HomeMy WebLinkAboutContract 46072 CITY SECRETARY
CONTRACT NO.
APPLICATION FOR ReliaStar Life Insurance Company
GROUP INSURANCE Home Office • Minneapolis, Minnesota 55440
Application is made to ReliaStar Life Insurance Company (we, us, our) for Group Insurance.
1. Name of Group Applicant City of Fort Worth
(use exact legal name of organization)
2. Address 1000 Throckmorton Street
(number& street)
Fort Worth, TX 76102
(city, state, zip code)
3. Types of insurance desired: Does the Group Applicant pay 100%
of the premium?
® Basic Life Insurance ........................................................................................................Yes
® Supplemental Life Insurance ...........................................................................................No
❑ Basic Dependent Life Insurance ......................................................................................n/a
® Supplemental Dependent Life Insurance .........................................................................No
❑ Paid Up Life Insurance ....................................................................................................n/a
® Basic Accidental Death & Dismemberment Insurance (AD&D) .......................................Yes
® Supplemental Accidental Death & Dismemberment Insurance (AD&D)..........................No
❑ Basic Dependent Accidental Death & Dismemberment Insurance (AD&D).....................n/a
® Supplemental Dependent Accidental Death & Dismemberment......................................No
Insurance (AD&D)
❑ Survivor Income Benefit(Life Insurance) ........................................................................n/a
❑ Weekly Disability Income Insurance .............................................................................—nla -F-1 Monthly Monthly Disability Income Insurance ............................................................................ .. FIMAL RECORD
El Employee Dental Insurance .......................................................................................... ..n Ta
❑ Dependent Dental Insurance ......................................................................................... .PITY SECRETARY
❑ Other Personal Accident Insurance-Employee .............................................................. .n/ nA WR`ICNX 9 JBK
❑ Other Personal Accident Insurance-Dependent ..............................................I.........
....,
4. This insurance is to become effective on (date) January 1, 2015
at the Group Applicant's place of business, only if the first month's premium is paid in full, and we accept this
application.
5. The writing agent on the insurance applied for is: (The agent must be duly licensed as required by law)
n/a
Group Applicant City of Fort Worth
By
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APPROVED AS TO FORM AND LEGALITY: ee $e s� f Fray rnings
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GrpAppStnd 1 of Mary J. Kayser, City Secretarrs►►
2
Fraud Warnings
Standard: Any person who knowingly and with intent to defraud, submits an application or files a claim
containing any materially false or misleading information, commits a fraudulent act, which is a crime.
Colorado: It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an
insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include
imprisonment, fines, denial of insurance, and civil damages. Any insurance company or agent of an insurance
company who knowingly provides false, incomplete or misleading facts to a policyholder or claimant for the
purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award
payable from insurance proceeds shall be reported to the Colorado Division of Insurance within the Department
of Regulatory Agencies.
District of Columbia: It is a crime to provide false or misleading information to an insurer for the purpose of
defrauding the insurer or any other person. Penalties include imprisonment and/or fines. In addition, an insurer
may deny insurance benefits if false information materially related to a claim was provided by the applicant.
Louisiana: Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or
knowingly presents false information in an application for insurance is guilty of a crime and may be subject to
fines and confinement in prison.
Maryland: Any person who knowingly and willfully presents a false or fraudulent claim for payment of a loss or
benefit or who knowingly and willfully presents false information in an application for insurance is guilty of a crime
and may be subject to fines and confinement in prison.
New Jersey: Any person who includes any false or misleading information on an application for an insurance
policy is subject to criminal and civil penalties.
Oregon: Any person who knowingly and with intent to defraud submits an application or files a statement of
claim containing any materially false or misleading information, may be guilty of insurance fraud.
Pennsylvania: Any person who knowingly and with intent to defraud any insurance company or other person
files an application for insurance or a statement of claim containing any false information or conceals for the
purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act,
which is a crime and subjects such person to criminal and civil penalties.
Tennessee: It is a crime to knowingly provide false, incomplete or misleading information to an insurance
company for the purposes of defrauding the company, Penalties include imprisonment, fines and denial of
coverage.
GrpAppStnd 2 of 2
Important Information About Your Employee Benefits Insurance
This is a general discussion of possible compensation. Some, all or none of these payment
arrangements may apply to your specific case.
Thank you for considering Reliastar Life Insurance Company (the "Company") for your employee benefits
insurance needs. We offer various Employee Benefits insurance products that have different features, benefits
and costs. We are confident that, working with your professional insurance agent, broker, or consultant you will
find that one of our products is right for you. Your agent, broker, or consultant may work with many employee
benefits insurance companies, and we are pleased that they are presenting one of our products to you. If you
decide to purchase, or offer to your employees or members, a policy from us we would like you to understand
how we will pay the selling agent, broker, or consultant.
There are generally three types of payments that may be made to agents,brokers and consultants:
1. Commissions: Agents, brokers, or consultants may earn a commission for each Company policy sold.
The commission is generally a percentage of the policy premiums paid. The percentage may be higher
for agents, brokers, or consultants that sell a larger number of Company policies. The actual
percentage and amount of commission paid will vary based on the specific circumstances of the
product(s)purchased.
2. Bonuses: Agents, brokers, or consultants may receive additional compensation based on a percentage
of policy premiums paid for each year a policy remains in force and as rewards for things like achieving
certain sales volume levels, sales contest objectives, or other measures. We also may pay for agent,
broker, or consultant education, training or attendance at conventions, and may pay bonuses, provide
advance commissions and/or loans with an expectation that the advancement and/or loans be repaid as
new policies are issued, reimburse expenses or provide other payments or benefits.
3. Administrative/Service Fees: Agents, brokers, or consultants may provide administrative services and
marketing support for a flat fee, a percentage of policy premiums paid, or, a fee based on the amount of
commissions earned from the initial sale. The agents, brokers or consultants may be associated with
other brokers or consultants that may provide administrative services and marketing support for similar
fees.
This is a general discussion of the compensation we pay for the sale of our policies. We pay commissions and
other sales expenses from our general assets and revenues, including amounts we earn from fees and charges
under our policies. The price of an insurance policy is set by the Company, and reflects the compensation we
pay for the sale of our policies. It also covers other costs to design, manufacture and service our policies, fees
associated with the cost of any applicable guarantees, the investment management needed to build cash values
and pay benefits, and our profits. Such payment is not to be allowed in this instance since there is not a named
agent, broker or consultant.
We are committed to providing top-quality insurance products to our customers and are pleased that your
professional insurance agent, broker, or consultant trusts us to deliver on your long term insurance needs.
By signature below, you acknowledge receipt of this informational notice.
Product Name(s) Basic Life/AD&D Supplemental Life/AD&D Supplemental Dependent Life
Account Name City of Fort Worth
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APPROVED AS TO
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Revised: 12!2013
aty J. Kayser, Cflty Secretary 5 C. 0 cti
ASSISTANTUITY ATTORNEY
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CONFIDENTIALITY AND DATA SECURITY AGREEMENT
This Confidentiality and Data Security Agreement (the "Agreement") is entered into on July 10, 2014 ("Effective Date") by
ReliaStar Life Insurance Company and ReliaStar Life Insurance Company of New York(collectively, the "Insurer"), and City
of Fort Worth ("Employer"), on behalf of itself and any third party technology services provider engaged by Employer
("Service Provider"). The Insurer and Employer may be referred to as the "Parties" or the "Party". The Parties agree as
follows:
WHEREAS, Employer may provide Insurer with confidential information, electronically or otherwise, directly or
through a Service Provider, in connection with the Insurer's administration of the employee benefit products issued to
Employer by Insurer(the"Policy(ies)").
NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:
1. CONFIDENTIAL INFORMATION
1.1. In connection with the Policy(ies), a Party or its Representatives (the "Disclosing Party") may furnish to the other
Party or its Representatives (the "Non-Disclosing Party") Confidential Information (as such term is defined herein)
related to the Policy(ies). As used herein, the term "Representatives" shall mean, as to either Party, such Party's
directors, officers, employees, agents, consultants, advisors, or other representatives, including legal counsel,
accountants and financial advisors. Representatives of Employer shall also include any Service Provider.
1.2. Each Party acknowledges the confidential and proprietary nature of the Confidential Information, agrees to hold and
keep the same as provided in this Agreement, and otherwise agrees to each and every restriction and obligation in
this Agreement.
1.3. As used in this Agreement, the term "Confidential Information" means and includes any and all information the
Disclosing Party designates as being confidential. Subject to the foregoing sentence, Confidential information may
include, but is not limited to, the following:
a. nonpublic personal information concerning the Disclosing Party's employees, which information shall
include, without limitation, nonpublic personal financial information and nonpublic health information
concerning such employees;and
b. information concerning the business and affairs of the Disclosing Party (which includes historical
financial statements, financial projections and budgets, historical and projected sales, capital spending
budgets and plans, the names and backgrounds of key personnel, personnel training techniques and
materials, insurance rates, insurance plans,benefits and related services,and compensation rates).
1.4. The Non-Disclosing Party agrees on its own behalf,and agrees to cause its Representatives:
a. to maintain the confidentiality of the Confidential Information of the Disclosing Party;
b. not to use or allow the use of any portion of such Confidential Information of the Disclosing Party for
any purpose other than in connection with the Policy(ies);
C. not to disclose or allow disclosure to others of any portion of the Confidential Information provided to it,
except to those of its Representatives who need to know such Confidential Information in connection
with the Policy(ies) and who are made aware of, and who agree to be bound by, the terms of this
Agreement or are otherwise bound to duties of non-disclosure and restrictions on use of the Confidential
Information at least as restrictive as those set forth in this Agreement (collectively, the 'Permitted
Representatives")and then only for the purpose described in Section 1.4.b above;
CD
d. not to disclose or allow disclosure to any person under the control of such party, other than the Permitted
Representatives, the fact that any portion of the Confidential Information has been made available to it
or any of the terms, conditions or other facts with respect to the Policy(ies) (the term "person" to be
v.12012
Page I of 6
broadly interpreted to include, without limitation, any individual, corporation, estate, group, LLC,
partnership,trust or other entity);
el not to make or allow to be made copies of or otherwise reproduce the Confidential Information provided
to it or any part thereof,except as reasonably required in connection with the Policy(ies) or as permitted
with the specific prior written consent of the other party; and
f. within ten (10) days of a request by the Disclosing Party, the Non-Disclosing Party will, to the extent
allowed by law, destroy all of the Confidential Information of the Disclosing Party, including all copies
thereof and any works derived therefrom or containing Confidential Information. However, the Non-
Disclosing Party shall not be deemed to have violated the provisions of this paragraph if,notwithstanding its
commercially reasonable efforts to delete all such Confidential Information held in electronic form, any
such Confidential Information remains in existence through the ordinary course operation of data backup
and recovery systems, provided such Confidential Information is not generally accessible to personnel not
involved in the operation of data backup and recovery systems, and in any event, the Non-Disclosing Party
must continue to comply with the restrictions contained in this Agreement on the use of such Confidential
Information for so long as it possess the same. Insurer shall be entitled to maintain its own insurance
business records, including any Confidential Information that has become part of such records, as required
for business retention and regulatory purposes provided, however, that to the extent Insurer's retained
records include any personal health information, Issuer shall be required to maintain and safeguard the
confidentiality of such information in accordance with HIPAA and regulations adopted thereunder to the
extent such rules apply.
1.5. All of the foregoing obligations and restrictions do not apply to that part of the Confidential Information that the
Non-Disclosing Party demonstrates (a) was or becomes generally available to the public other than as a result of a
disclosure, (b) was available, or becomes available, to the Non-Disclosing Party but only if(i) the source of such
information is not bound by a Confidentiality Agreement with the Disclosing Party or is not otherwise prohibited
from transmitting the information to the Non-Disclosing Party by a contractual, legal, fiduciary, or other obligation
and (ii) the Non-Disclosing Party provides the Disclosing Party with written notice of such prior possession either
(A) prior to the execution and delivery of this Agreement or(B) if the Non-Disclosing Party later becomes aware of
any aspect of the Confidential Information of which they had prior possession, promptly upon the Non-Disclosing
Party becoming aware of such aspect, or(c) is independently developed by Non-Disclosing Party without access to
the Disclosing Party's Confidential Information.
1.6. In the event that the Non-Disclosing Party or its Representatives, is, in the opinion of legal counsel, required by
legal process, law or regulation to disclose any portion of the Confidential Information provided to it, the Non-
Disclosing Party shall provide the Disclosing Party with prompt written notice of such requirement, if legally
permissible, as far in advance of the proposed disclosure as possible so that the Disclosing Party (at its expense)
may either seek a protective order or other appropriate remedy which is necessary to protect its interests or waive
compliance with the non-disclosure provisions of this Agreement to the extent necessary (provided that one or the
other be done). The Non-Disclosing Party and its Representatives shall cooperate in all reasonable respects with the
Disclosing Party in seeking to prevent or limit disclosure and, in the event a protective order or other remedy is not
obtained, the Non-Disclosing Party will limit the disclosure to the information actually required to be disclosed;
provided, that the Non-Disclosing Party shall not be required to incur any out-of-pocket costs in complying with this
paragraph,
1.7 The Non-Disclosing Party shall, to the extent allowed by law, indemnify and hold the Disclosing Party and its
Representatives harmless from any damages, loss, cost, or liability (including reasonable legal fees and the cost of
enforcing this indemnity) arising out of or resulting from any unauthorized use or disclosure of the Disclosing
Party's Confidential Information or other violation of this Agreement. In addition, because an award of money
damages (whether pursuant to the foregoing sentence or otherwise) would be inadequate for any breach of this
Agreement by the Non-Disclosing Party or its Representatives and any such breach would cause the Disclosing
Party irreparable harm, the Non-Disclosing Party also agrees that, in the event of any breach or threatened breach
of this Agreement, the Disclosing Party will also be entitled, without the requirement of posting a bond or other
security, to equitable relief, including injunctive relief and specific performance. Such remedies will not be the
exclusive remedies for any breach of this Agreement, but will be in addition to all other remedies available at law or
in equity to the Disclosing Party.
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Page 2 of 6
2. DATA SECURITY
2.1. Each of Insurer, Employer and any Service Provider acting on behalf of Employer shall establish and maintain (1)
administrative, technical and physical safeguards against the destruction, loss or alteration of Confidential
Information, and (2) appropriate security measures to protect Confidential Information, which measures are
consistent with all state and federal regulations relating to personal information security, including, without
limitation, the Gramm-Leach-Bliley Act and the laws of the Commonwealth of Massachusetts, if applicable.
3. ELECTRONIC TRANSMISSION OF DATA
3.1. If Employer elects to transmit information to Insurer electronically, directly or through a Service Provider, the
provisions of this Section 3 shall apply.
3.2. Insurer will use commercially reasonable efforts to cooperate with Employer and/or Service Provider to establish
electronic data exchange services as agreed to between the parties. Employer and Service Provider agree to
cooperate with and allow Insurer to test and audit systems used with Insurer products and services at reasonable
intervals.
3.3. Employer and any Service Provider that will transmit information to Insurer electronically will comply with the
technical specifications provided to Employer by Insurer and such other reasonable administrative guidelines and/or
written instructions that Insurer may provide to Employer from time to time, including use of encryption methods as
required. Employer will require any Service Provider by contract to comply with the Technical Specifications and
with such other reasonable administrative guidelines and/or written instructions that Insurer may provide to
Employer from time to time, and shall provide the Technical Specifications and such other guidelines and
instructions to any Service Provider.
3.4, While Employer(or its agent or vendor or any Service Provider)has access to Insurer's or its affiliates' information
systems, including all data they contain and all computer software and hardware(collectively, "Insurer Network"),
Employer shall take commercially reasonable measures to prevent the introduction of any software viruses, time or
logic bombs,Trojan horses,worms, timers,clocks, trap doors,or other computer instructions,devices, or techniques
that erase data or programming, infect,disrupt,damage, disable, or shut down a computer system or any component
of such computer system, including its security or user data, or otherwise cause software to become inoperable
(collectively, "Virus") into the Insurer Network. If a Virus is found to have been introduced into the Insurer
Network by or through Employer or Employer's Representatives,Employer shall cooperate and diligently work with
Insurer to eliminate the effects of such Virus. Employer shall exercise commercially reasonable care to prevent
unauthorized persons from accessing the Networks.
3.5. Electronic transmission of information may be terminated by either party at any time upon sixty (60) days' written
notice.
4, INSURANCE PRODUCT AND ENROLLMENT ONLINE SET UP
4,1. If Employer elects to build online enrollment for Insurer's products, either on Employer's systems or through a
Service Provider, the provisions of this Section 4 shall apply.
4.2. Insurer will use commercially reasonable efforts to cooperate with Employer and/or Service Provider to establish
electronic data exchange services as agreed to between the parties. Employer and Service Provider agree to
cooperate with and allow Insurer to test and audit systems used with Insurer products and services at reasonable
intervals,
4.3. Employer and any Service Provider will comply with the Product Requirements provided to Employer by Insurer
and such other reasonable administrative guidelines and/or written instructions that Insurer may provide to
Employer from time to time. Employer will require any Service Provider by contract to comply with the Product
Requirements and with such other reasonable administrative guidelines and/or written instructions that Insurer may
provide to Employer from time to time, and shall provide the Product Requirements and such other guidelines and
instructions to any Service Provider.
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Page 3 of 6
4,4, The Product Requirements will include, but may not be limited to:
a. Plan design pages
b. Required state specific company forms, including but not limited to enrollment forms, applications,
disclosures as indicated
C, Carrier branding
d, Rates and rate calculation rules
e. Education and plan selection experience
f, Plan entry and life event rules
g. Disclaimers, terms and other legal requirements
h. Outbound data feeds and secure file transfer methods (as necessary)
4.5. Not less than two (2) weeks prior to the intended enrollment start date, Insurer shall validate the enrollment system,
including but not limited to product build, plan design and medical underwriting calculations, in one of the
following methods. No enrollment shall occur until Insurer has validated and approved the product build and plan
design.
a. Employer shall grant Insurer access to the online enrollment solution to test sample enrollments;or
b. If requested by insurer, Employer shall provide a recorded demonstration of the online enrollment
solution and shall provide screen shots of each page.
C. In either method, Employer will send a sample data file for the sample enrollments so Insurer may
validate the data file.
4.6. If, in Insurer's sale discretion, any online product build, plan design and enrollment system does not meet Insurer's
requirements and conform to all Product Requirements provided by Insurer("Testing Criteria"),and Employer does
not promptly correct any and all deficiencies identified by Insurer to meet the Testing Criteria, then Insurer, at its
sole option, may (a) allow Employer additional time to correct the deficiencies or (b) disallow online enrollment.
Insurer shall have at least two(2)days to conduct re-testing following each delivery of a correction by Employer, In
no event will use of the online enrollment system by Employer prior to written approval by Insurer be deemed
acceptance by Insurer. Use of the online product build and enrollment system prior to approval may result in
rejection of applications or enrollments by ReliaStar.
4.7, Following validation and approval by Insurer, no material changes shall be made to the online enrollment solution
without prior written notice to and approval by the Insurer, including an opportunity for revalidation as in Section
4.5. If Insurer requires updates or changes to the online enrollment solution, Insurer will notify Employer and any
Service Provider and such updates shall be completed within two(2)days of such notice.
4,8. All costs, fees, expenses and other charges for Employer's online enrollment build shall be paid by Employer and
Insurer shall have no responsibility for same.
4.9, Employer is responsible for the accuracy of data transmitted to Insurer by Employer or by any Service Provider,
Employer will provide benefit descriptions to employees in accordance with Insurer's materials and guidelines and
is responsible for any errors in data transmitted to or from Insurer electronically. Insurer's insurance obligations
will be determined solely by the terms of its insurance policies and Insurer assumes no responsibility or liability for
any incorrect or inconsistent communications made to employees by Employer or any Service Provider.The Parties
agree to cooperate to avoid such miscommunication and address any such miscommunications which occur.
Employer shall be responsible for any costs incurred in correcting errors caused by incorrect data, including
incorrect benefit descriptions and eligibility determinations.
v,1_2012
Page 4 of 6
4.10. Online enrollment maybe terminated by either party upon sixty(60)days' prior written notice.
5. WARRANTIES;DISCLAIMERS
5.1. Each Party agrees to comply with all applicable laws, ordinances, orders, directions, rules, and regulations of the
federal, state, county, and municipal governments applicable thereto, all as they may be amended from time to time,
in connection with this Agreement.
5.2. Insurer is not responsible for any data inaccurately provided by Employer or any Service Provider, or for any data
lost or delayed due to power outage, delay in operation or transmission, Virus, communication line failure, or for
theft,alteration or destruction of records by unauthorized persons.
6. AUDIT
6.1. Employer will maintain, and will cause any Service Provider to maintain, accurate books and records associated
with electronic data exchange and online product build and enrollment, including without limitation, employee
demographics, eligibility records, dependent data, coverage amounts, enrollment history, payroll deductions, benefit
elections and beneficiary designations. Such records will be maintained for a period of seven (7) years following
termination of the Policies to which they relate.
6.2. Upon reasonable notice from Insurer to Employer, the Insurer's authorized representatives or applicable regulatory
authority shall have the right, with or by its duly authorized representatives, to review, inspect and audit, at Insurer's
expense, the books, records, data files or other information maintained by or on behalf of Employer related to the
Policies. Such audits may include but may not be limited to, financial documents, billing records, information
systems, system security and interviews with Employer personnel. The Insurer will keep information disclosed in
the course of such review confidential,as provided in this Agreement.
7. MISCELLANEOUS
7.1. Term. The term of this Agreement shall begin on the Effective Date and remain in effect for as long as Insurer's
obligations under the Policy(ies) remain in effect, unless earlier terminated by either Party by written notice of
termination to the other Party. The Parties agree that this Agreement also applies to any Confidential Information
exchanged by the Parties prior to the Effective Date. The restrictions on use, disclosure and reproduction of
Confidential Information set forth in this Agreement will, with respect to personally identifiable information and
Confidential Information that constitutes a "trade secret" (as that term is defined under applicable law), be
perpetual, and will, with respect to other Confidential Information, remain in full force and effect during the term
of this Agreement and for a period of five years following the termination of this Agreement.
7.2. Indemnity. Each party shall, to the extent allowed by law, indemnify and hold the other harmless against any and all
losses, claims, damages, costs or expenses (including reasonable attorneys' fees) which the indemnified party may
become obligated to pay resulting from:
a. The indemnifying party's error or omission in performing obligations under this agreement, except to the
extent that indemnified party has caused,significantly contributed to, or compounded such error or omission;
or
b. A breach by the indemnifying party of any of its obligations described in this Agreement regardless of
whether such breach is either willful or negligent.
c. NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR INDIRECT, CONSEQUENTIAL, SPECIAL,
INCIDENTAL, OR PUNITIVE DAMAGES, EVEN IF SUCH DAMAGES WERE FORESEEABLE;
PROVIDED, HOWEVER, THAT THIS EXCLUSION WILL NOT APPLY TO (1) ANY DAMAGES
CAUSED BY A PARTY'S GROSS NEGLIGENCE, FRAUD OR WILLFUL MISCONDUCT; (2)
AMOUNTS TO BE PAID BY AN INDEMNIFYING PARTY RELATED TO THIRD PARTY CLAIMS
PURSUANT TO THE INDEMNIFICATION SECTION HEREIN (NO MATTER HOW SUCH DAMAGES
MIGHT BE CHARACTERIZED BY A THIRD PARTY); OR (3) DAMAGES CAUSED BY A BREACH
OF THE CONFIDENTIAL INFORMATION SECTION OF THIS AGREEMENT, THE REMEDIES
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SPECIFIED IN THIS AGREEMENT ARE CUMULATIVE AND IN ADDITION TO ANY REMEDIES
AVAILABLE AT LAW OR IN EQUITY.
7.3. Governing Law. This Agreement shall be governed by the laws of the State of Texas without regard to conflicts of
laws principles.
7A. Entire Agreement; Amendments. This Agreement constitutes the entire agreement between Employer and Insurer
related to the subject matter hereof and supersedes all previous agreements, promises, proposals, representations,
understandings, and negotiations, whether written or oral, between the parties respecting the subject matter hereof.
No modifications, amendment, supplement to or waiver of this Agreement or any of its provisions shall be binding
upon the parties hereto unless made in writing and duty signed by both parties,
7.5. Independent contractor. The relationship of between the parties is that of independent contractors. Nothing in this
Agreement should be construed to create the relationship of employer and employee, partnership, joint venture or
franchise, Insurer and Employer may separately enter into agreements with Service Providers and other third parties
and rights and obligations under those separate agreements shall not amend, change, modify or waive any rights or
obligations under this Agreement.
7,6. Assignments. Neither this Agreement nor any of the benefits hereunder may be pledged, assigned or transferred,
either in whole or in part, by the Employer or Insurer, without the assignor receiving the prior written consent of the
other party,except a party may assign to any affiliated entity under common control.
7.7. Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provisions of this Agreement, which shall remain in full force and effect, If any of the
covenants or provision of this Agreement are determined to be unenforceable by reason of its extent,duration, scope
or otherwise, then the parties contemplate that the court making such determination shall reduce such extent,
duration, scope or other provision and enforce them in their reduced form for all purposes contemplated by this
Agreement.
7.8. Waiver. No waiver of any provision of this Agreement shall constitute a waiver of any other provision(s) or of the
same provision on another occasion.
7.9. With the exception of routine communications referencing the existence of a business relationship between the
Parties, neither Party may use the name, logo, trademark or trade name of the other Party, or make any public
announcement regarding this Agreement or any activities performed hereunder, without the other Party's prior
written consent,
7.10.Employer shall be responsible for the acts and omissions of Service Provider in connection with this Agreement as if
they were the acts or omissions of Employer.
7.11.This Agreement may be signed in counterparts,each of which shall constitute an original.
IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the Effective Date. Executed
signature pages may he transmitted by facsimile or e-mail, and any such electronically reproduced signature shall have
the same legal affect as an original.
ACCEPTED AND AGREED:
ReliaStar Life Insurance Company Employer
ReliaStar Life Insurance Company of New York City of Fort Worth
Signature: Signature: II
Print Name: t Name: �y�a �" /�lQ✓1 S
Title: Fo
°°° ROVED AS TO
by' mss° C\ l/ c� A EGALITY:,'-2012
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Mary 1. Kayser, City Secretary � 1°° °°e%V S I TANT r A tSpp��
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M&C Review Page lof3
offiu |site m the City m Fort Worth,Texas
�� �% �� FORTWORTH
��l��r ����NN����I0 AGENDA
COUNCIL ACTION: Approved on 7/22/2014
DATE; 7/22/2014 REFERENCE NO.: C-20885 LOG NAME: 14L)FEADD
CODE: C TYPE' NON-CONSENT PUBLIC
NO
HEARING:
SUBJECT: Authorize Execution of Agreement with Re|iaGtor Life Insurance Company, a Member of
the /NGyVnya Financial, Inc., Family of Companies, in the Amount Up to $508.510.00
Annually for Life and Accidental Death and Dismemberment Insurance and
Administrative Services (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of an Agreement with Re|}oSbar Life
Insurance Company, a member ofthe |NG/Juya Financial, Inc., family of companies, in the amount
up to $508,519.00 annually for Life and Accidental Death and Dismemberment insurance and
administrative services.
DISCUSSION:
The purpose of this Mayor and Council Cnnnnnun|noton is to seek authorization from the City Council
to enter into a new Agreement with ReliaStar Life Insurance Company (ReliaStar), a member of the
|NG8/oya Financial, Inc., family of companies. The Human Resources Department (HRD) will use
this contract to provide boo|o Life and Accidental Death and Dismemberment A\D&O\ insurance and
access tovoluntary life and AD&D insurance products for employees and their spouses, domestic
partners and children. The City will pay pnonniunns for basic life and AD&D in the amount up to
$508,510.00 annually. The costs for voluntary insurance products will be paid by participating
employees with no financial impact to the City.
The City nf Fort Worth currently contracts with Aetna to provide $10,000.00 in basic life and AD&D
insurance to all City employees and to provide access for employees to purchase Voluntary Group
Universal Life and AD&D insurance with coverage up to three times annual salary (with evidence of
insurability). Staff reviewed this benefit and determined that it should be enhanced to be competitive
with other employers. Having worked with the same carrier for many years, HRD staff determined
that it would also be in the City's beat interest to go out to the market and give all providers an
opportunity to compete for the City's business to ensure the City and employees are getting the bast
overall policies and prices.
The City issued n Request for Proposals (RFP) on February 18, 2014. This RFP was advertised in
the every Wednesday starting on February 10. 3014 through K8on:h 27,
2014. Fifty nine vendors were solicited from the purchasing database; seven responses were
received. The proposals were thoroughly reviewed by an evaluation team consisting of staff from the
following departments: Transportation & Public Works, Fine, Water, Parks and Community Services
and Human Resources. The evaluation team was provided with resources and assistance by the
City's benefits consultant, Arthur J. Gallagher, and by staff in the Human Resources Department and
Purchasing Division.
The evaluation team ranked the proposals based on the following factors: technical propooa|a,
qualifications, adherence to terms and conditions of the RFP, financial utabi/ity, value-added nen//noa
and pricing competitiveness. Two finalists were ne|ontad and made presentations. Following the
pnenentoUono, the evaluation hanm determined that Re|ioGtar provides the beat nxona|| solution to the
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M&C Review Page 2 of 3
City.
The proposed contract will allow the City to provide its employees with basic life and AD&D insurance
in an amount equal to one times annual salary (up to a maximum of$500,000.00) and to offer
employees the option to purchase voluntary life and AD&D insurance of up to five times annual salary
(with a maximum coverage of$500,000.00 and no evidence of insurability is required for enrollment
at the time of initial transition). ReliaStar has agreed to provide a rate guarantee until January 1,
2018. Staff is recommending increasing the City-provided basic life and AD&D amount in order to
remain competitive with other municipalities of similar size. Savings generated from the changing of
prescription benefit manager in the Group Health Plan will subsidize the cost associated with
increasing the basic life and AD&D coverage levels beyond what is provided to employees today.
PRICE ANALYSIS -The basic life and AD&D coverages are provided under the current contract with
Aetna. Therefore, a direct cost comparison is not possible. Staff reviewed the prices and determined
the prices to be fair and reasonable.
Total estimated annual cost is $508,519.00. This cost is based on the City's current enrollment and
volumes.
ADMINISTRATIVE CHANGE ORDER-An administrative change order or increase may be made by
the City Manager in the amount up to $50,000.00 and does not require specific City Council approval
as long as sufficient funds have been appropriated.
AGREEMENT TERMS - Upon City Council approval, the initial three-year term of this contract shall
begin on January 1, 2015 and expire on December 31, 2017.
RENEWAL OPTIONS -This contract may be renewed up to two additional one-year periods at the
City's sole discretion. This action does not require specific City Council approval provided that
sufficient funds are appropriated for the City to meet its obligations during the renewal period.
M/WBE OFFICE -A waiver of the goal for MBE/SBE subcontracting was requested by the
Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance,
because the purchase of goods or services is from sources where subcontracting or supplier
opportunities are negligible.
NOTE - If the City enters into this Agreement with ReliaStar, it will receive a multi-policy discount for
its previously awarded stop-loss insurance policy with ReliaStar(M&C C-26750). However, this
discount does not change the prices quoted above and was not a factor in the evaluation team's
recommendation.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Group Health Insurance Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
FE85 534710 0148520 $508,519.00
Submitted for City Manager's Office by_ Susan Alanis (8180)
Originating Department Head: Brian Dickerson (7783)
Additional Information Contact: Margaret Wise (8058)
http://apps.cfwnet.org/council_packet/Mc review.asp?ID=20003&councildate=7/22/2014 10/24/2014