Request for Proposal - City of Chandler Basic and Voluntary Life and Accidental Death and Dismemberment Insurance; HR2-948-4465

The City of Chandler, Arizona issued a Request for Proposal (RFP) to procure bundled basic and voluntary life insurance and accidental death and dismemberment (AD&D) insurance coverage for approximately 1,614 active employees, 590 retirees, and their dependents, including approximately 792 employees with voluntary life coverage, 413 spouses, and 211 child contracts. The procurement required qualified offerors to provide comprehensive coverage with detailed financial workbooks showing pricing for all coverage types, submitted net of commissions unless commissions are included in the carrier's state filing. Key requirements included no-loss, no-gain coverage for all currently insured employees and dependents, waiver of actively-at-work provisions for existing covered participants effective on the contract date, detailed claims experience reports, renewal rates with underwriting analysis at least 210 days prior to each contract anniversary, and maintenance of claims records for up to seven years. A pre-proposal conference was scheduled for February 1, 2022 at 10:00 a.m. Arizona time with remote dial-in access; written inquiries were due by January 31, 2022 at 12:00 p.m., with responses provided by February 8, 2022. Proposals were originally due February 22, 2022 at 4:00 p.m. local Arizona time via email to christina.pryor@chandleraz.gov with a 50 MB file size limit, with contract award anticipated in May 2022 and an effective date of January 1, 2023.

The contract structure included an initial two-year term from January 1, 2023 through December 31, 2025 with options to renew for three additional two-year periods, with initial rates guaranteed for a minimum of three years effective January 1, 2023. The incumbent carrier was Reliastar Life Insurance Company dba Voya Financial, which had provided coverage since January 1, 2012 with the current policy effective January 1, 2017, with current monthly employee contribution rates for basic life and AD&D at $0.105 and $0.020 per $1,000 respectively. The City reserved the right to make multiple awards, award by item or group, or reissue the RFP. However, Addendum 2, issued March 1, 2022, announced the cancellation of the original RFP, indicating that the City would make modifications to the solicitation and reissue it in the future. Interested vendors and current service providers were directed to monitor future solicitation releases from the City of Chandler for reissued opportunities related to life and accidental death and dismemberment insurance, with inquiries directed to Christina Pryor at christina.pryor@chandleraz.gov.