Group Life Insurance Request for Proposals RFP# Questions and Answers Posted 2/28/2017. Please see Appendix Q. Please see Appendix P.

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1 Group Life Insurance Request for Proposals RFP# Questions and Answers Posted 2/28/2017 Question 1. Can you please provide 5 years of experience/claim history? 2. Can you please provide a census? Or a summary census? (Summary Census Example: There are 3,000 female employees who were born in 1960) 3. Can you please clarify Disability Life coverage? Is it Waiver of Premium? 4. Can you please confirm the Life/AD&D rates? Answer Please see Appendix P. This is very similar to a Waiver of Premium. When an employee separates employment and can show total and permanent disability, that individual can receive continuance of the insurance. The commonwealth continues to pay the premium as though the individual is an active employee and coverage continues as long as the disability remains total and permanent. There is a single rate that covers all active life insurance and the Work-related accidental death.

2 On Appendix D, it shows Volume of Insurance, but doesn t include the rates. 5. Are there any particular by-laws related to the Commonwealth that we should be aware of? 6. We understand that under the prior contract, the Commonwealth would receive a payment of a $100, by the end of each February of each year of the contract to offset the administrative costs that the Commonwealth absorbs. Please confirm if this payment should continue under the new contract terms and if the amount should change. 7. Can you please us a copy of your current benefit plan booklet? 8. Are you working with an insurance broker or consultant to help evaluate the bid responses and make the award selection? If Offerors should be aware of the Group Life Insurance Management Directive and Manual. See Part III-1 for details and link to the Directive and Manual. Yes, this is still required. As per Addendum 1, this is now added to the RFP. Booklet Certificates are attached as Appendix R. The commonwealth is not working with a broker or consultant.

3 so, could you please let us know who that consultant is? 9. Please provide MetLife's current contract booklet-certificates and any plan changes for the past 5 years. 10. Please provide experience from 2012, 2013, 2014 and 2016 in the same format as what was submitted for 2015 (Appendix H). 11. Please provide list of Disables on Waiver of Premium with Gender, Date of Birth, Date of Disability, face amount, and reserve amount 12. Please provide average annual lives for 2012, 2013, 2014, 2015 and Please provide census with the following fields included for all eligible employees: Gender, Date of Birth, Salary, Basic Life benefit amount, Work-Related AD&D benefit amount, Plan/Group indicator for classes Please see Appendix R. Please see Appendix P. Note that the column Sub Division Name states disabled for those on disability waiver of premium. Please see Appendix P for relevant information which is available for public disclosure.

4 14. Please provide a census that includes the following: date of birth, gender, annual salary, class designation, Status (active/retiree, etc.) 15. Please provide life booklet for each class. 16. Individual death claim listing that matches the premium from 1/ /2016 that includes the following: date of death, benefit amount + interest, distinction between Life and ADD claims, gender, age/date of birth. 17. Please provide historical lives by year. 18. Does the historical premium provided include Life and ADD? If so can we get those two separate please? 19. Please note any plan or rate changes. 20. I have attached a census but if you already have one with their name, DOB, Salary, and name of occupation. Please see Appendix P for relevant information which is available for public disclosure. Please see Appendix R. Please see Appendix Q for relevant information which is available for public disclosure. The premium paid is to pay both basic life insurance and work-related accidental death coverage. The plan and the rates have not changed since the beginning of this contract, which was effective January 1, Please see Appendix P for relevant information which is available for public disclosure.

5 21. I notice that with the registration it looks like the State is planning to pay the agent directly via W-9. If commissions are paid to the agent by the insurance company, would the state make the payment to the company? Or would the state pay the agent, and the agent will then forward the payment onto the insurance company? 22. Please provide current Rates, Rate history by policy year, Renewal Rates (if available). 23. On the Current life Booklet, need In force plan design, employer contribution % and benefit changes by product by policy year. 24. Is this an opportunity to take over the existing group? Or would this be just taking over all the new employees hired after Jan 1st, 2018? 25. If it is taking over the group, would we be able have a census of Offerors should provide a single offered premium and the commonwealth will only pay to a single vendor. If a broker and insurer submit a joint proposal, then it will be up to those parties to decide how the payment would then be divided between them; the Commonwealth will pay the prime Contractor unless some other permissible arrangements are made to assign rights to payment. Please also see the answer to question # 6. The rate is $0.245 per thousand dollars of coverage for all five years of the contract with no renewals. The plan design is described in Part III of the RFP. Booklet Certificates are added as Appendix R. The premium is 100% employer paid. This contract is to provide coverage for the existing group of insured, not just employees hired after January 1, Please see Appendix P.

6 every employee with their employee salary info, dob, and gender? 26. We would need to know if the premium has changed at all over the past contract with Met Life. Has the cost per $1000 of insurance changed, and was it an increase/decrease and how much? 27. Are we able to get a claims listing for waiver of disability premium claims? We would need dob/gender/date of disability/face amount/reserve against that amount. 28. Are we able to get a life claims listing - dob/gender/date of death/face amount that was paid. 29. Claims data appears to be provided for 2015 only. Is data available for 2013, 2014 and Is a census available showing a listing of all employees (both active and the 2,000 disabled) 31. Copy of the MetLife booklet and any applicable endorsements The rate is $0.245 per thousand dollars of coverage for all five years of the contract. Please see Appendix P for census and Appendix Q for claims experience. Please see Appendix P for census and Appendix Q for claims experience. Please see Appendix P. Note that the column Sub Division Name states disabled for those on disability waiver of premium. Please see Appendix R.

7 32. Copy of a current bill Please see volume data in Part III of the RFP and census data in Appendix P. 33. Current rate $ Renewal rate (for No renewal available. 1/1/18) 35. MetLife experience report including any incurral exhibits and detailed claim information 36. Current Rates, Rate The rate is $0.245 per thousand dollars of coverage for all five years of the contract history by policy year, with no renewals. Renewal Rates (if available) 37. On the Current life Booklet, need - Inforce plan design, employer contribution % and benefit changes by product by policy year 38. Can you please provide background on the experience with the current carrier? a. Have there been any claim underwriting or administrative challenges? b. Are there any areas of service improvement desired by Commonwealth? 39. What are Commonwealth s expectations for open enrollment and carrier representation during benefit fares? The plan design is described in Part III of the RFP. Booklet Certificates are added as Appendix R. The premium is 100% employer paid. The current contractor s performance is not relevant to the prospective Offerors solutions. There are no open enrollments for the group life insurance program because it is entirely employer paid and employees are automatically enrolled.

8 40. What are the expected number and dates of the annual open enrollment meetings? 41. How many benefit fair locations are typically scheduled across the Commonwealth during initial contract rollout period where vendors are required to attend? 42. Can you please provide annual premiums for the last 2 years for basic life insurance? 43. Could you please provide a census of the eligible and enrolled employees with the following information? a. Date of birth b. Gender c. Coverage amount (when applicable d. Salary 44. Please describe any plan design changes over the last 5 years. 45. Do you anticipate any plan design changes in the future, resulting from labor negotiations? 46. We noted voluntary life was not requested in this RFP, when do you anticipate the voluntary life to go out for bid? None. None. The rate is $0.245 per thousand dollars of coverage for all five years of the contract. Please see Appendix P for relevant information which is available for public disclosure. None. The results of collective bargaining cannot be predicted and Offerors should be able to adjust if bargaining changes the program. Historically, life insurance has not been an area of much contract negotiation. This information will be provided at a later date via the Commonwealth s normal procurement announcement channels.

9 47. Does the Commonwealth have a consultant to assist in the evaluation process? If yes, what is the name of the consultant? 48. Will the Commonwealth accept and review multiple proposals submitted from the same carrier? 49. What is the name of the Small Diverse Business ( SDB ) participating in the current contract? Can you provide a brief description of their services and the dollar amount of their annual fee? 50. Can you please confirm the SDB fixed numerical percentage commitment calculation will be based on retention/administrative contract expense and not on total premium ( contract cost ) inclusive of claims? 51. Please provide an Excel census file with the following information on each insured employee: Gender Date of Birth Annual Salary No. No. Innovative Business Concepts, Inc. provides project management, project coordination and Administrative support in the current contract. The commitment was for 2.1% in year one and.11% in subsequent years. We cannot confirm because the SDB fixed numerical percentage commitment calculation is not based upon retention/administrative expenses. SDB score will be based upon a total premium cost. Claims, retention, administrative or other expenses will not be included in scoring. Please see Appendix P for relevant information which is available for public disclosure.

10 Class of insured Classing out the active and disabled status Resident state Amount of basic life coverage Amounts of workrelated accidental 52. Please provide a retiree census that includes gender, date of birth, and amount of life insurance coverage for each retiree insured. 53. Please provide the following experience data from 2013 to 2016: Annual paid claims Premium rate history Detailed list of all death claims paid as well as incurral year Detailed list of conversion charges 54. For the work related accidental death, please provide all experience (premium, rates, claims from 2013 through 2016) 55. Please provide a copy of a recent monthly billing Please see Appendix P for relevant information which is available for public disclosure. Please see Appendix P for census and volumes.

11 statement/premium remittance statement to compare census volumes to reported volumes. 56. How many Port authority claims are paid a year. 57. Please provide a copy of the current Life and AD&D policy or certificate so that our proposal can match current plan provisions as closely as possible. 58. Have there been any significant plan design changes in the last several years 59. Please confirm all rates are net of commission. 60. Please provide a description of your claims submission process; including such items as information gathering, submission, follow up and resolution. 61. Is there optional life coverage in force today, if so why is it not out to bid. 62. In regards to the Small Diverse Business and Small Business participation are there any groups in particular the Commonwealth There have been no Port authority retiree claims since the current contract became effective on January 1, Please see Appendix R. Effective January 1, 2013, the accelerated death benefit was increased to 80% of coverage amount. The commonwealth only pays a single rate. There is no broker for the current contract. Please also see the answer to question # 6. Claims are handled entirely by the contractor, the commonwealth only refers beneficiaries and/or surviving family members to the toll-free number provided by the contractor. Yes, optional life is currently provided. Please see answer to Question No. 45. No.

12 would like us to work with. 63. Beneficiary transfer paper or electronic? 64. Please provide a census that includes Gender, Date of Birth, Life Amount, Disabled Life Plan indicator, and Retiree indicator for PRPA retirees. 65. Please provide the current Met Life contracts. 66. Please provide total annual paid claims for 2013, 2014, and Please provide a paid claim list that includes Date of Death, Date Paid, and Amount Paid for each claim. 68. Please provide a PRPA claim list Date of Death, Date Paid, and Amount Paid for each claim. 69. Please advise if the PRPA plan grosses up the benefit amount so that beneficiaries are made whole after taxes for the $10,000 benefit. 70. Please provide current rates and rate history. 71. Please provide average annual lives for 2013, 2014, 2015, and Both. Please see Appendix P for relevant information which is available for public disclosure. Contracts are available on the e-contract s website maintained by the Treasury Department: Search for contract number Please see Appendix Q for relevant information which is available for public disclosure. There have been no Port Authority retiree deaths since the contract became effective on January 1, The plan does not gross up. The rate is $0.245 per thousand dollars of coverage for all five years of the contract. Please see Appendix P.

13 72. Please provide Accidental Death plan annual claims and annual premium for 2013, 2014, 2015, and Per Section I-12A, each proposal page should be numbered for ease of reference. Please clarify if the entire proposal should be consecutively page numbered or each section/tab be consecutively page numbered. 74. Is there a particular % of commitment for SDB and SB subcontracting participation you are requiring? 75. On page 13 of the RFP, Items 3 and 4 describe the points available for Small Diverse Business and Small Business participation. If a single business satisfies both criteria (Small Diverse Business and Small Business certified), how would that be scored? Additionally, Item 3 notes two thirds of the total points are allocated to Small Diverse Business participation, however Consecutively number each proposal page. No. However, SDB will account for 20% of the technical score. This will be answered in a future addendum.

14 the formula provided is 200 (SDB% + (1/3 * SB %)). Please confirm the formula. 76. Does the coverage amount on Appendix P adjust for age reductions? 77. Is an original signature of both the prime Offeror and the subcontractor required on the Disadvantaged Business portion of the proposal? 78. What is the name of the current Workers Compensation third party administrator? Yes. Documents must be signed by both parties, but it is not necessary for the document sent to have an original signature on both documents. Inservco Insurance Services, Inc.