6-SLCi26006 Attachment 2 Scope of Work.pdf

Scope of Work: Municipal Government Insurance Broker Services

I. Introduction

The selected broker will be expected to secure competitive coverage, manage relationships with insurance carriers, and provide ongoing consultation and support related to insurance strategy, claims, compliance, and employee engagement.

II. Objective

The City seeks to engage a broker who will act in the best interest of the City by:

1. Ensuring adequate and cost-effective insurance coverage.

2. Providing guidance on industry trends, policy options, and claims support.

3. Assisting with renewals and coverage marketing.

4. Coordinating with City staff in both Risk Management and Human Resources to meet evolving insurance needs.

III. Lines of Coverage

A. Risk Management Division

1. Property Insurance - Structures and contents at various City-owned facilities.

Specific coverage for the Tennis Dome at two separate locations.

2. General Liability Insurance - Comprehensive protection for municipal operations including premises, operations, and completed operations.

3. Workers' Compensation Insurance - Statutory coverage for all City employees, including support for claims management and return-to-work strategies.

4. Cyber Liability Insurance - Coverage for data breaches, ransomware, and related cyber risks.

5. Crime Insurance - Protection against employee dishonesty, embezzlement, and financial fraud.

6. Public Official Bonds - Required bonding for applicable public officials.

7. Auto Liability – For vehicle accident exposures.

8. Fine Arts – Coverage specific to fine arts owned.

B. Human Resources Division

1. Health Benefits- Health and prescription drug plans, including options for dependent and domestic partner coverage.

2. Dental Benefits- Dental plans, including options for dependent and spousal coverage.

3. Optional Term Life Insurance - With or without a City-paid Basic Life policy;

includes options for dependent and spousal coverage.

4. Optional Accidental Death & Dismemberment (AD&D) - With or without Basic

AD&D, providing flexible benefit levels for employees and dependents.

5. Short-Term Disability (STD) Insurance - Income replacement coverage for employees during temporary periods of disability due to illness or injury.

6. Long-Term Disability (LTD) Insurance - Extended income protection for employees unable to return to work for an extended period due to serious illness or injury.

7. Voluntary Benefits Portfolio - The broker shall support and manage access to a competitive, employee-focused suite of voluntary benefits, including:

1. Pet Insurance

2. Concierge Services (e.g., wellness navigation, lifestyle management)

3. Intensive Care Insurance

4. Cancer Insurance

5. Catastrophic Care Plans

6. Accident Insurance

7. Critical Illness Coverage

8. Hospital Indemnity

9. Identity Theft Protection

10. Legal Services Plans

11. Long-Term Care Coverage

12. Employee Purchase Programs (e.g., electronics, appliances)

13. Vision Insurance

14. Student Loan Refinancing Options

15. Employee Loan Programs (e.g., payroll deduction repayment)

16. Home & Auto Insurance (payroll-deductible group plans)

IV. Broker Responsibilities – Risk Management Division

The selected brokerage will be expected to provide a full range of services to the City including but not limited to the following:

1. Insurance policy binding; including insurance marketing, coverage analyses and policy binding. This may include the procurement of policies in addition to those mentioned in this RFP as the need develops.

2. Coordinate and attend underwriting meetings, as needed, for dynamic risk areas such as cyber liability.

3. Assist in the preparation of materials, statements of value, specifications and other underwriting data as required by insurers. This includes working with the

City to gather and present the necessary information.

4. Assist the city in evaluating alternative insurance programs not presently purchased, as well as transitioning presently insured programs to self-insured programs, based on insurance market conditions.

5. Prepare proposal and/or stewardship presentations for management and/or elected officials, if needed.

6. Complete replacement cost valuation studies to assist in determining appropriate replacement cost values for property insurance policies.

7. Complete catastrophe modeling, including probable maximum loss reports, to help determine the appropriate earthquake, flood and other property insurance limits and sub-limits.

8. Assist the City with completing a disaster preparedness evaluation to determine the City’s likely deductible exposure and direct self-insured costs in the event of a major disaster.

9. Negotiate insurance policy language on behalf of and as approved by the City.

10. Verify the accuracy and adequacy of all binders, policies, policy endorsements, carrier invoices, and other insurance-related documents prior to delivery. Obtain and provide revisions to such documents as needed.

11. Maintain insurance policies and coverages without lapses or duplication.

12. Act as a liaison between the City's Risk Manager and insurance carriers in the resolution of claims. Direct and coordinate insurer/reinsurer involvement in the reporting, investigation, and settlement of insured losses.

13. Provide continual unbiased information regarding the most advantageous insurance markets from the standpoint of cost, service, coverage, favorable and adverse market developments, and changes to insurer financial security.

14. Assist the city in evaluating alternative risk transfer strategies, including the modification of self-insured retentions, retrospective rating programs and the use and/or formation of a single parent captive insurance company.

15. Review all existing coverages and make recommendations regarding any changes in coverage based on such things as unintentional self-insurance, gaps in coverage, restrictive limits, and cost of coverage.

16. Provide a review of the City’s risk exposure and an annual risk report, including analyzing and benchmarking the City’s risk against industry standards and comparable municipalities.

17. Prepare loss trend analysis reports for claims within the city’s self-insured retention and claims submitted to insurance companies.

18. Assist the City in developing cost allocation models for retained losses, insurance premiums and other program costs.

19. Prepare budget proforma to assist the City in annual insurance and risk budget processes.

20. Assist the City in reviewing all audits for accuracy, and assist the City with audit dispute resolution, if necessary.

21. Consultation and evaluation of various City safety programs such as employee safety incentives, and loss prevention.

22. Consulting and training services regarding risk issues such as workplace safety, risk mitigation, risks associated with new initiatives and/or projects, contractual risk transfer issues, and claims management.

23. Consulting services regarding contract insurance requirements.

24. Inform the City about market innovations, advances, and industry best practices, as well as make recommendations regarding risk identification, analysis, and reduction.

25. Provide safety resources including consultation regarding safety hazards, providing safety training resources and in person training, and program ideas and development.

26. Facilitate access and credentials for online safety, risk management and claim management resources.

27. Procurement of actuarial services, if needed

28. Issue certificates of insurance at the request of the Risk Manager. Certificates must be sent within two business days of the request.

29. Provide risk and insurance analysis and modeling services in areas such as new operations.

30. Assist the City in evaluating construction related risks for city construction projects, including builder’s risk insurance programs.

31. Consult and assist with large or catastrophic claims.

32. Conduct periodic claims handling audits as requested by the Risk Manager.

33. Support the City during insurance and safety audits as well as 3rd-party property inspections.

34. Completion of special projects.

SPECIAL PROJECTS

From time to time the City will require the Brokerage to perform additional consultation services to address new concerns, develop and implement new programs, and audit the performance and effectiveness of the City’s risk management program. These projects may include but are not limited to the following:

1. Consultation and assistance with the implementation of a risk management software solution.

2. Assistance in the development of internal and external benchmarking practices and data standards.

3. Advice on how to better administer a certificate of insurance management program.

4. Assistance with the design of a loss control accountability and incentive program.

5. Assistance with the development of various risk management reports to City employees & leadership.

6. Other projects as proposed by the City or by the Brokerage.

The selected brokerage will be expected to maintain adequate staff and facilities, maintain and retain records, maintain all required licenses, keep current in the changes to the insurance market and law, meet with City personnel and be fully prepared to adequately address the City’s interests and needs in terms of products and services. The

Brokerage will obtain quotations on insurance or risk reduction products as directed by the City.

V. Broker Responsibilities – Human Resource

Task 1: Benefits Plan Design and Consulting

1. Work with Salt Lake City reviewing the current benefits offerings and make recommendations for improvements or adjustments based on employee needs, industry best practices, economic changes, and cost considerations.

2. Assist in the development of benefits packages tailored to the City’s diverse employee population, including active employees, retirees, coverage-eligible dependents, and adult designees.

3. Provide ongoing benefits consulting to ensure plans remain competitive, compliant, and aligned with City and City employee needs.

Task 2: Plan Administration and Management

1. Support benefits plans included in the contract resulting from this RFP.

2. Provide accurate eligibility determination, enrollment, and plan changes.

3. Oversee compliance with the Affordable Care Act (ACA), HIPAA, ERISA, and other applicable state and federal regulations.

4. Provide monthly and quarterly reports summarizing enrollment data, claims experience, plan utilization, and other key metrics.

Task 3: Employee Benefits Plan Communication and Education

1. Develop and distribute clear, concise communication materials such as benefits guides, enrollment packets, newsletters, and other media for employees.

2. Provide on-site and/or virtual employee benefits plan orientations, webinars, Q&A sessions, and other engagement opportunities during open enrollment periods, as well as year-round educational sessions on benefits plan utilization, wellness programs, and health care decision-making.

3. Assist in the creation of custom communication strategies for both active employees and retirees to ensure understanding and engagement with their benefits options.

Task 4: Open Enrollment and Year-Round Support

1. Provide full support for open enrollment periods, including coordination of open enrollment meetings, collection of elections, processing of changes, and ensuring timely communications.

2. Provide year-round support to answer employee questions, resolve claims issues, and assist with changes in benefits status such as marriage, divorce, birth, or adoption of a child.

3. Provide ongoing benefits counseling to employees for assistance with benefits plan options.

Task 5: Claims Resolutions and Support

1. Serve as a liaison between City, City employees, and insurance carriers to facilitate claims resolutions.

2. Provide support to employees in resolving billing errors, claims denials, and other issues related to benefits claims.

3. Monitor claims performance and provide proactive recommendations for improving outcomes and lowering costs through wellness initiatives, claims management strategies, and other opportunities.

Task 6: Vendor Management and Relationships

1. Manage relations with third-party vendors, including insurance carriers and claims administrators.

2. Regularly review and audit the performance of vendors to ensure delivery of the highest quality services.

3. Negotiate contracts and renewals with benefits providers to secure competitive rates and terms.

Task 7: Compliance and Reporting

1. Ensure full compliance with federal, state, and local laws and regulations regarding employee benefits programs, including ACA, HIPAA, ERISA, COBRA, and other applicable mandates.

2. Provide regular compliance updates and alerts regarding changes to benefits laws and regulations.

3. Submit required filings and documentation in a timely manner, including annual reports and other filings as required by law.

4. Provide annual audits of benefit plans and ensure that all required notices, such as Summary Plan Descriptions and COBRA notifications, are distributed on time.

Task 8: Voluntary Benefits and Supplemental Offerings

1. Assist in offering and managing voluntary benefit programs such as supplemental life insurance, long-term care insurance, legal services, pet insurance, and other optional benefits.

2. Provide educational materials and communication strategies to help employees understand and take advantage of these offerings.

Task 9: Performance Metrics and Service Levels

1. Resolve 95% of employee claims issues within X days of submission.

2. Achieve an employee satisfaction rate of X% or higher as measured by annual surveys.

3. Monitor vendor performance, ensuring that all insurance carriers meet the City’s agreed-upon service levels and provide quarterly reports on vendor performance.

Task 10: Workday Integration

The City currently uses Workday as it’s operating program for enrollment, reconciliation and payment. Any benefits plans chosen by the City will need to be compatible with

Workday for enrollment and administration.

1. Provide a City-compatible integration plan for Workday.

2. Ensure integration is completed in a reasonable amount of time.

3. Allow for receiving information and instructions from the City.

4. Deliver information and results back to the City.

5. Allow for selection of services.

6. Allow for invoicing and payment.

7. Notify the City immediately of any information that could impact the hiring process and cause a delay in or a denial of coverage.