Q A2_Life_Insur_Q A_No2.docx

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SOLICITATION for LIFE INSURANCE SERVICES for U. S. MISSION to TURKEY
Solicitation number
STU150-13-R-3016
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ANSWERS TO QUESTIONS NO. 2 the reply to the question received and replied after the Pre-Proposal Conference conducted on Feb. 19 2013.

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U.S. MISSIONS in TURKEY SOLICITATION for LIFE INSURANCE SERVICE

ANSWERS TO QUESTIONS NO. 2 STU150-13-R-3016

After the questions received and replied during the Pre-Proposal Conference conducted on Feb. 19, 2013, below is a question received from one of the potential offerors and its reply:

Can we use the foreseen inflation rate for the annual premium increases to cover the annual wage increases of the U.S. Government personnel?

Each company has the prerogative to determine the premium rates for each of the option years, the decision on if a price increase should be enacted, and if so, their basis for the price increase for each of the option years. Please note that U.S. Government personnel have not received a wage increase for the past 2 ½ years but this does denote that they will not receive one this year. Until now, the U.S. Government has conducted previous annual wage increases in late summer or early fall and these have been below the Turkish inflation rate.

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