PURCHASING DEPARTMENT

Transcription

1 PURCHASING DEPARTMENT The bid listed below has had addenda issued. Documents are available over the Internet at Adobe Acrobat reader is required to view this document. If you do not have this software you may down load it free from Adobe. The document number to request will be the same as the project number indicated below. Project # Addendum # # of pages Original Issue Date March 21, 2014 Date March 28, 2014 Project Number Addenda Number 1 Deadline 2:00 PM April 3, 2014 Project Title Request for Qualifications for Insurance Brokerage Services This Addendum is a contract document modifying previously issued documents, which remain in full force except as specifically modified below. Quotations appearing on the Proposal are to reflect the provisions of this Addendum. Failure to acknowledge receipt of this Addendum in the space provided on the response sheet may subject candidate to disqualification. RESPONSE TO QUESTIONS: 1. Question: As our Firm is not a broker but a direct writer of insurance for municipalities, kindly advise if we are expected to provide the data outlined in the RFQ, or whether a letter of introduction is acceptable. Response: No, the submission of a letter of introduction alone is NOT acceptable. Please follow the format provided in the RFQ. If there are sections or sub-sections that are not applicable to your Firm, please state that. By following our format, it will assist the City in identifying what services your Firm may or may not be offering to provide. 2. Question: Is the City of Norwalk still involved with CIRMA and if so for which lines of coverage? Response: All liability is provided by CIRMA, except for the Tenant s & Users Liability policy. CIRMA under a separate contract provides TPA services for WC and liability.

2 3. Question: The public works department as described is responsible for the maintenance and repair of most of the physical facilities owned by the City of Norwalk. Does the city do all its own work or do they ever contract our work to third parties. If the later who is responsible for vetting the insurance of outside contractors? Response: The City has a Building Manager who overseas 12 locations. The DPW maintains certain buildings, streets & Roadway, schools. The insurance for outside contractors is reviewed by Corporation Counsel and the City s Risk Management Consultant. 4. Question: Is the deductible on the casualty program a true deductible where the carrier pays on behalf of the city or is it an SIR where the city is responsible for the defense as well as indemnity within the retained limit? Does the city use outside counsel for defense or is all legal work tendered by the City Attorney? Response: The casualty program provides a deductible ($1,000,000) where the carrier pays on behalf of the city CIRMA is the TPA for Liability and WC. Defense is within the limit of liability. The City handles most litigation, however in certain instances, i.e. public officials, the City or BOE may retain outside counsel. 5. Question: What is the role of the insurance consultant as noted in the RFQ. Response: The insurance consultant works with the City to provide various insurance and risk management services. Preparing the RFQ/RFP is one task that was performed by the consultant. The consultant works with the current insurance brokers to coordinate services, policies, administration, claims, etc. It is the City s intent to continue this same process with the new insurance brokers. 6. Question: Do forms 2.2 and 2.3 have to be completed as part of the RFQ?. Response: Yes 7. Question: During Phase 2 of this process, on what basis will insurance carriers be assigned to the selected finalists? Response: The selection criteria are outlined within the RFQ document.

3 8. Question: Who is the City's current insurance broker? Response: H.D. Segur for Property, Boiler & Machinery, Crime, Medical Professional Liability and Excess Workers Compenstion; Shoff Darby for Tenant s and User s Liability and Tax Collector Bond, CIRMA for Auto, General Liability, Law, School Leaders, Public Officials, Excess Liability and Auto Physical Damage. 9. Question: Is the current broker's compensation paid on a commission or fee for service basis? If fee, what is the annual broker fee? Response: Commission varies by line of coverage 10. Question: May the current policies be viewed; or can current premiums by line of coverage be provided? Response: No, the current policies may not be viewed during this phase. However, during the RFP phase, the City may elect to make this information available to the Firms selected to participate in that phase. Concerning the current premiums by line coverage information, this is the information we have on file: $578, Property / Boiler & Machinery /Flood / Quake / Catastrophic Auto; Liability CIRMA: $406,434.00; TULIP approximately $7, auditable; Crime Bid $3, Question: Will the fee for services be inclusive of all insurance placements, including new policies written during the course of the contract? Response: Not applicable. Property inspections and valuations are performed annually. No additional fee included in the commission fee. 12. Question: Please advise the name of the risk management consultant who will be involved in the selection process. Response: DB & R Consulting LLC 13. Question: Which Third Party Administrator (TPA) does the City currently utilize? Response: CIRMA

4 14. Question: Please confirm Total Insured Values of for buildings and contents. Response: If you refer to the statement of values provided in the RFQ, the City mainly insures its real property, not contents. The exception to this is an electronic console system at the Police Station for the Combined Dispatch, Voting Machines, Catastrophic Auto Physical Damage and Contractor s Equipment. The values are shown accordingly. 15. Question: How recently have the City's buildings been appraised for insurance value purposes? Response: Each year certain locations have been appraised. This is a rotating process. The current broker provides these services at no additional charge to the City. 16. Question: Has any catastrophe modeling been conducted for the perils of flood, windstorm, or earthquake? Response: Flood, Windstorm and earthquake are covered perils under the property policy which are reviewed annually. The City has purchased special flood policies through (National Flood Insurance Program (NFIP) for locations in hazardous flood zone areas. These policies are NOT included in this RFQ solicitation. 17. Question: Can you advise the approximate annual number of claims by line of coverage? Response: Below is a six year average. AUTO General Liability Law Enforcement Property Public Officials School Leaders Two claims, see loss runs included with this RFQ 18. Question: Are the TULIP and the tax assessor bond part of this RFQ solicitation? Response: No. At this time the City has elected to continue with Shoff Darby on both the TULIP and Tax Collector Bond. Hence these two (2) policies are not part of the current RFQ/RFP solicitation process.

5 19. Question: I received notification of the above-mentioned RFP for P&C brokerage services, but there does not appear to be a component for actuarial services in estimating the City s retained risk. So, I was wondering if there is expected to be an RFP issued regarding P&C actuarial services that coincide with this brokerage RFP, or if not, is there an opportunity to speak with someone at the City who manages that risk? Has any catastrophe modeling been conducted for the perils of flood, windstorm, or earthquake? Response: No actuarial services are included in this RFQ solicitation. These services may be bid at a yet-to-be-determined date. 20. Question: Can you clarify the preparation of bid specs? Specific Services suggests that preparing bid specs and applications to markets are the responsibility of the broker. The timeline shows that RFPs will be released on 4/29/14 with a 30 day turnaround time for quotes. Will the City be providing basic underwriting data and specifications for the first year? Response: The Statement of Values and a listing of the limits of liability and corresponding charges are enclosed in the RFQ solicitation document. 21. Question: The RFQ mentions that an outline of the current program and limits is included in the Exhibit Section? I cannot locate this exhibit. Can you help? Response: That was an oversight. That information is included as an attachment to this addendum document. (Exhibit D: Coverage and Limits of Liability)[two (2) pages]. End of Addendum #1

6 EXHIBITS D. Coverage and Limits of Liability Property & Boiler & Machinery Property All Risks of Direct Loss or Damage including Flood & Earth Movement $419,868,683 $42,186,500 $26,000 $462,081,183 Building Contents/Equipment Business Income Total $2,883,953 Contractor s Equipment $300,000 Voting Machines 1,000,000 Fire & Police Console & Dispatch Equipment 942,655 Leased Copiers Limits of Liability $100,000,000 Per Occurrence Loss Limit except Flood & Earth Movement $2,500,000 Miscellaneous Unnamed Locations $10,000,000 Per Occ/Aggregate Flood & Water Damage $5,000,000 Per Occ/Aggregate for Flood in FEMA Flood Zones A/V $10,000,000 Per Occ/Aggregate Earth Movement & Volcanic Action $5,000,000 Building Ordinance including Demolition/Increased Cost of Construction/Increased Time to Rebuild $5,000,000 Or 25% of Loss, whichever is greater as respects Debris Removal $2,500,000 Per Occ. Error in Description $2,690,451 Contractor s Equipment $1,000,000 Per Occ. Extra Expense $1,000,000 Per Occ. Service Interruption- PD & Time Element Combined $1,000,000 Per Occ. Ingress/Egress $1,000,000 Per Occ. Interruption by Civil Authority $298,970 Voting Machines $2,500,000 Per Occ. Newly Acquired Properties (90 Days) including B & M $2,500,000 Property in the Course of Construction $100,000 Per Occ/Agg Pollutant Cleanup & Removal $25,000 Fire Dept. Service Charge Boiler & Machinery $25,000,000 Per Accident Combined BI & PD $2,500,000 Ordinance of Law $2,500,000 Errors in Description $1,000,000 Contingent Business Income/Extra Expense $500,000 Expediting Expense $1,000,000 Off Premises Service Interruption BI & EE $500,000 Off Premises Service Interruption Spoilage $500,000 Water Damage $100,000 Ammonia Contamination $500,000 Expediting Expenses $500,000 Hazardous Substances $500,000 Consequential Damage

7 $500,000 Property Damage Media & Data Deductibles Property $100,000 Per Occurrence $1,000,000 Flood in Flood Zones A/V $500,000 Named Windstorms 48 hours Waiting Period Ingress/Egress Subject to a minimum of $50,000 per occurrence 48 hours Waiting Period as respects Interruption by Civil Authority Subject to a minimum of $50,000 per occurrence 24 Hours Waiting Period as respects Service Interruption PD subject to a minimum of $50,000 per occurrence Boiler & Machinery $25,000 Combined Property Damage Deductible 24 hours BI in Extra Expense 24 hours Off Premises Service Interruption