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AMENDMENT ATTACHMENT
Q&A for OCC Group Life Solicitation
June 28, 2010
| Number |
| Question and Response |
| 1 |
| Basic Life Rate History for the past 5 years? |
| R-1 |
| The rates for Class 1 (executives) Class 2 (active employees excluding executives) and Class 4 (closed Disabled employees) for the 5-year period (2006 through 2010) are as follows: |
Basic Rate AD&D Rate
Year Per $1000 Per $1000
2006 $.15 $.019
2007 $.15 $.019
2008 $.14 $.018
2009 $.14 $.018
2010 $.14 $.018
| 2 |
| Retiree Life Rate History for the past 5 years? |
| R-2 |
| The rates for Class 3 (retirees) for Basic Life only (no AD&D coverage) for the 5-year period (2006 through 2010) are as follows: |
2006 - $.15/$1000 2008 - $.14/$1000 2010 - $ .14/$1000
2007 - $.15/$1000 2009 - $.14/$1000
| 3 |
| Confirmation that the Supplemental Life rates shown in your bid spec’s have not changed for the past 5 years. |
| R-3 |
| Exhibit 7 displays the Optional rates that have been in effect for the years 2008, 2009 and 2010. Refer to Exhibit 9 for rates for the years 2006 and 2007 for Optional coverage (Supplemental Life). |
| 4 |
| Basic Life, Retiree Life, and Optional (supplemental) Life – Reported Premiums or Volumes (month by month basis) for the past 5 years. |
| R-4 |
| The data is not reported by the OCC on a month-by-month basis however; refer to the Exhibit 10 to find headcount and volume as of the last pay period of each month for the period January 2006 through March 2010. Premium is not available on a monthly basis. |
| 5 |
| Please confirm that you want the Basic Life Insurance to continue as a participating arrangement. |
| R-5 |
| Yes, the OCC wishes to continue the PSR for Basic Life insurance only. |
| 6 |
| On the census, please clarify where the employees with the AE designations are located. |
| R-6 |
| The “AE” state designation denotes those employees who are located in London. |
| 7 |
| Is the current Optional Life and AD&D coverage participating? |
| R-7 |
| Optional Life is not participating and AD&D is participating. |
| 8 |
| Can you provide the experience for the AD&D coverage and the corresponding rate history? |
| R-8 |
| Claim experience for AD&D is unavailable because it is not reported separately to the OCC. Refer to response R-1 above for the AD&D rates for the years 2006 through 2010. |
| 9 |
| Please provide the rate history for Optional Life and Basic Life back to 2005. |
| 10 |
| Can you provide the premium for Optional and Basic Life for 2005 and 2006? |
| R-10 |
| Premium records for the requested time period could not be located. |
| 11 |
| The RFP mentions a one time open enrollment. Please clarify what you mean. Will underwriting be required for employees? |
| R-11 |
| The OCC is open to various opportunities to enroll during open season such as; |
Opportunity 1- A limited open enrollment period in which underwriting is waived for the following scenarios: 1) to enroll in Basic Life if not currently enrolled; 2) t o enroll in Option 1- Employee coverage if not enrolled up to $50,000 or to increase current coverage up to an additional $50,000; 3) to enroll in Option 2 –Spouse coverage for the 50% option if not enrolled; and 4) to enroll in Option 3 Family coverage if not enrolled up to 2 units or if enrolled to increase coverage up to an additional 2 units. These enrollments would become effective January 1, 2011.
Opportunity 2 - A full and open enrollment period (no restrictions to enrollment) in which underwriting is waived and the effective date of the enrollment would be deferred until July 1, 2011.
| 12 |
| Will PSR balance be transferred to the carrier selected? |
| 13 |
| Can you provide the RFP document in Word format? |
| 14 |
| Can you please confirm the basic life rate of $0.15/1,000 indicated in the policy have been in place since 2005 and have remained unchanged? |
| R-14 |
| Refer to response R-1above. |
| 15 |
| Can you please confirm the optional life rates shown in exhibit #7 of the RFP have been in place since 2005 and have remained unchanged? |
| R-15 |
| Refer to response R-3 above. |
| 16 |
| Have there been any plan changes since 2005? If so, can you provide? |
| R-16 |
| There have been no changes to the plan design changes since 2005. |
| 17 |
| Can you please comment on the optional life total premium fluctuation for the years 2007, 2008 and 2009 indicated on page 3 on the RFP? |
| R-17 |
| The decrease in premium for 2007 to 2008 is due to the rates in effect. (Refer to Exhibit 9 for the rates). The reason for the increase in premium from 2008 to 2009 is due to a limited open enrollment period offered for 2008. |
| 18 |
| Has OCC decided to hold an open enrollment during the fall of 2010? Can we propose different rate scenarios with and without the impact of open enrollment? |
| R-18 |
| Refer to response R-11 above. |
| 19 |
| Is the OCC subject to premium tax as a federal agency? |
| 20 |
| Can you please confirm the contract situs will remain the state of Delaware? |
| R-20 |
| The situs does not have to remain in the state of Delaware. |
| 21 |
| Please confirm the name of the policyholder for this quote. If it is a Trust we may need a copy of the Trust agreement. |
| R-21 |
| The name of the policyholder is correct as stated. Refer to Exhibit 11 for the copy of the Trust agreement. |
| 22 |
| Census on excel format for Active and Retired lives. Census will need to include the following headings: |
Gender Date of Birth Basic Class - there are four classes Basic Benefit Amount Annual Salary Work state Supplemental Benefit Amount Supplemental Option 1 ee, 2 spouse, 3 family Active or Retired status Dep life with Amount
| R-22 |
| Refer to Exhibits 1 & 2 for the revised census. |
| 23 |
| Confirm that all the Basic is Retrospective even the EE paid pieces. |
| R-23 |
| None of Basic Life is retrospective. |
| 24 |
| It will be helpful to see salaries and who actually buys the supplemental life plan. |
| R-24 |
| Refer to Exhibits 1 & 2 for the revised census. |
| 25 |
| Confirm that Class 4 is a closed class of disabled employees. |
| 26 |
| Account Manager to send the OCC quarterly updates of the OCC group life insurance plan directories, which are to be distributed to the COTR electronically or in a quantity of 200 in paper form. Please clarify what does this mean? |
| R-26 |
| This has been removed. |
| 27 |
| Please provide the Retiree and Disabled rates for the Basic plan. |
| R-27 |
| Refer to response R-2 above. |
| 28 |
| Please provide the Active/Retiree and Disabled rates for the Additional Basic plan. |
| R-28 |
| Refer to response R-2 above. |
| 29 |
| Please provide the Rate history, for the last five years? |
| R-29 |
| Refer to response R-1 and R-2 above. |
| 30 |
| Supplemental rates are step rated by EE/Spouse/Family – What or who does Family Include? |
| R-30 |
| Refer to the definition section in Exhibit 5 of the RFP which defines “Dependent Child” and “Spouse”. Also, refer to the modification in that same exhibit for a definition of “Domestic Partner.” |
| 31 |
| In order for us to use these rates and develop premium or do a premium check we need to know the option 1, 2, 3 on the census. |
| R-31 |
| Refer to revised census in Exhibits 1 & 2. |
| 32 |
| We only received the premium for 2007, 2008, 2009. Please provide the premium for 2005, 2006 and the first four months of 2010. |
| R-32 |
| Refer to response R-4 regarding premium paid on a monthly basis. |
| 33 |
| There is a big difference in the supplemental premium for the 2007 and 2008 years. Please confirm why? |
| R-33 |
| Refer to response R-17 above. |
| 34 |
| Please confirm regarding the current PSR? What are the plans going forward? |
| R-34 |
| Refer to the response R-12 above and it is expected that the PSR arrangement will continue. |
| 35 |
| Please clarify the Basic and Additional Basic Life benefits for non-executive employees. Is the Basic Life coverage always equal to one times salary plus $2000, while the Additional Basic Life coverage starts at one times salary and decreases to zero at age 45? |
| R-35 |
| The Basic Life and the Additional Life benefit are calculated the same way. Refer to Exhibit 3 in the RFP for the reduction schedule of the Additional Life. |
| 36 |
| Do employees pay 100% of the cost of the Additional Basic Life coverage, or is that cost shared by the employer? |
| R-36 |
| There is no additional cost for the Additional Basic Life. The employee and the employer share in the cost of the premium except for Executive Basic Life coverage (OCC pays 100% of the premium). |
| 37 |
| Is the premium for the Additional Basic Life coverage paid at the same premium rate as the regular Basic Life coverage? If not, what is the rate for Additional coverage? |
| R-37 |
| The Basic Life rate includes the Basic Life and the Additional Basic Life benefit. |
| 38 |
| The RFP indicates that executives receive basic life coverage of $300,000, but the Cigna policy states that executives receive the same coverage as non-executive employees (one times salary plus $2000). Did the plan recently change to provide a flat $300,000 to executives? Do the executives still receive the same amount of Additional Basic Life coverage (one times salary decreasing to zero at age 45)? Is the combined Basic/Additional Life plan maximum still $600,000 for executives? |
| R-38 |
| No, the plan did not recently change to provide a flat $300,000 for executives. The OCC Group Life program has provided $300,000 for executives since program inception in 1982. The Basic/Additional Life plan maximum is $600,000 for executives. |
| 39 |
| Please provide the Basic Life, Additional Life, and Basic AD&D premium rates from January 2005 to current. |
| R-39 |
| Refer to response R-1 and R-2. |
| 40 |
| Have the current Optional, Spouse, and Family Life rates been in effect since 2005? If not, please provide a rate history to 2005. |
| R-40 |
| Refer to Exhibit 9 and Exhibit 7 from the RFP. |
| 41 |
| Please provide average annual volume for each line of life coverage (Basic, Additional, Optional, Spouse and Family) from 2005 through 2009. |
| R-41 |
| Refer to response R-4. |
| 42 |
| Are the Additional Basic Life claims and the premium figures included with the Basic Life or Optional Life experience? |
| 43 |
| Does the Optional Life paid premium figures provided in the RFP include Spouse and Family premiums? If so, can they be separated? |
| R-43 |
| Yes, Optional Life includes spouse and family; however, it cannot be separated at this time. |
| 44 |
| Can you provide paid premium figures for 2005 and 2006 for the life coverages? |
| R-44 |
| Refer to response R-4. |
| 45 |
| The optional life claims history report includes a spouse claim under coverage code 020. Please clarify whether this is a spouse claim or employee claim. |
| R-45 |
| The claim was for a spouse. |
| 46 |
| Please provide a copy of recent monthly billing statement so that we can compare census volumes to reported volumes. |
| R-46 |
| Refer to Exhibit 12 for a copy of a premium statement in the current year. |
| 47 |
| Can employment zip code be added to the active employee census? |
| R-47 |
| Refer to revised census in Exhibit 1 |
| 48 |
| Does the Basic Coverage Amount column on the employee census include the Additional Basic Life coverage amount? If not, do we simply calculate it based on age and annual salary? |
| R-48 |
| Refer to the revised census in Exhibits 1 & 2. |
| 49 |
| Do the disabled insured on the retiree census report represent the Class 4 disabled insured prior to March 6, 2005? |
| R-49 |
| Refer to the revised census in Exhibit 2. |
| 50 |
| Will the life insurance plans be self-administered/self billed by the employer, or will the insurance carrier be responsible for maintaining eligibility and enrollment records and for generating monthly invoices? |
| R-50 |
| The life insurance plan will be self-administered/self billed. |
| 51 |
| The RFP indicates a PSR is maintained to offset future increases for the Basic Life plan. Does this apply to both the employer and the employee portion of the premiums, as well as the Additional Basic Life premium? Will the PSR be transferred to the new insurance carrier if a carrier change is made? |
| R-51 |
| The PSR applies to the entire Basic Life Premium. The PSR will be transferred to the new insurance carrier if a change is made. |
| 52 |
| Is the Basic Life plan funded on a regular participating funding arrangement, where premiums are remitted based on set rates, with annual accounting calculations to determine the amount of any surpluses or deficits? If so, is the Additional Basic Life experience included in the calculation? |
| R-52 |
| Yes, Basic Life is funded on a participating arrangement. Refer to Exhibit 13 for funding agreement. |
| 53 |
| Can we get a copy of the current financial agreement? |
| R-53 |
| Refer to response R-52. |
| 54 |
| RFP states that executives have a flat $300,000. The contract refers to executives in class 1 receiving 1x salary plus flat amount to $600,000. Are they eligible for both? Please provide contract information for the executive plan. |
| R-54 |
| Refer to response R-38 above. |
| 55 |
| Contract indicates that disabled lives are covered and that the list is on file with the carrier. Some disabled lives were noted on the retiree census. Please verify that this is the complete listing or please obtain the complete listing. |
| R-55 |
| Refer to the revised census in Exhibit 2. |
| 56 |
| A census labeled retiree and disabled lives was provided. Based upon the contract provisions, disabled lives were covered under both the basic and optional plans. It looks this census reflects the base amount only. Please provide optional life census with grandfathered disabled employees. |
| R-56 |
| Disabled retirees are not covered by the Optional Life but Basic only. |
| 57 |
| There are 4 employees in the state location AE. Are these the UK Employees? Please confirm. If not, please provide census data on all foreign employees. |
| R-57 |
| Refer to response R-6 above. |
| 58 |
| Basic life and supplemental life premium was provided for 2007, 2008 and 2009. The supplemental premium provided is noted below: |
$866,257
$565,357
$664,643
Please explain $300,000 decrease in premium for 2008. Also, what is included in this premium i.e. is it employee money only or is there dependent, etc.
| R-58 |
| Refer to response R-17 above. |
| 59 |
| Claims were provided from August 2005 to April 2010. Please provide premium for 2005 and 2006 and 2010 year to date for base and supplemental. |
| R-59 |
| Refer to response R-4 above. |
| 60 |
| The detail supplemental claims listing notes that Coverage code 20 is option 1 face amount. This code is supposed to be employee supplemental coverage based upon the census. There is one claim in this category for $104,000 that has SP in the employee type. We assume this is a spouse claim but if you can confirm. |
| R-60 |
| Refer to response R-45 above. |
| 61 |
| Supplemental rates from 1/2008 to current were provided. Please provide supplemental rates in force prior to 2008. |
| 62 |
| I was able to locate a rate of .15/$1000 in the contract provided. Is this still the current rate? |
| R-62 |
| Refer to response R-1 and R-2 above. |
| 63 |
| Please provide current Life and AD&D rates and rate history back to at least 2005 so that we can constant rate accurately. |
| R-63 |
| Refer to response R-1 and R-2 above. |
| 64 |
| Based upon the RFP, this case has a Premium Stabilization Reserve. Please provide copies of the agreements as well as billed and contract rates for the base life. Please provide copies of the annual accountings. |
| R-64 |
| A copy of the PSR agreement can be found in Exhibit 13. Refer to response R-1 and R2 for Basic Life rates. The OCC can not locate any records of the annual accounting the PSR. |
