Thank you for your interest in Rhode Island Housing.

Transcription

1 To All Interested Insurance Brokers: Rhode Island Housing is inviting all interested and qualified insurance brokers to submit a proposal to serve as its broker for insurance placement services. Attached you will find the request for proposal with detailed information on the corporations needs. Details on Rhode Island Housing s operations as well as our 2008 Annual Report are available on our website at Rhode Island Housing has retained Austin & Stanovich Risk Managers LLC (A&S), a risk management and insurance consulting firm, to assist in the selection of a broker, review current insurance policies, and assist in the renewal process. We currently utilize the services of two insurance brokers. If deemed practical and economical all insurance services may be obtained from one firm. Described below are the major components of Rhode Island Housing s current insurance program: 1. Property and Liability on Buildings and Equipment 2. Fidelity Bond 3. Mortgage Impairment 4. Directors and Officers Liability 5. Professional Liability for Mortgage Banker activities 6. Foreclosed Property including Flood (Forced Placed) 7. Workers Compensation Any and all questions regarding the RFP or the selection process may only be directed to Kara Lachapelle, Controller of Rhode Island Housing at No individual or firm submitting a proposal may make inquiries with respect to this matter of any member of the Board of Rhode Island Housing, any elected official in the State of Rhode Island or any staff member (other than as indicated above). Sincerely, Thank you for your interest in Rhode Island Housing. Thomas F. Hogg Deputy Director and Chief Financial Officer

2 Rhode Island Housing 44 Washington Street Providence, Rhode Island REQUEST FOR PROPOSALS FOR INSURANCE BROKERAGE SERVICES INSTRUCTIONS 1. Please keep your proposal excluding exhibits within a limit of 15 pages. A brief (2 page) executive summary letter should accompany each proposal. 2. Your sealed proposal should be submitted no later than 5:00 p.m. on Friday, April 10, 2009 to the offices of Rhode Island Housing, 44 Washington Street, Providence, Rhode Island 02903, (attn: Kara Lachapelle, Controller) or via to klachapelle@rhodeislandhousing.org. SCOPE OF WORK 1. Analysis of Risk a. Assist staff in an annual assessment of internal and external systemic risk. b. Identify the appropriate balance of coverage and deductions. c. Assist staff in the assessment of the likely costs and benefits of insuring the identified systemic risks. d. Match our systemic risk with insurance programs and policies. 2. Acquire Appropriate Insurance Coverage a. Develop an insurance acquisition plan that incorporates the assessment of risk and coverage in #1 above.

3 b. Help develop a communications plan to explain our conservative operational profile. c. Develop a list of highly rated insurance companies that are likely to match our insurance needs. d. Develop a solicitation plan to solicit proposals from the list of approved insurance company candidates. e. Solicit competitive bids from those companies. f. Assist staff in the assessment of the proposals received, the selection of policies and selection of insurance providers. g. Negotiate with finalist insurance company candidates during the selection process as necessary. 3. Post Selection a. After selection of policies and providers, review contracts for standard versus unusual coverage restrictions and carve-outs. b. Craft amendments and adjustments to standard coverage as necessary. GENERAL REQUIREMENTS 1. Describe your firm s mission statement. Please outline how your firm will monitor service to Rhode Island Housing to ensure service meets representations made in your written proposal and Rhode Island Housing s expectations. 2. Provide a description of your firm outlining general services, history and general corporate information. Please include website address for online access to information. 3. Describe the proposed service team structure, members and responsibilities. Include functions/title for each member of your proposed service team. This includes managing account executive (i.e. individual responsible for overall service and responsiveness of service team) and members of daily service team, to be assigned to Rhode Island Housing in any support functions. 4. Describe any expertise your firm has for exposures and/or clients in the financial services

4 industry. 5. Describe insurance companies and other risk management service providers that your firm may consider if selected as broker for Rhode Island Housing. 6. Identify any wholesale broker your firm may need to use should your firm be awarded the account. Please do not contact any insurer, wholesale broker or other risk management service provider for this part of your proposal. 7. Outline the strategy, process and timeline your firm will use to renew Rhode Island Housing s insurance policy(s). Please see scope of work for a general description of activities expected. 8. Describe how your firm will endeavor to have all insurance policies issued on a timely basis and in accordance with written proposals, written change orders to proposals and any binder documents. 9. Rhode Island Housing seeks insurance from insurers that have an investment grade rating from one of the three major rating agencies. Describe how your firm monitors the financial stability and solvency of insurers that may be recommended. 10. Provide a certificate of insurance to confirm the insurers and limits maintained by your firm for professional liability and fidelity insurance. 11. Provide the names of at least three clients currently handled by your firm, listing major lines of insurance placed and length of the relationship. Please provide the name and telephone number of the appropriate person with whom your staff has worked on these engagements. 12. Submit the names of any other public or quasi-public entities for which your firm has provided similar services currently or in the past. BROKERAGE SERVICE AGREEMENT AND NEGOTIATED REMUNERATION 1. Rhode Island Housing desires a brokerage service agreement. This agreement should detail the brokerage remuneration (i.e. fees and/or commissions) for an annual service period (June 1, 2009 to June 1, 2010). a. Describe your firm s policy on transparency of income as well as its position on acceptance of contingency fees, bonus commissions, wholesale commissions or other income that is not directly related to insurance placements.

5 b. Outline in your proposal how any extra commissions earned, if any, will be returned to Rhode Island Housing without violation of any law prohibiting commission rebates. OTHER REQUIREMENTS 1. Describe the affirmative action programs undertaken by your firm and the number and percentage of minorities and women who are either partners or professionals within your firm's Rhode Island office(s). 2. Identify any material litigation, administrative proceedings or investigations in which your firm is currently involved or which may be threatened against your firm or which have been settled during the past two years. 3. The highest standards of conduct must apply to business partners associated with Rhode Island Housing. The public has a right to know that decisions relative to the review and selection of vendors are not based upon political considerations. Accordingly, Rhode Island Housing insists upon full compliance with Chapter 27 of Title 17 of the Rhode Island General Laws, Reporting of Political Contributions by State Vendors. 4. Include a letter from your Chief Executive Officer or Firm Managing Partner certifying that (i) no member of your firm made inquiries with respect to this Request for Proposal with any member of the Board of Commissioners of Rhode Island Housing, or any employee of Rhode Island Housing (other than Kara Lachapelle, Controller), or any elected official in the State of Rhode Island and(ii) that all information in your proposal is true and correct to the best of his/her knowledge and (iii) the firm is in full compliance with Chapter 27 of Title 17 of the Rhode Island General Laws, Reporting of Political Contributions by State Vendors. 5. Pursuant to Executive Order 08-1 all persons of organizations seeking to do business with any State entity must register and utilize the services of the E-Verfiy program established by the Department of Homeland Security in partnership with the Social Security Administration. Executive Order is available at Please include a letter from an authorized representative of your firm certifying as follows: I/we certify that I/we have registered to utilize the E-Verify program ( to ensure compliance with federal and state law. I understand and agree that I am required to continue to utilize the services of the E-Verify program for as long as I continue to do business with Rhode Island Housing. I further understand that my failure to continue to utilize the services of the E-Verify program will adversely affect my ability to continue to do business with Rhode Island Housing now and in the future.

6 If your firm is awarded a contract under this RFP you will be required to provide additional documentation to Rhode Island Housing demonstrating that you have registered with the E- Verify program. 6. Does any Rhode Island Major State Decision-maker, as defined below, or the spouse or dependent child of such person, hold (i) a ten percent or greater equity interest, or (ii) a Five Thousand Dollar or greater cash interest in this business? For purposes of this question, Major state decision-maker" means: (i) All general officers; and all executive or administrative head or heads of any state executive agency enumerated in as well as the executive or administrative head or heads of state quasi-public corporations, whether appointed or serving as an employee. The phrase "executive or administrative head or heads" shall include anyone serving in the positions of director, executive director, deputy director, assistant director, executive counsel or chief of staff; (ii) All members of the general assembly and the executive or administrative head or heads of a state legislative agency, whether appointed or serving as an employee. The phrase "executive or administrative head or heads" shall include anyone serving in the positions of director, executive director, deputy director, assistant director, executive counsel or chief of staff; (iii) All members of the state judiciary and all state magistrates and the executive or administrative head or heads of a state judicial agency, whether appointed or serving as an employee. The phrase "executive or administrative head or heads" shall include anyone serving in the positions of director, executive director, deputy director, assistant director, executive counsel, chief of staff or state court administrator, If your answer is Yes, please identify the Major State Decision-maker, specify the nature of their ownership interest, and provide a copy of the annual financial disclosure required to be filed with the Rhode Island Ethics Commission pursuant to R.I.G.L , 17 and 18. EVALUATION CRITERIA AND SELECTION PROCESS 1. The general criteria to be used to select a broker is as follows: a. Ability to demonstrate a cost effective and creative approach to Rhode Island Housing s overall risk management needs. b. Ability to assist in insurance procurement.

7 c. Experience with exposures of the financial services industry. d. Ability and expertise to market, place and service insurance coverage. e. Depth and expertise of resources and services available to Rhode Island Housing from Broker. 2. Rhode Island Housing will use the written proposal and an optional interview process to judge each broker participant on its perceived ability to provide risk management and insurance services to Rhode Island Housing. a. Rhode Island Housing retains the right during this selection process to eliminate any broker from further consideration and to retain more than one broker if it deems appropriate to do so. b. Rhode Island Housing reserves the right to not appoint a new broker as a result of the RFP process. c. Rhode Island Housing will use each participant s written proposal to determine which participants may be asked to attend an interview process.