70240) ROP not available for sale Year 1 70% % % % Cancer Plus (70240) - FL ROP not available for sale Year 1 60% 2-3 7% % % Cash Cancer Plus (70160) 20 Pay Lifetime Lifetime Pay Year 20 Pay ROP Rider Pay ROP Rider 1 60% 30% 70% 35% % 12% 14% 14% % 8% 9% 9% % 3.5% 7% 7% Cash Cancer Plus (70160) - FL, ND, SC 20 Pay Lifetime Lifetime Pay Year 20 Pay ROP Rider Pay ROP Rider 1 56% 28% 65% 32.5% 2-5 7% 7% 8% 8% % 5% 6% 6% % 3.5% 4% 4% 7 71

13 Page 9 of 9 Cash Cancer Plus (70160) - MD, WA, SD, WY 20 Pay Lifetime Lifetime Pay Year 20 Pay ROP Rider Pay ROP Rider 1 45% 22.5% 52% 26% % 4.5% 5% 5% 6+ 4% 4% 4% 4% Cash Cancer Plus (70160) - MI 20 Pay Lifetime Lifetime Pay Year 20 Pay ROP Rider Pay ROP Rider 1 31% 15.5% 36% 18% % 4.5% 5% 5% Supplemental Health products Health Care Plus (90850) Year 1 45% % 5-6 9% 7+ 6% I have received and understand the Workplace Voluntary Benefits Commission Schedule for Individual and Group Products. I further understand that the commissions described in this Workplace Voluntary Benefits Commission Schedule are subject to the terms of Group Producing Agent or Agency Contract and amendments, and the Producer Partnership Plan. These schedules may be amended for future sales of policies at any time, with 30 days written notice. Agent Name Agent Signature Agent Number Date 8 72

14 Attachment number 3 Page 1 of 1 Carrier Line of Coverage Percentage Humana Medical 5% Humana Dental 10% EyeMed Vision 10% Mutual of Omaha Life/LTD,STD 10% Kanawa Supplements Graded Scale. See Attached Date 12/15/