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Home My WebLink AboutReso 2011-1814 RESOLUTION NO. 2011- 1 ~ 11.L A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE CONTINUANCE OF BROWN AND BROWN BENEFIT CONSUL T ANTS AS THE CITY'S MEDICAL INSURANCE BROKER FOR THE MARCH 2012 PLAN YEAR; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City provides for group medical, dental, vision, life/ AD&D, and long- term disability insurance for its employees; and WHEREAS, on June 21, 2001, via Resolution No. 2001-337, the City Commission awarded a bid to Brown and Brown Insurance Company for comprehensive insurance and brokerage services in order for the City to improve its insurance coverage in the area of defending public officials, police officers, and general liability due to the growth of services in the City; and WHEREAS, since that time Brown and Brown has worked diligently to ensure the City's insurance program meets the needs of the City and City employees, provides affordable options, keeps the City abreast of current, impending, and new insurance regulations, and makes recommendations for changes as needed; and WHEREAS, Brown and Brown receives the standard commission as set by the respective carriers, they do not receive direct compensation from the City; and WHEREAS, the City is scheduled to issue a formal Request for Proposals for a Medical Insurance Brokerage Services in 2012 for the March 2013 renewal period, and after consulting with our independent insurance consultants (Siver and Siver), it was determined that there is not sufficient time for the process, and staff is requesting to waive the competitive bidding procedures; and WHEREAS, Section 62-13 of the City Code provides that contracts for professional services are exempt from the competitive bid requirements. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of Continuance. The City Commission hereby approves the continuance of Brown and Brown Benefit Consultants as the City's medical insurance broker for the March 2012 plan year. Section 2. Authorization of City Manager. The City Manager is hereby authorized to do all things necessary to effectuate this Resolution. Section 3. Effective Date. This Resolution will become effective upon adoption. R20I 1- Brown & Brown Medical Brokerage Srvs 1 PASSED AND ADOPTED this 15th day of December 2011. C~\\'(;,. ~ . . ,,'.: . \ . ; " .) .. .~.' " " . . ~'i ~TrE.ST: ,,' ;~".. .\~~A:~ '~"'." Jane A. Hines, 9MC, City Clerk .' ~ \ . , .. J'')I /' ~ I ., ..- . ~ ../ . iI . : : :}" ..~ p" I ED AS TO FORM AND I IENCY: Moved by: Seconded by: Vote: 6-0 Mayor Edelcup Vice Mayor Thaler Commissioner Aelion Commissioner Gatto Commissioner Scholl ~(Yes) \/(Yes) ~(Yes) ~(Yes) -LL(Yes) R201 1- Brown & Brown Medical Brokerage Srvs _(No) _(NO) _(NO) _(NO) _(NO) 2 VIe... ~d~"""W~G.~ ~~~ cDMTD Priscilla Walker From: Sent: To: Cc: Subject: Attachments: Samantha Graveline [sgraveline@bbftlaud.comj Thursday, December 01, 2011 4:50 PM Priscilla Walker Yael Londono RE: Broker Fees Humana Worksite Commision Schedule.pdf; citySunnylslesBeachCompensation2011-2012.xls Priscilla, Attached please find the percentages as per your request. Regards, Samantha Samantha Graveline I Sales Executive Brown & Brown Benefit Consultants group medical I dental I life insurance Iltd I sid I retirement plans Crown Centerl1201 W. Cypress Creek Road I Suite 130 I Fort Lauderdale. FL 33309 Office: 954.331.14761 Toll Free: 800.634.50331 Fax: 954.772.6243 sgraveline(a'>.bbftlaud.com I \WIIW.bbftlaud.com From: Priscilla Walker [mailto:PWalker@sibfl.net] Sent: Thursday, December 01, 2011 3:38 PM To: Samantha Graveline Cc: Yael Londono Subject: Broker Fees Samantha, Can you provide a fee sheet, showing the percentage that Brown and Brown receives for our medical, dental, IifejAD&D, LTD and voluntary insurances. We have been asked to prepare something for the Commission meeting to continue Brown and Brown as our broker for one year. Thereafter, we will issue a RFP for services. I need this asap. Thanks. (['risci{[a Wa~r, CMC Assistant to the City Manager Human Resources City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, FL 33160 (305) 792-1708 Phone (305) 792-1643 Fax www.sibfl.net WE HAVE MOVED * New physical location: 1201 W. Cypress Creek Road, Suite 130, Fort Lauderdale, FL 33309 * P.O. Box 5727 (zip 33310), phones and fax remain the same Did you know we sell Homeowners, Auto, Collections, Umbrella, Life, Yacht, Personal Watercraft, Business and Health & Life Insurance? Call me today to review your portfolio. CONFIDENTIALITY NOTICE: The Information contained In this communication, Including attachments is privileged and confidential. This message is Intended only for the exclusive use of the addressee. If the reader of this message Is not In the intended recipient, or the employee or agent responsible for delivering it to the intended recipient. you are hereby notified that any dissemination, distributIon or copying of this communication Is strictly prohibited. Insurance coverage cannot be bound, amended or changed via an e-mail message without the knowledge or consent from the insuring carrier. If you have received this communication In error. please notify us by telephone Immediately at (954) 776-2222 or e-mail atsupoort(a}bbftlaud,com. Thank youl 2 Table of contents General Compensation Policies ...................................................................... page 1 Life Products Commission Schedules ...........................,............................... page 2-3 Disability Products Commission Schedules................................................... page 3-5 Accident Products Commission Schedules...................................................... page 6 Critical Illness Products Commission Schedules............................................ page 7-8 Supplemental Health Products Commission Schedules ................................... page 8 HUMANA~ Specialty Benefits For other Humana Specialty product commission rates please reference Humana's 2009 Producer Partnership Plan. Other Humana Specialty employer-sponsored or voluntary products include dental, vision, long and short term disability, life, AD&D, and stop loss. WIIB 4.0 5_8/09 Workplace Voluntary Benefits I Table of contents Commission schedule All commissions are expressed as a percentage of paid premium. Agents may elect to split commissions with other agents and/or enrollment entities who agree to perform mutually agreed upon enrollment services. The agreed upon commission splits are reflected as a split of premium and will show as such on the commission statements. The Workplace Voluntary Benefit plans listed are Vested Commission Policies, as defined in the Group Producing Agent or Agency Contract and amendments. After each policy in this Workplace Voluntary Benefits Commission Schedule is a number, usually four or five digits, in parenthesis. This number is the policy form number which is found on the policy and the marketing materials for the policy. Commissions shall be paid based upon the policy number as identified in this Workplace Voluntary Benefits Commission Schedule. Variations on commissions: In order to be flexible in the workplace market, we have three separate commission variations on many of our products. The Agent is allowed to select what type of commission payment they would like to have per group by indicating their selection on the New Case Commission Amendment (Form 4413). Standard or high/low-this is the normal commissions offered with a high first year and a lower renewal rate. This allows the most commissions up front to help offset enrollment expenses. Levelized-this allows the commission stream for an Agent to remain even for a period of time as defined in this Workplace Voluntary Benefits Commission Schedule. This allows for more stability in the commission flow for an established Agent. Combination-this is a mixture of the standard and levelized commissions. This mixture allows for a higher first year commissions with more level renewal commissions. Underwriting terminology: 51 Simplified Issue CGI Contingent Guaranteed Issue GI Guaranteed Issue IJoNB 4.0 S_8I09 Workplace Voluntary Benefits I Commission schedule I I I I I I I I I I I Commission schedule Life:products' Secure Life Select (Paid up at 99) (00455) Policy Basic Plan Only Year Standard Combination Levelized 1 85% 62% 22.5% 2-10 5% 12.5% 22.5% 11+ 2% 2% 8.5% Rider Benefits Only Combination Levelized 62% 22.5% 12.5% 22.5% 2% 8.5% Standard 85% 8.5% 2% Secure Life 65 (Paid up at 65)/Secure Life Plus (Paid up at 90) (00455) policy Basic Plan Only Rider Benefits Only Year Standard Combination Levelized Standard Combination Levelized 1 80% 58% 26% 80% 58% 26% 2-5 12.5% 17.5% 26% 17% 17.5% 26% 6-10 5% 17.5% 26% 8.5% 17.5% 26% 11+ 2% 2% 8.5% 2% 2% 8.5% CriticaLife@ Base Plan and Benefits (8013) Policy Year Standard Levelized Combination 1 80% 30% 70% 2-5 7% 30% 12.5% 6-10 4% 30% 6.5% 11+ 2.25% 2.25% 2.25% CriticaLifeOl> Premium Discount Plan (8013) Polley Year 1+ 23% Premium Discount 8% 28% Premium Discount 33% Premium Discount 0% 18% Premium Discount 12% 4% Whole Life (LPU 95)/Level Term Life (Individual Aegis) Policy (LPU 95) (00800) (Individual Aegis) (20235) Year 5,10, 15 20 1 90% 75% 85% 2-3 7% 6% 7% 4-5 4.5% 6% 7% 6-9 4.5% 2.5% 3% 10+ 3% 2.5% 3% 'MIB 4.0 5_8109 2 Workplace Voluntary Benefits I Commission schedule Commission schedule Level Term Life (Group Aegis) (7003) Policy Standard Standard Combination Combination Level Level Year 5,10,15 20,30 5,10,15 20, 30 5,10,15 20,30 1 75% 85% 52% 57.5% 20% 23% 2-5 8% 8% 16% 18% 20% 23% 6+ 3.5% 3.5% 9% 9% 20% 23% Disability products Disability Income Plus (8014) - Enhanced Version Policy No Takeover 1-50% Takeover 51-100% Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 65% 55% 28% 56% 44% 23% 41% 31% 19% 2-5 8% 14% 28% 8% 14% 23% 8% 14% 19% 6-10 8% 8% 28% 8% 8% 23% 8% 8% 19% 11 + 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE: If case uses increase premium option for takeover, use No Takeover commission rates. Disability Income Plus (8014) - MI & NH - Enhanced Version policy No Takeover 1-50% Takeover 51-100% Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 65% 55% 28% 57% 47% 25% 50% 41% 21% 2-5 8% 14% 28% 8% 14% 25% 8% 14% 21% 6-10 8% 8% 28% 8% 8% 25% 8% 8% 21% 11+ 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE: If case uses increase premium option for takeover, use No Takeover commission rates. Disability Income Plus (8014) - CO - Enhanced Version Policy No Takeover 1-50% Takeover 51-100% Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 54% 42% 23% 42% 30% 18% 30% 17% 12% 2-5 8% 14% 23% 8% 14% 18% 8% 14% 12% 6-10 8% 8% 23% 8% 8% 18% 8% 8% 12% 11+ 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE: If case uses increase premium option for takeover, use No Takeover commission rates. Disability Income Plus (8014) - VT - Enhanced Version Policy No Takeover 1-50% Takeover 51-100% Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 56% 47% 22% 43% 34% 18% 30% 21% 13% 2-5 5% 9% 22% 5% 9% 18% 5% 9% 13% 6-10 5% 8% 22% 5% 8% 18% 5% 8% 13% 11+ 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE'. If case uses increase premium option for takeover, use No Takeover commission rates. 3 Workplace Voluntary Benefits I Commission schedule IINB 4.0 5_8109 Commission schedule Disability Income Plus (8014) - NO - Enhanced Version Policy No Takeover 1-50% Takeover 51-100% Takeover Year Standard Combo Levelized Standard Combo Levelized Standard Combo Levelized 1 65% 55% 28% 54% 43% 23% 42% 30% 18% 2-5 8% 14% 28% 8% 14% 23% 8% 14% 18% 6-10 8% 8% 28% 8% 8% 23% 8% 8% 18% 11+ 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% NOTE: If case uses increase premium option for takeover, use No Takeover commission rates. Disability Income Plus (8000) - First Generation Standard Standard Levelized Levelized Combination Combination Policy 5% 10% 5% 10% 5% 10% . Year Standard Levelized Combination Discount Discount Discount Discount Discount Discount 1 55% 20% 27% 50% 45% 19% 16% 24% 20% 2-3 11.5% 20% 17% 10% 9% 19% 16% 15% 12% 4-10 7% 20% 17% 6% 5% 19% 16% 15% 12% 11+ 5% 20% 12% 4% 3.5% 19% 16% 10% 8% Disability Income Plus Takeover (8000) - First Generation . Standard 'Standarc Levelized Levelized Combination Combination I I policy 5% 10% 5% 10% 5% 10% Year Standard Levelized Combination Discount Discount Discount Discount Discount Discount I 1 27.5% 10% 13.75% 25% 22.5% 9.5% 8% 22% 10% I 2-3 11.5% 10% 17% 10% 9% 9.5% 8% 15% 12% 4-1 rl 7% 10% 17% 6% 5% 9.5% 8% 15% 12% 11+ 5% 10% 12% 4% 3% 9.5% 8% 10% 8% Disability Income Plus (8000) - MN - First Generation Standard Standard Levelized Levelized Combination Combination Policy 5% 10% 5% 10% 5% 10% Year Standard Levelized Combination Discount Discount Discount Discount Discount Discount 1 39% 12.5% 17.5% 31% 23% 10.5% 7% 15% 10% 2-3 8% 12.5% 11% 6% 5% 10.5% 7% 8.5% 7% 4-10 5% 12.5% 11% 4% 3% 10.5% 7% 8.5% 7% 11+ 3% 12.5% 8% 2.25% 1.75% 10.5% 7% 6% 6.5% Disability Income Plus Takeover (8000) - MN - First Generation Standard Standard Levelized Levelized Combination Combination Policy 5% 10% 5% 10% 5% 10% Year Standard Levelized Combination Discount Discount Discount Discount Discount Discount 1 19.5% 6.25% 8.75% 15.5% 11.5% 5.25% 3.5% 7.5% 5% 2-3 8% 6.25% 11% 6% 5% 5.25% 3.5% 8.5% 7% 4-10 5% 6.25% 11% 4% 3% 5.25% 3.5% 8.5% 7% 11+ 3% 6.25% 8% 2.25% 1.75% 5.25% 3.5% 6% 6.5% IfNB 4.0 S_8/09 4 Workplace Voluntary Benefits I Commission schedule Commission schedule Disability Income Advantage (GI Cases) (80315) Polity Standard Levelized Year Standard Takeover Levelized Takeover 1 50% 25% 17.5% 12% 2-5 3.5% 3.5% 17.5% 12% 6-10 3.5% 3.5% 17.5% 12% 11+ 1.75% 1.75% 7% 7% Combination Takeover 18.75% 6.5% 3.25% 1.75% Combination 37.5% 6.5% 3.25% 1.75% Disability Income Advantage (SI/CGI Cases) (80315) Polity Standard Levelized Year Standard Takeover Levelized Takeover 1 53% 26.5% 20% 8% 2-3 11% 11% 20% 8% 4-5 7.5% 7.5% 20% 8% 6-10 3.5% 3.5% 20% 8% 11+ 1.75% 1.75% 4% 4% Combination Takeover 18.75% 13% 13% 6.5% 1.75% Combination 37.5% 13% 13% 6.5% 1.75% Disability Income Advantage (GI Cases) (80315) - WV, MN, CO Policy Standard Levelized Combination Year Standard Takeover Levelized Takeover Combination Takeover 1 40% 20% 12% 8% 30% 15% 2-5 3% 3% 12% 8% 6% 6% 6-10 3% 3% 12% 8% 3% 3% 11+ 1.5% 1.5% 6% 6% 1.5% 1.5% Disability Income Advantage (SVCGI Cases) (80315)- WV, MN, CO Policy Standard Levelized Year Standard Takeover Levelized Takeover 1 41% 20.5% 15% 7.5% 2-3 8.5% 8.5% 15% 7.5% 4-5 6% 6% 15% 7.5% 6-10 3% 3% 15% 7.5% 11+ 1.5% 1.5% 3% 3% Income Protector (80260) Policy Year 1 55% 2-3 13% 4-10 8% 11+ 5% Combination Takeover 15% 11% 11% 5% 1.5% Combination 30% 11% 11% 5% 1.5% VWB 4.0 5_8/09 5 Workplace Voluntary Benefits I Commission schedule Commission schedule ,Accident products Group Accident Plus (7005) (8005) Policy Year Standard Combination 1 55% 35% 2-5 9% 17% 5+ 4% 9% Levelized 20% 20% 20% Individual Accident Plus (60800) Policy Year 1 55% 2-5 9% 5+ 4% Group/Individual Accident Plus (7005) (8006) (50830) - KY Policy Year 1 33% 2-5 3% 5+ 2% WVB 4.0 5_8109 6 Workplace Voluntary Benefits t Commission schedule Commission schedule CritiCal Illness products Critical Advantage (8011) Policy Basic Plan Only Year Standard Combination Levelized 1 60% 42% 20% 2-5 11% 15% 20% 6-10 8% 8% 20% 11+ 4% 4% 4% Takeover Only 5 ta ndard Combination Levelized 30% 21% 10% 11% 15% 10% 8% 8% 10% 4% 4% 4% Critical Illness (Synergis) (7004)) Policy Year Standard 1 65% 2-5 9% 6+ 9% Combination 35% 25% 9% Levelized 20% 20% 20% Cancer Plus (70240) ROP not available for sale Cancer Plus (70240) - FL ROP not available for sale Policy Year 1 70% 2-3 15% 4-10 15% 11+ 12% Policy Year 1 60% 2-3 7% 4-10 3.5% 11+ 3.5% Cash Cancer Plus (70160) Policy Year 1 2-5 6-10 11+ 20 Pay ROP Rider 30% 12% 8% 3.5% Lifetime Lifetime Pay Pay ROP Rider 70% 35% 14% 14% 9% 9% 7% 7% 20 Pay 60% 12% 8% 3.5% Cash Cancer Plus (70160) - FL, ND, SC Policy 20 Pay Lifetime Lifetime Pay Year 20 Pay ROP Rider Pay ROP Rider 1 56% 28% 65% 32.5% 2-5 7% 7% 8% 8% 6-10 5% 5% 6% 6% 11+ 3.5% 3.5% 4% 4% WB 4.0 5_8/09 7 Workplace Voluntary Benefits I Commission schedule Commission schedule Cash Cancer Plus (70160) - MO, WA, SO, WY Policy 20 Pay Lifetime Lifetime Pay Year 20 Pay ROP Rider Pay ROP Rider 1 45% 22.5% 52% 26% 2-5 4.5% 4.5% 5% 5% 6+ 4% 4% 4% 4% Cash Cancer Plus (70160) - MI Policy 20 Pay Lifetime Lifetime Pay Year 20 Pay ROP Rider Pay ROP Rider 31% 15.5% 36% 18% 2+ 4.5% 4.5% 5% 5% Supplemental Health products Health Care Plus (90850) Policy Year 1 45% 2-4 11% 5-6 9% 7+ 6% I have received and understand the Workplace Voluntary Benefits Commission Schedule for Individual and Group Products. I further understand that the commissions described in this Workplace Voluntary Benefits Commission Schedule are subject to the terms of Group Produdng Agent or Agency Contract and amendments, and the Producer Partnership Plan. These schedules may be amended for future sales of policies at any time, with 30 days written notice. Agent Name Agent Signature Agen1 Number Date HUMANA. Specialty Bencjits \fINB 4.0 5_8/09 8 Workplace Voluntary Benefits I Commission schedule Carrier Line of Coveraae Humana Humana EyeMed Mutual of Omaha Kanawa Medical Dental Vision Life/L TO,STD Supplements Percentaae 5% 10% 10% 10% Graded Scale. See Attached Preview Page 1 of2 City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947-0606 City Hall (305) 949-3113 Fax MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Priscilla Walker, Assitant to City Manager/Human Resources DATE: 12/1512011 RE: Continuance of Medical Insurance Brokerage Services by Brown and Brown RECOMMENDATION: It is recommended that the City Commission consider the attached resolution approving the continuance of Brown and Brown Insurance as the City's medical insurance broker for the March 2012 plan year. REASONS: The City provides for group medical, dental, vision, life/AD&D, and long-term disability insurance for its employees. In order to ensure we offer the best coverage at the best price. the City secures an insurance broker to obtain insurance quotes on behalf of the City. In 2000 the City selected Brown and Brown Insurance Company to provide medical insurance broker services. Since that time Brown and Brown has worked diligently to ensure the City's insurance program meets the needs of the City and city employees and provides affordable options. Brown and Brown also keeps the City abreast of current, impending, and new insurance regulations and makes recommendations for changes as needed. Brown and Brown receives the standard commission as set by the respective carriers. They do not receive direct compensation from the City. ADDITIONAL INFORMATION: http://sibagenda.sibfl.net/agenda/Preview.aspx?ItemID=651 &MeetingID=O&MeetingDate... 12/9/2011 Preview Page 2 of2 The City is scheduled to issue a formal Request for Proposals for a Medical Insurance Brokerage Services in mid-2012 for the March 2013 renewal period. It is anticipated that the awardee will be awarded a one year contract with three one-year renewal options. I I I I I Staff contemplated issuing an RFP broker services for the March 2012 renewal cycle; however, after consulting with our independent insurance consultants (Siver and Siver) we have determined that we do not have sufficient time for the process. Section 62-13 of the City Code provides that contracts for professional services are exempt from the competitive bid requirements. FUNDING SOURCE: No funding source is available. ATTACHMENTS: . Resolution . Humana Workplace Voluntary Benefits Commission Schedule . Listing of Coverages http://sibagenda.sibfl.net/agenda/Preview.aspx?ItemID=651 &MeetingID=O&MeetingDate... 12/9/2011