Addendum No by jolinmilioncherie


									        DAVID R. CRAIG                                                                  DEPARTMENT OF PROCUREMENT
     HARFORD COUNTY EXECUTIVE                                                          DEBORAH L. HENDERSON

     LORRAINE COSTELLO                                                                    JOSEPH S. PATTI, CPPO
     DIRECTOR OF ADMINISTRATION                                                                DEPUTY DIRECTOR

                                  HARFORD COUNTY GOVERNMENT
                                                Addendum No. 3
                                              Request for Proposal
                                                   No. 09-157
                          Harford County Government and Harford County Public Library
                                       Life Insurance and Disability Plans

December 23, 2008

Ladies and Gentlemen:

The purpose of this addendum is to provide clarification (s) to all prospective bidders.

Please see the following Q & A.

Question:       Section B - page 1 - Item #4 states your desire to eliminate redundant GUL admin costs by
                providing portable term. Please confirm your intent to cancel GUL coverage for those now
                covered which will be replaced with term coverage.

Answer:         The RFP requests a benefit structure that provides supplemental employee-paid life insurance
                primarily through less expensive portable term insurance. Recognizing, however, that some
                employees will want to purchase permanent life insurance with cash accumulation, we have
                also requested an offering of either whole or universal life, which may be purchased along with
                portable term. As part of your response, outline how you would provide the most advantageous
                transition benefit for those with cash values under the current GUL. Indicate the underwriting
                and transfer provisions you will provide to ease the transition to the new plan.

Question:       Section B - page 1 - item #5 requests voluntary individual permanent life insurance with level
                premium and coverage to be offered along side the term coverage referenced in item #4.
                Section C page 4 states no commissions can be included in products offered. Since the
                individual permanent level premium products you request in Section B are marketed by
                individual representatives and include commissions, please clarify your intent and whether a
                commissioned product is acceptable to meet your stated need.

Answer:         For the individual permanent level premium products only, commissions will be permitted.
                Commissions are not permitted for any other products.

Question:       Please describe your plan to introduce the new permanent level premium product and whether
                individual meetings with Harford County employees will be allowed to explain/enroll this new

Answer:         Individual meetings will be allowed, but will not be mandatory.

                              ≈ Preserving Harford’s Past; Promoting Harford’s Future ≈
                                          MY DIRECT PHONE NUMBER (410) 638-3550
 220 South Main Street, Bel Air, Maryland 21014 (410) 638-3000 ▪ (410) 879-2000 ▪ TTY (410) 638-3086
                        This document is available in alternative format upon request.
            •   Voluntary LTD - please provide rate history since 7/1/2002
            •   Voluntary LTD - please provide lives and volume history on the VLTD for the last 3 years.
            •   Voluntary LTD - please provide a closed claims listing for claims incurred since 7/1/2002.
            •   Voluntary LTD - confirm premium included in the <25 age band is actually total premium for the
                entire group beginning 7/1/2006
            •   Please provide historical billing rates for GTL, STD and LTD coverages offered to HCPL

Response:       No rates or rate history will be provided. Note, however, that HCG VLTD rates increased 25%
                July ’05 and an additional 39% July ’07. Closed claims will be provided. The Met Life rates for
                HCG, for all products, have been the same since 2004.

Question:       The Met Life booklet for the HCG employees seems to indicate that Waiver of Premium is not
                included. Please confirm. If there is no Waiver, will carriers be asked to take over Life
                coverage for employees who are not eligible for coverage because of a disability? If so, please
                provide census data including gender, date of birth, benefit amount and occupation.

Answer:         There is currently no waiver of premium provision for the basic life for HCG. However, if
                someone qualifies for a disability retirement (under their pension plan), then they become a
                retiree, and the basic benefit continues until death for that group. The GUL product has waiver
                of premium.

Request:        Please provide a 5 year rate history for all lines of coverage, including the inforce and renewal

Response:       No rates or rate history will be provided.

Question:       Is it your intention to award all coverages and groups to one vendor or should our quotes stand
                alone for both the HCG and HCPL groups and by line of coverage?

Answer:         It is possible different carriers could be awarded only parts of the plan. See the first question on
                page 1.

Question:       If we are unable to provide a proposal for GUL will this eliminate us from consideration?

Answer:         No. But see previous questions regarding packaging of benefits.

Question:       Please confirm that there are no age reductions for the HCG Basic and Optional Life coverages
                with Met Life.

Answer:         Confirmed.

Request:        Please provide a census with the enrolled coverage amounts for the Optional Life with Met Life.

Response:       There is no optional life coverage with Met (only GUL). Information on the GUL amounts was
Question:   The Harford County Government term life SPD includes basic, employer-paid and optional
            employee-paid coverage. The GUL SPD also offers optional employee-paid coverage. Is it
            correct that the Government employees may elect optional term coverage as well as optional
            GUL coverage, or are the limited to one or the other?

Answer:     Although the term life SPD indicated that there is optional employee-paid term life, this is not the
            case. The only optional life insurance benefit for the HCG group is the GUL.

Question:   Do the “GTL Met” premium and claims reports include optional term life premium and claims? If
            so is the basic coverage available independently?

Answer:     No. See question above.

Question:   The “GTL Met” premium and claims reports include premium for Voluntary AD&D coverage.
            Should we be providing quotes for the voluntary AD&D coverage? If so, please provide the plan
            design and plan details.

Answer:     You should provide a quote for Voluntary AD&D. This should be a stand-alone choice for
            employees, along with the new voluntary supplemental portable term life and the permanent life
            (whole or universal).

Question:   The “GTL Met” premium and claims reports break out the life premium for two groups – “Basic
            Life – no disability/prem pay” and “Basic life-extended death”. Is this because some employees
            have an insured waiver benefit and some do not? Please explain this two groups and detail
            which employees qualify for which disability definition. Are there separate rates for each group?

Answer:     There are not separate rates for these groups.

Request:    Please provide current and historical life and AD&D rates for all lines of coverage.

Response:   See previous questions.

Question:   Do retirees have a separate rate if they choose

Answer:     No. The rate is blended for actives and retirees.

Question:   Confirm that the Harford County library employees are only eligible for optional employee-paid
            GUL coverage and not eligible for optional employee-paid term coverage.

Answer:     Confirmed that this is the current scenario. Note that a new configuration is being requested as
            part of this RFP.
Question:   Should both the Government and Library employees be eligible for optional term coverage and
            optional GUL coverage going forward? Should they be allowed to enroll in just one of the plans
            or both plans?

Answer:     Please see page 6 of the RFP. They should be able to enroll in only the supplemental term, only
            the permanent life (whole or universal), or both.

Question:   It does not appear that any of the term life / GUL plans are being eliminated / changed as a part
            of this RFP process. Please confirm

Answer:     Please see page 6 of the RFP for the requested plan.

Question:   Will the Government and Library term life and GUL plans all be awarded to the same carrier, or
            is it possible that they will be split between multiple carriers?

Answer:     See questions above.

Question:   We are receiving an error message when trying to open the census file titled “HCG Active
            employee census”. All the other census files work fine. Please resend a new Excel file with the
            HCG Active employee census.

Answer:     See the next to last question on page 5 of this document.

Question:   The “GTL SPD Met” document states that the basic life benefit for government employees is
            $20,000. The “GTL Met” premium and claims documents show claim amounts of $20,000 and
            $15,000. Please explain the $15,000 claim amounts.

Answer:     The benefit was improved some years ago from $15,000 to $20,000. There are retirees who
            had the lower benefit at retirement, and did not received the improved amount.

Question:   All the SPDs do not include details regarding the waiver and portability provisions. Do all plans
            include waiver and portability?

Answer:     The HCG GTL benefit does not have waiver, but does have retiree benefits, which employees
            can qualify for if they become “disability retirees.” The HCPL GTL benefit does have waiver.
            Neither GTL plan has portability. Assume these provisions will remain with the new plans. Also
            assume the GTL plans will have an accelerated death benefit provision. Currently, both GUL
            plans have waiver and portability. The requested employee-paid plans (voluntary supplemental
            term and whole/universal life) should have waiver of premium and be portable. They should also
            have an accelerated death benefit.

Request:    The “GUL Met Plan Summary” document does not state the current employee or spouse
            guarantee issue limits for new employees. Please provide these GI limits.
Response:    The GI limits for the HCG GUL plan are: Employees – 1X salary to a maximum of $250,000;
             Spouses – $30,000; Children - $10,000

Request:     Please provide Proposal Forms 1, 2A, 2B and 3 in Microsoft Excel as they were not included as
             attachments on the CD we received.

Response:    These forms, as well as the HCG active census (which some carriers could not open) as well as
             a new report from Hartford (HCG VLTD closed claim listing) will be provided to you directly. To
             receive this information, send an email to Mark Lynne at Bolton Partners and copy Karen
             Rottmann at HCG with the request. Email addresses for both can be found on page three of the

Question:    How are the current life and AD&D premiums billed? Does the County self-bill or does the
             current insurance carrier submit an invoice? Is the billing method the same for both the term
             and GUL plans?

Answer:      The County self-bills for LTD and GTL. They receive a list bill for the GUL.

Should you have additional questions regarding this project, please do not hesitate to contact me at


Karen D. Rottmann, CPPB
Procurement Agent II

cc:    Scott Gibson, Department of Human Resources
       Mark Lynne, Bolton Partners

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