4465 Addendum 1 FINAL.pdf

February 8, 2022

Basic And Voluntary Life and Accidental Death and Dismemberment Insurance Solicitation No. HR2-948-4465

Addendum No. 1

Question: The RFP instructions state that payment terms are Net 30 upon receipt of an accurate invoice. Should we assume that the carrier will be responsible for maintaining individual employee records and generating monthly invoices, or will the plan be self-administered / self-billed by the City?

Response: The plan is self-billed by the City?

Question: Is there a separate premium rate for the $1,000 basic coverage for spouse and/or children, or this this coverage included in the $0.105 Basic Life rate?

Response: It is included in Basic Life rate.

Question: Please provide a detailed death claims history for 2017 through 2021 for all coverages. This will allow us to see how many Basic Life claims were paid in September 2018, for example, and how many, if any, were retirees.

Response: Please request updated documents from jcarlton@segalco.com and they will be sent via secure email.

Question: It appears there are errors in the monthly volumes reported for Basic AD&D from June 2018 through July 2019, because these volumes are larger than Basic Life. Please provide correct volumes for these months.

Response: Please request updated documents from jcarlton@segalco.com and they will be sent via secure email.

Question: The December 2021 premium for Supplemental AD&D of $1,443 appears incorrect, since all of the other months in 2021 have premium of over $7,800. Please provide the correct paid premium for Supplemental AD&D for December 2021.

Response: The correct amount is $7831.90.

Question: Is it possible to get premium, volume, and claims experience for Basic Life split out Actives

vs. Retirees?

Response: This information is not available.

Question: Is it possible to get premium, volume, and claims experience for Dependent Life split out between Spouse and Child?

Response: This information is not available.

mailto:jcarlton@segalco.com

Question: Rates were provided for 2018 – 2022, however, experience was also provided for 2017.

Please provide rates for 2017.

Response: Please request updated documents from jcarlton@segalco.com and they will be sent via secure email.

Question: Is the Basic Life rate for retirees the same as for active employees?

Response: Yes.

Question: Was there a rate change for Supplemental Life or Spouse Life June 2018, when the Guaranteed Issue amounts increased? If so, please provide rate details Response: No, rates did not change.

Question: Please provide premium, volume, and claims experience for VADD for 2017.

Response: The VADD Plan did not come into effect until 2018.

Question: Please provide a list of open Waiver of Premium claims, including gender, date of birth, date of disability, and the amounts of life coverage for all current disabled insureds.

Response: Please request updated documents from jcarlton@segalco.com and they will be sent via secure email.

Question: Please provide the policy and/or certificate that describes the VADD benefits, including additional benefits, such as the Safe Driver Benefit, that apply.

Response: Please refer to the policy provided, D3685, page 50.

Question: The 2022 Benefits Guide indicates there is a Travel Accident benefit of $200,000. This benefit is not described in the certificates provided. Please send a policy and/or cert that details this benefit.

Response: This is a separate benefit not included in in the scope of this RFP.

Question: Please provide a description of your claims submission process; including such items as information gathering, submission, follow up and resolution.

Response: Claims are submitted via the VOYA online portal. Data is pulled from the City’s system to include employee/retiree demographics, eligible coverage amounts and beneficiary designations. City HR works with the beneficiaries(s) to get death certificate & beneficiary claims forms completed. The City uploads all claims information to the VOYA portal and follows up as necessary.

Question: Please provide the details of your current portability and conversion administration process.

Response: A City HR Specialist provides the terminating employee a letter and corresponding forms during their exit interview. The HR Specialist completes the employer portion of the forms. The terminating employee then sends the paperwork directly to the carrier if they choose to port/convert their policy.

Question: Please describe your Evidence of Insurability process; including such things as submission, follow-up and notification.

Response: For new hires who make an election of the guarantee issue amount, the HR Specialist provides the EOI to employees to complete and return directly to the carrier. For midyear changes, the Benefits Analysts provides the EOI to the employee to return directly to the carrier. During open enrollment, the City sends a file to the carrier who mails out any required EOI’s to be returned to VOYA directly. The City receives an underwriting notice from the carrier for anyone who submits the EOI, and if the amount requested is approved, the City begins deducting premiums at that time.

Question: Please describe any established file transfers you have in place today.

Response: After open enrollment the City provides the carrier with a file for those who require an EOI for new or increased elections.

Question: Are current beneficiary designations held electronically or on paper? Who holds current beneficiary designations? What is the process to share beneficiary information with the current carrier?

Are designation details (e.g. name, class, share) stored as system data, images or both?

Response: They are held electronically and saved in the City’s HRIS system. They are submitted as part of the claims process electronically to the carrier via the claims portal. The original beneficiary designation as a new hire is provided as part of the benefits enrollment process and is saved in our electronic document management system. Beneficiary changes after the initial election can be updated by the employee at any time in the City’s system through employee self-service.

Question: Can you please provide rate history back to 1/1/2017?

Response: Please request updated documents from jcarlton@segalco.com and they will be sent via secure email.

Question: Can you confirm if the VTL rates changed between 2018 and 2022?

Response: Confirmed, no changes.

End of Addendum.

Christina Pryor

Purchasing and Materials Manager Email: christina.pryor@chandleraz.gov mailto:christina.pryor@chandleraz.gov