INVITATION FOR BID

COMMONWEALTH OF KENTUCKY

KENTUCKY WORKERS’ COMPENSATION FUNDING COMMISSION

PUBLIC OFFICIALS LIABILITY INSURANCE

THROUGH COMPETITIVE BIDDING PROCESS

UNDER KRS CHAPTER 45A

NAMED INSURED

Commonwealth of Kentucky Kentucky Workers’ Compensation Funding Commission C/O Division of State Risk and Insurance Services 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 in writing and E-mailed to the Commonwealth Buyer:

Debbie Mathews, CPPB, KCPM E-mail: Debbie.Mathews@ky.gov Telephone: 502-564-8649

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.

RISK PROFILE AND UNDERWRITING INFORMATION

The Kentucky Workers’ Compensation Funding Commission was created by the Kentucky Legislature to collect, control, invest and manage assessment funds collected pursuant to KRS mailto:Debbie.Mathews@ky.gov

342.122 and KRS 342.1242 and KRS 342.1243. These funds are used to pay present and future claims awarded through the Commonwealth’s Special Fund, Uninsured Employer’s Fund and administrative costs of the Commonwealth’s workers’ compensation program as well as other costs related to specific Labor Cabinet programs. The Commission also conducts periodic audits of all entities subject to the assessments imposed by KRS Chapter 342.

A seven (7) member board manages the Kentucky Workers’ Compensation Funding Commission, three (3) members are by position; Secretary of the Labor Cabinet, Secretary for the Cabinet for Economic Development and Secretary of the Finance & Administration Cabinet;

four (4) members are appointed by the Governor for a four (4) year term with staggered terms.

Current members are listed below; the Commission will provide changes as they occur.

Member Representing Expiration Date Judy B. Long Self-Insured Representative Nov 18, 2022

• Chairman Mark Isaacs Labor Representative Nov 18, 2024 Tim Feld Insurance Representative Nov 18, 2023 Brenda Collins Commercially Insured Employers Nov 18, 2021

• Secretary - Treasurer Jamie Link Labor Cabinet , Secretary Ex-Officio Holly M. Johnson Finance & Administration, Secretary Ex-Officio Larry Hayes Economic Development, Interim Secretary Ex-Officio

WHO IS AN INSURED

• The organization specified in the Named Insured Section

• Any person who was, is or hereafter during the policy period becomes an officer, director or member of the management or employee of the organization.

• Commissions, boards or other units and member and employees thereof, operated by and under the jurisdiction of such public entity.

DESIRED COVERAGE

Public Officials Liability Insurance including Employment Practices Liability Insurance written on a claims made form to pay on behalf of each insured all sums that the insured shall become legally obligated to pay due to any wrongful act of the insured in the performance of their duties for the public entity.

LIMIT OF INSURANCE

Limits of Liability Each Occurrence Limit $1,000,000 General Aggregate Limit $1,000,000

Deductible $25,000 Each Claim for Public Officials $25,000 Each Claim for Employment Practices violation

COVERAGE PROVISIONS

1. Coverage Form: Claims made basis.

2. Defense Costs: Outside the limits of liability.

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

RETROACTIVE DATE

Full prior acts coverage shall apply to all insuring agreements.

REQUIRED POLICY ENDORSEMENTS

The Division of State Risk and Insurance Services, 209 St. Clair Street, 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:

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:

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. December 31, 2021 to 12:01 a.m. December 31, 2022 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 Division of 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 Division of State Risk and Insurance 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 most other 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 identified in this solicitation.

FAILURE TO DO SO SHALL RESULT IN THE VENDOR’S OFFER 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. Signed solicitation addenda, if applicable.

4. AM Best rating.

5. Endorsements.

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

7. Proof of License.

8. Certificate of Authority.

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

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

11. 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.

12. Bid Quotation Form 1.

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

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

CONTRACT EXECUTION

The original copy of the binder shall be furnished to the Division of State Risk and Insurance Services 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 the Kentucky Office of the Controller, State Risk and Insurance Services Division to place coverage elsewhere. Any request for changes must be provided to the Office of the Controller, 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 Division of State Risk & Insurance Services, 500 Mero Street, 1st floor, Frankfort, Kentucky 40601 no later than September 1 of the subsequent 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

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:

State Risk and Insurance Services Kentucky Office of the Controller 500 Mero Street, 1st Floor Frankfort, KY 40601

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

Debbie Mathews, CPPB, KCPM Statewide Procurement Manager Finance and Administration Cabinet E-mail: Debbie.Mathews@ky.gov Telephone: 502-564-8649

METHOD OF AWARD

A committee comprised of representatives from the Finance and Administration Office of Procurement, State Risk and Insurance Services Division and the Kentucky Workers’ Compensation Funding Commission will review all eligible bids to ensure they meet the minimum coverage requirements set forth in this solicitation.

SELECTION CRITERIA

The contract shall be awarded to the responsive, responsible bidder meeting the minimum criteria of the solicitation with the lowest premium.

CONTRACT EXECUTION

The original copy of the binder shall be furnished to the State Risk and Insurance Services Division of the 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.

mailto:Debbie.Mathews@ky.gov

EXHIBITS

1. Loss Summary

2. 2021 Audited Financial Statements

REFERENCE

https://kwcfc.ky.gov https://kwcfc.ky.gov/

RESTRICTION ON COMMUNICATIONS