REQUEST FOR PROPOSALS
INSURANCE BROKER/CONSULTANT SERVICES
FY09-190-58
Human Resources Department
Due: Thursday, January 15, 2009 No later than 5:00 P.M.
Deliver to: Human Resources Department City Hall Annex One City Hall Plaza Manchester, NH 03101 603-623-6543 603-628-6065 Fax jgile@manchesternh.gov www.manchesternh.gov
-1-
I. PURPOSE This request for proposals (RFP) is being issued to select an insurance Broker/Consultant for the City of Manchester, New Hampshire. The contract will be for three (3) years with two (2) one-year options to renew as agreed upon by both parties. The first contract period is July 1, 2009 – June 30, 2012. II. INSTRUCTIONS TO PROPOSERS A. All proposals must be submitted to: Human Resources Director Human Resources Department One City Hall Plaza B. Questions or comments regarding this proposal shall be directed in writing to Jane Gile via mail at the above address, or via fax at (603) 628-6065, or via e-mail at jgile@manchesternh.gov. C. All proposals must be submitted in a sealed envelope and clearly marked in the lower left hand corner, ‘RFP #08-12-23 – Insurance Broker/Consultant Proposal.’ All proposals must be received by 5:00 PM, January 15, 2009, in the Human Resources Department, One City Hall Plaza, Manchester, New Hampshire 03101 D. Five (5) copies of the proposal must be submitted. No proposals or modifications to proposals may be made by telephone or fax. A proposal may be withdrawn and resubmitted if done prior to the above deadline. Such request for withdrawal shall be in writing. III. LOCAL BROKER/CONSULTANT REQUIRED A. The City of Manchester is soliciting proposals from Broker/Consultants with offices in, or within one hundred (100) miles of, the City. The selected Broker/Consultant must maintain said office in, or in close proximity to, the City of Manchester for the duration of the contract. IV. MINIMUM QUALIFICATIONS A. Broker/Consultant shall be a duly licensed insurance agent in the State of New Hampshire qualified to enroll employer groups in health, dental, life, and disability benefit plans and other insurance products and to provide employer groups with consulting services relative to the selection, procurement, refinement, implementation, and monitoring of such benefit plans and other insurance products in the best interest of the City of Manchester.
-2-
B. Broker/Consultant will have at least five (5) years of experience in providing services as outlined in this RFP to groups of similar size as the City of Manchester. C. Broker/Consultant shall carry errors and omissions insurance with a minimum limit of $1,000,000 per occurrence and a minimum limit of $2,000,000 per year. D. Broker/Consultant will have access to sufficient markets to obtain quotes from A-rated Companies. V. INSURANCE TO BE PLACED – EMPLOYEE BENEFIT PLANS A. Health Insurance, including prescription, mental health, substance abuse, and vision benefits similar to the existing plan. The City currently has a self-insured plan covering 1368 members and their families. The successful Broker/Consultant must be able to quote this plan and to obtain at least five (5) competitive quotes, as per Section VI of this RFP, for the duration of this contract, with plan years starting July 1, 2009. The City will provide authorization to act as Broker/Consultant for the City if necessary. B. Dental Insurance similar to the existing plan. Full-time regular employees are covered by a self-insured plan with Northeast Delta Dental acting as TPA. The successful Broker/Consultant must be able to quote this plan and obtain at least one (1) competitive quote, as per section VI of this RFP, for each of the contract periods covered by this RFP. The City will provide authorization to act as Broker/Consultant for the City if necessary. C. Basic Life Insurance/AD&D similar to the existing plan. Full-time regular employees are covered by insurance provided by Boston Mutual. A copy of the demographic information and current premium is enclosed. The successful Broker/Consultant must be able to quote this plan and to obtain at least one (1) competitive quote, as per Section VI of this RFP, for each of the contract periods covered by this RFP. The City will provide authorization to act as Broker/Consultant for the City if necessary. D. Long-Term Disability Insurance similar to the existing plan. Full-time regular employees are covered by insurance provided by Boston Mutual. The successful bidder must be able to quote this plan and obtain at least one (1) competitive quote for each contract period covered by this RFP. The City will provide authorization to act as Broker/Consultant for the City if necessary. VI. REQUIRMENTS OF BROKER/CONSULTANT A. To obtain annually, or as indicated by the terms of the contract, quotes from at least five (5) quality insurance companies or third party administrators for health, dental, life, and disability benefit plans, flexible spending accounts, COBRA
-3-
administration, and other insurance products and to compare and evaluate coverages and premiums. B. To bind, order, and deliver in a timely fashion the policies of coverage. C. To provide advice and expertise regarding the type of insurance requested in this RFP. D. To answer or to refer to the appropriate party, questions regarding coverage under these policies. E. To assist the City in procuring health, dental, life, and disability benefit plans, flexible spending accounts, COBRA administration, and other insurance products that best would serve the interest of the City of Manchester by, among other things, interviewing potential plan providers, requesting and responding to proposals for the provision of health benefit plans and other insurance products, and negotiating the most reasonable price for such plans and products. F. To assist the City in implementing health, dental, life, and disability benefit plans, flexible spending accounts, COBRA administration, and other insurance products by, among other things, working in conjunction with the Human Resources Department of the City of Manchester, to communicate benefits to employees, to enroll employees in health, dental, life, and disability benefit plans and other insurance products and to deliver and explain administrative forms and procedures to employees. G. To monitor plan performance, on a monthly basis, both from a financial perspective and from a level of benefit perspective, to recommend plan modification or refinement to maintain plan affordability to the City and its employees, to assist the City in rate development, to assist the City’s Health Insurance Committee and staff, and to address the long-term financial viability of these programs. H. To address periodically the Board of Mayor and Aldermen or Committee thereof, on general and specific issues related to the health, dental, life, and disability benefit plans or other insurance products provided by the City of Manchester to its employees and retirees. I. To interface with plan providers to resolve any problems or issues necessary to preserve the interests of the City, to enhance the integrity of the health, dental, life, and disability benefit plans and other insurance products of the City of Manchester, and to effect positive change in the policies and procedures of plan providers.
-4-
J. To review and certify the validity, completeness, and accuracy of reports, documents, and contracts provided by plan providers and to act as an intermediary in resolving any issues related to the stated documents. VII. COMPENSATION It is anticipated that the chosen Broker/Consultant will be compensated by commission. When obtaining bids for each type of insurance covered by this RFP or any other products, the commission offered by each entity must be fully disclosed during review with the Broker/Consultant and the appropriate members of City staff. VIII. CONTENT OF PROPOSALS Each proposal shall include: A. Firm name, address, telephone, and date established. B. Names and addresses of owners or significant stockholders (greater than 15%). C. Names of office principals and their experience in providing plans of the type described in this RFP. D. The name of the account executive who will service the City’s account, including that individual’s experience and qualifications. E. A detailed list of insurance companies and third-party administrators that you can access and from which you can obtain quotes for health, dental, life, and disability benefit plans similar to current City policies. F. A discussion of how you will handle the procurement of insurance and a description of services that you will provide under this contract. G. A copy of all licensing required. H. Evidence of insurance coverage as required above. I. Description of other services that can be provided, and the cost of providing same. J. Fee Proposal stating how the selected Broker/Consultant will be compensated, by whom, and estimated amount. K. References of three (3) commercial clients that can be contacted regarding the quality and competency of your firm and the account executive.
-5-
IX. SELECTION Proposals will be evaluated by the Human Resources Director, the Finance Director and other members of City staff as deemed appropriate. Oral presentations may be requested. The City administration intends to make a recommendation for contract award to the Human Resources and Insurance Committee of the Board of Mayor and Aldermen for consideration at its regular meeting scheduled for Tuesday, February 3, 2009. Selection criteria will include the fee proposal, the experience and qualifications of the firm and account executive assigned to the City’s account, the description of how the selected firm will handle the account, access to markets for health and life insurance, and overall clarity and responsiveness of the proposal to this RFP. The City Council will make the final selection based upon what is in the best interest of the City of Manchester. X. ASSURANCES By responding to this RFP, each proposer assures the City that, if selected as a City Broker/Consultant, he or she will: A. Make a diligent effort to place all insurance requested by the City at the lowest possible price consistent with adequate breadth of coverage and stability of insurers. B. Advise the City of ways in which coverages proposed or provided differ from that currently in place. C. Broker/Consultant agrees to disclose to the City all commissions he or she is eligible to receive or has received from insurers providing coverage to the City under this contract. D. Not assign or transfer the City’s account, or any portion of the City’s business, without the City’s prior written approval. E. Fully disclose to the City all quotes received from insurers, acting in the City’s best interest at all times. F. Comply with all provisions of this RFP and the Broker/Consultant’s proposal throughout the term of the contract.
-6-