25-84131500-ITN DFS BOR Attachment A SOW Template.pdf

ITN No.: 25-84131500-ITN

ITN No.: 25-84131500-ITN

Attachment A

Scope of Work

1. PURPOSE

To secure, on behalf of the Department of Financial Services’ Division of Risk Management, a Broker of Record/Reinsurance Broker that will obtain excess property insurance or reinsurance coverage, casualty insurance coverage, and provide claims management and risk management consulting services, pursuant to the terms set forth in this Scope of Work.

2. DEFINITIONS

Definitions contained in section 287.012, Florida Statutes (F.S.); Rule 60A-1.001, Florida Administrative Code (F.A.C.) 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 Scope of Work.

All definitions apply in both their singular and plural sense.

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

Binder – As defined in section 267.420, F.S.

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 ITN.

Broker of Record (BOR)/Reinsurance Broker – The Contractor awarded the contract as a result of this ITN to manage the Named Insured policies, evaluate insurance quotes and policies, and recommend changes to existing policies.

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.

Calendar Days - All days including weekends and holidays. With respect to due dates and deliverables, if the last day counted falls on a weekend or holiday, the due date shall be the next business day thereafter.

Claim – A demand for recovery for loss or damages.

Contract – The written agreement between the Department and the awarded Respondent resulting from this solicitation.

Contractor – A Vendor that enters into a Contract with the Department as a result of this procurement.

Contract Manager – The representative designated by the Department who will oversee all aspects of the Term 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, a State Agency.

Division, Named Insured, or Insured - The Department of Financial Services’ Division of Risk

Management or its successor at law.

Eligible User – As defined in Rule 60A-1.001, for purposes of this ITN 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 –The insurance company selected by the Broker to provide insurance coverage as described in this ITN. The terms ‘Underwriter’ or ‘Reinsurer’ are synonymous with ‘Insurer’ in this procurement.

Invitation to Negotiate (ITN) – This ITN No. 25-84131500-ITN, including all attachments and addenda to the Invitation to Negotiate.

Policy Expiration - The termination date of an insurance contract.

Policy Inception – The effective date of the Insurance Policy.

Premium – As defined in section 627.403, F.S Reply – A Respondent’s formal response to an ITN. Response and Reply are used interchangeably herein.

Respondent – A Vendor who submits a Reply to this ITN.

State – The State of Florida.

State Risk Management Trust Fund (SRMTF) – As administered by the Department of Financial Services, Division of Risk Management, the SRMTF provides for property, general liability, automotive liability, federal civil rights, court-awarded attorney’s fees in certain other proceedings against the state, and workers’ compensation coverage, as established by Chapter 284, Florida Statutes.

Total Insured Value (TIV) – The Total Insured Value is the sum of the full value of the covered property, business income values, and any other property interests covered by the insurance secured by this ITN.

Vendor – An entity that is in the business of providing a commodity or service similar to those within this solicitation.

3. CURRENT PROGRAM STRUCTURE

3.1. Property Program

The property insurance provided to State Agencies and Eligible Users utilizes a manuscript primary policy form, which affords coverage on a named perils basis, with losses paid at actual cash value as opposed to replacement cost. As of February 1, 2025, the State has approximately 21,179 buildings with TIV of $31.3 billion, broken down as follows, with property located in all sixty-seven (67) counties of the State.

Building Values $23.3 billion

Content Values $7.5 billion

Rental Values $447 million

Excess Insurance is purchased through the existing Broker of Record from several insurance carriers, primarily surplus lines, or non-admitted carriers. Self-insured retentions (SIR) are maintained on a per-occurrence basis, with no per-building or per-location deductibles, except for flood coverage, which has a per-location deductible. For the excess insurance purchased in February 2025, a $2 million per occurrence self-insured retention was maintained for all covered perils, with a $40 million annual aggregate self-insured retention maintained for named windstorm and flood perils. A total of $75.25 million of coverage was purchased for named windstorm and flood perils, and a total of $350 million of coverage was purchased for covered perils other than named windstorm and flood. This coverage was provided by fifteen (15) insurance carriers.

Since 2006, only three (3) losses have been paid by excess insurance or reinsurance.

Loss Event Year Event SIR

2014 Tornado - Calhoun Correctional Institute $2 million

2022 Fire - Department of Agriculture Packing House $2 million

2024 Tornados – Leon County and surrounding areas $2 million

During the fiscal year ended June 30, 2024, the Division paid $19,462,920 in property losses and worked 1,201 claims, with 617 new claims received during the fiscal year. The Division’s Property Certificate of Coverage is included in Attachment K, Property Certificates of Coverage. The current coverage quilt for the Division’s Property Program is included in Attachment L, State of Florida property quilt.

3.2 Casualty Program

The Division provides workers’ compensation, general liability, automobile liability, federal civil rights/employment action, and firefighter cancer coverage to State Agencies and Eligible Users.

Coverage is provided for approximately 201,000 state employees and volunteers, and approximately 27,600 vehicles. Automobile liability coverage is also extended to state employees driving their personal vehicle on state business. Out-of-State workers’ compensation is provided in forty-five (45) states where State Agencies and Eligible Users maintain permanently staffed work sites.

The Division has previously purchased two high-deductible workers’ compensation policies. The first policy covered claims with a date of accident from January 1, 1998, through February 9, 2002. The second policy covered claims with a date of accident from February 10, 2002 through February 2, 2005, and included three years of medical service in addition to the high deductible. During the fiscal year ended June 30, 2024, the Division paid $109,681,117 in workers’ compensation claims and received 10,208 new claims. General liability and automobile liability claims are limited by law to $200,000 for each person’s claim and $300,000 for all claims arising from a single incident. During the fiscal year ended June 30, 2024, the Division paid $11,671,657 in general and automobile liability claims and received 4,835 new claims. During that same period, the Division paid $8,961,644 in federal civil rights and employment action claims and received 468 new claims. The Division’s Casualty Certificates of Coverage are provided in Attachment M, Casualty Certificates of Coverage.

The current policies are provided as Attachment N, Out-of-State Workers’ Compensation Policies.

Brokers should not approach any markets for workers’ compensation at this time, this information is provided as informational purposes only.

Currently the only insurance purchased for a casualty line of coverage is an out-of-state workers’ compensation policy. This policy is placed with one carrier, AmTrust, through the Division’s current Broker of Record, providing workers’ compensation coverage for 416 employees with permanent work locations assigned outside the State of Florida. Exposure is estimated to be around $66 million.

For the policy ending 8/1/2024, the audited premium is estimated at $246,776. The following states are included in the current out-of-state workers’ compensation policy:

3.3 Loss Prevention

The Division provides data analytics, training and publications, consultative services and technical assistance, and conducts agency reviews and evaluations of agency safety and loss prevention programs.

The Division produces monthly, quarterly, semi-annual, and annual reports to State Agencies and Eligible Users. These reports are used to provide information on claim frequency, claim cost, causality, and claim trends. They are also used to ensure that claims are correctly assigned and classified. In addition to the reports provided by the Division, agency risk managers also have access to the Division’s Insurance Management System (IMS) and can run a variety of standard reports to analyze their agency’s claims. If needed, the Division can produce custom ad hoc reports to meet their needs and can assist in interpreting the data in those reports to assist in the agency’s loss prevention efforts.

The Division provides training for all agencies in the disciplines of occupational health and safety, loss prevention, and risk management. Training media includes webinars, online learning options, online training materials and training videos, as well as instructor-led training.

The Division also develops and publishes a quarterly newsletter titled Safety and Loss Prevention Outlook. This newsletter includes risk management industry trends, occupational health and safety news, and interviews with fellow risk managers from around the country. The newsletter is distributed to all State Agencies and Eligible Users and is posted on the Division’s website.

3.4 Risk Management

The State of Florida has a decentralized approach to risk management where each state agency or Eligible Users is responsible for its entity’s risk management program. Each state agency or Eligible Users assigns staff to manage its risk management activities according to its management philosophy and perceived needs, and each entity has its own unique loss exposures. In many cases, the state agency or Eligible Users may not have staff members with the professional risk management skills needed to implement risk management as a decision-making process and may need assistance in the form of professional risk management consulting services.

Alaska Alabama Arkansas Arizona California

Colorado Connecticut District of Columbia

Delaware Georgia

Hawaii Iowa Idaho Illinois Indiana

Kansas Kentucky Louisiana Massachusetts Maryland

Maine Michigan Minnesota Missouri Mississippi

Montana North Carolina Nebraska New Hampshire New Jersey

New Mexico Nevada New York Oklahoma Oregon

Pennsylvania Rhode Island South Carolina Tennessee Texas

Utah Virginia Vermont Wisconsin West Virginia

The Division administers the State’s risk management self-insurance program as mandated in Chapter 284, F.S., and pays for covered losses through the State Risk Management Trust Fund (SRMTF). The SRMTF is funded annually only for the expected loss payments to be made for that fiscal year, resulting in an unfunded liability for financial obligations owed in the future. As a result of this type of “cash flow” funding, the premiums charged to State Agencies are much lower than actuarially determined premiums would be, and from an industry perspective may be considered cost of risk allocations as opposed to traditional premiums.

4. SCOPE OF WORK

The Contractor shall provide: the services as described below:

4.1 Program Policy Design and Marketing

To support the development of insurance program design and marketing strategies for the Division, the Contractor shall:

4.1.1 Assist the Division in developing optional coverage and limit structures for the Property Program and other casualty lines of coverage as requested.

4.1.2 Review the Division’s property data and advise of any data elements needed for underwriting evaluations, including sufficiency of Construction, Occupancy, Protection and Exposure (COPE) data needed for the property insurance program.

4.1.3 Provide the results of the hurricane catastrophe modeling annual wind study for the Property Program using two or more industry standard software models such as AIR or RMS, with results for 25, 50, 100, 250, 500 and 1,000-year event losses.

4.1.4 Advise the Division of availability of coverage for the out-of-state workers’ compensation program.

4.1.5 Review the Division’s out-of-state workers’ compensation program claim data and advise the Division of any data elements needed for underwriting evaluations.

4.1.6 Advise the Division of current market pricing and availability of insurance coverage three months prior to expiration or renewal of any insurance coverage in effect and provide recommendations to the Division regarding the upcoming insurance procurement.

4.1.7 Analyze, on an annual basis, the insurance market conditions, considering other insurance programs competing with the Division’s program for insurance coverage, seasonable perils, excess insurance or reinsurance treaty dates and any other factors that may affect insurance availability and pricing, and advise the Division of the best time to procure insurance coverage.

4.2 Insurance Procurement

The Contractor shall perform the following to ensure successful uninterrupted insurance coverage placement(s):

4.2.1 Market and secure all necessary insurance coverage(s) for the Property Program in a timeframe that will prevent a lapse in coverage, whenever existing coverage is in place.

4.2.2 Market and secure all necessary insurance coverage(s) for the out-of-state workers’ compensation program in a timeframe that will prevent a lapse in coverage, whenever existing coverage is in place. Workers’ compensation insurance coverage must include each state with a permanently assigned state agency or eligible user employee. The Contractor may place coverage with up to three (3) insurance carriers, as approved by the Division.

4.2.3 Draft the insurance specifications, compile underwriting information and other pertinent information needed for policy placement with the input of the Division.

4.2.4 At least three (3) months prior to policy expiration date, provide a renewal strategy report to the Division (see section 4.3.2).

4.2.5 Prepare formal market renewal submissions and, upon approval by the Division, distribute the submissions to all prospective Insurers at an agreed upon date prior to the renewal date.

4.2.6 Negotiate renewal terms, conditions, and pricing on behalf of and in conjunction with the Division.

4.2.7 Provide updates as requested by the Division during the renewal process.

4.2.8 Secure any renewal binding documents in a timely and effective manner and provide those documents to the Division for signature and bind coverage upon Division approval.

4.2.9 Comply with section 287.022, Florida Statutes, by fully disclosing to the Division the amount of commission or any portion thereof to be paid by the Contractor to any insurance broker, intermediary or wholesaler used in the placement process for property coverage, and state their relationship, if any, to the Contractor, as applicable.

4.3 Insurance Policy Administration

The Contractor shall perform the following policy management and administrative tasks:

4.3.1 Provide insurance policies, as directed by the Division, that conform to sections 627.401 through 627.4463, F.S., as applicable, and with all other relevant and applicable statutes and regulations governing property and casualty insurance.

4.3.2 Review the Insurer(s) final policy Binder, resulting policy forms and policy endorsements, on all insurance policies secured by the Division, as they are issued and prior to delivery to the Division to ensure accuracy.

4.3.3 Forward final coverage policy Binders to the Division within 30 calendar days of the effective date of the Policy.

4.3.4 Coordinate the issuance of policy endorsements as appropriate.

4.3.5 Provide certificates of insurance coverage to the Division when available.

4.3.6 Provide a copy of each policy to the Division electronically as soon as received and reviewed by the Contractor, or as requested by the Division.

4.3.7 Ensure the timely billing and payment of all policy premiums. In the event a Notice of Cancellation has been issued due to nonpayment of premium, act on the Division’s behalf to resolve the issue with the Insurer and maintain insurance coverage.

4.3.8 Provide the Division with an annual Program summary of program terms and costs as detailed in section 4.3.1.

4.3.9 Assist the Division with exposure issues or Insurance Contract provisions as needed on an ongoing basis.

4.3.10 Evaluate the commitment and financial stability of the insurance carriers on an ongoing basis and notify the Division of any changes in the insurance carriers’ AM Best ratings.

4.3.11 Notify the Division of any additional coverage that may become available in the marketplace that could be advantageous to the Division and procure such coverage as instructed by the Division.

4.3.12 As needed, present market updates to keep the Division informed of any conditions or developments that may affect existing policies or future insurance placements.

4.3.13 Act as a liaison with insurers that request property inspections and assist the Division in responding to and implementing any recommendations made by inspectors during those property inspections.

4.4 Claims Processing

The Contractor shall perform the following claims processing tasks:

4.4.1 Coordinate with the Division and work with the appropriate Insurer to ensure proper settlement on any claims filed by the Division on any property policies placed on this program over the contract term.

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

4.4.3 Forward notification provided by the Division to the Insurers of any large losses reported above thresholds to be established by the Insurers for individual and aggregate losses on a per occurrence basis.

4.4.4 Coordinate the selection of a mutually agreed upon adjusting firm that has experience in adjusting catastrophic losses as needed.

4.4.5 In the event that losses from an occurrence exceed the Division’s self-insured retention, as needed, act as an advocate for the Division and as an intermediary between the Division, Insurers, and the mutually agreed upon adjusting firm to facilitate communications, data exchange, and prompt resolution of claims.

4.4.6 Act as the Division’s advocate and intermediary between the Division and Insurer(s) to facilitate communications and the full handling and settlement of out-of-state workers’ compensation and other casualty claims.

4.4.7 Attend meetings with the Division as needed to discuss insurance and claims issues.

4.5 Consulting Services to be included in the Broker Fee

The Contractor shall provide consulting services, upon Division request, as described below:

4.5.1 Advise and assist the Division on issues concerning the Federal Emergency Management Agency (FEMA) Public Assistance Program or National Flood Insurance Program that may affect the Division or the Division’s customers.

4.5.2 Advise the Division on the cost and benefits of all appropriate risk financing methods, such as the purchase of reinsurance as opposed to excess insurance, to include financial modeling to support recommendations.

4.5.3 Advise the Division as needed regarding claims, coverage, or other issues that may arise concerning insurance matters.

4.5.4 Advise the Division as needed concerning general and emerging risk management issues and practices.

4.5.5 Provide general risk control consultations and training at the program level to the Division.

General risk control consultations and training shall include, but not be limited to, Construction, Occupancy, Protection, and Exposure (COPE) documentation inspections, and assistance in valuing buildings and contents insured by the State Risk Management Trust Fund.

4.5.6 Provide up to fifty (50) general risk control consulting hours per contract year to State Agencies and Eligible Users. General risk control consultations and training shall include, but not be limited to, Construction, Occupancy, Protection, and Exposure (COPE) documentation inspections, and assistance in valuing buildings and contents insured by the State Risk Management Trust Fund.

4.6 Additional Consulting Services

The Contractor shall provide additional consulting services, upon Division request, in excess of the fifty (50) general risk control consulting hours identified in sections 4.5.6. Consulting services shall be billed at the hourly consulting rate and invoiced by the Contractor monthly in arrears directly to the state agency or Eligible Users receiving the requested consulting services. Hourly services shall be billed in quarter-hour increments.

4.7 Optional Casualty Insurance and Services

The Division may be interested in acquiring other casualty insurance coverages in the future. If the Division elects to use this optional protection, the Contractor shall be asked at a date following commencement of this Contract to provide a detailed proposal for procurement of and pricing for the coverage.

4.8 Staffing

4.8.1 General Staffing Levels

The Contractor shall maintain staffing levels sufficient to complete the services and meet the requirements specified in this ITN and in the resulting Contract. The Contractor shall be prepared at all times to recruit qualified staff, as required to implement all aspects of the services required in this Contract.

In the event the Division determines that the Contractor’s staff or staffing levels are not sufficient to complete the services specified in this Contract, it may advise the Contractor in writing and the Contractor shall have thirty (30) calendar days to remedy the identified staffing deficiencies to the satisfaction of the Division. Failure to remedy staffing deficiencies to the Division’s satisfaction may be considered an event of default, or financial consequences may be assessed for minor staffing deficiencies. The Contractor shall reassign any staff whose continued presence would be detrimental to the completion of the Contract services.

4.8.2 Staff Qualifications

The Contractor’s Lead Account Manager or Contract Manager must have one or more of the following certificates or accreditations: Associate in Reinsurance (ARe); Chartered Property Casualty Underwriter (CPCU); Accredited Advisor in Insurance (AAI); Certified Insurance Counselor (CIC);

Associate in Risk Management (ARM). The Contractor must employ individuals who are appropriately licensed and registered with the State of Florida. Only licensed and registered employees or subcontractors of the Contractor shall provide services under the Contract.

4.8.3 Contract Manager

At a minimum, the Contractor shall assign a Contract Manager to work directly with the Division’s designated Contract Manager and other staff in providing the services specified in the Contract. The Contractor’s Contract Manager shall coordinate all activities between the Division and the Contractor and shall have authority to revise processes and procedures and assign additional resources, as needed, to maximize the efficiency and effectiveness of services provided under the Contract. If requested by the Division, the Contractor’s Contract Manager shall meet with the Division’s staff in person, or by telephone during Business Days at the request of the Division, to discuss any aspect of the Contract, such as the status of the Contract activities or assignments, Contractor performance, outstanding issues, reports, and documentation.

4.8.4 Replacement of Staff

The Contractor shall provide written notification to the Division’s designated Contract Manager upon vacancy of its Contract Manager position within two (2) Business Days of the position becoming vacant, or when the Contractor becomes aware that the position will be vacated, whichever is sooner.

In the event the Division determines the Contractor’s Contract Manager, or other staff assigned to provide services under the Contract, are not sufficient to properly complete the services specified in this ITN and the resulting Contract, they shall advise the Contractor in writing. The Contractor shall have thirty (30) calendar days to remedy the identified staffing deficiency to the satisfaction of the Division. The Contractor shall replace any staff whose continued presence would be detrimental to the completion of the Contract services.

4.9 Reporting

In addition to the other documentation requirements set forth in the Contract and the PUR 1000, the Contractor shall provide the following reports to the Division.

4.9.1 Property Program Summary Report

Within ten (10) Business Days of the completion of the required annual policy placements, the Contractor shall provide an annual summary of program terms and costs to the Division per section

4.3.8. The report shall include at a minimum:

• A market review that lists all carriers that were approached, their AM Best rating, insurer status (admitted or non-admitted), marketing status (quoted, declined, accepted, bound), quoted amounts/comments.

• A synopsis of current market conditions.

• The renewal program coverage quilt/mosaic with comparisons to the expiring policies.

• A premium summary listing all carriers, amounts authorized and premium price, by coverage layer and include all assessments or surcharges.

• A summary of the Division’s exposures.

• Catastrophe modeling summary and results.

• Provide a disclosure in the annual summary that no income other than the compensation allowed by the Contract has been received by the Contractor for services provided during the period covered by the annual summary. As the Contractor is prohibited from accepting any contingent income, profit sharing, enhanced commissions, or any other form of hidden income for services provided under this Contract.

• Provide any other disclosures customarily provided by the Contractor to the Division regarding policy placement discussions at the time of renewal.

4.9.2 Renewal Strategy Report

Three months prior to any policy expiration or renewal, the Contractor shall provide the Division with a renewal strategy report. The report must include a program history; anticipated coverage, limit, retention and pricing changes; market outlook for upcoming placement; and availability of coverage.

The report must also include a recommended price and coverage negotiating strategy to be used in the upcoming insurance procurement per section 4.2.4.

4.9.3 Policy Placement Documents

Within thirty (30) calendar days of policy onset or upon receipt by the Contractor, the Contractor shall provide all insurance, reinsurance, or excess insurance Binders, certificates of insurance coverage, and policies secured on behalf of the Division to support this program, in the manner specified by the Division.

4.9.4 Quarterly Report

Each quarter of the contract period, the Contractor shall provide a report to the Division that lists the consulting hours provided for the prior quarter under sections 4.5.6 and 4.6. The report shall identify the consultation/training date, which state agency or Eligible Users received the service, a brief description of the consultation/training topic, hours used for each consultation/training, and the cumulative hours used for the contract year.

4.9.5 Ad Hoc Reports

The Division may request additional ad hoc reports to be provided at no additional cost. The report format and medium will be mutually agreed upon by the Contractor and comply with the requirements set by the Division.

4.10 Pricing – Broker Fee

The Broker Fee shall be limited to the annual Broker Fee as stated in Attachment D, Fee Schedule / Cost Proposal, for the initial term and renewal term of the contract. The Broker of Record or Reinsurance Broker shall not accept any remuneration other than the amount stipulated as the Broker Fee in connection with providing contracted Broker Services.

The Broker of Record/Reinsurance Broker will provide detailed disclosure to the Department and Division of any and all commissions received by the Broker of Record/Reinsurance Broker under this program and credit them against the annual fee. Such commissions shall not include, and the Broker of Record/Reinsurance Broker shall not accept in connection with the Brokerage Services any additional remuneration, including but not limited to, the following:

• Wholesale Brokerage Fees or Commissions

• Administrative Fees and similar items

• Contingent commissions

The Broker of Record/Reinsurance Broker shall provide to the Contract Manager a detailed accounting of all revenues associated with the Brokerage Services provided under this Contract in the Annual Property Program Summary Report.

4.11 Contractor Performance

4.11.1 Subcontracting

All proposed subcontractors shall be as prescribed in Attachment F, PUR 1000 General Contract Conditions, Section 4.d.i.

4.11.2 Performance Monitoring

The Contractor shall notify the Division upon becoming aware of any circumstances that may reasonably be expected to jeopardize the timely and successful completion or delivery of any services to be provided under the Contract. The Contractor shall use reasonable efforts to avoid or minimize any delays in performance and shall inform the Division of the steps the Contractor is taking or will take to do so, and the projected actual completion or delivery time. If the Contractor believes a delay in performance by the Division has caused or will cause the Contractor to be unable to perform its Contractual obligations on time, the Contractor shall notify the Division and use reasonable efforts to perform its Contract obligations on time notwithstanding the Division’s delay.

4.12 Corrective Action Plan (CAP)

If requested by the Division, the Contractor shall develop a CAP to remedy any deficiencies in the

Contractor’s insurance placements or risk management services provided that are identified by the

Division.

a. The Contractor shall, within one (1) Business Day, acknowledge, in writing, receipt of notification from the Division, of a deficiency and the need for a CAP.

b. The Contractor shall, within ten (10) Business Days of acknowledgement of receipt of notification of a deficiency by the Division, submit a CAP for approval to the Division’s Contract

Manager. The CAP shall include, but shall not be limited to, the following:

i. the corrective processes to be implemented by the Contractor to remedy deficiency;

ii. the staff member responsible for correcting deficiency;

iii. the time frame for implementing the actions necessary to correct deficiency; and:

iv. the monitoring methods to be utilized for determining if the CAP is effective.

c. The Contractor shall implement the CAP upon approval by the Division.

d. The Contractor shall monitor the performance of the CAP and determine if the CAP is effective.

e. The Contractor shall provide in writing to the Division, the outcome of the monitoring of the

CAP.

4.13 Financial Consequences

Failure to comply with the requirements of the Contract will result in the imposition of financial consequences. The following financial consequences will apply for the Contractor’s failure to meet the performance metric standard and due date corresponding with the deliverables under the Contract. The State of Florida reserves the right to withhold payment or implement other appropriate remedies, such as Contract termination, or nonrenewal, when the Contractor has failed to comply with the provisions of the Contract.

The financial consequences below will be paid and received by the Department of Management

Services within thirty (30) calendar days from the due date specified by the Department. These financial consequences below are individually assessed for failures over each target period beginning with the first full month or quarter of the Contract performance and every month or quarter, respectively, thereafter.

All deliverables are subject to the approval and acceptance of the Division. Any deliverables submitted but not accepted by the Division will be subject to the applicable financial consequences until the Division accepts the deliverable.

Financial Consequences Chart

Deliverable Performance Metric Performance Due

Date

Financial Consequence for Non-Performance

Contractor will timely prepare and submit a

Renewal Strategy Report.

(Section 4.2.4 and 4.3.2)

All Renewal Strategy Reports will be submitted timely with the required information

Three (3) months prior to Policy

Expiration

$100 per Business Day late

Prepare market renewal submissions and, upon approval by the Division, distribute the submissions to all prospective Insurers at an agreed upon date prior to the renewal date.

(Section 4.2.5)

The renewal submission will be submitted by the agreed upon date

As agreed upon by the Contractor and the Division

$100 per Business Day late

Contractor will bind coverage as directed by the Division. (Section 4.2.8)

All insurance policies will be bound and executed so as to avoid any lapse or create a gap in coverage on required property, casualty, or other insurance coverage.

Prior to the February 15th annual policy placement date

$1,000 per calendar day per Policy not bound by February 14th annually according to the Division’s directions

Contractor will secure final Insurance policy

Binders and provide to the Division as requested.

(Section 4.3.3)

All insurance policy Binders will be electronically submitted timely

Within thirty (30) calendar days after the February 15th annual policy placement date

$100 per calendar day late

Contractor will timely provide all policies placed and certificates of insurance electronically to the Division. (Sections

4.3.5 and 4.3.6)

The policies placed and certificates of coverage will be electronically submitted timely with all the required information.

Annually, within thirty (30) calendar days after February 15th annual policy placement date, or as soon as received and reviewed by the Contractor.

$50 per calendar day late

Contractor will timely submit Annual Program

Summary (Sections 4.3.8 and 4.3.1)

The Annual Program Summary will be submitted timely with the required information

Annually, within ten

(10) Business Days after February 15th

$100 per Business Day late

No favorable action will be considered when Contractor has outstanding Contract Reports, or any other documentation owed to the Department or Division, to include fees / monies owed to the Division, that are required under this Contract.

Deliverable Performance Metric Performance Due

Date

Financial Consequence for Non-Performance annual policy placement date

Contractor will retain qualified staff throughout the term of the Contract

(Section 4.8.1)

No staff deficiencies will occur during the term of the Contract.

Thirty (30) calendar days after Division identifies deficiency

$250 per calendar day late

Contractor’s Lead Account Manager will retain proper insurance designations

(Section 4.8.2)

All Lead Account Managers will have one or more of the following insurance designations:

ARe, CPCU, AAI, CIC, ARM.

Evidenced at contract renewal

$1,000 per Business Day of non-compliance

Contractors will provide and submit a report on the Consulting and Training

Hours provided (Sections

4.5.6 and 4.6)

The Consulting and Training Hours report be submitted timely with all the required information.

Quarterly, by the 15th of the month following the quarter end

$50 per Business Day late

Contractors will submit requests authorizing use of subcontractors to services under this

Contract (Section 4.11.1)

All requests for subcontractor approval will be submitted in advance of any subcontractor providing any services under this

Contract.

As needed by Contractor

$1,000 per instance where a subcontractor is used without Division approval in advance

Contractor shall timely develop and submit a CAP. (Section 4.12.b)

Prepare and submit CAP for Division approval.

Within ten (10) Business Days of

Division notification that a CAP is required.

$1,000 per Business Day of non-compliance

Contractor shall implement Division approved CAP and report results. (Sections 4.12.c and 4.12.e)

Implement CAP and report results to the Division within the approved time frame.

Within the Division approved timeframe.

$1,000 per Business Day of non-compliance