Fiduciary liabilty insurance

The Commonwealth of Kentucky, specifically the Kentucky Teachers' Retirement System (KTRS), is soliciting bids for Fiduciary Liability and Defense Costs Insurance through Request for Bid (RFB) 758 1900000315. The procurement seeks a comprehensive insurance policy covering fiduciary liability for KTRS, with specific requirements including a $10,000,000 per claim and annual aggregate limit, and a $500,000 deductible. The policy period will run from January 28, 2019, through January 28, 2020, with options to renew for four additional one-year terms. Bidders must be authorized insurers holding a Certificate of Authority from Kentucky with a minimum A.M. Best rating of B+ or better. The evaluation methodology is primarily price-based, with a 1,000-point ranking system focused on the lowest premium. Key submission requirements include completed solicitation documents, A.M. Best rating documentation, endorsements, sample policy terms, proof of licensure, and certification of all markets approached. Written vendor questions were due by November 21, 2018, at 4:30 PM ET, with final bid submissions required by December 14, 2018, at 1:30 PM ET.

The procurement includes provisions for preferential treatment of Kentucky resident bidders and qualified bidders, including potential advantages for Kentucky Industries for the Blind and qualified nonprofit agencies for individuals with severe disabilities. Bidders must complete several mandatory forms, including a Qualified Bidder Affidavit, Resident Bidder Affidavit, and various certification documents. The Commonwealth exempts the contract from federal excise tax, Kentucky sales or use tax, and local government premium tax, though a 1.8% Kentucky premium surcharge will apply. Prospective bidders must demonstrate experience providing fiduciary liability insurance to public pension systems and submit comprehensive documentation proving their eligibility and capability. The current sample policy, issued by Hudson Insurance Company through Solidarity Protection Group, provides context for the type of coverage sought. While a specific budget range is not explicitly stated, the previous year's premium was $152,109.00, which may serve as a baseline for potential bidders. The contract will be awarded to the responsive, responsible bidder meeting minimum coverage requirements with the lowest premium.