Q&A_from_the_Site_Visit_for_Solicitation_19BE2019R0002.docx

Chapter 4 - Solicitation Documents October 2004 Questions and Answers Solicitation number 19BE2019R0002 Life Insurance Services.

The attached questions were asked during the conference or prior to the conference:

1. Question: The solicitation mentions a benefit of 1.5 times annual salary effective January 1 that needs to be paid in case of Natural or Accidental Death.

Do you mean 1.5 times annual salary in case of natural death + 1.5 times annual salary in case of Accidental Death or just 1.5 times for both incidences?

Answer: Please see SECTION C DESCRIPTION/SPECIFICATION/WORK STATEMENT, C.2.1.1:

C.2.1.1 Amount of Employee Life Insurance (Natural or Accidental Death).

The following benefit will be paid to the participant’s named beneficiaries or estate upon the death of the participant:

Natural or Accidental Death: 1.5 times annual salary effective January 1.

The benefit that needs to be paid to the participant’s beneficiaries is 1.5 times annual salary for both incidences.

2. Question: What is the effective date of the contract?

Answer: The estimated effective date of the contract is October 1, 2019.

3. Question: Is the remuneration of the contractor (broker’s fee) in or outside billed premiums?

Answer: In case the contract is awarded to a broker the contractor’s remuneration should be included in the billed premiums. The line item prices are what the USG will pay the contractor.

The prices are all inclusive.

4. Question: How can extra premiums based on medical acceptance be charged?

Answer: Not applicable. Currently there is no medical screening required.

5. Question: Are the salaries mentioned the FTE (Full Time Equivalent)?

Answer: Please see SECTION J LIST OF EXHIBITS/ATTACHMENTS, EXHIBIT A

– EMPLOYEE STATISTICS,

The salaries mentioned are not the FTE, they are prorated according to the work schedule.

6. Question: Please confirm if this interpretation is correct on the coverage: Premium waiver:

· In case of Illness: kicking in on the fourth month of absence: due to guaranteed income of 3 months

· In case of Maternity leave: after 30 days

Answer: Please see SECTION C DESCRIPTION/SPECIFICATION/WORK STATEMENT, paragraph C.2.7 Funding The USG will pay 100% of the premium costs, including a waiver of premiums provision for employees on long-term sick leave starting with the 4th month of sick leave and employees on maternity leave.

- The 3-month waiting period only applies in case of illness, due to guaranteed income during the first 3 months of sick leave.

- In case of Maternity leave the premium weaver should be applied right away.

7. Question: If a contract is signed between the US Embassy and a broker the insurers have asked if the US Embassy has the intention to sign a contract between the US Embassy and the selected insurer as well.

Answer: If a contract is awarded to a broker the US Embassy would only sign the contract with the broker/actual bidder. The insurer would be considered as sub-contractor.

8. Question: Could you please confirm if the insurer has to be registered in SAM or just the Contractor in case the contractor is a broker.

Answer: Please see SECTION K REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS, Paragraph K6 52.204-8 ANNUAL REPRESENTATIONS

AND CERTIFICATIONS (OCT 2018)

Only the Contractor has to be registered in SAM in case the contractor is a broker.

9. Question: As the coverage is 1.5 times for both incidences (natural or Accidental Death) do you intend to modify the tables in the following sections or may we modify it (a split between life and accidental death is not done in this case):

Answer: Please see SECTION C DESCRIPTION/SPECIFICATION/WORK STATEMENT, Paragraph C.2.1.1 Amount of Employee Life Insurance (Natural or Accidental Death).

The following benefit will be paid to the participant’s named beneficiaries or estate upon the death of the participant:

Natural or Accidental Death: 1.5 times annual salary effective January 1.

Since the coverage is 1.5 times annual salary effective January 1 for both insurances the split between Basic Life and Accidental Death has been removed in Section B.2 Group Life Insurance Rates, paragraphs B.2.3 thru B.2.7. See Amendment 0001, dated May 22, 2019.

10. Question: Section C – C.2.7.

0. Do you need a pricing for a waiver of premium coverage ?

0. Do you intend to add a table for the pricing of this coverage in the RFP?

Answer: Please see Amendment 0001, Section B.2. Group life insurance rates, dated June 3, 2019. The pricing for a waiver of premium coverage should be factored in the premium for Basic Life and Accidental Death. A separate table for this coverage will not be added to the pricing table in Section B.2

11. Question: Section J (page 32 of 59) We just have the year of birth (confidentiality level ok). Which assumptions have to be taken into account for the pricing -Birthdate for all participants 01/01 of the mentioned year of birth?

-Retirement take place on 31/12?

Answer: January 1 needs to be taken into account as birthday for all employees and December 31 needs to be taken into account as effective date of retirement for pricing purposes.

12. Question: C.2.1.1: it is not clear whether the salary to be considered for the calculation of benefits is the salary on January 1st of the year of death or the salary at the time of death (written as “at the time of separation” in the following sentence). Please confirm.

Answer: Please see SECTION C DESCRIPTION/SPECIFICATION/WORK STATEMENT, Paragraph C.2.1.1 Amount of Employee Life Insurance (Natural or Accidental Death).

The following benefit will be paid to the participant’s named beneficiaries or estate upon the death of the participant:

Natural: The salary to be considered for the calculation of benefits is the salary on January 1st of the year of death of the participant.

13. Question: Benefits and insurance premiums will be paid in local currency: please confirm that currency is Euros as indicted in G.3 (as beneficiaries might be located in a different currency zone).

Answer: Please see SECTION G CONTRACT ADMINISTRATION DATA, paragraph G.3 Payment shall be made in Euro.

Question 14: C.2.2: what is the retirement age under the contract?

Answer: Please see SECTION C DESCRIPTION /SPECIFICATION/WORK STATEMENT, paragraph C.2.2 Life Insurance Benefits Conditions and Limitations Conditions and limitations on the entitlement to life insurance benefits under this contract are as follows:

The Group Life Insurance Plan guarantees an insurance cash benefit for an employee’s survivor(s) in the event of death before retirement age.

The retirement age under this contract is age 65.

15. Question: C.2.7: waiver for premiums for employees on sick leave or maternity leave. Since Disability is not included in this tender, how is the Life Insurer to be informed?

Answer: The Life Insurer will be informed via email or portal.

16. Question: C.2.10.2: Death duties. Please specify what these “duties” are?

Answer: Please see SECTION C DESCRIPTION /SPECIFICATION/WORK STATEMENT, paragraph C.2.10.2 Death duties: there are no death duties on the benefit when eligibility was compulsory or when beneficiaries are either the wife/husband and/or the minor children.

Death duties are inheritance taxes.

17. Question: Please clarify whether what is requested is to provide fixed rates for 5 years. Indeed, in section B.4, the following is written: “Premium Adjustment Based on Experience - For life insurance, prices may be adjusted upward or downward based on the experience rating of the Mission(s) covered by this contract. No adjustment will be allowed during the first twelve months. After such time, the Contractor or the Government may request an adjustment in premiums on an annual basis. Adjustments are not retroactive to previous contract terms. ” Furthermore there is an additional passage: “F.2 PERIOD OF PERFORMANCE. The performance period of this contract is one year beginning as stated in Notice to Proceed.” Seems again to be indicating that it is a one year commitment.

Answer: Please see SECTION I CONTRACT CLAUSES 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 60 months/5 years.

18. Question: If you indeed require us to give rates for 5 years, would you agree if we were to potentially give rates for one year and a possible renewal formula?

Answer: Please see SECTION L INSTRUCTIONS, CONDITIONS AND NOTICES TO OFFERORS, paragraph L.4.2

19. Question: Can we terminate the contract after one year upon a prior notice? Can you also confirm that the provision regarding termination is applicable to and for both parties?

Answer: No, the contractor cannot terminate the contract after one year. In accordance with Paragraph F.3 the Government can unilaterally exercise option years as defined in Section B. See Section I FAR Clause 52.217-9, Option to Extend the Term of the Contract.

20. Question: Could we have the census details in excel format?

Answer: Please see attached the Employee Statistics in excel format.

21. Question: Could I have the country of origin / nationality of the employees?

Answer: This contract will only cover locally employed staff. For privacy reason we cannot disclose specific nationalities.

22. Question: Could you specify the occupation of the employees? All they all 100% administrative members e.g. white collar occupation?

Answer: All employees have white collar contracts.

23. Question: What are the claims experience over the past 5 years?

Answer: There have been two (2) Natural Deaths over the past 5 years?

24. Question: Clarification of following passage: “IT IS CLEARLY UNDERSTOOD THAT ALL CLAIMS ARISING FROM AN ACT OF TERRORISM WILL BE TREATED AS ANY OTHER CLAIM UNDER THE SAME TERMS AND CONDITIONS AS DESCRIBED ABOVE, EVEN WHEN NOT EXPLICITLY MENTIONED IN THE INSURER’S GENERAL CONDITIONS. IT IS FURTHER UNDERSTOOD THAT THESE TERMS AND CONDITIONS ARE NOT LIMITED TO BELGIUM BUT APPLICABLE WORLWIDE AND 24 HOURS A DAY.” Please clarify if you mean active or passive terrorism?

Answer: This note refers to passive terrorism.

25. Question: Is there a maximum coverage (or sum insured) per person?

Answer: Please see SECTION J EXHIBIT A – EMPLOYEE STATISTICS. There is no cap. The salaries listed reflect a proration for part-time employees.

Please see SECTION C DESCRIPTION /SPECIFICATION/WORK STATEMENT, paragraph C.2.1.1 Amount of Employee Life Insurance (Natural or Accidental Death).

The following benefit will be paid to the participant’s named beneficiaries or estate upon the death of the participant:

Natural or Accidental Death: 1.5 times annual salary effective January 1.

26. Question: Would you agree to provide us with the actual insurance premium?

Answer: The actual insurance premium cannot be revealed for confidential reasons.

27. Question: What is your target premium?

Answer: see SECTION M EVALUATION FACTORS FOR AWARD, paragraph M.3.1General. The award selection will go to the lowest priced, technically acceptable, responsible offeror. As described in FAR 52.215-1, "Instructions to Offerors - Competitive Acquisition,” which is incorporated by reference in Section L, award may be made based upon initial offers, without discussions. The offeror must also be licensed/certified/accredited.

28. Question: Can you confirm whether you will accept to sign an insurance contract that is issued by the insurer on their template/letterhead with the insurance company wording?

Answer: Insurance contracts issued by insurers will be signed where required. However, the US Government contract will always be the prevailing document.

29. Question: Can you confirm if we need to provide a draft insurance contract with the tender response ?

Answer: Please see SECTION L INSTRUCTIONS, CONDITIONS AND NOTICES TO OFFERORS, paragraph L.4 Contents of proposals.

You do not have to provide a draft insurance contact with the tender response as long as the tender complies with the instructions in Section L.

30. Question: Can you confirm what is the governing law of the insurance contract? The tender refers to Belgian Civil Code and to US laws. We would like to propose French law or no governing law applicable.

Answer: The US Law is the prevailing Law.

31. Question: Can you confirm that the suicide exclusion is restricted in time?

Answer: Please see SECTION C DESCRIPTION /SPECIFICATION/WORK STATEMENT, paragraph C.2.2 Life Insurance Benefits Conditions and Limitations

No benefits are payable if the employee's death was caused directly or indirectly and totally or partially by:

1. violating the law or in resisting detention or arrest;

2. participation in competitions involving the use of wheeled vehicles, horses, boats or water skis;

3. an accident resulting from the employee being under the influence of alcohol, drugs or other toxic substance unless administered by a physician; death as a result of a disease or physical or mental infirmities and medical or surgical treatment thereof (except pyogenic infection due to an accidental cut or wound) shall be considered a natural and not an accidental death; suicide will not be covered.

32. Question: Can you confirm that all claims arising from an act of terrorism when the insured has taken an active part is excluded from cover?

Answer: All claims arising from an act of terrorism when the insured has taken an active part are excluded from cover.

33. Question: Can you confirm the effective date of the contract?

Answer: The effective date of the contract is October 1, 2019.

34. Question: I note that we are exempted from VAT; Are we exempted from IPT as well?

Answer: Please see SECTION B.2 GROUP LIFE INSURANCE RATES. A mandatory tax of 4.40% is due on premiums paid.

Remark: In addition to the mandatory 4.40% tax on premiums paid, Belgian tax authorities require a payment to the National Office of Social Security of 8.86% due on premiums financed by the employer and paid for life cover benefits. The employer must pay this contribution directly to the NOSS.

Basic research has learned that Life Insurance cover is exempt from French IPT (Insurance Premium Tax). However, insurers providing Life cover in France must nevertheless appoint a local fiscal representative in charge of the filing of the declarations.