Fiduciary liabilty insurance

The Commonwealth of Kentucky Finance and Administration Cabinet, on behalf of the Kentucky Teachers' Retirement System (KTRS), issued Request for Bid 758 1900000315 for Fiduciary Liability and Defense Costs Insurance on November 14, 2018. The procurement seeks comprehensive fiduciary liability and defense costs insurance coverage for KTRS, a governmental pension plan serving 72,130 active members and 52,966 annuitants. The required coverage includes fiduciary liability limits of $10,000,000 each claim and $10,000,000 annual aggregate with a $500,000 deductible, defense costs coverage, cyber risk coverage, HIPAA coverage, and civil fines and penalty expenses, with a retroactive date of November 30, 1985. Bidders must hold a Certificate of Authority from the Commonwealth of Kentucky or qualify as an eligible surplus lines insurer and maintain a minimum A.M. Best rating of B+ or better. The policy period commences January 28, 2019 and continues through January 28, 2020, with options to renew for four additional one-year terms by mutual written agreement. The solicitation closed on December 14, 2018 at 1:30 p.m. Eastern Time, with written vendor questions due by November 21, 2018 at 4:30 p.m. ET. Award will be made using a best value-ranking approach with pricing weighted at 1,000 points and minimum requirements evaluated on a pass/fail basis, with the lowest responsive and responsible bidder meeting all minimum criteria receiving the contract.

The solicitation provides preference to Kentucky resident bidders through reciprocal preference and to qualified bidders receiving a fifteen percent scoring preference, while Kentucky Correctional Industries receives a twenty percent preference in scoring. All bids must be submitted in sealed, hard-copy format with one original and three copies to the Bid Clerk at the Capitol Annex in Frankfort, Kentucky, with all mandatory documentation including the signed solicitation, completed bidder information forms, Kentucky Tax Registration Application (Form 10A100), Certificate of Authority for foreign entities, and required affidavits. Non-resident bidders must provide a Certificate of Authority from the Kentucky Secretary of State, and all bidders must execute required affidavits certifying compliance with Kentucky campaign finance laws and tax registration requirements. The Commonwealth is exempt from federal excise tax and Kentucky sales or use tax but is subject to a Kentucky Premium Surcharge of 1.8% pursuant to KRS 136.392 and a Surplus Lines Tax of 3% if applicable. The sample policy from the 2017-2018 contract period, issued by Hudson Insurance Company through Solidarity Protection Group, reflects an annual premium of $152,109.00, providing reference for anticipated coverage costs for qualified bidders; specific award values will be determined through competitive bidding based on submitted premium quotations meeting all specification requirements.