S000000426 IFB State Business Auto Coverage and Excess Liability Insurance~1.pdf

Rev 12/2024

STATE OF ARKANSAS

DEPARTMENT OF TRANSFORMATION AND SHARED SERVICES

OFFICE OF STATE PROCUREMENT

501 Woodlane St., Ste. 220

Little Rock, Arkansas 72201-1023

INVITATION FOR BID

SOLICITATION DOCUMENT

SOLICITATION INFORMATION

Solicitation Number: S000000426 Solicitation Issued: April 22, 2025

Description: State Business Auto Coverage and Excess Liability Insurance

Department: Arkansas Insurance Department

SUBMISSION DEADLINE AND DELIVERY OF RESPONSE DOCUMENTS

Bid Opening Date: May 27, 2025 Bid Opening Time: 10:00 a.m., Central Time

Bid responses for this Invitation for Bid must be submitted through ARBuy, the State’s eProcurement system.

It can be accessed at arbuy.arkansas.gov. Bids received after the submission deadline may be rejected as untimely.

LIVE BID OPENING INFORMATION

Teams Meeting Link: Join the meeting now

Meeting ID: 233 661 860 662 0

Passcode: ej6T58ZJ

Call in (audio only): 501.244.3310 or find a local number

Phone conference ID: 182 956 363#

TSS OFFICE OF STATE PROCUREMENT CONTACT INFORMATION

TSS OSP Procurement Specialist:

Joshua Williams Procurement Specialist’s Direct Phone Number:

501-371-5701

Email Address: Joshua.Williams@arkansas.gov TSS OSP’s Main Number: 501-324-9316

TSS OSP Website: transform.ar.gov/procurement file://///tss-file-p1/INDOSPADMIN$/%23_GENERAL_%20PROCUREMENT_%20TEAM_%23/BUYERS/Brandi%20Schroeder/Bid%20Folder%20Documents/%23New%20Drafts/IFB/1%20OSP%20Use/arbuy.arkansas.gov/ https://teams.microsoft.com/l/meetup-join/19%3ameeting_MTVjZTBjZTMtNmJlMC00ZGIwLTljYTYtN2MxM2JhMmQ1MDlm%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%2255e922e0-af81-440a-bcc5-85ef0c48b10c%22%7d https://dialin.teams.microsoft.com/6b6513dc-a034-48d2-8d06-7e711c4ecc0b?id=719036839 https://www.transform.ar.gov/procurement/

SECTION 1 – INFORMATION AND INSTRUCTIONS

1.1 INTRODUCTION

This Invitation for Bid (IFB) is issued by the TSS Office of State Procurement (TSS OSP) on behalf of the Arkansas Insurance Department (“AID” or “Department”) for the State of Arkansas Multi Agency Insurance Trust (AMAIT) and the State of Arkansas Public School Insurance Trust (APSIT) and their Participating Governmental Entities to obtain pricing and a contract for a commodity.

Direct all correspondence regarding this Solicitation to TSS OSP and not to the Department.

1.2 OBJECTIVE AND GOALS

The Department seeks to obtain master business auto insurance contracts to cover two separate and distinct trust fund programs insuring 109 state agencies and 95 public school districts and educational cooperatives.

As of July 1, 2024, there were approximately 5,946 insured auto units on the AMAIT policies and 5,313 insured auto units on the APSIT policies. The AMAIT policies insure state boards, commissions, departments, offices, and public funded institutions of higher education located in the State of Arkansas.

The APSIT policies insure public school districts, open enrollment public charter schools, and educational cooperatives located throughout the State of Arkansas. Participation by State agencies in any resulting contract will be mandatory, however, public school district’s participation is voluntary.

1.3 TYPE OF CONTRACT

A. As a result of this IFB, TSS OSP intends to award a contract to a single Contractor (see Contractor

Selection).

B. The anticipated starting date for any resulting contract is July 1, 2025, except that the actual contract start date may be adjusted unilaterally by the State for up to three (3) calendar months. By submitting a signed bid in response to the IFB, the Prospective Contractor represents and warrants that it will honor its bid as being held open as irrevocable for this period.

C. The initial term of any resulting contract will be for three (3) years. Upon mutual agreement by the Contractor and Department, the contract may be renewed by TSS OSP for up to four (4) additional one-year terms or portions thereof, not to exceed a total aggregate contract term of seven (7) consecutive years.

1.4 DEFINITION OF TERMS

A. Unless otherwise defined herein, all terms defined in Arkansas Procurement Law have the same meaning herein.

B. The terms “Invitation for Bid,” “IFB,” and “Solicitation” are used synonymously in this document.

C. “Prospective Contractor” means a responsive and responsible bidder who submits a bid that meets the Requirements and criteria set forth in this Solicitation.

D. “Requirement” means a term, condition, provision, deliverable, Specification, or a combination thereof, that is obligated under the Solicitation, resulting contract, or both.

E. “Shall” and “must” mean the imperative and are used to identify Requirements and Specifications.

F. “Specification” means any technical or purchase description or other description of the physical or functional characteristics, or of the nature, of a commodity or service. “Specification” may include a description of any Requirement for inspecting, testing, or preparing a commodity or service for delivery.

G. “State” means the State of Arkansas. When the term “State” is used herein to reference any obligation of the State under a contract that results from this Solicitation, that obligation is limited to the Department using such a contract.

1.5 CONTRACTOR SELECTION

A. Award is expected to be made to the responsive and responsible Prospective Contractor determined to have submitted the lowest bid that meets the Requirements and criteria set forth in the IFB, based on the Grand Total Annual Premium of the Official Bid Price Sheet submitted by the Prospective Contractor.

B. If the State so chooses, negotiations may be conducted with the lowest-bidding, responsive and responsible Prospective Contractor if:

1. All bids received from responsive and responsible bidders exceed available funding; or

2. It appears that additional savings to the state may result from negotiation.

C. If negotiations fail to result in a contract, the State may negotiate with the next lowest-bidding, responsive and responsible Prospective Contractor.

1. The negotiation process may be repeated until an acceptable lower bid price is negotiated, or until such time the State determines negotiations are no longer in the best interest of the state.

2. Negotiations are conducted at the sole discretion of the State.

D. Once the anticipated awardee has been determined, the anticipated award will be posted to ARBuy, generally for a period of fourteen (14) days prior to the issuance of a contract. The postings are anticipated awards only, subject to protest.

E. A contract is not effective prior to final award being made by the State; some contracts may be subject to Legislative review prior to final award.

F. The Risk Management Division (RMD) reserves the right to make whatever investigation is necessary to determine that the apparent successful Prospective Contractor is compliant with the specifications in this IFB.

1.6 CLARIFICATION OF SOLICITATION

A. Submit questions regarding this Solicitation via the Solicitation posting in ARBuy by midnight, Central

Time on or before May 1, 2025.

1. For each question submitted, Prospective Contractor should reference the specific Solicitation item number to which the question refers, as applicable.

2. Prospective Contractors’ written questions will be consolidated and answered by the State as deemed appropriate. The State’s consolidated written response is anticipated to be posted to the Solicitation posting in ARBuy by the close of business on May 9, 2025. If Prospective Contractor questions are unclear or non-substantive in nature, the State may request clarification of a question(s) or decline to answer.

B. The Prospective Contractor should notify the TSS OSP Procurement Specialist of any term, condition, etc., that precludes the Prospective Contractor from submitting a Responsive Bid.

Prospective Contractors should note that it is the responsibility of the Prospective Contractor to seek resolution of all such issues, including those relating to the terms and conditions of the contract, prior to the submission of a bid.

C. Prospective Contractors may contact the TSS OSP Procurement Specialist with non-substantive questions at any time prior to the bid opening.

D. An oral statement by TSS OSP will not be part of any contract resulting from this Solicitation and may not reasonably be relied on by any Prospective Contractor as an aid to interpretation unless it is reduced to writing and expressly adopted by TSS OSP.

1.7 RESPONSE DOCUMENTS

A. All bids must be submitted through ARBuy, the State’s eProcurement system. The system can be accessed at arbuy.arkansas.gov.

https://arbuy.arkansas.gov/

1. Prospective Contractors must be registered in ARBuy to submit bids.

B. Bid Response Packet

1. Prospective Contractors shall utilize the Bid Response Packet attached to the Solicitation in ARBuy to submit their bids.

2. The following are bid submission Requirements and must be submitted as part of a Prospective Contractor’s bid.

a. Signed Bid Signature Page; signature may be ink or digital.

b. Completed Bid Response Packet, which must be in English.

c. Completed Official Bid Price Sheet attached to Solicitation posting.

i. Pricing must be proposed in U.S. dollars and cents.

ii. Quantities stated are estimates only and are not guaranteed. Prospective Contractor must bid unit price on the estimated quantity and unit of measure specified.

• The State may order more or less than the estimated quantity on term contracts, and the Contractor shall sell to the Department quantities ordered at no more than the bid price.

iii. If pricing documents do not allow for accurate pricing, Prospective Contractor should notify the TSS OSP Procurement Specialist at least seventy-two (72) hours before the bid opening time.

iv. Prices must be firm offers and adjustments may be negotiated annually.

• A request for a price increase must include supporting documentation demonstrating that the increase in contract price is based on an increased cost to the Contractor and that the proposed pricing is still competitive in the marketplace. The State has the right to approve or deny any request for a price adjustment.

v. Discount from list bids pricing is not acceptable unless requested elsewhere in the Solicitation.

vi. State and local sales taxes should not be included in the bid price. Trade discounts should be deducted from the unit price and the net price should be shown in the bid.

d. Copy of Prospective Contractor’s Equal Opportunity Policy

i. Pursuant to Arkansas Code Annotated § 19-11-104, OSP requires a Prospective Contractor bidding on a state contract to submit a copy of the Prospective Contractor’s Equal Opportunity (EO) Policy. Prospective Contractors not required by law to have an EO Policy must submit a written statement to that effect.

e. Proposed Subcontractors Form (see Standard Commodities Contract, section 14)

3. The following items, which must be submitted prior to a contract award to the Prospective Contractor, may also be included with the Prospective Contractor’s bid response:

a. EO 98-04 Contract & Grant Disclosure Form (see Standard Commodities Contract, section 11)

b. Voluntary Product Accessibility Template (VPAT), if applicable

c. Proof of Errors and Omissions Insurance for agents and brokers on an Association for Cooperative Operations Research and Development. (ACORD) Certificate of Liability Insurance form with a minimum limit of $10,000,000 per occurrence.

https://transform.ar.gov/procurement/forms-and-reporting/#:%7E:text=Services%20Contract%20(SRV-1)%20Fillable%20Form:~:text=ORIGINAL%20CONTRACT%20DOCUMENTS https://transform.ar.gov/procurement/forms-and-reporting/#:%7E:text=Services%20Contract%20(SRV-1)%20Fillable%20Form:~:text=ORIGINAL%20CONTRACT%20DOCUMENTS https://www.section508.gov/sell/vpat/

4. Prospective Contractors should not include any other documents or ancillary information, such as a cover letter or promotional marketing information.

C. Prospective Contractors should not alter any language in Solicitation document(s) or Official Bid Price Sheet provided by the State.

D. Prospective Contractors’ bids cannot be altered or amended after the bid opening except as permitted by law or rule.

E. As requested, Prospective Contractors shall provide clarification regarding Prospective Contractor’s bid response.

F. Prospective Contractors may submit multiple bids.

SECTION 2 – SPECIFICATIONS AND REQUIREMENTS

2.1 MINIMUM QUALIFICATIONS

A. Prospective Contractors shall be licensed to do business in the State of Arkansas and have binding authority with the Insurance Company.

B. Prospective Contractors shall have Errors and Omissions Insurance for agents and brokers on an ACORD Certificate of Liability Insurance form with a minimum limit of $10,000,000 per occurrence.

C. The Prospective Insurance Company shall be an Admitted Insurance Company.

2.2 INSURANCE COMPANY QUALIFICATIONS

A. The Prospective Insurance Company shall assign adjuster(s) who shall be dedicated to the resulting contract.

B. The Adjusters shall have settlement authority.

C. The Adjusters shall handle both the AMAIT and the APSIT plans.

D. The Prospective Contractor shall provide the names and contact information of these Adjuster(s), and the Claims Manager assigned to this account at the time of bid submission.

E. The Prospective Insurance Company shall have an A. M. Best Company rating of A (Excellent), Class FSC VIII or better.

F. The Prospective Insurance Company shall be licensed to do business in the State of Arkansas.

G. The Prospective Insurance Company shall not be an alien insurance company.

2.3 GENERAL REQUIREMENTS

A. Submission of bids shall indicate acceptance of insuring all autos listed for both insurance plans by the insurance company.

1. Current auto schedules for the AMAIT and APSIT plans including Lessor-Additional Insured and Loss Payee information, if any, will be provided to the successful Contractor by the Risk Management Division after the bid is awarded.

B. All specifications and requirements herein must govern where a conflict between the specifications and requirements and the insurance policy exists. Any settlement will be in the best interest of AMAIT and APSIT.

C. One insurance company shall provide the insurance coverage on separate insurance contracts for the AMAIT and APSIT Trust Fund insurance plans.

D. The master business auto insurance contracts must cover two separate and distinct trust fund programs insuring 109 state agencies and 95 public school districts and educational cooperatives.

E. All Prospective Contractors shall be responsible for reviewing the various schedules of autos, as referenced in Section 2.8.C.

F. Prospective Contractors shall have an office location in Arkansas where the dedicated commercial lines Account Manager is located to provide account management.

G. The insurance policies must become a part of the contract between the Arkansas Insurance Department on behalf of the AMAIT or APSIT insurance plans and the Contractor.

H. The Contractor shall not conduct any mid-term or end of the policy year audit of the AMAIT auto schedule or the APSIT auto schedule for the purpose of additional premium or return premium calculation(s). Additional or return premiums will not be accepted or paid by the State.

I. Current Insured Participating Governmental Entities Mailing Lists:

1. AMAIT: (See Attachment A)

2. APSIT: (See Attachment B)

3. The three (3) digit State Agency Code (Attachment A) and the four (4) digit Public School District Local Education Agency Code (LEA) (Attachment B) must become a part of the participating governmental entity name and must be used in all claims reporting, all claims’ payments, all Named Insured Schedules, and all correspondence.

J. All mid-term addition(s) of new and/or deletion(s) of current State agency, public school district, and educational cooperative participating governmental entity account(s) must be on a pro rata basis.

K. Renewal Premium Rate/Adjustments/Non-Renewal:

1. The Contractor shall present all annual adjustments of rates or non-renewals to Risk Management Division in writing no less than 60 days before the anniversary/renewal date of the policies.

2. Risk Management Division will review, and has the right to approve or disapprove, all rate adjustments with consideration of but not limited to:

a. Original bid rate as the base

b. Present market condition

c. Losses to date

d. Underwriting of new entities, as added

L. There must not be any loss fund reserve established with any other financial institution or company for either the AMAIT plan or the APSIT plan. Arkansas law states that no money will be appropriated from either trust fund for any purpose except to pay for those expenses as described in the code (Arkansas Code Annotated § 6-21-710 [APSIT] and Arkansas Code Annotated § 25-35-103 [AMAIT]). A loss fund reserve is not a defined expense.

M. The Contractor is not required to maintain the auto schedules. The RMD maintains the auto schedules for both the AMAIT and APSIT plans.

1. RMD shall provide the monthly Broker Schedule Reports for the AMAIT and APSIT plans on or about the first of each month. The schedules will include the following:

a. Public entity account name

b. Year

c. Make/model

d. Auto category

e. Liability limit

f. VIN

g. Original vehicle cost

h. Auto physical damage election

i. Loss payee information

2. RMD shall provide additional monthly reports to the Contractor that will include updated current entity account contact information and total auto count by the vehicle categories.

3. The number of autos on both polices has been relatively stable for several years. No significant change in the total number of autos insured, or participating governmental entities insured, is anticipated for either policy.

N. Evidence of Errors and Omissions Insurance for agents and brokers coverage as required in this IFB document must be presented to the Arkansas Insurance Department - Risk Management Division (RMD) by June 10 for all subsequent years during the term of the contract.

O. The Contractor shall provide annual marketing strategies and reports identifying anticipated marketing considerations and proposing marketing strategy prior to policy renewal.

P. The Contractor shall provide a compilation of underwriting data and specifications for renewal negotiations.

Q. The Contractor shall provide coverage and price negotiations with insurers to secure the best terms for all policies.

R. The Contractor shall provide an annual evaluation of the commitment and financial stability of the Insurance Company to ensure compliance with the IFB specifications.

S. The Contractor shall be responsible for the accuracy of all policy forms.

T. The Contractor shall review all policies in advance of policy issue and delivery for accuracy and correctness so as to minimize the need for corrections by endorsement.

U. The Contractor shall deliver one (1) electronic and one (1) paper copy of each policy each year to the Risk Management Division by October 1. RMD will provide the contact information to the Contractor.

V. The Contractor shall negotiate any additional policy form changes requested by RMD.

W. The Contractor shall ensure that endorsements to the policy will only be issued with the approval of Risk Management Division.

X. The Contractor shall complete certificate of insurance requests for ACORD Certificate of Liability Insurance forms on the same day, or next business day, if the requests are emailed on the weekend or holidays.

1. The certificate must be completed and issued on the standard industry form as required by the

RMD.

2. The Contractor shall provide a dedicated person for the processing of the certificate of insurance request(s). RMD estimates there are 300 issued per year.

Y. The Contractor shall provide an annual report by April 15 each year, in a format approved by RMD, to include the following:

1. Schedule of policies in force

2. Coverage provisions

3. Premiums

4. Insurance claims experience for the prior policy year

5. Make recommendations for possible adjustment to insurance coverage for the next policy year.

Z. The Contractor shall consult and review with RMD on policy interpretation and analysis of insurance forms for future renewals.

2.4 INSURANCE COMPANY

A. The Insurance Company shall write all insurance policies as group/master policies whereby additional State agencies or public-school districts can be added to the respective policies using the current rates for that policy year.

B. The Insurance Company shall write all insurance policies by October 1 each year during the term of the contract.

C. The Insurance Company shall not have mid-term adjustments or changes in any rate or composite rate by endorsement during the policy year.

2.5 ACCOUNT MANAGER

A. Prospective Contractors shall have a dedicated commercial line Account Manager.

B. Prospective Contractors shall provide the name and contact information of the Account Manager assigned to this account at the time of bid submission.

C. Prospective Contractors shall have an office location in Arkansas where the dedicated commercial lines Account Manager is located to provide account management.

D. The Account Manager shall handle both the AMAIT and the APSIT plans from the start of the contract.

E. The Account Manager shall already be in position, with a minimum of five (5) years of experience in commercial business auto.

F. The Account Manager shall have at minimum one (1) year of experience in drafting and reviewing manuscript endorsements and editing other policy form language.

G. The Account Manager shall have at least one (1) of the following professional designations:

1. Associate in Risk Management (ARM),

2. Certified Risk Manager (CRM),

3. Chartered Property Casualty Underwriter (CPCU), or

4. Certified Insurance Counselor (CIC).

2.6 CLAIMS-RELATED REQUIREMENTS

A. The Contractor shall provide a claim intake office located in Arkansas.

B. The Contractor shall provide a claim intake office that must have claim intake staffed by employees of the Contractor with 24-hour Claims Reporting intake including a toll-free claim reporting phone number for all claim intake; and not just a call answering service.

C. The Contractor shall handle all claim calls in an efficient manner to minimize expense and customer dissatisfaction.

D. The Contractor shall verify accuracy of all claims-related documents.

E. The Contractor shall be responsible for claim intake of approximately 600 claims reported each year.

Direct claim reporting to the carrier is not allowed by the participating governmental entity.

F. The Contractor shall report all claims to the Insurance Company Claim Intake Department and adjuster(s) on the same day of notice or following business day if notice is received after business hours, on the weekend, or a holiday.

G. The Contractor shall code ACORD Loss Notice information sent to RMD including but not limited to the following:

1. Company claims number.

2. Agency number or school district LEA number with appropriate contact information.

3. Causes of loss descriptions established by Risk Management Division.

4. Physical Damage determination indicated on ACORD Loss Notice.

5. Injury list of passengers and students.

6. Coding of ACORD Loss Notice must match loss run information reported monthly.

7. City location.

8. Vehicle Category.

9. Date and time of loss.

H. The Contractor shall prepare and email the ACORD Loss Notice to the RMD as indicated above and within 24 hours of assignment of the claim number by the Insurance Company.

I. The Contractor shall prepare the monthly loss history reports in accordance with the RMD requirements including but not limited to the following: (See Attachments C and D).

1. Format as outlined by the RMD.

2. Claim number coding, vehicle category number, and loss category descriptions.

3. Highlight new claims, change in claim status, and financial changes for easy review by RMD.

4. Dedicated person to process monthly loss history reports.

5. Coding of Insurance Company loss history reports must match ACORD Loss Notice information reported monthly.

6. Date of loss, claim number, participating governmental entity name, and code number.

7. Accident city location.

8. Loss History Report must include all claims for all coverage lines.

J. The Contractor shall file SR-1 Forms with the DFA-Revenue Division Safety Responsibility Section for all qualifying accidents involving State and/or School vehicles for each auto loss within 30 days of the accident.

K. The Contractor shall communicate with the insured agency or school district and RMD when the auto involved in a claim is not listed on the monthly auto schedule.

L. The Contractor shall provide phone and email communication to claimants, adjusters, attorneys, medical providers, body shops and others as required that are related to accidents involving this account.

2.7 BID PRICING REQUIREMENTS

A. The Prospective Contractor shall bid on all coverage parts of the Business Auto Coverage Form and the Excess Liability Coverage Form as specified in Section 3 of this IFB. The Prospective Contractor may submit more than one bid with other insurance companies.

B. The Prospective Contractor shall use only one insurer for both the AMAIT and the APSIT policies.

C. All bids submitted by the Prospective Contractor must be final and must not be subject to any contingencies.

D. All Prospective Contractors shall submit completed Auto Rate Worksheets for AMAIT and APSIT with the Official Bid Price Sheet including each rate by vehicle category for the liability coverage and auto physical damage coverage. (See Attachments S and T).

E. The Risk Management Division will provide the successful Contractor with the current vehicle category count and the current auto schedules on the July 1, 2025 - Broker Schedule Reports, prior to the effective date of July 1, 2025.

F. The 66 specific vehicle category rates that are quoted by the Insurance Company on the AMAIT and APSIT Auto Rate Worksheets must be used for invoicing, effective July 1, 2025. The 66 specific vehicle category rates quoted on the Auto Rate Worksheets must not be changed, effective July 1, 2025.

G. The Prospective Contractor shall not add any additional fees or costs to the premiums quoted on the Official Bid Price Sheet.

H. The Insurance Company shall not add any additional fees or costs to the premiums quoted on the Official Bid Price Sheet.

2.8 INFORMATION FOR UNDERWRITING

A. Total auto units insured as of July 1, 2024:

1. AMAIT- (Liability 5,946) (Physical Damage 2,058)

2. APSIT- (Liability 5,313) (Physical Damage 4,619)

B. Perils Insured:

1. Commercial Business Auto and Excess Liability Coverage:

a. See AMAIT Attachments E-H Primary and Excess Policies

b. See APSIT Attachments I-J Primary and Excess policies

C. Description of Autos Covered as of July 1, 2024: Year, Make, Model, VIN, and Original Cost

1. AMAIT Policies:

a. For Governmental Business Use.

i. This is a master insurance public entity program providing coverage for all insured State agencies.

ii. Participation in this policy is mandatory for state boards, commissions, departments, offices, and public funded institutions of higher education.

iii. See Attachment K for a complete description of autos for each state participating governmental entity.

2. APSIT Policies:

a. For Governmental Business Use.

i. This is a master insurance public entity program providing coverage for all insured public school districts, open enrollment public charter schools, and educational cooperatives located throughout the State of Arkansas.

ii. Participation is voluntary for these entities.

iii. See Attachment L for a complete description of autos for each school participating governmental entity.

D. Policy/Premium Overview Information Primary and Excess Liability Insurance Policy(s) as of July 1, 2024:

1. AMAIT Policy Option Combined Single Limit (CSL) - $250,000 In-State / CSL - $5,000,000 Out-of-State:

a. Cincinnati Insurance Company

b. Units insured: 4,589

c. Premium for 2024-2025 Policy year: $1,499,386

d. State Agency participating entities: 87

2. AMAIT Policy Option CSL - $1,000,000 In-State / CSL - $5,000,000 Out-of-State:

a. Cincinnati Insurance Company

b. Units insured: 1,357

c. Premium for 2024-2025 Policy year: $627,603

d. State Agency participating entities: 21

3. APSIT Policy CSL - $100,000 In-State / CSL - $5,000,000 Out-of-State:

a. Cincinnati Insurance Company

b. Units insured: 5,313

c. Premium for 2024-2025 Policy Year: $3,367,545

d. Public School District participating entities: 91

E. Liability coverage, medical payments coverage, uninsured motorist coverage, and underinsured motorist coverage are mandatory for all participating governmental entities for auto symbols 2, 8, 9, and 10. Participating governmental entities cannot decline any of these coverages for auto symbols 2, 8, 9, and 10.

F. Auto physical damage (APD) coverage for comprehensive and collision is optional for auto symbols 7 and 8. Participating governmental entities are allowed to select which autos are covered for APD and which autos are not covered for APD.

G. AMAIT vehicle category and APSIT vehicle category schedule descriptions are provided on Tab 1 of Attachments K and L.

H. Twenty-one (21) State agency participating governmental entities have selected the $1,000,000 in-state liability limit to apply to all of the autos on their respective schedules. The information can be found on the monthly AMAIT Broker Schedule Reports and on the State Vehicle Liability Level by Agency Report (See Attachments M and K).

I. Five (5) year loss history information is provided on the AMAIT and APSIT Vehicle Loss History reports (See Attachments N-O and P-Q).

J. Arkansas State Vehicle Safety Program (ASVSP):

1. The ASVSP has been developed for the AMAIT participating governmental entities of this IFB but does not apply to the APSIT participating governmental entities.

2. The ASVSP provides a method for driver license verification as well as a method of tracking driver traffic violations.

3. All State Agencies reported on the AMAIT insurance program are required to participate in the ASVSP. (See Attachment R).

4. The Arkansas Department of Education Facilities and Transportation Division has the authority to regulate and manage the school bus driver program for all school districts in the State of Arkansas. See the following website for details: http://arkansasfacilities.arkansas.gov/.

2.9 UNDERWRITING REQUIREMENTS OF COVERAGE

A. Named Insureds and mailing address must be:

1. State of Arkansas Multi-Agency Insurance Trust and Participating Entities (AMAIT).

2. State of Arkansas Public School Insurance Trust and Participating Entities (APSIT).

Mailing Address of Named Insureds:

http://arkansasfacilities.arkansas.gov/

Arkansas Insurance Department C/O Risk Management Division 1 Commerce Way, Suite 504 Little Rock, AR 72202

B. Effective Date must be: July 1, 2025, 12:01 a.m. CST Time.

C. Trust Fund Per Occurrence Deductible and Aggregate Retention must not be applied to either AMAIT or APSIT program for the following:

1. Liability/ Uninsured Motorists / Under Insured Motorists /Medical Payments

2. Out of State Liability Payments

3. Auto Physical Damage Payments

D. All loss adjustment expenses pertaining to claims must be paid by the Insurance Company.

E. Business auto coverage must be permissive use. Driver schedules and motor vehicle record (MVR) reports must not be used for underwriting and will not be provided by Risk Management Division.

F. Legal Entity / Business Description Type must be:

1. Governmental.

G. Prospective Contractors shall use the vehicle category descriptions provided by the Risk Management Division and no other vehicle category descriptions without prior approval during the term of the contract.

1. The current AMAIT vehicle category and APSIT vehicle category schedule descriptions are provided on Tab 1 of Attachments K and L.

H. All auto units for a participating governmental entity must have the same in-state liability limit. See specification requirement 3.2.B.1 and C.1. For current liability limits for each participating governmental entity see Attachments K and L.

I. The Insurance Company shall not write the insurance policies with a “Cut Through” endorsement to another insurance company.

SECTION 3 – INSURANCE POLICY COVERAGE REQUIREMENTS

3.1. BUSINESS AUTO COVERAGE FORM AND EXCESS LIABILITY COVERAGE FORM

A. The AMAIT and APSIT Business Auto Coverage Form must meet or exceed coverage provided in the Insurance Service Office (ISO) Business Auto Coverage form CA 00 01.

B. The following ISO forms and endorsements, or their equivalent, must be included:

1. CA 21 08 Arkansas Uninsured Motorists Coverage,

2. CA 31 28 Arkansas Underinsured Motorists Coverage,

3. CA 99 03 Auto Medical Payments Coverage,

4. CA 99 33 Employees As Insureds,

5. CA 20 54 Employee Hired Autos,

6. CA 99 44 Loss Payable Clause,

7. CA 20 01 Lessor - Additional Insured and Loss Payee,

8. CA 20 15 Mobile Equipment,

9. CA 99 54 Covered Auto Designation Symbol,

10. CA 99 60 Audio, Visual, And Data Electronic Equipment Coverage Added Limits,

11. CA 20 18 Professional Services Not Covered,

12. CA 50 02 Exclusion – Assault And Battery,

13. CA 50 46 Abuse Or Molestation Exclusion,

14. CA 20 30 Emergency Services – Volunteer Firefighters’ And Workers’ Injuries Excluded,

15. CA 23 84 Exclusion Of Terrorism.

C. Policy issuance must have standard policy forms such as:

1. Common Policy Conditions,

2. Forms Schedule,

3. Arkansas Notice,

4. Arkansas Changes,

5. Composite Rate Endorsement,

6. Arkansas Changes – Cancellation and Nonrenewal,

7. and other(s).

D. Named Insured Schedule

1. Each policy must contain a Named Insured Schedule on a company manuscript form.

2. The Named Insured Schedule must name each applicable current participating governmental entity and applicable agency code number. Reference specification 2.3.I. (See Attachments A and B).

3. See Attachments E-H and I-J for sample manuscript policy forms.

E. Each policy must not contain the following coverage forms:

1. Windshield Glass Repair coverage

2. Rental Reimbursement coverage

3. Towing and Labor coverage, except as described in 3.6.D.

F. AMAIT and APSIT Excess Liability Coverage Form must:

1. Follow form to the underlying primary policies

2. Be provided by the same Insurance Company as the primary policies

3. Provide coverage that meets or exceeds the current Cincinnati Insurance Company excess liability policies in its entirety as included. (See Attachments F, H, and J).

3.2. LIABILITY COVERAGE REQUIREMENT

A. Liability - Bodily Injury and Liability - Property Damage must be provided for AMAIT and APSIT for the following:

1. All Owned Autos (Symbol 2),

2. Hired Autos (Symbol 8),

3. Non-Owned Autos (Symbol 9),

4. Special description of auto designation symbol 10 found on endorsement AA 4214 08 07 Covered Auto Designation Symbol,

5. (See Attachments E-H and I-J).

B. The following Liability Coverage must be included for AMAIT only:

1. Primary Policies In-State Liability Limit:

a. State agencies must choose either an in-state each accident CSL of $250,000 or $1,000,000.

b. All auto units for an agency must have the same in-state liability limit. See Attachment M for the list of agencies per liability limit.

2. $250,000 CSL Primary Policy Special Liability Limits Endorsement Requirement (Found on endorsement form IA 450 11 87A)(See Attachments G):

a. A maximum of $1,000,000 CSL per accident for any covered auto but only while that covered auto is outside of the State of Arkansas and within the coverage territory. This applies for covered auto symbols 2, 8, and 9. (See Attachment G).

3. Excess Liability Policy(s) Out of State Liability Limit:

a. An excess liability policy(s) with a Combined Single Limit of $4,000,000 excess of $1,000,000 primary for each accident for any covered auto while that covered auto is outside of the State of Arkansas and within the coverage territory. This applies for auto symbols 2, 8, and 9 for all State participating governmental entities.(See Attachments F and H)

b. Exception Note: 105 - Southern Arkansas University (SAU) purchases separate excess liability coverage for all covered autos and are NOT insured on the AMAIT excess liability policies.(See Attachment F)

i. If required by RMD at a later date, the Prospective Contractor shall have the capability of providing this excess auto liability coverage and invoice, separately from AMAIT, and directly to 105-SAU. The separate excess policies for 105 must follow form.

4. Description of covered auto used on endorsement AA 4214 08 07 Covered Auto Designation Symbol – 10

a. “Only those autos included in the schedule on file with the company that are land vehicles and that would qualify under the definition of mobile equipment under this policy if the mobile equipment is not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where they are licensed or principally garaged and only when the mobile equipment is in transit and bodily injury or property damage is not the result of the operation or use of any machinery or equipment that is on, attached to, or part of any of these mobile equipment autos”. (See Attachments E and G).

C. The following Liability Coverage must be included for APSIT only:

1. Primary Policy In-State Liability Limit:

a. Combined Single Limit (CSL) $100,000 each accident for all public school district entities.

b. All auto units for a public school district must have the same in-state liability limit. (See Attachment I).

2. $100,000 CSL Primary Policy Special Liability Limits Endorsement Requirement (Found on endorsement IA 450 11 87A)(See Attachments I):

a. A maximum of $1,000,000 CSL per accident for any covered auto but only while that covered auto is outside of the State of Arkansas and within the coverage territory. This applies for auto symbols 2, 8, and 9. (See Attachment I).

3. Excess Liability Policy Out of State Liability Limit:

a. An excess liability policy with a Combined Single Limit $4,000,000, excess of $1,000,000 primary for each accident for any covered auto while that covered auto is outside of the State of Arkansas and within the coverage territory. This applies for covered auto symbols 2, 8, and 9 for all public school district participating governmental entities. (See Attachment J).

4. Description of covered auto used on endorsement AA 4214 08 07 Covered Auto Designation Symbol – 10:

a. “Only those autos included in the schedule on file with the company that are land vehicles and that would qualify under the definition of mobile equipment under this policy if the mobile equipment is not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where they are licensed or principally garaged and only when the mobile equipment is in transit and bodily injury or property damage is not the result of the operation or use of any machinery or equipment that is on, attached to, or part of any of these mobile equipment autos”. (See Attachment I).

3.3. MEDICAL PAYMENTS COVERAGE

A. The Contractor shall provide $5,000 limit per passenger on covered auto symbols 2, 8, 9, and 10.

3.4. UNINSURED MOTORIST COVERAGE

A. Coverage must be equal to the liability limit that applies to each State agency or public school district entity for covered auto symbols 2, 8, 9, and10 for in-state accidents, except for a maximum of $1,000,000 CSL per accident for any covered auto, but only while that covered auto is outside of the State of Arkansas and within the coverage territory for covered auto symbols 2, 8, and 9. See endorsement IA 450 11 87 B (See Attachments G and I).

3.5. UNDERINSURED MOTORIST COVERAGE

A. Coverage must be equal to the liability limit that applies to each state agency or public school district entity for covered auto symbols 2, 8, 9, and 10 for in-state accidents. Except for a maximum of $1,000,000 CSL per accident for any covered auto, but only while that covered auto is outside of the State of Arkansas and within the coverage territory for covered auto symbols 2, 8, and 9. See endorsement IA 450 11 87 C (See Attachments G and I).

3.6. AUTO PHYSICAL DAMAGE (APD) COVERAGE PER SCHEDULE FILE (See Attachments K and L).

A. APD coverage must include comprehensive and collision coverage when scheduled.

B. Covered Auto Symbols:

1. APD Coverage for Specifically Described Autos symbol 7 and Hired Autos symbol 8.

2. The Prospective Contractor is cautioned to review the monthly Broker AMAIT and APSIT Auto Schedule Reports and shall provide a quote which includes APD for only the autos that are scheduled for the Auto Physical Damage Coverage.

3. The monthly Broker Schedule Reports are found on Attachments K and L. Column (J) of Tab 2 of the Broker Schedule Reports indicate if the auto is reported and scheduled for the APD Coverage.

a. There is no APD coverage required if there is a zero $0 value listed in column (J) for that scheduled auto.

4. The Contractor and Insurance Company shall allow Participating Governmental Entities to choose which autos are scheduled for APD coverage.

C. Hired Auto symbol 8 and Non-Owned Auto symbol 9 – Auto Physical Damage Coverage

1. Amendment of Hired Auto Physical Damage Coverage Endorsement must state: “Hired Auto symbol 8 physical damage coverage applies only when: i) The auto is scheduled by Risk Management Division when leased for 30 days or more. ii) The auto is reported (non-scheduled) to Risk Management Division for autos that are rented for 29 days or less.” (See endorsement IA 450 11 87 E in Attachments E, G, and I).

2. Hired Auto symbol 8 Physical Damage Limit: The physical damage limit for reported (non-scheduled) autos must be $75,000. See endorsement AA 206 12 90 (See Attachments E, G, and I).

3. Non-Owned Auto symbol 9 physical damage coverage: Comprehensive or Collision Coverage must not be provided for auto symbol 9.

D. Towing and Labor Coverage:

1. Towing and Labor Coverage must be provided, but only if the specifically described auto sustains physical damage and APD damage coverage has been scheduled for that auto (Symbol 7 or 8). Towing and labor must not be provided for mechanical breakdown. See endorsement IA 450 11 87D (See Attachments E, G, and I).

E. Participating Governmental Entity Deductibles must be:

1. AMAIT: $500 comprehensive / $1,000 collision each auto.

2. APSIT: $500 comprehensive / $1,000 collision each auto.

F. Gap Coverage – Auto must be:

1. Gap auto physical damage coverage as defined in endorsement AA 238 01 06 (See Attachments E, G, and I).

G. Special Vehicle Valuation for Described Category Endorsement must amend auto physical damage coverage vehicle valuation for AMAIT (Specialty Unit) vehicle categories 10 and 12 and for APSIT (Specialty Unit) vehicle Category 12 to state the following:

1. “all permanently attached aftermarket equipment, parts, additions, specializations and customizations designed to be used with the described covered auto for its intended current use which include but are not limited to: cooking, dining, plumbing, refrigeration equipment, awning or cabanas, business and office equipment, cabinetry, storage rack, lights, electrical service equipment, computer equipment, special signage or paint logos including wrap, audio/visual equipment, antennas, satellite dishes and any other equipment as may be specified on a specifications order list”.

H. Mobile Equipment (Not licensed for public road use) vehicle category 13 and auto symbol 10 - Auto Physical Damage coverage:

1. No Comprehensive or Collison coverage will be required for the following scheduled autos:

a. AMAIT vehicle category 13 - Equipment

b. APSIT vehicle category 13 – Equipment

I. The coverage must include uninsured and underinsured physical damage coverage of $50,000 per occurrence.

SECTION 4 – SOLICITATION TERMS AND CONDITIONS

4.1 ACCEPTANCE OF REQUIREMENTS

A. A Prospective Contractor’s past performance with the State may be used to determine if the

Prospective Contractor is responsible (OSP Rule R1:19-11-235).

1. Bids submitted by Prospective Contractors determined to be non-responsible will be rejected.

B. A single Prospective Contractor must be identified as the prime contractor.

1. The prime Contractor shall be responsible for the resulting contract and jointly and severally liable with any of its subcontractors, affiliates, or agents to the State for the performance thereof.

C. By submitting a bid, the Prospective Contractor represents and warrants:

1. That the prices in the bid have been arrived at independently, without any collusion with another competing Prospective Contractor.

a. Collusion violates Arkansas Procurement Law and can lead to suspension, debarment, and can be referred to the Attorney General’s officer for investigation and appropriate legal action (Arkansas Code Annotated § 19-11-240 and 19-11-245).

2. That the Prospective Contractor has not retained a person to solicit or secure the resulting contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies maintained by the Prospective Contractor for the purpose of securing business.

D. Qualifications, services, and commodities must meet or exceed the required Specifications as set forth in the Solicitation.

4.2 GENERAL TERMS AND CONDITIONS

A. The Contractor must be registered as a vendor to receive payment and may register online by visiting ark.org/vendor/index and clicking the Start Here button.

B. All payments to the Contractor under a resulting contract shall be made exclusively through ACH (Automated Clearing House) direct deposit.

1. The Contractor shall provide the necessary banking information, including account number, routing number, and any other details required to facilitate ACH direct deposits.

2. The Contractor shall be responsible for ensuring that the provided banking information is accurate and up to date. Any delays or errors in payment caused by incorrect or outdated information provided by the Contractor shall not be the responsibility of the Department.

3. The Department will process payments according to the agreed payment schedule, and all payments made via ACH direct deposit shall be considered as duly received upon successful transmission to the Contractor’s designated bank account.

C. Pursuant to Arkansas State Procurement Law, the Contractor shall certify that, unless they offer to provide the goods or services for at least twenty percent (20%) less than the lowest certifying Prospective Contractor:

1. They are not engaged in and shall not, during the aggregate term of the resulting contract, engage in a boycott of Israel (Arkansas Code Annotated § 25-1-503),

2. They are not engaged in and shall not, during the aggregate term of the resulting contract, engage in a boycott of an Energy, Fossil Fuel, Firearms, or Ammunition Industry (Arkansas Code Annotated § 25-1-1102).

D. Pursuant to Arkansas Procurement Law, the Contractor shall certify that the Contractor does not knowingly employ or contract with illegal immigrants and that the Contractor shall not knowingly https://www.ark.org/vendor/index.html?_ga=2.231672543.1782009942.1693919943-292160598.1646079585 employ or contract with illegal immigrants during the aggregate term of any contract with the State or any of its departments, institutions, or political subdivisions (Arkansas Code Annotated § 19-11-105).

E. The Contractor shall invoice the State as required by the Department and should not invoice the State in advance of delivery and acceptance of any commodities or services (Arkansas Code Annotated § 19-4-1206).

1. The Contractor should invoice the agency by an itemized list of charges. The Department’s purchase order number and/or the contract number should be referenced on each invoice.

2. Payment will be made in accordance with applicable State of Arkansas accounting procedures upon acceptance of commodities and services by the Department.

3. Payment will be made only after the Contractor has successfully satisfied the Department as to the reliability and effectiveness of the commodities or services purchased as a whole.

F. The Contractor should be able to accept the State’s authorized VISA Procurement Card (p-card) as a method of payment. Price changes or additional fee(s) must not be levied against the State when accepting the p-card as a form of payment.

G. This IFB incorporates all terms of the Standard Commodities Contract Template (found here).

1. The contract template is attached to the Solicitation in ARBuy as a sample for your information only.

2. A Prospective Contractor’s bid may be rejected if a Prospective Contractor takes exception to any terms, conditions, or Requirements in this IFB.

H. The Prospective Contractor shall certify that they are not a company owned in whole or with a majority ownership by the government of the People's Republic of China (a “Scrutinized Company”) and that they do not and shall not during the aggregate term of the resulting contract employ a Scrutinized Company as a contractor (Arkansas Code Annotated § 25-1-1203).

I. The Prospective Contractor agrees and shall adhere to all terms, conditions, and Requirements if selected as the Contractor.

1. Items may only be modified if the legal requirement is satisfied and approved by the State during negotiations.

4.3 MINORITY AND WOMEN-OWNED BUSINESS

A. A minority-owned business is defined by Arkansas Code Annotated § 15-4-303 as a business owned by a lawful permanent resident of this State who is:

• African American

• American Indian

• Asian American

• Hispanic American

• Pacific Islander American

• A Service-Disabled Veteran as designated by the United States Department of Veteran Affairs

B. A women-owned business is defined by Act 1080 of the 91st General Assembly Regular Session 2017 as a business that is at least fifty-one percent (51%) owned by one (1) or more women who are lawful permanent residents of this State.

C. The Arkansas Economic Development Commission conducts a certification process for minority-owned and women-owned businesses. If certified, the Prospective Contractor’s Certification Number should be included on the Bid Signature Page.

4.4…