MARICOPA COUNTY SPECIAL HEALTH CARE DISTRICT MARICOPA INTEGRATED HEALTH SYSTEM TO THE REQUEST FOR PROPOSALS FOR COVER SHEET POSTED 1-14-2019 BY SIGNING AND RETURNING THIS COVER SHEET, I CERTIFY RECEIPT OF TO THE RFP. Printed Name of Authorized Individual Name of Submitting Organization Signature of Authorized Individual Date THE SIGNATURE PAGE OF THIS ADDENDUM ONE MUST BE SIGNED AND RETURNED WITH YOUR PROPOSAL. CONTRACTS MANAGEMENT DEPARTMENT 2611 E PIERCE STREET, PHOENIX, AZ 85008-6092 602-344-1497
The Maricopa County Special Health Care District ( District ) d.b.a. Maricopa Integrated Health System (MIHS) is hereby issuing Addendum #1 to the Request for Proposals which requested sealed proposals from qualified Proposers to provide. Pursuant to the Procurement Code Clause HS-305, Addenda to Solicitations, Paragraph A (1,2), this Addendum One will make changes to the Solicitation and correct defects and ambiguities as outlined in Attachment A. 1. Q. The schedule of insurance policies included in the RFP does not include property coverage. Is this insured separately or part of another program? A. Yes, property coverage is included yet insured by another program. Coverage Carrier INCEPTION DATE EXPIRATION DATE All Risk Property 6/01/2018 6/01/2019 The Travelers Indemnity Premium $225,837 2. Q. Within the Scope of Risk Management Related Services you are requesting services that include preventing property loss or damage? Since property is not included in the schedule what specific type of support in this area are you requesting? A. Property was inadvertently left off the schedule. 3. Q. Would you please provide limits and retentions associated with each policy on the current insurance policy summary? A. See below 2
TERM INSURER NUMBER 6-1-18/19 The Travelers Indemnity KTK-CMB- 4J68389-9-18 Sentry Insurance, a Mutual 90-18935-01 COVERAGE LIMITS / DEDUCTIBLE All Risk Property Property Damage & Time Element Combined $765,363,243 Notable Sublimits (See policy for complete listing of sublimits) Accounts Receivable $25,000,000 Electronic data processing $25,000,000 Debris Removal $250,000 Errors & Omissions $5,000,000 Fine Arts $500,000 Miscellaneous Un-named location $2,500,000 Professional Fees $100,000 Research Animals $50,000 Valuable Papers & Records $25,000,000 Mobile Medical Equipment $500,000 Protection of Patients $500,000 Earth Movement (No coverage in certain zones) $50,000,000 Flood $50,000,000 Flood Special Flood Hazard Areas $5,000,000 Deductibles: Earth Movement $100,000 Flood $100,000 Flood Special Hazard Zones $500,000 All Other Covered Causes of Loss $100,000 (See policy for Time Element deductibles) Workers Compensation & Employer s Liability Workers Compensation Statutory Employers Liability Bodily Injury by accident, each accident $1,000,000 Bodily Injury by Disease, policy limit $1,000,000 Bodily Injury by Disease, each employee $1,000,000 PREMIUM $225,837 $336,510 + surcharges & assessments Subject to audit Sentry Insurance a Mutual 90-18935-02 Deductible: $500,000 Auto Liability & Physical Damage Each Accident Limit BI & PD Combined $1,000,000 Personal Injury Protection Statutory Uninsured/Underinsured Motorists $1,000,000 Auto Medical Payments $5,000 $51,084 Subject to audit Deductibles: Liability Nil Physical Damage Owned Autos Comprehensive $1,000 Collision $1,000 Physical Damage Hired Autos Comprehensive $1,000 Collision $1,000 3
TERM INSURER NUMBER Beazley Insurance V13321170601 COVERAGE LIMITS / DEDUCTIBLE Directors & Officers Liability, Employment Practices, & Fiduciary Liability Claims Made & Reported Directors & Officers Liability $10,000,000 Employment Practices Liability $10,000,000 Fiduciary Liability $5,000,000 Additional Side A D&O $250,000 Derivative Demand (Part of D&O Limit) $250,000 Policy Aggregate Limit $15,250,000 PREMIUM $147,961 Sublimits 3 rd Party Wrongful Act (part of EPL Limit) $10,000,000 Anti-Trust claims $10,000,000 Provider Selection $10,000,000 EMTALA $250,000 IRS $100,000 Regulatory $1,000,000 HIPAA $250,000 Employment Event (part of EPL limit) $75,000 Privacy violation (part of EPL limit) $1,000,000 Voluntary Compliance (part of Fiduciary) $100,000 RSUI Indemnity NHS674694 Beazley Insurance V13314170601 Retained Limits D&O Indemnifiable claims $250,000 Employment Practices $250,000 Provider Selection $250,000 3 rd Party Wrongful Acts $250,000 Fiduciary Liability $15,000 Anti-Trust claims $500,000 Regulatory $1,000,000 & 50% coinsurance Voluntary Compliance $0 Excess Directors & Officers Liability Claims Made & Reported Aggregate Limit of Liability $10,000,000 Coverage is excess of underlying $10,000,000 limit Crime Insurance Employee Dishonesty $5,000,000 Forgery or Alteration $5,000,000 On Premises $5,000,000 In Transit $5,000,000 Money Orders & Counterfeit Paper Currency $5,000,000 Computer Fraud & Funds Transfer $5,000,000 Client Property $5,000,000 Credit Card coverage $5,000,000 Expense Coverage aggregate $50,000 Fraudulent Instructions $100,000 $76,000 $15,638 Deductibles: $1,000 for Money Orders/Counterfeit Paper/Credit Cards Nil for Expense coverage $25,000 all other causes of loss 4
TERM INSURER NUMBER Beazley Insurance V210BD170101 COVERAGE LIMITS / DEDUCTIBLE Cyber Coverage Claims Made & Reported Aggregate Insuring Agreements A, C, D, and E: $5,000,000 Sub-limits Insuring Agreement C: $5,000,000 Insuring Agreement E: $5,000,000 Aggregate B notified individuals: 2,000,000 Computer Expert Services, legal, etc. $1,000,000 Electronic Crime $250,000 Criminal reward aggregate $50,000 Telecommunications Fraud $250,000 Fraudulent Instructions $250,000 Consequential reputational loss $250,000 1 st Party Cyber Extortion $5,000,000 Data protection loss $5,000,000 Business Interruption $5,000,000 Forensic expenses Included System Failure $5,000,000 Dependent Business $5,000,000 Dependent Business System Failure $1,000,000 Retained Limits: Security/Privacy/Regulatory/Penalties $50,000 Legal & Forensic $10,000/$5,000 legal Call Notification 100 individuals PREMIUM $64,973 Illinois Union Insurance XHLG46842169-001 Coverage Key A - Information Security & Privacy Liability B - Privacy Breach Response Services C - Regulatory Defense & Penalties D - Website Media content Liability E - PCI Fines, Expenses, Costs F - PCI Fines & Costs G - Cyber Extortion Healthcare Professional CLAIMS MADE & Umbrella Liability - OCCURRENCE Each Healthcare Professional Incident $25,000,000 Each Managed Care Liability incident $25,000,000 Healthcare Professional Liability Aggregate $25,000,000 Each Umbrella Liability Occurrence $25,000,000 Each Employee Benefit Liability incident $25,000,000 Umbrella Liability Aggregate Limit $25,000,000 $1,027,050 + 3.2% surplus lines tax/fee Retained/Underlying Limits Each Healthcare Professional Incident $2,000,000 Each Managed Care Incident $2,000,000 Each Employee Benefit Liability Incident $2,000,000 Each General Liability Occurrence $2,000,000 Each Automobile Accident $1,000,000 Each Employer s Liability Occurrence $1,000,000 Each Helipad Liability Occurrence $10,000,000 Each Non-owned Aircraft Liability Occurrence $20,000,000 Admiral Excess Healthcare Liability $48,225 + 3.2% surplus 5
TERM INSURER NUMBER Insurance CES-CA-10253-1216-01 COVERAGE LIMITS / DEDUCTIBLE Each Medical Incident CLAIMS MADE $10,000,000 Each Other Liability - OCCURRENCE $10,000,000 Medical Incident Aggregate $10,000,000 Other Liability Aggregate $10,000,000 Additional Limit for Defense Costs $1,000,000 PREMIUM lines tax/fee 15/18 ACE Property & Casualty Insurance Co. AAP N07389310-004 Coverage excess of underlying $25,000,000 limits Aviation Liability Each Occurrence Limit $10,000,000 Personal & Advertising Injury Aggregate $10,000,000 Products Aggregate $10,000,000 Extended Coverage War, Hijacking Aggregate $10,000,000 Hangarkeepers not in flight each occurrence $10,000,000 Hangarkeepers not in flight any one aircraft $10,000,000 Non-owned each occurrence $20,000,000 Non-owned Personal & Advertising Injury $20,000,000 Non-owned Extended Coverage aggregate $20,000,000 Fire Damage any one fire $100,000 Medical Payments any one person $25,000 Non-owned physical damage $100,000 Passenger baggage, each passenger $10,000 Passenger baggage, each occurrence $200,000 $14,277 (payable in 3 annual installments) 12-4- 15/18 Ironshore Indemnity 002589300 Deductible: Nil Healthcare Premises Pollution Liability Claims Made & Reported Per Pollution Condition or Facility Borne Illness Event $10,000,000 Aggregate Limit $10,000,000 $51,297 + 3.2% surplus lines tax/fee Retained Limit each Condition/Event: $50,000 Business Interruption Deductible Period: 3 days 4. Q. Would you please provide loss runs or loss summaries for the Hospital Professional, Workers Compensation and Automobile programs? A. Loss runs or loss summaries will be provided to the successful bidder. 5. Q. Who is handling the claims within the SIR or Deductible for the Hospital Professional Liability and Workers Compensation? A. MIHS staff handles the HPL claims. Sentry handles the Workers Compensation. 6. Q. Under 3.2.1 Expected outcomes, letter h. you are requesting Travel to home office of 1 insurer each year. Should travel expenses for MIHS staff to attend the requested meeting be included in our fee? It is not included. A. Refer to Section 5.0 Instructions To Proposers, paragraph 5.19 Travel and living expenses 6
7. Q. Does the MIHS Professional Liability SIR have an underlying trust document that dictates coverage terms and conditions or does MIHS utilize the umbrella carriers form to dictate coverage? A. Yes, it is the Self Insurance Plan and umbrella carriers form is not used. 8. Q. What types of on-site risk management or physician educational services have MIHS received from your current broker that you find beneficial? A. The information requested is beyond the scope of work. 9. Q. Page 6 of the RFP states that MIHC has 11 Family Health Centers. On page 28, the address of 12 FHCs are listed. Please confirm the current number of FHCs. A. Currently there are 11- Reference to Pendergast FHC is hereby deleted. 10. Q. Would you please describe your current procedure for the monitoring of third party certificates of insurance? A. Third party certificates of insurance are monitored by the Contracts Department. 11. Q. What is the current annual brokerage fee? A. Approximately $164,000 12. Q. What is the expiration date on the current contract for insurance broker services? A. February 5, 2019 13. Q. How is the Property/Contents insured as there was no property insurance policy listed on the schedule? A. See answer to question 1. 14. Q. What are the policy limits on the Chubb hospital liability policy? 15. Q. What are the policy limits on the Berkley excess liability policy? 16. Q. What are the policy limits on the Beazley D&O EPL policy? 7
17. Q. What are the policy limits on the RSUI excess D&O/EPL policy? 18. Q. What is the deductible/sir on the Sentry workers compensation policy? 19. Q. What is current # of vehicles? A. 32 20. Q. What is current # of employees? A. 3,610 21. Q. How does MIHS quantify the return on investment for capital expenditures of loss prevention/reduction programs under consideration? A. Net cost over 5-10 years. 22. Q. What are MIHS current deductible levels on your professional liability, workers compensation & auto liability, and what is your internal cost of capital? A. See question 3. Internal cost of capital is not considered. 23. Q. What are MIHS current major causes & sources of losses driving your claims experience? A. Hospital Professional Liability 24. Q. Does MIHS have any capitated contracts with down-side risk? If so, do you fund for it? How? A. The information requested is beyond the scope of work. 25. Q. How do you currently vet an insurance carriers loss projection & collateral calculations to effectively negotiate optimal insurance terms? A. Comparison to historical losses and benchmarking. 26. Q. Is MIHS willing to share an overview/summary of how current & prior retained risk is funded for? A. Yes 8
27. Q. Does MIHS currently use any claims management tools like special claims handling instructions with your broker & carrier partners to create efficiencies in the way you utilize data to identify & respond to trends in your loss experience? If so, what strategies are currently in place? A. No. None. 28. Q. Does MIHS currently use a performance-based allocation strategy to distribute cost of risk among your various clinics/locations? A. No. 29. Q. What role does MIHS see your broker playing in the identification, quantification & management of reputational, financial, operational, compliance & strategic risks stemming from cyber exposure & data breaches? A. Sharing best practices. 30. Q. Does MIHS have any of the following cyber risk management programs developed, and if not, are these programs that MIHS would be interested in developing with their chosen insurance advisor? a. Information Risk Assessment b. Critical Business Systems Business Interruption/Continuity Program c. Business Impact Assessment/Analysis A. Yes. 9