Attachment D - Detailed Requirements - RFB 758 2300000459.pdf

RFB 758 2300000459

ATTACHMENT D – DETAILED REQUIREMENTS

KDVA DIRECTORS & OFFICERS LIABILITY INSURANCE

NAMED INSURED

Commonwealth of Kentucky Department of Veterans Affairs Office of Kentucky Veterans Centers 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 E-mailed to the Commonwealth Buyer:

Debbie Mathews, CPPB, KCPM Statewide Procurement Manager Finance and Administration Cabinet Office of Procurement Services 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.

RISK PROFILE AND UNDERWRITING INFORMATION

The Kentucky Department of Veterans Affairs (KDVA) operates four skilled state veterans’ homes providing a broad range of services, including skilled nursing and rehabilitation services to the Commonwealth’s disabled and elderly veterans.

All of the state veterans’ homes are inspected and recognized by the US Department of Veterans Affairs - Veterans Health Administration (VHA) and certified by the Centers for Medicaid and Medicare Services (CMS) for participation in the Medicare and Medicaid programs as skilled nursing facilities. The combined facilities employ 738 full-time, 11 part-time and 11 interim employees. The Veterans Health Administration has allocated 818 state veterans’ home beds for use across the state. Currently 681 of these allotted beds are licensed and in use across the state of KY. The combined facilities serve a daily average of 421 individuals.

mailto:Debbie.Mathews@ky.gov

The KDVA provides a delivery system to meet the needs of Kentucky’s eligible veterans who have chronic physical or cognitive illness or disability. 24/7 skilled nursing care, rehabilitation services such as physical, speech and occupational therapies. The state veterans’ homes offer a secure environment for individuals with dementia, Alzheimer disease and other cognitive disorders. Physician services, transportation, therapeutic recreational activities, spiritual care are just a few of the other services provided at the state veterans’ homes. An eligible veteran can access service through hospital discharge planning, referral by a Veterans Service Organizations (VSO) but the majority of veterans admit directly from home.

The Department provides administrative and programmatic support to assure quality care and program efficiency and is committed to serving Kentucky’s veterans by fostering independence, preserving dignity and providing compassionate care. This mission is achieved by consistently demonstrating our core values of excellence, purpose, integrity, compassion and service.

DESIGINATED INSUREDS & LOCATIONS:

• Carl M. Brashear Radcliff Veterans Center 100 Veterans Drive Radcliff, KY 40160

(270) – 352-6700

• Joseph E. “Eddie” Ballard Western Kentucky Veterans Center 926 Veterans Drive Hanson, KY 42413

(270) – 322-9087

• Paul E. Patton Eastern Kentucky Veterans Center 200 Veterans Drive Hazard, KY 41701

(606) – 435-6196

• Thomson Hood Veterans Center 100 Veterans Center Wilmore, KY 40390

(859) – 858-2814

DESIRED COVERAGE

Directors and Officers Liability/Employment Practices Liability insurance including defense costs written on a claims made form. The insurance form will provide coverage for claims made against the Department of Veterans Affairs, Office of Kentucky Veterans Centers, and any past, present or future director, officer, trustee, employee, volunteer, or committee member of the Department. An Extended Reporting Period (tail coverage) is also desired.

LIMIT OF INSURANCE

Limits of Liability: $2,000,000 Each Claim

General Annual Aggregate: $2,000,000

Deductible: Nil Each Claim for Directors & Officers claim

Nil Each Claim for Employment Practices violation

COVERAGE PROVISIONS

1. Coverage Form: Claims made basis.

2. Defense Costs: Outside the limits of liability (preferred).

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

REQUIRED POLICY ENDORSEMENTS

The State Risk and Insurance Services Division, 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:

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."

Endorsement #3:

Faithful Performance of Duty shall be added as a Covered Cause of Loss

POLICY PERIOD AND RENEWAL OPTIONS

The policy period shall be from 12:01 a.m. March 31, 2023 to 12:01 a.m. March 31, 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 Division 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 bidder 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.

MARKET RELEASE

The Commonwealth has experienced problems with bidders blocking an entire insurance market by obtaining quotes from every insurer that has the capacity to provide a submission in response to the RFB, thereby preventing other potential parties from obtaining competitive bids in response to the RFB. Accordingly, in order to foster increased competition, each Bidder shall release all insurers, except the insurer which is included in the Bidder's submission, not less than five business days prior to the date upon which responses to the RFB are due. The failure to release insurers at least five business days prior to the due date for responses to this RFB is considered grounds for disqualification and may result in the Bidder's proposal being disqualified.

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 indicated on the solicitation sheet that is the front page of this solicitation and elsewhere as identified in this solicitation.

FAILURE TO DO SO SHALL RESULT IN THE BIDDER’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 online bid offer 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. Signed Solicitation Addenda, if applicable.

3. AM Best Rating.

4. Sample copy of coverage terms and conditions.

5. Endorsement.

6. Proof of Bond.

7. Proof of License.

8. Certificate of Authority.

9. 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.

10. 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.

11. A sworn statement from the underwriter attesting that the insurer was not contacted prior to the release date for the RFB.

12. Bidder Information Sheet signed by a duly authorized representative of the Bidder's organization.

13. Bid Quotation Form 1.

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

15. 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 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 bidder(s) will maintain coverage with the original insurance carrier(s), unless written permission is granted by the State Risk and Insurance Services Division and the Finance and Administration Cabinet 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 one 12 month loss summary for the year on or before December 1 of the reporting year to the Kentucky State Risk & Insurance Services Division, 500 Mero Street, 1st Floor, Frankfort, Kentucky 40601. 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:

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 Fax: 502-564-2693 mailto:Buryl.Thompson@ky.gov

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:

Office of Procurement Services 200 Mero Street, 5th Floor Frankfort, KY 40622

METHOD OF AWARD

A Committee comprised of representatives from the State Risk and Insurance Services Division and the Finance and Administration Cabinet will review all bids to ensure they meet the minimum coverage requirements set forth in this Solicitation.

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

DO NOT SUBMIT MULTIPLE QUOTATIONS FOR VARYING AMOUNTS OF COVERGE.

Any bid submissions containing multiple offers shall be deemed non-responsive and ineligible for award of contract. Only one quote/offer shall be made by each bidder for that limit of coverage conforming to the stated requirement to the extent feasible.

EXHIBITS

1. Loss Summary

2. Expiring Policy

INTERNET INFORMATION

https://veterans.ky.gov/nursinghomes/Pages/default.aspx https://veterans.ky.gov/nursinghomes/Pages/default.aspx

RESTRICTION ON COMMUNICATIONS