24-84131514-ITB Government Crime Attachment A Scope of Work.pdf

Solicitation No. 24-84131514-ITB Government Crime Insurance

Attachment A

Scope of Work (SOW)

ITB No. 24-84131514-ITB

1. Department Insurance Program The State of Florida has statutorily established the following two methods for state agencies and other governmental entities to obtain insurance coverage: (1) from the State Risk Management Trust Fund (SRMTF) administered by the Department of Financial Services, Division of Risk Management, for property, general liability, automotive liability, federal civil rights, court-awarded attorney’s fees in certain other proceedings against the state, and workers compensation, as established by Chapter 284, Florida Statutes; and

(2) from commercial insurance purchased by the Division of State Purchasing pursuant to sections 287.022 and 287.042, Florida Statutes, as further specified in Rule 60A-1.015, Florida Administrative Code, for risks not eligible for coverage through the SRMTF.

Section 287.022(1), Florida Statutes, provides:

Insurance, while not a commodity, nevertheless shall be purchased for all agencies by the department, except that agencies may purchase title insurance for land acquisition and may make emergency purchases of insurance pursuant to s. 287.057(3)(a), Florida Statutes. The procedures for purchasing insurance, whether the purchase is made by the department or by the agencies, shall be the same as those set forth herein for the purchase of commodities.

State Purchasing operates the Department’s Insurance Program, which is responsible for the purchase and management of insurance for state agencies and Eligible Users, at their own choosing and based upon funding allocations.

The purpose and goal of the Department’s Insurance Program is to provide coverage at the best premium rates possible for Florida’s State Agencies.

2. Purpose

The Contractor shall market and secure an Insurance Policy on behalf of the State of Florida and the current Named Insureds that shall, at a minimum, include coverage that is the same or better coverage set forth in ITB Attachment I, Expiring Policy, as endorsed, incorporated herein by reference, and the coverage set forth in section 5, Coverage Requirements.

The Insurance Policy secured on behalf of the State of Florida and the Named Insureds shall be provided at the pricing specified in the Bid, provided in accordance with Florida Statutes, and conform with the terms and conditions specified in the Contract. The insurance policy shall have an effective date January 1, 2025, or such other date as shall prevent a lapse in the insurance coverage.

Attachment A

Scope of Work (SOW)

3. Definitions Definitions contained in section 287.012, Florida Statutes (F.S.); and Rule 60A-1.001, Florida Administrative Code (F.A.C.); Enterprise Standard Terms and Conditions included in ITB Attachment D; and the https://www.dms.myflorida.com/content/download/2934/11780/PUR_1001_General_Instr uctions_to_Respondents.pdf (PUR 1001, General Instructions to Respondents (10/06)) are incorporated by reference. In the event of a conflict, the definitions listed in this section supersede the incorporated definitions for the purposes of this document. All definitions apply in both their singular and plural sense.

Agency – as defined in section 287.012(1), F.S.

Bid – The document(s) submitted by a Bidder in response to this ITB.

Bidder – A vendor who submits a bid to this ITB.

Broker or Vendor - An insurance intermediary that holds current and valid Florida resident or nonresident insurance license(s) in the appropriate line of business described in this ITB.

Business Day – Monday through Friday, inclusive, except for those holidays specified in section 110.117, F.S., from 8:00 a.m. to 5:00 p.m. at the Customer’s location.

Business Network – The Business Network (formerly known as Ariba Network) is an online marketplace that connects vendors and buyers for solicitations collaboration and purchasing transactions. A Business Network account is required to submit responses to electronic solicitations.

Claim – A demand for recovery for loss or damages.

Confidential Information – Information that is trade secret or otherwise confidential or exempt from disclosure under Florida or federal law.

Contract – The written agreement between the Department and the awarded Bidder(s) resulting from this solicitation.

Contract Manager – The representative designated by the Department who will oversee all aspects of the Contract, monitor performance expectations, and serve as the primary point of contact for the Contractor.

Customer – A State Agency or Eligible User included on the insurance policy.

Department – The Department of Management Services (DMS), a state agency.

https://www.dms.myflorida.com/content/download/2934/11780/PUR_1001_General_Instructions_to_Respondents.pdf https://www.dms.myflorida.com/content/download/2934/11780/PUR_1001_General_Instructions_to_Respondents.pdf

Attachment A

Scope of Work (SOW)

Eligible User –As defined in Rule 60A-1.001(4)(h), for purposes of insurance contracts procured pursuant to Section 287.022, F.S., only non-Agency state entities with a Department of Financial Services State Risk Management Trust Fund Certificate are eligible users.

Insurance Policy or Policy – As defined in section 627.402(3), F.S. The parties to the Insurance Policy will be the Department, the Named Insured, the Broker, and the Insurer.

Insurer – As defined in section 624.80(1), F.S. The insurance company selected by the Broker to provide insurance coverage as described in this ITB. The term ‘Underwriter’ is synonymous with ‘Insurer’ in this procurement.

Named Insured – Entities listed in this Scope of Work section 4 and Attachment I and those added during the Policy Period.

Policy Inception - The effective date of the Insurance Policy.

Policy Period – The time between the exact hour and date of Policy Inception and the hour and date of Policy expiration.

Premium – As defined in section 627.403, F.S.

State – The State of Florida.

Vendor Information Portal (VIP) – The State’s bidding system developed in accordance with section 287.042(3)(b)2., F.S. The Vendor Information Portal is accessible at https://vendor.myfloridamarketplace.com.

4. Named Insured The master policyholder is the State of Florida, c/o the Department of Management Services, Division of State Purchasing, 4050 Esplanade Way, Suite 360, Tallahassee, FL 32399-0950.

The following entities are the current Named Insureds for whom coverage is being sought:

1st DCA First District Court of Appeal 2nd DCA Second District Court of Appeal 3rd DCA Third District Court of Appeal 4th DCA Fourth District Court of Appeal 5th DCA Fifth District Court of Appeal 6th DCA Sixth District Court of Appeal AG Auditor General AHCA Agency for Health Care Administration APD Agency for Persons with Disabilities CITRUS Department of Citrus https://vendor.myfloridamarketplace.com/

Attachment A

Scope of Work (SOW)

COM Commerce (f/k/a Department of Economic Opportunity) DACS Department of Agriculture and Consumer Services DBPR Department of Business and Professional Regulation DCF Department of Children and Families DEM Division of Emergency Management DEP Department of Environmental Protection DHSMV Department of Highway Safety and Motor Vehicles DJJ Department of Juvenile Justice DLA Department of Legal Affairs DMA Department of Military Affairs DMS Department of Management Services DOE Department of Education DOEA Department of Elder Affairs

DOH Department of Health* (*DOH coverage is limited to the Florida

Department of Health Orange County Health Management Nursing Administration)

DOR Department of Revenue DOS Department of State DOT Department of Transportation DVA Department of Veterans Affairs EOG Executive Office of the Governor FAMU Florida Agricultural and Mechanical University FAU Florida Atlantic University FCOR Florida Commission of Offender Review FDLE Florida Department of Law Enforcement FGCU Florida Gulf Coast University FSDB Florida School for the Deaf and Blind FSU Florida State University JAC Justice Administrative Commission NCF New College of Florida OLS Office of Legislative Services

OPPAGA Office of Program Policy Analysis and Government Accountability

PSC Public Service Commission SBA State Board of Administration of Florida SCS State Court System UF University of Florida UNF University of North Florida USF University of South Florida UWF University of West Florida

NOTE: Named Insured may be requested to be added or removed during the Policy

Period as outlined in this SOW.

Attachment A

Scope of Work (SOW)

5. Coverage Requirements Insurance Policy coverage procured through this solicitation shall be, at a minimum, at the same or better coverage limits as those provided in Attachment I, Expiring Policy, as endorsed, and as set forth in this Scope of Work.

There are multiple insuring agreements that comprise Attachment I, Expiring Policy, as indicated on the declarations page; and as captioned in part below.

The Department is requesting pricing for the following insuring agreements:

Insuring Agreements Limit of Insurance Per

Occurrence Deductible Amount Per

Occurrence

1. Employee Theft – Per Loss Coverage $500,000.00 $10,000.00

Coverages below Applies to Employee Theft Insuring Agreement 1

Faithful Performance of Duty Refer to Endorsement No. 2

Excess Employee Theft Refer to Endorsement No. 3

3. Forgery or Alteration Refer to Endorsement No. 3

4. Inside the Premises - Theft of Money And Securities

$500,000.00 See also Endorsement No. 7

$500,000.00 See also Endorsement No. 7

5. Inside the Premises - Robbery or Safe Burglary Of Other Property

$500,000.00 See also Endorsement No. 7

$10,000.00 See also Endorsement No. 7

6. Outside the Premises $500,000.00

See also Endorsement No. 7 $10,000.00

See also Endorsement No. 7

The current specific named insured employee counts and limits required for the coverages specified above, including additional limits being requested by each Named Insured for premises coverages can be found in Attachment B, Price Sheet, worksheet named “Convert Sch TDD Inside Outside”.

The insuring agreements below shall be provided at no additional cost at the coverage limits listed on the declarations page of Attachment I, Expiring Policy and indicated below.

Insuring Agreements Limit of Insurance Per

Occurrence Deductible Amount Per

Occurrence

7. Computer and Funds Transfer Fraud

$500,000.00 $50,000.00

8. Money Orders and Counterfeit Money

$500,000.00 $10,000.00

The Department reserves the right to request additions to or deletions from existing coverages or exposures stated in the Insurance Policy on behalf of the Named Insureds when deemed to be in the State's best interest in accordance with Section 7.7, Additions/Deletions.

Attachment A

Scope of Work (SOW)

5.1 Employee Theft (Dishonesty) Coverage

The Policy will include blanket coverage for loss of or damage to money, securities, and other property resulting from theft committed by employees.

Please refer to ITB Attachment B, Price Sheet, for current Named Insured and total employee count.

5.2. Tax Collectors As Employees

Department of Highway Safety and Motor Vehicles tax collectors are included as employees per Endorsement No. 1 to Attachment I, Expiring Policy. See also Attachment M, Tax Collector Information.

5.3 Faithful Performance of Duty

The Policy will include coverage for faithful performance of duty as described on Endorsement No. 2 to Attachment I, Expiring Policy, shall be provided to the Named Insured specified on Attachment B, Price Sheet.

5.4 Excess Employee Theft

Excess employee theft coverage as described on Endorsement No. 3 to Attachment I, Expiring Policy shall be provided for the employee counts and limits selected by the Named Insured and as specified on Attachment B, Price Sheet.

5.5 Forgery and Alteration – Insuring Agreement 3

Forgery and Alteration as described on Endorsement No. 3 to Attachment I, Expiring Policy, shall be provided at the limits selected by the Named Insured and as specified on Attachment B, Price Sheet.

5.6 Inside the Premises, Outside Premises – Convert to Schedule Coverage Inside and Outside premises coverage limits of $500,000, with a $10,000 deductible shall be provided for all locations (as indicated on Attachment B, Price Sheet) of the Named Insured, as described on Endorsement No. 7 to Attachment I, Expiring Policy.

These additional insuring agreements are:

5.6.1 Insuring Agreement 4 - Inside – Money and Securities

This coverage shall be provided to the Named Insured at the additional limits provided on Attachment B, Price Sheet.

5.6.2 Insuring Agreement 5 - Inside – Robbery

This coverage shall be provided to the Named Insured specified, at the additional limits provided on Attachment B, Price Sheet.

5.6.3 Insuring Agreement 6 - Outside the Premises

This coverage shall be provided to the Named Insured at the additional limits provided on Attachment B, Price Sheet.

Attachment A

Scope of Work (SOW)

5.7 Historical Loss Information

The historical premium and loss experience information over the previous five years through October 3, 2024, is provided as Attachment J, Historical Loss Experience Report.

6. Premium Pricing

The Contractor shall adhere to the rates listed in the Price Sheet as submitted, which are incorporated by reference into the Contract. All coverage premiums assessed at Policy inception are fixed for the full Policy Period and shall not change.

6.1 Premium and Deductible Adjustments

Notwithstanding anything to the contrary herein, Premium and deductible decreases issued by the Contractor are permissible at any time during the Policy Period.

For additional Policy Periods, the Broker should have identified in its insurer quotation the % loss ratio threshold which, if met or exceeded by the Named Insured during any Policy Period, will prompt the Insurer to reevaluate premium and/or deductible pricing for the next Policy Period. Any reevaluation of premiums and/or deductibles are subject to DMS written approval, must be adjusted equitably, and shall be based upon specific exposure risks and individual loss experience to the extent market conditions allow. If Contractor anticipates adjustments to premium pricing, deductibles, or Policy terms and conditions, Contractor shall provide the Department with written notice four (4) months prior to the Policy Period expiration to the Department’s Contract Manager.

Notwithstanding Paragraph II of the Contract and Section 2.1 of the Enterprise Standard Terms and Conditions, adjustments in premiums and/or deductibles do not constitute a change to the Contract requiring an amendment executed by both Parties.

After the Department provides written approval of any premium and/or deductible adjustments, the Department will incorporate such changes directly into the Contract documents.

7. Broker/Underwriter Responsibilities

The Broker will market and secure government crime insurance policy on behalf of the State of Florida and the Named Insureds, c/o the Department of Management Services, Division of State Purchasing, 4050 Esplanade Way, Suite 360, Tallahassee, FL 32399-0950.

7.1 Customer Service and Administration

The Contractor shall provide Customers all services during Business Days. State agencies observe holidays in accordance with section 110.117, Florida Statutes.

The Contractor shall have a single point of contact to serve as Contract Manager as provided on Attachment H, Broker Information. The Contract Manager may support multiple Customers and must respond to Customer calls and/or emails within one (1) Business Day. The Contract Manager must be able to provide or arrange for all aspects of Customer support and problem resolutions. Back-up coverage must be provided by an

Attachment A

Scope of Work (SOW) equally knowledgeable person.

In addition to a dedicated Contract Manager, the Contractor shall provide toll-free Customer service phone support from 8:00 a.m. Eastern Time to 5:00 p.m. Eastern Time, Monday through Friday, except for National and State-recognized holidays. TDD (Telecommunication Device for the Deaf) access must be made available during the above-named Customer service operating hours.

7.2 Policy Administration

The Broker must aid in the fulfillment of all obligations to the Department and its Named Insureds as provided for under the Insurance Policy. Any failure by the Broker to provide Policy administration to the Department will constitute a breach of Contract. The Broker will, at a minimum:

7.2.1 Communicate with the Insurer on all changes to the Policy requested by the

Department.

7.2.2 Provide endorsements for changes to the Policy schedule.

7.2.3 Forward premium payments to the Insurer, as appropriate.

7.2.4 Assist in the filing of claims and claim settlement payments.

7.3 Routine Communications

All routine communications and reports related to the Contract shall be sent to the Department’s Contract Manager. If any information listed on the ITB Attachment H, Broker Information Form changes during the life of the Contract, then the Contractor shall update the attachments and submit to the Department’s Contract Manager. Routine communications may be made by e-mail, regular mail, or telephone.

7.4 Broker License

The Broker, for the duration of the Contract term, must hold current and valid Florida resident or non-resident insurance license in the appropriate line of business for the insurance coverage provided under the Contract.

7.5 Insurance Policy Conditions

The resulting insurance policy must conform to the following coverage conditions:

7.5.1 The entire coverage is to be written under one insurance policy and represented by one insurer.

7.5.2 Coverage will be provided for the listed locations of the Named Insured.

7.5.3 The Broker and Insurer shall provide an Insurance Policy that conforms to Florida

Statutes 627.401 through to 627.443 as applicable, and with all other relevant and applicable statutes and regulations governing property and liability insurance.

7.5.4 Policy endorsements and invoices will be provided to the Named Insured and the Department as soon as coverage is bound.

7.5.5 Unless prohibited by underwriting guidelines, whenever possible, all claims originated in foreign countries are to be filed and settled in the United States.

Attachment A

Scope of Work (SOW)

After Contract award, the Contractor must provide the Department an original and complete copy of the Insurance Policy, including declarations, insuring agreements, conditions, exclusions, schedule of coverage, and all necessary endorsements at Policy inception, or an insurance binder until such Insurance Policy is received. The Insurance Policy must include a manuscript endorsement, must conform to the requirements stated in the SOW and may not take exception to terms in the SOW. Failure to submit a complete Insurance Policy will constitute sufficient grounds for termination.

7.6 Invoices for Insurance Premiums

In addition to the terms in Enterprise Standard Terms and Conditions subsection 6.1, Pricing, the following applies to Contractor invoicing:

7.6.1 Premiums will be invoiced annually at Policy Inception for the Named Insured.

7.6.2 Invoices are to contain enough detail for pre-and post-audit. Invoices must include an invoice number, the insurance company name, Federal Employer Identification Number, the Policy number, effective dates of coverage, a description of the coverage, payment due date, and a remittance address.

7.6.3 Invoices are to be issued in the name of the respective Named Insured and must be provided in writing to the respective Named Insured and to the Department's Contract Manager.

7.6.4 The Department’s Contract Manager may, but is not obligated to, assist the Broker in securing these payments to the best of its ability.

7.7 Additions/Deletions

The Department reserves the right to request additions to or deletions from existing coverages or exposures stated in the Insurance Policy on behalf of the Named Insured when deemed to be in the State's best interest. All requests for additions to or deletions from coverage will be made by the Department.

Additions in coverage or exposure must be consistent with current Contract Insurance Policy terms and conditions. However, the Insurer is not required to accept the State’s addition if it can document that such addition results in an exposure change warranting a change in the Insurance Policy conditions or terms.

The Broker and Underwriter have 30 days from receipt of the Department’s request to add coverage to the State Policy and receipt of all applicable previous and current coverage information to accept or reject the addition of coverage under the Policy.

7.8 Claims Settlement

Claims must be submitted by the Named Insured to the Broker as outlined in the Insurance Policy that results from this Contract. The Broker or Underwriter must notify the Department in writing at the time the Claim is submitted by a Named Insured during the Policy Period. The Broker must coordinate with the Named Insured filing the Claim on any details required by the Broker to ensure proper settlement.

The Broker is to track all Claims submitted and identify which Named Insured filed the Claim. Any settlement checks must be issued in the name of the Named Insured that filed

Attachment A

Scope of Work (SOW) the Claim, c/o State of Florida - Department of Management Services. Settlement checks are to include Policy name and number; the Named Insured who filed the Claim; date of loss; total Claim filed, deductible, check number, and check amount.

The Broker will provide Claim settlement checks directly to the Named Insured filing the Claim whenever possible, and the Broker will provide a copy of the settlement check to the Department's Contract Manager.

7.9 Broker Commission

The Broker will comply with section 287.022, Florida Statutes, which requires an insurer or agent that pays a commission or any portion thereof to any person, on insurance purchased by the Department, to report such payment to the Department in writing and under oath within 30 days thereafter.

7.10 Independent Broker

The Broker and its employees, agents, representatives, and subcontractors are not employees or agents of the Department and are not entitled to the benefits of State employees. The Department will not be bound by any acts or conduct of the Broker or its employees, agents, representatives, or subcontractors. The Broker agrees to include this provision in all of its subcontracts under the Contract.

7.11 Insurer Serviceability

The Broker will notify the Department's Contract Manager of any concerns regarding the ability to provide ongoing services, claims settlement, or any diminished actions including, but not limited to, the reduction in the financial rating of the Insurer providing coverage subsequent to Contract award. Failure to notify the Department of concerns may, at the Department's option result in termination of the Insurance Policy.

7.12 Insurance Policy Cancellation

In addition to the requirements of section 7(c) of the PUR 1000, , the following applies to cancellation of the Insurance Policy

All cancellations must be calculated on a pro-rata basis and must adhere to the requirements of Florida law. For the purpose of this clause, pro-rata means, in the case of cancellation of an Insurance Policy, the return of the Premium for the unexpired term of the Policy, without penalty for interim cancellation. The Department reserves the right to cancel the Insurance Policy at any time by providing written notice to the Broker. Such cancellation request will be mailed to the Broker's Contract Manager. Cancellation notices from the Insurer will be as provided for in the Insurance Policy and must be mailed to the Department's Contract Manager.

8. Payments Payments by Named Insured shall be made in accordance with sections 215.422 and 287.0585, F.S.

9. Ad-Hoc Report

Attachment A

Scope of Work (SOW)

The Department reserves the right to require additional information pertaining to the Contract.

10. Contract Transition

Upon Contract expiration or termination, the Contractor shall ensure a seamless transfer of Contract responsibilities with any subsequent broker/insurer necessary to transition the products and services of the Contract. The Contractor and subsequent broker/insurer assume all expenses related to the Contract transition.

11. Other Fees and Charges

The State requires additional assessments for specific insurance coverage types including, but not limited to, property and casualty insurance premiums except for those exempted by statute (workers’ compensation, medical malpractice, and national flood insurance).

Brokers and/or Insurers shall not include surplus line tax fees in the cost of this coverage, in accordance with section 626.932(4), Florida Statutes.

Fees or charges not indicated on Attachment B, Price Sheet, unless provided by law, are prohibited.