RFP_31786-00193_Appendix_7.25.xlsx

This appendix to RFP 31786-00193 from the State of Tennessee Department of Finance and Administration details the guaranteed monthly reserve and administrative fees, conversion charges, and voluntary term life ported premium rates for group life and accidental death and dismemberment insurance services. The RFP seeks proposals for fully-insured life and AD&D insurance covering eligible employees of State Government and State Higher Education agencies, with contract performance running from January 1, 2028 through December 31, 2032. A pre-response conference is scheduled for August 31, 2026, with proposals due November 13, 2026 at 2:00 p.m. Central Time. The Notice of Intent to Award is expected January 28, 2027.

The pricing structure establishes a flat monthly charge of $0.434 per employee for contract administration, reserve, and conversion fees. Guaranteed monthly reserve percentages are fixed at 4.70% of annualized premium for all basic term life coverage lines and 4.20% for all basic AD&D coverage lines across all contract years (2023-2027). The administrative charge for basic term and basic AD&D is guaranteed at $0.102 per employee per month through the contract period, while basic term life conversion charges are fixed at $227.00 per $1,000 of conversion life insurance issued. Voluntary term life ported premium rates per $1,000 of coverage are guaranteed throughout the contract period with age-based brackets ranging from $0.06 monthly for employees under 35 to $1.32 monthly for employees age 65 and over. The incumbent carrier is Minnesota Life Insurance Company (Securian Financial). As of June 2026, the state covers approximately 68,000-72,000 basic term life and AD&D employees with total coverage volumes of $10.2-$11.2 billion monthly, along with voluntary term life enrollment of 12,132 employee lives covering $2.03 billion and spouse/child rider coverage of approximately $184.5 million combined.