CROOK COUNTY SCHOOL DISTRICT PRINEVILLE, OREGON REQUEST FOR PROPOSALS (RFP) INSURANCE AGENT OF RECORD

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1 CROOK COUNTY SCHOOL DISTRICT PRINEVILLE, OREGON REQUEST FOR PROPOSALS (RFP) INSURANCE AGENT OF RECORD Proposals Due by 2:00 p.m., Friday, March 22, 2013 Notice is hereby given that Crook County School District (District) is requesting proposals for an Insurance Agent of Record for Risk Management and Insurance Brokerage Consulting Services. The District desires to enter into a professional services agreement with a qualified firm that can demonstrate competency and experience in providing Risk Management and Insurance Brokerage Consulting Services. The initial term of the insurance contract shall be for a period of three years, commencing July 1, The contract shall be renewable by mutual consent on an annual basis thereafter for no more than two additional years, for a maximum contract term of five years. The scope of work for the requested services includes the following: Provide assistance with the annual renewal specifications for property, liability, workers compensation, and crime coverage insurance; Present the annual Risk Management report to District Representatives and/or School Board and attend School Board meetings upon District request; and Assist District staff with the development of standard insurance language and hold harmless provisions for contracts and agreements. The Request for Proposals can be downloaded from It is imperative that those who download the solicitation documents check the Web site regularly for addenda, clarifications, and other notifications that may be pertinent. In addition, addenda will be mailed or delivered to all who are known by Crook County School District to have received a complete set of the Proposal Documents. Please call (541) to be added to the Interested Proposer s list. Sealed proposals must be received by the Office of the Risk Manager not later than 2:00 p.m., Friday March 22, 2013, addressed to Debbie Laszlo, Benefits/Risk Manager, 145 SE Salmon Ave Redmond OR The outside of the envelopes shall plainly identify the project: Crook County School District Insurance Agent of Record RFP. Facsimile proposals will not be accepted. Proposals received after the designated time and date will be returned unopened. The District may reject any proposal not in compliance with all prescribed solicitation procedures and requirements and other applicable law, and may reject any or all proposals in whole or in part when the cancellation or rejection is in the best interest of the District, and at no cost to the District. DATED THIS 4th DAY OF MARCH 2013 Debbie Laszlo Debbie Laszlo Regional Benefits / Risk Manager Publish: Bend Bulletin on March 4, 2013 Daily Journal of Commerce March 4, of 16

2 REQUEST FOR PROPOSALS (RFP) INSURANCE AGENT OF RECORD I. INTRODUCTION PURPOSE The Crook County School District seeks response to this Request For Proposals (RFP) from experienced and qualified firms in the state of Oregon to provide Risk Management-related insurance services for the marketing and placement of the District s property, workers compensation and casualty coverage, and for providing other insurance related consultant services as further defined. The objective of the partnership will be to reduce the overall cost of risk to the Crook County School District working with both retained and transferred risks. The proposal should detail the firm s conceptual approach in a working partnership with the Risk Management Department for excellence in risk financing, loss control and claims management. The prospective agents should review and develop alternative risk financing options to be compared against current insurance program design. II. BACKGROUND CROOK COUNTY SCHOOL DISTRICT Crook County School District is located in Central Oregon, approximately 35 miles northeast of Bend and 19 miles east of Redmond. It has a total enrollment of approximately 3000 students. The District consists of one high school, one middle school, three in-town elementary schools, and one rural school in Paulina. In addition, the District sponsors two charter schools: a K-8 community charter school with 186 students; and a K-12 online charter school with over 230 students. The District is served by the High Desert Educational Service District. Our current insurance program is detailed in Attachment A. Current loss history reports for liability and workers compensation are available upon request. 2 of 16

3 III. ADMINISTRATIVE REQUIREMENTS RFP COORDINATOR Upon release of this RFP, all Proposer s communications concerning this acquisition must be directed to the RFP Coordinator listed below. Unauthorized contact regarding this RFP with other District employees may result in disqualifications. Any oral communications will be considered unofficial and non-binding on Crook County School District. Proposers should rely on written statements issued by the Benefits/Risk Manager. Responses to verbal requests for information or clarification will be considered unofficial until received in writing. All changes to Proposer s RFP must be submitted in writing March 22, Questions regarding this RFP, or the RFP process should be referred to the Benefits/Risk Manager. Debbie Laszlo Regional Benefits / Risk Manager 145 SE Salmon Ave Redmond, OR Phone: (541) Fax: (541) DELAYS CROOK COUNTY SCHOOL DISTRICT NOT RESPONSIBLE FOR DELAYS The Crook County School District assumes no responsibility for delays caused by the US Postal Service or other delivery systems. 3 of 16

4 RFP TIME LINE OF EVENTS ACTIVITY DATE RFP Published March 4, 2013 Qualifications & conceptual proposals submitted March 22, 2013 Interviews with selected firms during week of April 8, 2013 Placed on District Board Agenda April 15, 2013 Insurance Program approved by Board April 15, 2013 Insurance Policy Renewals July 1, 2013 RFP SUBMITTAL Three paper copies and one copy on disk of the proposal shall be submitted as follows: Debbie Laszlo Regional Benefits / Risk Manager 145 SE Salmon Ave Redmond, OR Phone: (541) Fax: (541) Proposals must be received by 2:00 P.M. P.S.T. on M arch 22, 2013, the proposal opening date and time. IV. PROPOSAL FORMAT EXECUTIVE SUMMARY Prefacing the proposal shall be an Executive Summary, providing in concise terms, a summation of the proposal. Once again the objective of the INSURANCE AGENT OF RECORD is to help the District manage and reduce the overall cost of risk. EVALUATION CRITERION Responses to the RFP shall be organized in the same sequence as found in sections VII and VIII of this RFP. Respond specifically for each area in sections VIII, and provide enough detail for decision making. The criteria applied to the specific responses will be depth and breadth of service, problem solving ability, value, stability, and contribution to reducing cost of risk. 4 of 16

5 V. SCOPE OF WORK MINIMUM REQUIREMENTS While the exact range and extent of services is subject to negotiation and is dynamic with our changing organization, it is anticipated that the selected insurance agent of record shall provide as a minimum, professional services and dedicated personnel necessary to perform the following: a) Understanding & Program Development: Develop a complete understanding of the District s areas of exposure, and consult with the District about short and long term solutions. Attend District Management Meetings when requested. b) Annual Program Evaluation: Annually evaluate in writing and present existing insurance contracts and claims history and make recommendations concerning any changes, modifications and/or additions in the terms, conditions, coverage limits or risk financing structure needed to yield a comprehensive risk management program to cost effectively protect the interests of the District. c) Market Analysis: Prepare market analysis and forecast by insurance line prior to each renewal. Analysis shall include pricing and service trends, availability of markets and a forecast of long-term market direction. Make conclusions on most advantageous insurance markets from the standpoint of cost, service, coverage and security. d) Marketing District s Portfolio: Prepare insurance marketing portfolio by working with the District to gather underwriting specifications, loss runs, values and data. Format a formal presentation of marketing to insurance markets and underwriters. e) Access to Markets: Have access to global insurance markets and when authorized by the District, approach appropriate markets on behalf of the District to obtain pricing and coverage descriptions. The successful agent will have the authority and access to obtain competitive quotes from reputable insurance carriers or risk facilities operating in the State of Oregon for each type of risk or risk financing structure, including PACE. f) Purchase Consultation: Present to the District in an understandable format, an evaluation of the results of each solicitation with a comprehensive financial analysis and recommendations for selection of an insurer for each type of risk or risk structure. 5 of 16

6 g) Policy Evaluation: Negotiate on the District s behalf the details of insurance contracts with selected carriers or risk facility and audit resulting policies or agreements for accuracy of coverage, terms and conditions and compliance with financial arrangements and administrative procedures acceptable to the District. This includes verification of accuracy and adequacy of all binders, policies, policy endorsements, invoices and other insurance related documents prior to delivery. h) Insurance Certificates: Provide certificates of insurance, verification of coverage or financial responsibility as needed by the District to satisfy lessors, contractors and other parties from whom the District seeks services. This includes vehicular proof of liability insurance as required by law. i) Special Event Coverage: Make available special event insurance coverage for entities, organizations and persons performing temporary business within the auspices of the District. j) Risk Transfer Contract Review: Provide consultation services for District as to risk related issues in contractual arrangements. Participate and/or review the transfer of risk where contractually appropriate. k) Loss Documentation: Provide support when requested in preparing proofs of loss or claims reports and assist in obtaining loss settlements from insurers. l) Catastrophic Claims Management: Provide catastrophic claims management consultation, evaluation and service. m) Property Valuation & Inspection: Supply or make available associated risk management services including basic property valuations, loss control consulting and inspection services. n) Loss Control Service: Provide consultation for training, safety, loss control, claims management and related topics in the area of risk management o) Loss Control Recognition and Incentive: Track and provide recognition and incentive to District departments for loss control, safety activities, and achievement. p) Analysis and Reporting: Provide assistance in the form of advisory services or written reports as is customarily expected from a professional insurance consultant. 6 of 16

7 RISK MANAGEMENT PROGRAM ORGANIZATION The District is considering various ways to finance its risk. In addition to the above mentioned functions in the scope of work, the Proposer is asked to recommend risk financing alternatives that their organization can support. The District is requesting proposals not only from agents and brokers but also from risk pools. The District will consider combinations of broker services with pool involvement, reinsurance and unbundled services if all services for a complete risk management program cannot be totally provided by the Proposer. The Proposer must be prepared to show, within maximum and minimum ranges, the benefits of their risk financing options and bundled or un-bundled services, both financially and service wise. The Proposer must disclose how and who will be providing ancillary risk management services, i.e., in-house, insurance company or outsourced provider. The results of the suggested structures should be superior to accepting the lowest bid for standard insurance products. SUCCESSFUL INSURANCE AGENT OF RECORD QUALIFICATIONS A) Business Organization: Demonstrate the adequacy and technical depth of personnel assigned to the account. The proposal shall include the relevant historical data and identification of the branch office which will perform the work contemplated. The principal management personnel shall be identified. A description of the team leadership, interface and support functions with reporting relationships should also be fully identified. The qualifications of the personnel who will be working directly on the Crook County School District s account should be described. Annual market volume by line of coverage and the number and size of account should be disclosed. B) External Working Partnerships: Please list the insurers, syndicates or carriers by formal name and in order of preference by line that you would approach for providing coverage to the Crook County School District. State for each if they are admitted in the State of Oregon and the current Best s rating. If responding as a pool, provide a description of the pool, the organization, operation and any re-insurance relationships with the above criteria. Also indicate whether you would be willing, where appropriate, to market to existing underwriters who are currently writing business with the Crook County School District. C) Concept and Solutions: A description of the firm s strengths in the marketplace should be included along with a strategy of how any alternative transfer or insurance programs will be marketed. Any restrictions or limitations should be defined. You may describe any alternatives that may be attractive to the Crook County School District including multiple insurers/ reinsurances, adjusters, special rating, 7 of 16

8 aggregated programs, pooling, etc. Graphs or charts may be presented to emphasize solutions. Any restrictions on claims adjuster contracts, separate negotiations for endorsements, major exclusions or other restrictions that may affect the District s program should be outlined in the proposed solution. D) Working Plan: The Proposer s technical plan to accomplish all the work throughout the year shall be presented, including time-related information, marketing, tasks, decision points and reports. The ancillary services, risk management consultation, loss control and claims management should be described in detail. E) Public Entity Experience: Demonstrate successful prior performance and comparable service in the public sector. Relevant insurance placement, account handling experience and client references shall be presented in detail, with all experience cited to be recent and to have been performed, to a considerable degree, by members of the proposed account team. Emphasis shall be given to identifying comparable services for public sector organizations. Provide at least five public entity client references. For each client reference, a brief description of services provided, when provided, and name, title and phone number of the principal contact person should be shown. F) Cost/Compensation: The District seeks an all inclusive cost structure which will allow predictability of fees and accuracy in budget planning. The Proposer s plan of compensation can be commission, fee or a combination but should be disclosed as a maximum and minimum for proposal purposes. The proposal shall include a clear statement of the services for which compensation would be in the form of fees from the District. If there are expenses that are considered reimbursable and are not included in the fee structure, such expenses shall be identified and quantified as fully as possible. The successful agent will be required to annually disclose in advance, and in detail all contingent compensation, underwriting or marketing compensation, commissions, agency relationships, or transactions that result in compensation from outside sources as a result of business involving the insurance agent of record and the Crook County School District. The actual compensation amount will be negotiated with the Proposer selected as best qualified. We reserve the right to end negotiations with the particular Proposer and enter into negotiations with the next highest ranked Proposer. G) Proof of Insurance: Evidence of the Proposer s own coverage shall be submitted as part of the proposal. H) Additional Information: You may provide additional information that you believe will add value or aid the District in evaluating your firm s proposal. 8 of 16

9 VI. GENERAL CONDITIONS TERMS OF CONTRACT The initial term of the insurance contract shall be for a period of three years. The contract shall be renewable by mutual consent on an annual basis thereafter for no more than two additional years, for a maximum total contract term of five years. The contract may be terminated by either party by giving the other party 60 days written notice of such intent prior to the effective date of the termination. In the event of termination, claims for compensation owed the insurance agent of record by the District shall be limited to verifiable services rendered. PROHIBITION ON PREMATURE APPROACH TO MARKETS Prospective Proposers are cautioned that receipt of this Request for Proposals document is not to be considered an authorization to approach any insurance markets on the District s behalf. It is specifically requested that no solicitations of markets be made and no market reservations be made as respects to any insurance or reinsurance to be provided for the District; doing so may result in the offending firm s disqualification from the selection process. LEGAL COMPLIANCE Each Proposer is responsible for full and complete compliance with all applicable laws, rules, regulations and licensing requirements imposed by any public authority having jurisdiction. PROPOSER S INSURANCE The Proposer must provide and maintain in force at all times during the term of the services contemplated, insurance for Workers Compensation, General Liability, Auto Liability, and Errors and Omissions Liability. Such policies shall be issued by companies authorized to do business in the State of Oregon. Evidence of such coverage is to be submitted with the proposal. RFP AMENDMENTS The District reserves the right to change the acquisition schedule or issue amendments to the RFP at any time. The District reserves the right to make corrections or amendments due to errors identified in the RFP by Crook County School District or a Proposer. Any changes will be date and time stamped and attached to, and made a part of the RFP. All changes must be coordinated in writing authorized and made by the RFP Coordinator. All amendments must be received, in writing, by March of 16

10 RIGHT TO CANCEL The Crook County School District reserves the right to cancel or reissue this RFP at any time without obligation or liability. WAIVER OF MINOR ADMINISTRATIVE IRREGULARITIES The District reserves the right, at its sole discretion, to waive minor administrative irregularities contained in any proposal. PROPOSAL REJECTION The District reserves the right to reject any or all proposals at any time without penalty. WITHDRAWAL OF PROPOSALS Proposers may withdraw a proposal which has been submitted at any time up to the proposal closing date and time. To accomplish this, a written request signed by an authorized representative of the Proposer must be submitted to the RFP Coordinator. After withdrawing a previously submitted proposal, the Proposer may submit another proposal at any time up to the proposal closing date and time. PROPRIETARY PROPOSAL MATERIAL Any information contained in the proposal that is proprietary must be clearly designated. Marking the entire proposal as proprietary will be neither accepted nor honored. If a request is made to view a Proposer's proposal, the District will comply according to Oregon Public Records Law, ORS the District s applicable procedures. RESPONSE PROPERTY OF THE DISTRICT All materials submitted in response to this request become the property of the District. Crook County School District has the right to use any of the ideas presented in any response to the RFP. Selection or rejection of a response does not affect this right. COST OF PREPARING PROPOSALS Crook County School District will not reimburse Proposer costs associated with preparing or presenting any response to this RFP. 10 of 16

11 ERRORS IN PROPOSAL The District will not be liable for any errors in Proposer proposals. Proposers will not be allowed to alter proposal documents after the deadline for proposal submission. The District reserves the right to make corrections or amendments due to errors identified in proposals by the District or the Proposer. This type of correction or amendment will only be allowed for such errors as typing, transposition or any other obvious error. Any changes will be date and time stamped and attached to proposals. All changes must be coordinated in writing with, authorized by, and made by the RFP Coordinator. Proposers are liable for all errors or omissions contained in their proposals. NO OBLIGATION TO BUY The release of this RFP does not obligate the District. The District reserves the right to refrain from contracting with any and all Proposers. 11 of 16

12 SIGNATURE PAGE Signature Page: The signature page must be completed and included. Thank you for responding to this RFP. We realize that preparing a comprehensive reply to this RFP is a time consuming and costly matter. We assure you that we will diligently and fairly review your response. Proposer Signature Company Name (Printed) Proposer Name Title Proposer Address Federal Tax ID Number Proposer Telephone Number Proposer Address 12 of 16

13 VII. QUESTIONNAIRE Instructions - The firm's proposal should follow the format provided below. 1. Provide an overview of your firm and its ownership/organizational structure, philosophy/culture and number of employees. 2. If your firm has multiple offices, please identify the office from which District would be serviced. Describe all relevant services and resources provided by this office. Include the number of consultants, technical and support staff available in each specialty area. 3. Describe the team of individuals who would be assigned to District. Indicate the role each team member would play. Provide biographical information on each team member and their experience working with school districts. Please identify the individual within your firm that will have overall responsibility for the District s account. 4. Discuss your firm's expertise in each of the following areas: Property, including Computer Coverage, Crime and Boiler & Machinery Casualty, including General Liability, Products Liability, Auto Liability. Workers Compensation Directors & Officers Liability Employment Practices Liability Captives and other self insurance techniques Claims administration Loss prevention services Actuarial consulting Market security and claims advocacy Student Accident Insurance 5. Please provide a list of reference names from your clients we may contact. Identify the lines of coverage handled for each reference and the length of time your firm has handled the account. Also show the names of the individuals in your firm responsible for the account. 6. Describe how your firm would handle the selection of insurance carriers and other service providers for District. 7. Describe your firm s marketplace leverage in negotiating with carriers in regards to rates, policy terms and plan design. 8. Describe your firm s capabilities and management of captives. 13 of 16

14 9. Describe the proposed fee structure offered by your firm, including travel charges and any other costs that may be passed on to District. 10. Describe what differentiates your firm from other brokerage consulting firm organizations. VIII. EVALUATION CRITERIA The following criteria will be used in determining the firm s qualifications. The order does not indicate relative ranking. 1. Qualifications and Experience: Competence, technical expertise, and experience in property and casualty risk management, insurance placement, and related services and experience in employee benefits, personnel resources. A. Both the firm's capabilities and the experience of individual team members assigned to the District account will be considered. 2. Service Approach: Availability to travel as needed to corporate headquarters and/or subsidiary locations. A. Firm's ability to provide a broad spectrum of consulting services, including, but not limited to actuarial, claims administration, captives and other self insurance approaches, loss prevention and research/legal services. B. Responsiveness of the firms proposal to the RFP, including clarity and organization of response, clear presentation of firm s experience and approach to ensuring that the needs of District are fully met. C. References from both current and past clients. 3. Marketing Approach: Firm's awareness and ability to provide timely, accurate communication of emerging trends, opportunities, regulatory updates and liabilities to clients. 4. Exposure Identification Approach: What specific services are available and on what schedule is loss prevention available? Are the services regularly scheduled or on call? Are there additional charges for any of these services? What other services are available for exposure identification (I.H., etc.)? 5. Compensation: Rates, fees or charges including the level of detail provided in the firm's fee information, as well as the willingness of the firm to offer flexible fee arrangements. 14 of 16

15 6. Oral Presentation: Based on a review of the written response, we will select a short list of candidates who will be asked to make an oral presentation to be arranged at a mutually convenient time at the District. This presentation is expected to confirm proposal representations; supplement information obtained through the proposal process and gives District the opportunity to meet the individuals who would be assigned to our account. An agenda of items we wish to be addressed during this meeting will be forwarded to the final candidates. Crook County School District RFP Qualifications and Experience Business organization experience Competence/technical experience Team member qualifications Service Approach References from clients Claims administration consulting Loss Prevention services Marketing Approach Access to Markets Concept and Solutions District Communication Exposure Identification Approach Understanding of local and district issues affecting exposure Availability of Services Working Plan Available Points Compensation Clarity & flexibility of fees/rates 10 Oral Presentation Confirm proposal representations Introduction to team members Total of 16

16 ATTACHMENT A Crook County School District Current Insurance Program Insurer: Property and Casualty Coverage for Education (PACE) General Liability $ 500,000 each occurrence/$20,000,000 agg Increased Limits of Liability Employee Benefits Liability Employment Practices Liability Wrongful Acts $ 9,500,000 each occurrence/$20,000,000 agg Commercial Property Total Line $74,252,567 Portable / Mobile Equipment Equipment Breakdown Violent Acts Coverage: $ 50,000 Government Crime Coverage $ 500,000 Auto(s) Liability Including Buses Uninsured/Underinsured Motorist Nonowned & Hired Auto Liability Auto Physical Damage Garage Liability Garagekeepers Earthquake Flood $ 1,000,000 each occurrence/aggregate Liability on selected vehicles 16 of 16