Attachment C - Detailed Requirements - RFB 758 2300000826.pdf

ATTACHMENT C – DETAILED REQUIREMENTS

RFB 758 2300000826

MASTER AVIATION INSURANCE

NAMED INSURED

Commonwealth of Kentucky Various State Agencies C/O State Risk & Insurance Services Division 500 Mero Street, 1st Floor Frankfort, KY 40601

RESTRICTION ON COMMUNICATIONS

The Commonwealth Buyer listed below shall be the sole point of contact throughout the procurement process. Bidders shall not communicate with any other Commonwealth staff concerning this Solicitation.

For violation of this restriction on communications to the Commonwealth Buyer, the Commonwealth shall reserve the right to reject the bid of the offending bidder.

All communications concerning this procurement shall be emailed to the Commonwealth Buyer:

Debbie Mathews, CPPB, KCPM Statewide Procurement Manager Finance and Administration Cabinet E-mail: Debbie.Mathews@ky.gov

This provision does not preclude bidders who presently hold contracts with the Commonwealth from communicating with state agencies regarding existing contracts only.

NOTICE TO PROSPECTIVE BIDDERS

In an effort to assure a fair and competitive bid environment; no underwriters, wholesalers or insurance brokers are to be approached for a quotation prior to the release date of this solicitation. Further, it shall be understood that no prospective bidder may in any manner block, tie-up or in any other way manipulate the insurance market to restrict access to other agencies wishing to quote.

Agents submitting proposals shall disclose the identity of all markets they have approached and provide each market’s response.

Determination of behavior out of compliance with this provision shall be grounds for disqualification.

mailto:Debbie.Mathews@ky.gov

RISK PROFILE AND UNDERWRITING INFORMATION

The Commonwealth of Kentucky through it’s various agencies, principally the Department of Aviation (Division of Air Transport), the Department for Natural Resources, the Kentucky State Police and the Department of Kentucky Vehicle Enforcement, owns, maintains and/or uses aircraft in its operations. These aircraft are specifically described in an attachment to this solicitation. Insurance coverage should be for all operations of the Named Insured.

DESIRED COVERAGE

Aircraft and airport premises liability insurance for bodily injury or illness, property damage, wreck removal or rescue that the Commonwealth of Kentucky and its various state agencies may be held legally liable. This insurance should apply to scheduled aircraft, temporary substitute aircraft, non-owned aircraft; liability for physical damage to aircraft hangars and contents;

liability for damage to personal effects and cargo; liability arising out of airport premises, sale of aircraft, aircraft parts or services and liability assumed by the Named Insured, and voluntary settlements.

Medical Expenses insurance coverage.

Physical damage coverage on an all risks of loss basis for aircraft and equipment, furnishings and supplies normally associated with aircraft owned by the Commonwealth of Kentucky and its various state agencies as scheduled.

The Commonwealth has provided, as Exhibit #1, an initial schedule of aircraft and will supplement that schedule by adding or deleting aircraft as needed.

LIMIT OF INSURANCE

Coverage A – Liability for Scheduled Aircraft:

Single Limit Bodily Injury & Property Damage Liability $10,000,000 each occurrence

Coverage B – Liability for Temporary Substitute Aircraft:

Single Limit Bodily Injury & Property Damage Liability $10,000,000 each occurrence

Coverage C – Liability for Non-Owned Aircraft:

Single Limit Bodily Injury & Property Damage Liability $10,000,000 each occurrence Additional Expenses incurred during:

An Emergency $250,000 each occurrence Search & Rescue $250,000 each occurrence

Coverage D – Liability for Damage to Aircraft that are Not Owned:

Temporary Substitute or Non-Owned $1,200,000 each occurrence Other than Temporary Substitute or Non-Owned $1,000,000 each occurrence (Sublimit of Coverage B, C or G as applicable)

Coverage E – Liability for Damage to Aircraft Hangars & Contents:

Property Damage $1,000,000 each occurrence (Sublimit of Coverage A, B, C or G as applicable)

Coverage F – Liability for Damage to Personal Effects & Cargo:

Property Damage (personal effects) $25,000 each crew member or passenger each occurrence Property Damage (cargo) $250,000 each occurrence (Sublimit of Coverage A, B, C or G as applicable)

Coverage G – Liability Arising out of Airport Premises:

Single Limit Bodily Injury & Property Damage Liability $10,000,000 each occurrence

Coverage H – Liability for Sale of Aircraft, Aircraft Parts or Services:

Single Limit Bodily Injury & Property Damage Liability $10,000,000 each occurrence

Coverage I – Liability Assumed by the Named Insured:

Single Limit Bodily Injury & Property Damage Liability $10,000,000 each occurrence

Coverage J – Voluntary Settlements:

Each Crew Member $250,000 Each Passenger $250,000 Each Occurrence $1,000,000

Coverage K – Medical Expenses:

Scheduled Aircraft, Temporary Substitute Aircraft or Non-Owned Aircraft:

$25,000 each crew member or passenger each occurrence

Named Insured’s Airport Premises:

$25,000 each person $500,000 each occurrence

Coverage L – Physical Damage:

Scheduled Aircraft (see Exhibit) New Acquired $5,000,000 Extra Expense Temporary Substitute Aircraft $5,500 per day $495,000 each loss Rental of Temporary Replacement Parts $250,000 each loss Trip Interruption $10,000 each crew member or passenger each loss

Coverage M – Physical Damage to Spare Engines, Spare Parts & Mechanic’s Tools

Spare Engines and Spare Parts (Actual Cash Value) $1,000,000 each loss Mechanic’s Tools (Actual Cash Value) $20,000 each loss

DEDUCTIBLES

Deductibles for physical damage insurance coverage shall be:

Rotorcraft: $10,000 In Motion $1,000 Not In Motion

Fixed Wing Aircraft: $1,000 In Motion $100 Not In Motion

COVERAGE PROVISIONS

Please review the requested coverages under the section describing each particular policy or coverage. If you are using forms other than standard ISO, outline any variations in your proposal.

NOTE: Bidders shall submit sample copies of their coverage terms and conditions as well as any relative endorsements, along with the bid submission.

REQUIRED AND OPTIONAL POLICY ENDORSEMENTS

The State Risk and Insurance Services Division of the Kentucky Office of Insurance, 500 Mero Street, 1st Floor, Frankfort, KY 40601 is responsible for receiving three copies of the policy and any endorsements or changes in the policy during the policy term.

Endorsement # 1: (Required)

The policy shall be endorsed to extend the notice of cancellation or non-renewal to ninety (90) days or longer, fourteen (14) days for non-payment of premium.

Endorsement # 2: (Required)

The following should be attached and made a part of the contract:

"It is hereby agreed that in any claim or suit for damages covered by the policy, the

Company will not, except upon written request of the insured by its duly authorized officer, deny liability of the insured through the use of the defense of immunity because the insured is a governmental agency."

POLICY PERIOD AND RENEWAL OPTIONS

The policy period shall be from 12:01 a.m. August 13, 2023 to 12:01 a.m. August 13, 2024 with options to renew for four additional one-year terms by mutual agreement of the insurer and the Commonwealth of Kentucky.

PRICE GUARANTEE

All bids shall be guaranteed for 90 days after the opening. Rates must be guaranteed until the expiration of the contract. Price adjustments may be considered for subsequent policy years, only if the insurer notifies the State Risk and Insurance Services in writing no less than 90 days prior to the expiration date of its intention to change the existing contract rates for the next policy year.

Failure to notify the State Risk and Insurance Division or to provide changes in writing within a timely manner, no later than ninety (90) days prior to renewal, waives any opportunity for change or modification of the contract terms, conditions or premium.

CANCELLATION AND SPECIAL PROVISIONS

The insurer shall provide a ninety (90) day notice of cancellation or non-renewal. Refunds shall be computed on a pro rata basis upon cancellation, whether requested by the insured or the carrier.

METHOD OF PREMIUM PAYMENT

The insured will render payment within 30 days as required in KRS 45.453, upon presentation of two copies of the billing. Premium will be paid on an annual basis.

LEGAL REQUIREMENTS

The vendor is required to comply with all applicable federal, state and local rules, regulations, and statutes, including but not limited to the insurance code in Chapter 304 of the Kentucky Revised Statutes, during the contract term.

Any servicing agents shall be licensed and have on file with the Kentucky Department of Insurance proof of financial responsibility as required under Chapter 304 of the Kentucky Revised Statutes during the contract term.

Any claims adjuster(s) shall be licensed as required under Chapter 304 of the Kentucky Revised Statutes during the contract term.

TAXES

Kentucky Premium Surcharge of 1.8% pursuant to KRS 136.392 applies to all policies issued within the Commonwealth and shall be stated separately on the Bidder Quotation Form.

The Commonwealth, however, is exempt from taxes, such as the Federal Excise Tax, and the Kentucky Sales or Use Tax and the Local Government Premium Tax (Municipal Tax).

BIDDER ELIGIBILITY

1. CERTIFICATE OF AUTHORITY

Bids will be accepted from any authorized (admitted) insurer holding a Certificate of Authority from the Commonwealth of Kentucky that meets the minimum requirements of this Solicitation. A Certificate of Authority equates to being licensed in accordance with the Insurance Code, KRS Chapter 304.

If there are no responsive and responsible bidders with Certificates of Authority from the Commonwealth of Kentucky, bids will be accepted pursuant to KRS 304.10-040 as a condition for export; these bids shall be from an "eligible surplus lines insurer", as defined pursuant to KRS 304.10-070. The insurer will have sole responsibility for selecting agent (s), if any. The Commonwealth will issue no Agent-of-Record Letters.

2. A.M. BEST RATING

Bidders shall have a B+ or better A.M. Best Rating. Bidders with an A.M. Best rating lower than B+ shall not be considered. Should the successful bidder drop below a B+ rating from A.M. Best during the contract term, the Commonwealth of Kentucky may take appropriate action to secure or maintain this coverage.

SIGNING SOLICITATION

An authorized representative shall complete and sign where indicated in this solicitation.

FAILURE TO DO SO SHALL RESULT IN THE VENDOR’S PROPOSAL BEING

REJECTED.

SOLICITATION SUBMISSION REQUIREMENTS

Vendors shall submit responses and all required attachments by electronic submission in the eProcurement system.

FORMAT OF SOLICITATION RESPONSE

The bid proposal shall be arranged and labeled in the manner set forth below. Failure to arrange and label your submittal in this manner may result in rejection of your proposal.

1. Completed and signed solicitation.

2. EEO Statement.

3. AM Best rating.

4. Endorsements.

5. Sample copies of coverage terms and conditions as well as any relative endorsements.

6. Proof of License.

7. Certificate of Authority.

8. Copies of all quotations and declination letters from every company and market approached in relation to this request for bids, or a statement indentifying such companies and markets.

9. A signed statement verifying that the copies of quotations and declinations or other statement identifying such companies and markets submitted with the solicitation response is a true, correct and complete disclosure of all markets and insurers approached in relation to this request for bids.

10. Bidder Information Sheet signed by a duly authorized representative of the vendor’s organization.

11. Bid Quotation Form 1.

12. Bid Quotation Form 1A – Bid Specification Deviations.

13. Bid Quotation Form 1B – Bid Specification Enhancements.

CONTRACT EXECUTION

The original copy of the binder shall be furnished to the State Risk and Insurance Services Division of the Kentucky Office of the Controller within ten (10) days of award of contract, but no later than two (2) days prior to the effective date of coverage. The original policy and its endorsements shall be furnished within 45 days after the effective date of coverage.

ORIGINAL INSURANCE CARRIER

During the term of this contract, the successful vendor(s) will maintain coverage with the original insurance carrier(s), unless written permission is granted by State Risk and Insurance Services Division to place coverage elsewhere. Any request for changes must be provided to the State Risk and Insurance Services Division, in writing at least 90 days prior to the expiration of the current policy. Consideration will only be given if it is deemed to be in the best interest of the Commonwealth.

LOSS SUMMARIES

The successful bidder shall provide two (2) copies of annual loss summaries to the State Risk & Insurance Services, 500 Mero Street, 1st Floor, Frankfort, Kentucky 40601 by November 1 of each succeeding year. Please include the following information:

a. Policy Number e. Description of Loss

b. Claimant Name f. Amount Reserved

c. Date of Loss g. Amount Paid

d. Claim Status

The Commonwealth prefers loss summaries to be submitted in electronic format.

NOTICES

After the award of contract, all normal communications, exclusive of price considerations, are to be delivered to the address below or to such other addresses or party as is designated:

Buryl L. Thompson, CPCU, AIM, AU Assistant Director State Risk and Insurance Services Kentucky Office of the Controller

500 Mero Street, 1st Floor Frankfort, KY 40601 E-mail: Buryl.Thompson@ky.gov Telephone: 502-782-6543

After the award of the contract, all notices of a contractual nature are to be delivered to the address below or to such other address or party as is designated:

Debbie Mathews, CPPB, KCPM Statewide Procurement Manager Finance and Administration Cabinet Office of Procurement Services 200 Mero Street, 5th Floor Frankfort, KY 40622 E-mail: Debbie.Mathews@ky.gov Telephone: 502-564-8649

EVALUATION OF THE VENDOR BID AND AWARD PROCESS

An Evaluation Committee will review and evaluate bids. The Evaluation Committee will consider all information provided in the bid when making its recommendation State Risk will award the contract to the Vendor submitting the best bid that meets the needs of State Risk.

EXHIBITS

1. Aircraft Schedule

2. Expiring Policy

3. Claims Summary mailto:Buryl.Thompson@ky.gov mailto:Debbie.Mathews@ky.gov

RESTRICTION ON COMMUNICATIONS