Life and Accidental Death and Dismemberment Insurance - UPDATED

The State of Tennessee Department of Finance and Administration, Division of Benefits Administration is requesting proposals for life and accidental death and dismemberment (AD&D) insurance services under RFP 31786-00193, with proposals due November 13, 2026 at 2:00 p.m. Central Time. The state seeks a single contractor to provide three integrated, fully-insured products: voluntary term life insurance (employee-paid), voluntary AD&D insurance (employee-paid), and basic term life and basic AD&D insurance (employer-paid through minimum premium arrangement) to eligible employees of State Government and State Higher Education agencies, with voluntary plans extending to eligible dependents.

Respondents must hold a current Tennessee Certificate of Authority and demonstrate at least six years of experience providing life and AD&D insurance to at least five employer accounts, with at least one account serving a minimum of 10,000 members. The contractor must maintain call center operations in the contiguous United States with specified service level agreements, process claims within defined timeframes, provide medical underwriting services, and implement system integrations with the state's Edison platform. The contract runs from January 1, 2028 through December 31, 2032, with a claims run-out period extending through June 30, 2034.

Evaluation uses 100 total points: general qualifications and experience (10 points), technical qualifications, experience, and approach (40 points), and cost proposal (50 points). The cost proposal represents the most heavily weighted criterion, though the contract will be awarded to the responsive and responsible respondent offering the best overall combination of attributes rather than necessarily the lowest bidder. The state will evaluate responses based on guaranteed monthly premium rates for each coverage type and contract year, with premium rates constrained so that ported coverage premiums cannot exceed active employee rates by more than 20 percent for any age bracket, and voluntary term life active employee rates must comply with IRS Section 79 straddle rule requirements.

The state has provided comprehensive historical data: basic term life and basic AD&D enrollment of approximately 68,000 to 72,000 employees with total coverage volumes ranging from approximately $10.2 billion to $11.2 billion monthly; voluntary term life enrollment of 12,132 employee lives covering approximately $2.03 billion, 5,094 spouse lives covering approximately $110.1 million, and 8,143 child rider lives covering approximately $74.4 million as of June 2026; and voluntary AD&D enrollment across multiple coverage tiers. A pre-response conference is scheduled for August 31, 2026. The Notice of Intent to Award is expected January 28, 2027. All current state employees will be automatically transitioned to the new contractor on the effective date with guaranteed issue and credit toward limitations based on prior enrollment length.