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HomeMy WebLinkAboutExhibitCity of Miami, Florida Contract No. RFP680381 PROFESSIONAL SERVICES AGREEMENT By and Between CITY OF MIAMI FLORIDA And CONTRACTOR This Professional Services Agreement ("Agreement") is entered into this _ day of , 2017 by and between the City of Miami ("City"), a municipal corporation of the State of Florida, whose address is 444 S.W. 2nd Avenue, 1011 Floor, Miami, Florida 33130 , and, Standard Insurance Company a foreign profit corporation, qualified to do business in the State of Florida whose principal address is 1100 SW 6t" Avenue, Portland, Oregon 97204, hereinafter referred to as the ("Contractor") RECITALS: WHEREAS, the City issued a Request for Proposals No. 680381 on, March 30, 2017 (the "RFP" attached hereto, incorporated hereby, and made a part of as Exhibit A) for the provision of Employee Disability Insurance Program, ("Services" as more fully set forth in the scope of work "Scope" attached hereto as Exhibit B) for City's Risk Management Department and Contractor's proposal ("Proposal", attached hereto, incorporated hereby, and made part of hereof as Exhibit C), in response thereto, has been selected as the most qualified proposal for the provision of the Services. WHEREAS, the Evaluation/Selection Committee appointed by the City Manager determined that the Proposal submitted by the Contractor was responsive to the RFP requirements and recommended that the City Manager negotiate with the Contractor; and WHEREAS, the City wishes to engage the Services of Contractor, and Contractor wishes to perform the Services for the City; and WHEREAS, the City and the Contractor desire to enter into this Agreement under the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, Contractor and the City agree as follows: 1 Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida TERMS: Contract No. RFP680381 1. RECITALS AND INCORPORATIONS; DEFINITIONS: A. The recitals are true and correct and are hereby incorporated into and made a part of this Agreement. The City's RFP is hereby incorporated into and made a part of this Agreement and attached hereto as Exhibit °A". The Services and Scope of Work are hereby incorporated into and made a part of this Agreement and attached as Exhibit "B". The Contractor's Response and Pricing Proposal dated, April 28, 2017, in response to RFP 680381, is hereby incorporated into and made a part of this Agreement as attached Exhibit °C." The Contractor's Insurance Certificate is hereby incorporated into and made a part of this Agreement as attached Exhibit °D." The order of precedence whenever there is conflicting or inconsistent language between documents is as follows in descending order of priority: (1) Professional Services Agreement ("PSA") (2) Addenda/Addendum to the RFP; (3) RFP; and (4) Contractor's response and price proposal dated April 28, 2017, acknowledging scope of services and pricing component of services and, response to the Request for Proposals. 2. TERM; The Agreement shall become effective on the date stipulated on the first page, and shall continue for three (3) years, The City, at its sole discretion, reserves the right to exercise the option to renew this Agreement for an additional term of three (3) years. The City, acting by and through its City Manager, shall have the option to renew, extend or terminate the Agreement for convenience, that is, for any or no cause. 3. SCOPE OF SERVICES; A. Contractor agrees to provide the Services as specifically described, and under the special terms and conditions set forth in Exhibits "A" and "B" hereto, which by this reference is incorporated into and made a part of this Agreement. B, Contractor represents to the City that: (i) it possesses all qualifications, licenses, certificates, authorizations, and expertise required for the performance of the Services, including but not limited to full qualification to do business in Florida; (ii) it is not delinquent in the payment of any sums due the City, including payment of permits, fees, occupational licenses, etc., nor in the performance of any obligations or payment of any monies to the City; (iii) all personnel 2 Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 assigned to perf=orm the Services are and shall be, at all times during the term hereof, fully qualified and trained to perform the tasks assigned to each; (iv) the Services will be performed in the manner described in Exhibit "A"; and (v) each person executing this Agreement on behalf of Contractor has been duly authorized to so execute the same and fully bind Contractor as a party to this Agreement. C. Contractor shall, at all times, provide fully qualified, competent and physically capable employees to perform the Services under this Agreement. Contractor shall possess and maintain any required licenses, permits and certifications to perform the Services under this Agreement. City may require Contractor to remove any employees the City deems careless, incompetent, insubordinate, or otherwise objectionable and whose continued services under this Agreement is not in the best interest of the City. 4. COMPENSATION: A. The amount of compensation payable by the City to the Contractor shall be based on the negotiated price schedule in Exhibit "C' hereto, which, by this reference, is incorporated into and made a part of this Agreement. The rates for the initial three (3) year term is guaranteed as negotiated. The rates for the optional Plan Years 2021, 2022 and 2023 shall be negotiated. The Contractor shall advise the City of the recommended rates for the three (3) year renewal period by May V of the year prior to the start of the effected Plan Years (i.e., May 1, 2020), providing justification for any recommended rate increases above the previous year's rates, subject to the written concurrence of the City Manager. The City shall not be obliged to accept the increased rates. B. Payment shall be made in arrears based upon work performed to the satisfaction of the City within forty five (45 ) days after receipt of Contractor's invoice for Services performed, which shall be accompanied by sufficient supporting documentation and contain sufficient details, to allow a proper audit of expenditures, should the City require one to be performed. Invoices shall be sufficiently detailed so as to comply with the "Local Government Prompt Payment Act", §218.70. - 218.80, Florida Statutes, and other applicable laws. No advance or future payments shall be made at any time. C. Contractor agrees and understands that (i) any and all subcontractors providing Services related to this Agreement shall be paid through Contractor and not paid directly by the 3 Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 City, and (ii) any and all liabilities regarding payment to or use of subcontractors for any of the Services related to this Agreement shall be borne solely by Contractor. D. Rates shall remain firm and fixed for the initial three (3) Plan Years (January 1, 2018 — December 31, 2020). Rates will remain at the then current rates for the option or extension periods; however, prior to expiration of Plan Year 2020 and acceptance and execution of the three (3) year renewal term, the City may consider an adjustment based on Contractor's underwriting/actuarial methodology used to determine new rates. Supporting loss ratio claims experience data shall be provided as requested by the City to facilitate the rates review process. E. It is the Contractor's responsibility to request the pricing adjustment under this provision. For the adjustment to commence on the first day of Plan Year 2021, or exercised option period, the Contractor's requests for the adjustment must be submitted by May 15t of the year prior to the start of the effected Plan Year (i.e., May 1, 2020 for Plan Year 2021). All requests for adjustments must be in writing and contain sufficient detail so as to be evaluated by the City Manager or designee. If no adjustment request is received from the Contractor, this means that the Contractor has agreed that the optional period may be exercised without pricing adjustment. Any adjustment received after May 151 will not be considered. 5. OWNERSHIP OF DOCUMENTS: Contractor understands and agrees that any information, document, report or any other material whatsoever which is given by the City to Contractor, its employees, or any subcontractor, or which is otherwise obtained or prepared by Contractor solely and exclusively for the City pursuant to or under the terms of this Agreement, is and shall at all times remain the property of the City, except as such records are expressly exempted by applicable insurance, health, and medical privacy and confidentiality laws and regulations, inc#uding, but not limited to, the Contractor's proprietary business records created in the course of administering the group insurance policy(ies). Contractor agrees not to use any such information, document, report or material for any other purpose whatsoever without the written consent of the City Manager, which may be withheld or conditioned by the City Manager in his/her sole discretion. Contractor is permitted to make and to maintain duplicate copies of the files, records, documents, etc. if Contractor determines copies of such records are necessary subsequent to the termination of this Agreement; however, in no way shall the confidentiality as permitted by applicable laws be breached. The City shall maintain and retain ownership of any and all documents which result 4 Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 upon the completion of the work and Services under this Agreement as per the terms of this Section 5. 6. AUDIT AND INSPECTION RIGHTS AND RECORDS RETENTION: A. Contractor agrees to provide access to the City or to any of its duly authorized representatives, to any books, documents, papers, and records of Contractor which are directly pertinent to this Agreement, for the purpose of audit, examination, excerpts, and transcripts. The City may, at reasonable times, and for a period of up to three (3) years following the date of final payment by the City to Contractor under this Agreement, audit and inspect, or cause to be audited and inspected, those books, documents, papers, and records of Contractor which are related to Contractor's performance under this Agreement. Contractor agrees to maintain any and all such books, documents, papers, and records at its principal place of business for a period of three (3) years after final payment is made under this Agreement and all other pending matters are closed. Contractor's failure to adhere to, or refusal to comply with, this condition shall result in the immediate cancellation of this Agreement by the City. B. The City may, at reasonable times during the term hereof, inspect the Contractor's facilities and perform such tests, as the City deems reasonably necessary, to determine whether the goods or services required to be provided by Contractor under this Agreement conform to the terms hereof. Contractor shall permit the City to elect an audit by the City of Miami, or an agreed upon third party inspector (not a competitor) to perform inspection, Contractor shall make available to the City all reasonable facilities and assistance to facilitate the performance of tests or inspections by City representatives of pertinent books and records. All audits, tests and inspections shall be subject to, and made in accordance with, the provisions of Sections 18-100, 18-101, and 18-102 of the City Code, which apply to this Agreement, as same may be amended or supplemented, from time to time. The foregoing City Code Sections as well as the entirety of Chapter 18, "Finance", City of Miami Code, as amended and as applicable, is deemed as being incorporated by reference herein. Audits will also be subject to applicable privacy and confidential laws and the Contractor's internal privacy and confidentiality policies and procedures. 7. AWARD OF AGREEMENT: Contractor represents and warrants to the City that it has not employed or retained any person or company employed by the City to solicit or secure this Agreement and that it has not 5 Employee. Disability Insurance Program Rev. 8/2/11 City of Miami, Florida Contract No. RFP680381 offered to pay, paid, or agreed to pay any person any fee, commission, percentage, brokerage fee, or gift of any kind contingent upon or in connection with, the award of this Agreement. 8. PUBLIC RECORDS: A. Contractor understands that the public shall have access, at all reasonable times, to all documents and information pertaining to City Agreements, subject to the provisions of Chapter 119, Florida Statutes, and agrees to allow access by the City and the public to all documents subject to disclosure under applicable laws. Contractor's failure or refusal to comply with the provisions of this section shall result in the immediate cancellation of this Agreement by the City. B. Contractor shall additionally comply with Section 119.0701, Florida Statutes, including without limitation: (1) keep and maintain public records required by the City to perform the service; (2) upon request from the City's custodian of public records, provide the City with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law; (3) ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the contract if the contractor does not transfer the records to the City; (4) upon completion of the contract, transfer, at no cost, to the City all public records in possession of the contractor or keep and maintain public records required by the City to perform the service. If the contractor transfers all public records to the City upon completion of the contract, the Contractor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the contractor keeps and maintains public records upon completion of the contract, the contractor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the City, upon request from the City's custodian of public records, in a format that is compatible with the information technology systems of the City; and, (6) comply with all State of Florida and federal privacy laws and regulations that are applicable to Contractor's business. Notwithstanding the foregoing, Contractor shall be permitted to retain any public records that make up part of its work product solely as required for archival purposes, as required by law, or to evidence compliance with the terms of the Agreement, To the extent allowed by the Public Records Act, Chapter 119, Florida Statute, if applicable, public records shall not include any of the Contractor's proprietary I: Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 business records created in the course of administering the group insurance policies issued to the City. C. Should Contractor determine to dispute any public access provision required by Florida Statutes, then Contractor shall do so at its own expense and at no cost to the City. Contractor may maintain an exemption for such personal information such as Social Security Numbers of members or medical information exempted by general law. Should Contractor determine to dispute any public access provision required by Florida Statutes, then Contractor shall do so at its own expense and at no cost to the City. IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT (305) 416-1830, Via email at PubficRecords miami ov.com, or regular email at City of Miami Office of the City Attorney, 444 SW 2"d Avenue, 9th FL, Miami, FL 33130. 9. PRIVACY AND CONFIDENTIALITY Contractor agrees to develop, adopt, and implement standards to safeguard the privacy and confidentiality of all personal information about eligible employees and members of the Program. For example, Contractor shall ensure that Contractor does not have completed forms containing personal information sitting in public view, left in unsecured boxes or files, or left unattended in any off-site location. Contractor's procedures shall include but not be limited to safeguarding the identity of members as members of the Program and preventing unauthorized disclosure of personal information. Contractor agrees to report any unauthorized use or disclosure of the members' personal information to the City within one (1) business day of any incident of which it becomes aware. Contractor agrees to comply with all federal and state laws concerning the privacy and confidentiality of members' information, and agrees to implement any regulations when they become effective. In the absence of exigent circumstances, Contractor shall not disclose any member's personal information to another business associate for pecuniary gain unless the City specifically authorizes such disclosure in writing. Contractor agrees to mitigate, to the extent practicable, any 7 EmpEcyee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 harmful effect that is known to the Contractor of a use or disclosure of members' information by the Contractor in violation of the requirements of this Agreement or federal or state laws. Contractor agrees to (1) implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of the electronic personal information of members that Contractor creates, receives, maintains, or transmits; (ii) report to the City any security incidents of which the Contractor becomes aware, and (iii) ensure that any agents of the Contractor, including any subcontractors or sub consultants hired solely for the purpose of performing services to the City under this Agreement, agree to the same restrictions and conditions that apply to the Contractor with respect to such information. Contractor agrees not to sell member information. Contractor shall not use member information unless it is aggregated blinded data, which is not identifiable on a member basis. Contractor shall not use member identified or non -aggregated information for advertising, marketing, promotion or any activity intended to influence sales or market share of any product or service. Contractor shall have full financial responsibility for any penalties, fines, or other payments imposed or required as a result of Contractor's non-compliance with, or violation of, federal or state requirements, and the Contractor shall indemnify the City with respect to any such penalties, fines, or payments. Contractor shall assure that all Contractor's staff, including subcontractors or sub consultants that are hired solely for the purpose of performing services to the City under this Agreement, are trained in all privacy requirements, as applicable. At the request of the City, Contractor shall offer credit protection for those times in which a member's personal information is accidentally or inappropriately disclosed. 10. INDIVIDUALLY IDENTIFIABLE HEALTH INFORMATION AND/OR PROTECTED HEALTH INFORMATION If applicable, any person or entity that performs or assists the City with a function or activity involving the use or disclosure of "Individually Identifiable Health Information (IIHI) and/or Protected Health Information (PHI) shall comply with the Health Insurance Portability and Accountability Act (HIPAA) of 1996, and the City of Miami Privacy Standards. HIPAA mandates the privacy, security, and electronic transfer standards, include but are not limited to: 8 Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 1. Use of information for performing services required by the Contract or as required by law; 2. Use of appropriate safeguards to prevent non -permitted disclosures; 3. Reporting to the City of any non -permitted use or disclosures; 4. Assurances that any agents and subcontractors agree to the same restrictions and conditions that apply to the Contractor and reasonable assurances that IIHI/PHI will be held confidential; 5. Making PHI available to the customer; 6. Making PHI available to the customer for review and amendment; and incorporating any amendments requested by the customer; 7. Making PHI available to the City for an accounting of disclosures; and 8. Making internal practices, books, and records related to PHI available to the City for compliance audits. PHI shall maintain its protected status regardless of the form and method of transmission (paper records, and/or electronic transfer of data). The Contractor must give its customers written notice of its privacy information practices including specifically a description of the types of uses and disclosures that would be made with protected health information. 11. COMPLIANCE WITH FEDERAL STATE AND LOCAL LAWS: Contractor understands that agreements with local governments are subject to certain laws and regulations, including laws pertaining to public records, conflict of interest, record keeping, etc. City and Contractor agree to comply with and observe all such applicable federal, state and local laws, rules, regulations, codes and ordinances, as they may be amended from time to time. Contractor further agrees to include in all of Contractor's agreements with subcontractors for any Services related to this Agreement this provision requiring subcontractors to comply with and observe all applicable federal, state, and local laws rules, regulations, codes and ordinances, as they may be amended from time to time. 12. INDEMNIFICATION: Contractor shall indemnify, hold harmless, and defend, at its own costs and expense, the City and its officials and employees for claims (collectively referred to as "Indemnitees") and each of them from and against all loss, costs, penalties, fines, damages, claims, expenses (including 0 Employee Disability Insurance Program Rev, 8/2/17 City of Miami, Florida Contract No. RFP680381 attorney's fees) or liabilities (collectively referred to as "Liabilities") by reason of any injury to or death of any person or damage to or destruction or loss of any property arising out of, resulting from, or in connection with (i) the negligence, recklessness, negligent act or omission, or intentional wrongful misconduct of Contractor or persons employees or utilized by Contractor in the performance of this Contract or (ii) omissions or any actions/claims arising out of the a failure to comply with this Contract, or any applicable laws, codes, rules or regulations. Contractor expressly agrees to indemnify, defend and hold harmless the Indemnitees, or any of them, from and against all liabilities which may be asserted by an employee or former employee of Contractor, or any of its subcontractors, as provided above, for which the Contractor's liability to such employee or former employee would otherwise be limited to payments under state Workers' Compensation or similar laws. Contractor further agrees to indemnify, defend and hold harmless the Indemnitees from and against (i) any and all Liabilities imposed on account of the violation of any law, ordinance, order, rule, regulation, condition, or requirement, related directly to Contractor's negligent performance under this Agreement, compliance with which is left by this Agreement to Contractor, and (ii) any and all claims and/or suits for services furnished by Contractor or utilized in the performance of this Agreement or otherwise, Contractor understands and agrees that any and all liabilities regarding the use of any subcontractors for Services related to this Agreement shall be borne solely by Contractor throughout the duration of this Agreement and that this provision shall survive the termination or expiration of this Agreement, as applicable. 13. DEFAULT: If Contractor fails to comply with any terms or conditions of this Agreement, or fails to perform in any material way any of its duties obligations hereunder, and fails to cure such failure after reasonable notice from the City, which period to cure shall be complied with when stated in the written notice form the City, then Contractor shall be in default. Contractor understands and agrees that the termination of this Agreement under this section shall not release Contractor from any obligations accruing prior to the effective date of termination. Should Contractor be unable or unwilling to commence to perform the Services within the time provided or contemplated herein, then, in addition to the foregoing, Contractor may be liable to the City for all expenses incurred by the City in preparation and negotiation of this Agreement, as well as all costs and expenses incurred by the City in the re -procurement of the Services, including consequential and incidental 10 Fmployee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 damages. In no event, however, shall Contractor pay cover costs related to obtaining alternate or replacement coverage, 14. RESOLUTION OF AGREEMENT DISPUTES: Contractor understands and agrees that all disputes between Contractor and the City based upon an alleged violation of the terms of this Agreement by the City shall be submitted to the City Manager for his/her resolution, prior to Contractor being entitled to seek judicial relief in connection therewith. In the event that the amount of compensation hereunder exceeds Twenty - Five Thousand Dollars and No/Cents ($25,000), the City Manager's decision shall be approved or disapproved by the City Commission. Contractor shall not be entitled to seek judicial relief unless: (i) it has first received City Manager's written decision, approved by the City Commission if the amount of compensation hereunder exceeds Twenty -Five Thousand Dollars and No/Cents ($25,040), or (fi) a period of sixty (60) days has expired, after submitting to the City Manager a detailed statement of the dispute, accompanied by all supporting documentation (one hundred and twenty (120) days if City Manager's decision is subject to City Commission approval); or (iii) City has expressly waived compliance with the procedure set forth in this section by written instruments, signed by the City Manager, In no event may the amount of compensation under this Section exceed the total compensation set forth in Section 4 (A) of this Agreement. 15. TERMINATION; OBLIGATIONS UPON TERMINATION: A. The City, acting by and through its City Manager, shall have the right to terminate this Agreement, in its sole discretion, and without penalty, at any time, by giving written notice to Contractor at least thirty (30) calendar days prior to the effective date of such termination. In such event, the City shall pay to Contractor compensation for Services rendered and approved expenses incurred prior to the effective date of termination. In no event shall the City be liable to Contractor for any additional compensation and expenses incurred, other than that provided herein, and in no event shall the City be liable for any consequential or incidental damages. The Contractor shall have no recourse or remedy against the City for a termination under this subsection except for payment of fees due prior to the effective date of termination. B. The City, by and acting through its City Manager, shall have the right to terminate this Agreement, in its sole discretion, and without penalty, upon the occurrence of an event of a material breach hereunder, and failure to cure the same within thirty (30) days after written notice 11 Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 of default. In such event, the City shall not be obligated to pay any amounts to Contractor for Services rendered by Contractor after the date of termination, but the parties shall remain responsible for any payments that have become due and owing as of the effective date of termination. In no event shall the City be liable to Contractor for any additional compensation and expenses incurred, other than that provided herein, and in no event shall the City be liable for any direct, indirect, consequential or incidental damages. C. Contractor may terminate automatically the Agreement, if premiums are not paid by the end of the forty-five (45) days grace period. Contractor may terminate with at least 31 days advance written notice to the City if, on any premium due date, the number of persons insured is less than the minimum participation of twenty percent (20%). 16. INSURANCE: A. Contractor shall, at all times during the term hereof, maintain such insurance coverage(s) as may be required by the City. The insurance coverage(s) required as of the Effective Date of this Agreement are attached hereto as Exhibit "D" and incorporated herein by this reference. The City's Contract number and title (Contract No. RFP680381, Empbyee Disability Insurance Program), must appear on each certificate of insurance. The Contractor shall add the City of Miami as an additional insured to its commercial general liability, and auto liability policies, and as a named certificate holder on all policies. Contractor shall correct any insurance certificates as requested by the City's Risk Management Administrator. All such insurance, including renewals, shall be subject to the approval of the City for adequacy of protection and evidence of such coverage(s) and shall be furnished to the City Risk Management Administrator on Certificates of Insurance indicating such insurance to be in force and effect and any cancelled or non -renewed policy will be replaced with no coverage gap and a current Certificate of Insurance will be provided. Completed Certificates of Insurance shall be filed with the City prior to the performance of Services hereunder, provided, however, that Contractor shall at any time; upon request file duplicate copies of the Certificate of Insurance with the City. B. Contractor understands and agrees that any and all liabilities regarding the use of any of Contractor's employees or any of Contractor's subcontractors for Services related to this Agreement shall be borne solely by Contractor throughout the term of this Agreement and that this provision shall survive the termination of this Agreement. Contractor further understands and agrees that insurance for each employee of Contractor and each subcontractor providing Services 12 Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 related to this Agreement shall be maintained in good standing and approved by the City Risk Management Administrator throughout the duration of this Agreement. C. Contractor shall be responsible for assuring that the insurance certificates required under this Agreement remain in full force and effect for the duration of this Agreement, including any extensions hereof. If insurance certificates are scheduled to expire during the term of this Agreement and any extension hereof, Contractor shall be responsible for submitting new or renewed insurance certificates to the City's Risk Management Administrator as soon as coverages are bound with the insurers. In the event that expired certificates are not replaced, with new or renewed certificates which cover the term of this Agreement and any extension thereof: (i) the City shall suspend this Agreement until such time as the new or renewed certificate(s) are received in acceptable form by the City's Risk Management Administrator; or (ii) the City may, at its sole discretion, terminate the Agreement for cause and seek re - procurement damages from Contractor in conjunction with the violation of the terms and conditions of this Agreement. D. Compliance with the foregoing requirements shall not relieve Contractor of its liabilities and obligations under this Agreement. 17, NONDISCRIMINATION: Contractor represents to the City that Contractor does not and will not engage in discriminatory practices and that there shall be no discrimination in connection with Contractor's performance under this Agreement on account of race, color, sex, religion, age, handicap, marital status or national origin. Contractor further covenants that no otherwise qualified individual shall, solely by reason of his/her race, color, sex, religion, age, handicap, marital status or national origin, be excluded from participation in, be denied services, or be subject to discrimination under any provision of this Agreement. 18. ASSIGNMENT: This Agreement shall not be assigned, sold, transferred, pledged, encumbered, hypothecated, or otherwise conveyed by Contractor, in whole or in part, , without the prior written consent of the City Manager, which may not be unreasonably withheld or conditioned; the City shall act in this regard through the City Manager. 13 Employee Disability Insurance Program Rev. $/2/17 City of Miami, Florida 19. NOTICES: Contract No. RFP680381 All notices or other communications required under this Agreement shall be in writing and shall be given by hand -delivery or by registered or certified U.S. Mail, return receipt requested, addressed to the other party at the address indicated herein or to such other address as a party may designate by notice given as herein provided. Notice shall be deemed given on the day on which personally delivered; or, if by mail, on the fifth day after being posted or the date of actual receipt, whichever is earlier. TO CONTRACTOR: Scott B. Wheeler Senior Employee Benefits Consultant Standard Insurance Company Radice Corporate Center 800 Corporate Drive, Suite 210 Ft. Lauderdale, FL 33334 TO THE CITY: Daniel J. Alfonso City Manager 444 SW 2"d Avenue, 10th Floor Miami, FL 33130-1910 Annie Perez, CPPO Procurement Director 444 SW 2nd Avenue, 6th Floor Miami, FL 33130-1910 20. MISCELLANEOUS PROVISIONS: A. This Agreement shall be construed and enforced according to the laws of the State of Florida. Venue in any proceedings between the parties shall be in Miami -Dade County, Florida. Each party sha11 bear its own attorney's fees. Each party to this Agreement waives any defense, whether asserted by motion or pleading, that the aforementioned courts are an improper or inconvenient venue; however, this venue provision does not apply to disputes arising between the Contractor and any individual claimants regarding the group insurance policy or coverage issues thereunder. Moreover, the parties consent to the personal jurisdiction of the aforementioned courts and irrevocably waive any objections to said jurisdiction. The parties irrevocably, voluntarily and knowingly waive any rights to a jury trial. 14 Fmployee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 B. No waiver or breach of any provision of this Agreement shall constitute a waiver of any subsequent breach of the same or any other provision hereof, and no waiver shall be effective unless made in writing. C. Should any provision, paragraph, sentence, word or phrase contained in this Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable under the laws of the State of Florida or the City of Miami, such provision, paragraph, sentence, word or phrase shall be deemed modified to the extent necessary in order to conform with such laws, or if not modifiable, then the same shall be deemed severable, and in either event, the remaining terms and provisions of this Agreement shall remain unmodified and in full force and effect or limitation of its use. D. Contractor shall comply with all applicable laws, rules and regulations in the performance of this Agreement, including but not limited to licensure, and certifications required by law for professional service Contractors. E. This Agreement constitutes the sole and entire agreement between the parties hereto. No modification or amendment hereto shall be valid unless in writing and executed by properly authorized representatives of the parties hereto. Except as otherwise set forth in Section 2 above, the City Manager shall have the sole authority to extend, amend, or modify this Agreement on behalf of the City. F. Contractor's group insurance policies, which are attached to and made a part of this Agreement, shall only be amended per the terms of such policies, providing that the City's Risk Management Director agrees in writing to such change, and their approval will not be unreasonably withheld. This provision shall not be construed to limit Contractor's ability to endorse its group policies based on changes in applicable laws. 21. SUCCESSORS AND ASSIGNS This Agreement shall be binding upon the parties hereto, their heirs, executors, legal representatives, successors, or assigns. 22. INDEPENDENT CONTRACTORS: Contractor has been procured and is being engaged to provide Services to the City as an independent contractor, and not as an agent or employee of the City. Accordingly, neither Contractor, nor its employees, nor any subcontractor hired by Contractor to provide any Services under this Agreement shall attain, nor be entitled to, any rights or benefits under the Civil Service or Pension Ordinances of the City, nor any rights generally 15 Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No, RFP680381 afforded classified or unclassified employees. Contractor further understands that Florida Workers' Compensation benefits available to employees of the City are not available to Contractor, its employees, or any subcontractor hired by Contractor to provide any Services hereunder, and Contractor agrees to provide or to require subcontractor(s) to provide, as applicable, workers' compensation insurance for any employee or agent of Contractor rendering Services to the City under this Agreement. Contractor further understands and agrees that Contractor's or subcontractors' use or entry upon City properties shall not in any way change its or their status as an independent contractor. 23. CONTINGENCY CLAUSE: Funding for this Agreement is contingent on the availability of funds and continued authorization for program activities and the Agreement is subject to amendment or termination due to lack of funds, reduction of funds, failure to allocate or appropriate funds, and/or change in applicable laws or regulations, upon thirty (30) days written notice. The City shall be liable for premiums through the effective date of termination of any of Contractor's group insurance policies issued to the City. 24. FORCE MAJEURE: A "Force Majeure Event" shall mean an act of God, act of governmental body or military authority, fire, explosion, power failure, flood, storm, hurricane, sink hole, other natural disasters, epidemic, riot or civil disturbance, war or terrorism, sabotage, insurrection, blockade, or embargo. In the event that either party is delayed in the performance of any act or obligation pursuant to or required by the Agreement by reason of a Force Majeure Event, the time for required completion of such act or obligation shall be extended by the number of days equal to the total number of days, if any, that such party is actually delayed by such Force Majeure Event. The party seeking delay in performance shall give notice to the other party specifying the anticipated duration of the delay, and if such delay shall extend beyond the duration specified in such notice, additional notice shall be repeated no less than monthly so long as such delay due to a Force Majeure Event continues. Any party seeking delay in performance due to a Force Majeure Event shall use its best efforts to rectify any condition causing such delay and shall cooperate with the other party to overcome any delay that has resulted. 16 Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 25. CITY NOT LIABLE FOR DELAYS: Contractor hereby understands and agrees that in no event shall the City be liable for, or responsible to Contractor or any subcontractor, or to any other person, firm, or entity for or on account of, any stoppages or delay(s) in work herein provided for, or any damages whatsoever related thereto, because of any injunction or other legal or equitable proceedings or on account of any delay(s) for any cause over which the City has no control. 26. USE OF NAME: Contractor understands and agrees that the City is not engaged in research for advertising, sales promotion, or other publicity purposes. Contractor is allowed, within the limited scope of normal and customary marketing and promotion of its work, to use the general results of this project and the name of the City. The Contractor agrees to protect any confidential information provided by the City and will not release information of a specific nature without prior written consent of the City Manager or the City Commission. 27. NO CONFLICT OF INTEREST: Pursuant to City of Miami Code Section 2-611, as amended ("City Code"), regarding conflicts of interest, Contractor hereby certifies to the City that no individual member of Contractor, no employee, and no subcontractor under this Agreement nor any immediate family member of any of the same is also a member of any board, commission, or agency of the City. Contractor hereby represents and warrants to the City that throughout the term of this Agreement, Contractor, its employees, and its subcontractors will abide by this prohibition of the City Code. 28. NO THIRD -PARTY BENEFICIARY: No persons other than the Contractor and the City (and their successors and assigns) shall have any rights whatsoever under this Agreement. 29. SURVIVAL: All obligations (including but not limited to indemnity and obligations to defend and hold harmless) and rights of any party arising during or attributable to the period prior to expiration or earlier termination of this Agreement shall survive such expiration or earlier termination. 30. TRUTH -IN -NEGOTIATION CERTIFICATION, REPRESENTATION AND WARRANTY: Contractor hereby certifies, represents and warrants to the City that on the date of Contractor's 17 Employee Disability Insurance Program Rev. 8/2/11 City of Miami, Florida Contract No. RFP680331 execution of this Agreement, and so long as this Agreement shall remain in full force and effect, the wage rates and other factual unit costs supporting the compensation to Contractor under this Agreement are and will continue to be accurate, complete, and current. Contractor understands, agrees and acknowledges that the City shall adjust the amount of the compensation and any additions thereto to exclude any significant sums by which the City determines the contract price of compensation hereunder was increased due to inaccurate, incomplete, or non-current wage rates and other factual unit costs. All such contract adjustments shall be made within one (1) year of the end of this Agreement, whether naturally expiring or earlier terminated pursuant to the provisions hereof. 31. COUNTERPARTS: This Agreement may be executed in three or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute one and the same agreement. 32. ENTIRE AGREEMENT: This instrument and its attachments constitute the sole and only agreement of the parties relating to the subject matter hereof and correctly set forth the rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect. 18 Employee Disability Insurance Program Rev. $/2/17 City of Miami, Florida Contract No. RFP680381 IN WITNESS WHEREOF, the part"les hereto have caused this instrument to be executed by their respective officials thereunto duly authorized, this the day and year above written. ATTEST: Todd B. Hannon, City Clerk ATTEST: 5uj Y), (,- "City" CITY OF MIAMI, a municipal corporation By: Daniel J. Alfonso, City Manager "Contractor" STANDARD INSURANCE COMPANY A foreign profit corporation OFFICIAL STAMP a BRENT DUANE WILSON NOTARY PUBLIC-OREGON COMMISSION NO.962867 t ` MY COMMISSION EXPIRES JUNE 05, 2021 By: Print Name: Brent wi son Print Name: Graeme Queen Title: Notary Public (Corporate Sea]) APPROVED AS TO LEGAL FORM AND CORRECTNESS: Victoria Mendez City Attorney 19 Title: 2nd VP Strategic Account Services (Authorized Corporate Officer) APPROVED AS TO INSURANCE REQUIREMENTS: Ann -Marie Sharpe Risk Management Director Employee Disability Insurance Program Rev. 8/2/17 City of Miami, Florida Contract No. RFP680381 CORPORATE RESOLUTION (This Resolution needs to authorize the signatory to sign) WHEREAS, ,, a corporation, desires to enter into an agreement with the City of Miami for the purpose of performing the work described in the contract to which this resolution is attached; and WHEREAS, the Board of Directors at a duly held corporate meeting has considered the matter in accordance with the bylaws of the corporation; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS that this corporation is authorized to enter into the Agreement with the City, and the President and the Secretary are hereby authorized and directed to execute the Agreement in the name of this Corporation and to execute any other document and perform any acts in connection therewith as may be required to accomplish its purpose. IN WITNESS WHEREOF, this day of , 2016. ("Provider") 0 Print Name: TITLE: Print Name: (State) Corporation (sign) (sign) 20 Employee Disability Insurance Program Rev, 8/2/17 City of Miami, Florida EXHIBIT A RFP No. 680381 21 Contract No. RFP680381 Fmployee Disability Insurance Program Bev. 8/2/17 ADDENDUM NO. 1 DATE: April 4, 2017 TO: ALL PROSPECTIVE PROPOSERS SUBJECT: SOLICITATION NO.: RFP 680381 TITLE: Employee Disability Insurance Program This Addendum becomes a part of the subject solicitation. The following is an inquiry received and the corresponding response: 1. Is this the formal RFP, and are there missing attachments? If this is complete, is that the only census, as it is not a complete census and there is no experience. Or are we to use the information from the previous RFP or is more forthcoming, Response: Request for Proposals (RFP) 680381 is a new RFP, and is complete as advertised. The census is also complete; there is no experience, as this is a new program for participants. Please note that this is a new RFP so refrain from using information from the previously rejected RFP, as this solicitation was revised and may contain new and additional information. All other information remains the same. APPROVED: —441 6davx Annie Perez, CPPD, Director of Procurement LO:lo c. Lydia Osborne, CPPD, Assistant Director of Procurement Ann -Marie Sharpe, Director, Risk Management Rafael Suarez -Rivas, Senior Assistant City Attorney Date ADDENDUM NO. 2 DATE: April 13, 2017 TO: ALL PROSPECTIVE PROPOSERS SUBJECT: SOLICITATION NO.: RFP 680381 TITLE: Employee Disability Insurance Program This Addendum becomes a part of the subject solicitation. The following is an inquiry received and the corresponding response: 1. Please provide additional information such as dates of birth and salary, as this information does not appear on the census that was provided. Response: Please see attached. All other information remains the same. APPROVED: Z a Adman7, 4/13117 Annie Perez, CPPO, Director of Procurement Date LO:Io c. Lydia Osborne, CPPD, Assistant Director of Procurement Ann -Marie Sharpe, Director, Risk Management Rafael Suarez -Rivas, Senior Assistant City Attorney RFP No- 607381 Exhibit 1 Employee Disability Insurance Program Executive Employee Census PERSON TYPE GENDER HR EMPLOYEE GROUP DATE OF BIRTH JOB TITLE RNG STEP YRLY SALARY -BASIS Employee F Executives 25 -May -78 Director, Net Program 24.E 126720 Annual Employee M Police Executives 5 -Jan -80 Net Commander 01.EP 24 124879.24 Annual Employee M Executives 8 -Apr -48 Net Administrator 38.E 71652.04 Annual Employee M Police Executives 26 -Aug -67 Police Major 02.EP 34 151664.44 Annual Employee M Executives 27 -May -68 City Manager 08.Res 203776 Annual Employee M Police Executives 7 -Jul -66 Net Commander 01.EP 34 137876.75 Annual Employee M Fire Executives Police Executives 11 -der --68 3 -Apr -67 Executive Officer to the Fire Chief Sergeant -At -Arms 01.EF OO.EP 10 -Year 34 120461.95 115551.95 Annual Annual qeF Executives 17 -Aug -84 Senior Advisor to the City Manager 23.E 105169.92 Annual Executives Executives 16 -Dec -66 19 -Jun -52 Assistant Director, Capital Improvement Prog-Infra Executive Director, Civilian Investigative Panel 23.E 23.E 98428.1 128000 Annual Annual mployee h1 Police Executives 15 -Sep -61 Exec Asst--Pol Chf, Sr 00.EP 20 97209.84 Annual Employee L1 Executives 18 -Dec -75 Treasurer 22.E 126533.46 Annual Employee Employee M F Pali[e Executives Executives 7 -Jan -58 21 -Nov -75 Net Commander Net Administrator 01.EP 18.F 34 137876.75 Annual 69904.43 Annual RFP No. 607381 Exhibit 1 Employee Disability Insurance Program Executive Employee Census Employee F Executives 11 -Oct -64 Director, Grants And Sustainable Initiat 23.E 111000 Annual Employee M Executives 13 -Oct -58 Chief Information Off icer/Director of iT 26.E 129228.8 Annual Employee M Executives 13 -May -64 Asst Dir Of Public Facilities 21.E 105882.4 Annual Employee M Police Executives 15 -Sep -67 Deputy Police Chief 04.EP 36 170554.38 Annual Employee M Police Executives 28 -May -74 Sergeant -At -Arms OO.EP 26 104684.37 Annual Employee F Executives 25 -May -52 Chief§f AdvisorlG.A.0 to MayorlDireetor, O_I.B.D 28.E 153600 Annual Employee F Executives 20 -Mar -71 Chief of Code Compliance 20.E 94208 Annual Employee F Police Executives 2 -May -72 Net Commander 01.EP 30 132522.83 Annual Employee M Police Executives 9 -Nov -64 Net Commander 01.EP 34 137876.75 Annual Employee M Executives 19 -Mar -69 Chief Fin Officer (CFO)lAssistant City Manager 28.E 170000 Annual Employee M Police Executives 15 -Dec 62 Police Major 02.EP 34 151664.44 Annual Employee M Police Executives 8 -Apr -67 Asst Chief Police 03.EP 34 159247.71 Annual Employee M Executives 24 -Mar -67 Deputy CIO/Asst. Dir. IT 23_E 115000 Annual Employee F Police Executives 1 -Sep -57 Exec.Asst-Pol Chf, Sr OO.EP 40 124436.81 Annual Employee: M Pglice Executives 3 -Sep -62 Police Major 02.EP 34 151664.44 Annual Employee M Police Executives 12 -Aug -59 Net Commander 01.EP 34 137876.75 Annual RFP No. 607381 Exhibit 1 Employee Disability Insurance Program Executive Employee Census Employee M Executives 20 -Jun -71 Assistant Director, Risk Management 20.E ---T85000 Annual Employee F Executives 12 -Nov -63 Net Administrator, Sr 20.E 89705.11 Annual Employee M Fire Executives 25 -Feb -63 Asst Chief Fire 03.EF 21 -Year 184336.44 Annual Employee F Executives 13 -Jun -78 Deputy Director 23.E 95232 Annual Employee M Fire Executives 8 -Apr -77 Asst Chief Fire 03. EF 15 -Year 150096.13 Annual Employee M Executives 24 -Jun -59 Deputy Director 23.E 110907.56 Annual Employee F Executives 9 -Apr -64 Asst. Director, Community Development 20.E 98158.2 Annual Employee F Executives 18 -Sep -78 Assistant City Clerk 20.E 78300 Annual Employee M Executives 27 -Jun -50 Dir General Sero. Admin 25-E 124000 Annual Employee Employee F M Police Executives Executives 9 -Jul -71 19 -Aug -55 Police Major Senior Assistant To City Manager 02.EP 22.E 142916.8 122797.09 Annual Annual Employee Employee Employee M M M Fire Executives Executives Police Executives 5 -pct -70 18 -Dec -63 28 -Sep -69 Asst Chief Fire Dir Finance Police Major 03.EF 26-E 02.EP 21 -Year 32 184336.44 147632 148690.67 Annual Annual Annual Employee Employee M M Poiice Executives Police Executives 13 -Feb -66 19 -Jan -70 Net Commander Sergeant At-Arras99.OTH 01.EP 34 437876.75 118370.29 Annual Annual RFP No. 607381 Exhibit 1 Employee Disability Insurance Program Executive Employee Census Employee Employee M M Fire Executives Executives 11 -Feb -62 31 -pct -67 Asst Chief Fire, Fire Marshall Director, Planning —63 EF 25.E 10 -Year 184336.44 149884.8 Annual Annual Employee M Fire Executives 22 -Qct -68 Asst Chief Fire 03.EF 21 -Year 165579.44 Annual Employee M Police Executives 9 -Apr -59 Asst Chief Police 03.EP 38 165579.02 Annual Employee M Fire Executives 9 -Jun -62 Asst Chief l=ire 03.EF 184336.44 Annual Employee F Executives 11 -Apr -75 Assl Dir -Planning And Development 21.1 105260 Employee Employee M M Executives Executives 14 -Jan -53 23 -Jan -79 Auditor General Director, Code Compliance 24.E 148480 93678.62 EAnnual Annual Employee Employee Ivl F Executives Executives 23 -Sep -71 19 -Feb -79 City Clerk Assistant to the City Manager 04.Res 20,E 128000 Annua[ 90200 Annual Employee Employee F M Executives Executives 13 -Aug -82 18-0ct-54 Net Administrator Senior Director of Building, Planning, & Zoning 18.E 27.E 71652.04 Annual 160000 Annual Employee M Executives 5 -Dec -61 Chief of Operations (CO}/Assistant City Manager 28.E 175000 Annual Employee Employee M M Police Executives F"sre Executives 5 -Dec -69 23 -Apr -59 Police Major Chief Of Fire 02.1=P 05.EF 32 148690.67 Annual 223329 Annual Employee F Executives 20 -Dec -62 As# Dir Net 22.E 84989.25 Annual RFP No. 607381 Exhibit 1 Employee Disability Insurance Program Executive Employee Census Employee M Executives 11 -May -62 Dir., Parks & Rec 24.E 125000 Annual Employee F Executives 27 -Jan -81 Dir Human Resources 26.E 133500 Annual Employee M Police Executives 19 -Oct -66 Net Commander 01.EP 34 137876.75 Annual Employee M Executives 22 -Sep -70 Net Administrator 98.E 71652.04 Annual Employee M Police Executives 23 -May -70 Sergeant -At -Arms OO.EP 24 102131.09 Annual Employee M Police Executives 3 -Dec -66 Chief Of Police 99.OTH 180000 Annual Employee Ni- Executives 26 -Oct -74 Ast Dir Human Resources 21.E 115000 Annual Employee M Police Executives 26 -May -56 Police Major 02.EP 34 151664.44 Annual Employee M Police Executives 31 -Mar -66 Police Major 02.EP 34 151664.44 Annual Employee Employee M F Fire Executives Executives 12 -Aug -68 17 -Feb -72 Asst Chief Fire Agenda Coordinator 03 -EF 18.E 21 -Year 165579.44 97268.46 Annual Annual Emp}oyee M Police Executives 22 -pct -67 Police Major 02.EP 26 140114.62 Annual Employee h1 Executives 30 -Sep -57 Dir Community Dev€pt 26.E 122073.41 Annual Employee h1i Executives 5 -Jul -61 Deputy Director 23.E 113540 Annual Employee F Police Executives 3 -Mar -64 Net Commander 01.EP 28 129924.49 Annual Employee F Executives 8 -Oct -66 Executive Secretary-Csb 20.E 112508.81 Annual RFP No. 607381 Exhibit 1 Employee Disability Insurance Program Executive Employee Census EEmployeeTMFire Executives 27 -May -59 Executive Officer to the Fire Chief 01.EF 16 -Year 126560.3 Annual Police Executives 23 -Oct -70 Net Commander 01.EP 30 132522.83 Annual Employee Police Executives 5 -pec -64 Police Major 02.EP 34 151664.44 Annual Employee fi Police Executives 24 -Nov -60 Asst Chief Police 03.EP 38 165579.02 Annual Employee M Executives 19 -Jan -64 Dir, Solid Waste 25.E 137600 Annual Employee Employee F F Executives Executives 30 -Dec -54 8 -Nov -67 Assistant Director of Procurement Net Administrator 21.E 19.E 112855.04 78708.52 Annual Annual Employee M Police Executives 8 -Jun -70 Police Major 02.EP 30 145775,13 Annual Employee F Executives 25 -Jun -76 Ast Dir Of Finance 22.E 106524.47 Annual Employee F Executives 12 -Apr -70 Dir, Purchasing 24.E 126003.2 Annual Employee M Police Executives 29 -Aug -66 Police Major 02.EP 32 148690.67 Annual Employee Police Executives 14 -May -73 Net Commander 01.EP 28 129924.49 Annual Employee h:i Fire Executives 10 -May -62 Deputy Fire Chief 04.EF 21 -Year 184336.44 Annual Employee 1v1 Fire Executives 9 -Mar -78 Asst Chief Fire 03.EF 15 -Year 167099.2 Annual Employee Employee M M Executives Executives 26 -Feb -68 15 Oct Net Administrator Deputy Director 18.E 23.E 71552.04 115000 Annual Annual RFP leo. 607381 Exhibit 1 Employee Disability Insurance Program Executive Employee Census Employee M Executives 18 -Mar -78 Net Administrator -E-- TS. 71652.04 Annual Employee Employee M F Fire Executives Executives 25-Au9-60 9 -Jun -77 Asst Chief Fire Asst Dir Gsa 03.EF 21 -Year 184336.44 Annual 22.E 84969.25 Annual Employee M Police Executives 3 -Feb -82 Exec Asst--Pol Chf, Sr 00 -EP 20 97209.84 Annuat Employee M Executives 24 -May -47 Executive Mayor11,M Y r 0 Annual Employee M Executives 23 -May -72 Net Administrator Eo/Diversity Prg, Admin Net Administrator Director, Capital Improvement Program Net Commander Director. Office of Management and Budget Dir Public Facilities Police Major Dir Public Works Deputy Director Director, Risk Management 18.E 69904.43 Annual Employee F Executives 7 -May -69 22.E 105000 Annual Employee F Executives, 3-Oet-66 19.E HE 75254.57 135000 Annual Annual Employee M Executives 8 -Jan -71 Employee Employee M M Police Executives Executives 19 -Mar -74 1 -Jan -70 01.EP 26.E 28 129924.49 141488 Annual Annual Employee Employee M M Executives Police Executives 11 -Oct-66 2 -Dec -61 24.E 139264 Annual 02.EP 27.E 34 151664.44 129228.8 Annual Annual Employee Employee Employee M tv F Executives Executives Executives 29•Qct 64 16 -Nov -7E 26 -Oct -62 23-E 23.E 129866 112640 Annual Annual RFP No. 607381 Exhibit 1 Employee Disability Insurance Program Executive Employee Census Employee M Executives 13 -Jun -73 Asst. Director, Community Development 20.E 100292.24 Annual Employee M Executives 16 -Aug -67 Homeless Program Administrator 18.E 85287.63 Annual Employee M Executives 31 -Mar -51 Net Administrator 18,E 71652.04 Annual Employee M Fire Executives 3 -Oct -71 Deputy Fire Chief 04 -EF 21 -Year 193560.51 Annual EmPleYee M Executives 20 -Feb -67 Chief of International Affairs and Protocol 23.E 89217.65 Annual City of IViiiami, Florida Form B Price Proposal Schedule RFP No. 680381 The Proposer's price shall be submitted on this Form -"Price Proposal Schedule", and in the manner stated herein. Proposer is requested to fill in the applicable blanks on this form. A. EMPLOYER FUNDED (FULL- PARTICIPATION) DISABILITY INSURANCE PROGRAM The proposed price for providing all services as stated in Section 3.0, Scope of Services, including the plan designs identified in Exhibit 2, shall be as stipulated below. The price shall be for a fully -insured program. The City intends to award all lines of business to one provider. Prices requested below shall be provided on a bi- weekly basis. SHORT-TERM DISABILITY (STD) Plan Design Bi -weekly Rate Per $100 of Weekly Benefit $2,000 maximum benefit per week (14 -day waiting period) Plan Year 2018 111118'12131118 Pian Year 2019 Plan Year 2020 111120-12131120 111119-12131119 Plan Year 2020 LONG-TERM DISABILITY (LTD) Plan Design Bi -weekly Rate Per $100 of $2,000 maximum benefit per week (14 -day waiting period) Covered Monthly Payroll $10,000 maximum benefit per month Plan Year 20218 Plan Year 2019 Plan Year 2020 (180 -day waiting period) 111118-12131118 111119-12131119 111120-12131120 $ $ $ B. FULLY EMPLOYEE FUNDED (VOLUNTARY PARTICIPATION) DISABILITY INSURANCE PROGRAM The proposed price for providing all services as stated in Section 3.0, Scope of Services, including the plan designs identified in Exhibit 2, shall be as stipulated below. The price shall be for a fully -insured, voluntary program. The City intends to award al€ lines of business to one provider. Prices requested below shall be provided on a bi-weekly basis. SHORT-TERM DISABILITY (STD) Plan Design Bi -weekly Rate Per $100 of Weekly Benefit $2,000 maximum benefit per week (14 -day waiting period) Plan Year 2018 111118-12131118 $ Plan Year 2019 Plan Year 2020 111120-12131120 $ 111119-12131119 $ LONG-TERM DISABILITY (LTD) Plan Design Bi -weekly Rate Per $100 of Covered Monthly Payroll $10,000 maximum benefit per month Plan Year 2018 Plan Year 2019 Plan Year 2020 (180 -day waiting period) 111118-12131118 111119-12131119 111120-12131120 $ $ $ Page 1 EMPLOYEE DISABUTY INSURANCE PROGRAM Rev. 3.15.17 City of Miami, Florida PREMIER LONG-TERM DISABILITY RFP No. 680381 Plan Design Bi -weekly Rate Per $100 of No Covered Monthly Payroll $10,000 maximum benefit per month Plan Year 2018 Plan Year 2019 Plan Year 2020 (90 -day waiting period) 111118-12/31118 1!1119-12131!19 111120-12131/20 MINIMUM PARTICIPATION REQUIREMENTS (Optional) Based on Proposer's proposed employee funded rates, indicate guarantee participation periods: Participation Guarantee Period Number of Plan Years Greater than 25% Between 20% and 25% Between 15% and 20% Between 10% and 15% Below 10% Notes: 1. The rates shall be guaranteed for first two (2) Plan years (through December 31, 2019). It is preferable that rates not be contingent upon minimum participation requirements, however, Proposer may list the guarantee periods relating to minimum requirements in the chart above. For Plan Year 2020 and the optional renewal period, the then current rates will remain, unless the City approves an increase in the rates, pursuant to Section 4 of the Agreement. 2. Notwithstanding the Proposer's proposed rates, payment to the Successful Proposer shall be based on the actual enrollment of employees and the actual volume of insurance in the Plans. 3. Proposed rates in Sections A & B will be used to determine the price points for the Price criterion as indicated. 4. Proposers may confirm optional year guaranteed rate commitment as provided for below in Section C. C. OPTION TO RENEW YEARS The City prefers that Proposer guarantee rates for optional 3 -year period (beyond initial term). Proposer should state whether Proposer will hold rates for the three-year option to renew period by completing the below information. Optional Renew Period (January 1, 2020- December 31, 2023) Yes No Will Proposer guarantee its prior year rates for the three-year option to renew period? If so, please provide rates. Note: Section C is for informational and negotiation purposes only and will not be utilized for scoring purposes. Page 2 EMPLOYEE DISABILITY INSURANCE PROGRAM Rev. 3.15.17 City of Miami Procurement Department Miami Riverside Center 444 SW 2nd Avenue, 61h Floor Miami, Florida 33130 Web Site Address: www miamigov.comlprocurement Number: 680381,3 Title: Request for Proposals - Employee Disability Insurance Program (RESOLICITATION) Issue Date/Time: 14 -APR -2017 Closing Date/Time: 01 -MAY -2017 @ 15:00:00 Pre-Bid/Pre-Proposal Conference: Voluntary Pre-Bid/Pre-Proposal Date/Time: Pre-Bid/Pre-Proposal Location: Deadline for Request for Clarification Contracting Officer: Hard Copy Submittal Location: Contracting Officer E -Mail Address: Contracting Officer Facsimile: Monday, April 10, 2017 @ 10:00:00 AM MRC Building, 444 SW 2nd Avenue, 6th Floor, South Conference Room April 19, 2017 a 5:00:00 PM Osborne, Lydia City of Miami - City Clerk 3500 Pan American Drive Miami FL 33133 US LOsborne@miamigov.com 305-400-5025 Page i of 47 Certifieation Statement Please quote on this form, if applicable, net prices for the item(s) listed. Return signed original and retain a copy for your files. Prices should include all costs, including transportation to destination. The City reserves the right to accept or reject all or any part of this submission. Prices should be firm for a minimum of 180 days following the time set for closing of the submissions. In the event of errors in extension of totals, the unit prices shall govern in determining the quoted prices. We (I) certify that we have read your solicitation, completed the necessary documents, and propose to furnish and deliver, F.O.B. DESTINATION, the items or services specified herein. The undersigned hereby certifies that neither the contractual party nor any of its principal owners or personnel have been convicted of any of the violations, or debarred or suspended as set in section 18-107 or Ordinance No. 12271. All exceptions to this submission have been documented in the section below (refer to paragraph and section). EXCEPTIONS: We (I) certify that any and all information contained in this submission is true; and we (I) further certify that this submission is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a submission for the same materials, supplies, equipment, or service, and is in all respects fair and without collusion or fraud. We (I) agree to abide by all terrrns and conditions of this solicitation and certify that I am authorized to sign this submission for the submitter. Please print the following and sign your name: PROPOSER NAME: ADDRESS: PHONE: EMAIL: SIGNED BY: TITLE: FAX: CELL(Optional): DATE: FAILURE TO COMPLETE, SIGN, AND RETURN THIS FORM SHALL DISQUALIFY THIS RESPONSE Page 2 of 47 Certifications Legal Name of Firm: Entity Type: Partnership, Sole Proprietorship, Corporation, etc. Year Established: Office Location: City of Miami, Miami -Dade County, or Other Business Tax Receipt/Occupational License Number: Business Tax Receipt/Occupational License Issuing Agency: Business Tax Receipt/Occupational License Expiration Date: Will Subcontractor(s) be used? (Yes or No) Please list and acknowledge all addendum/addenda received. List the addendum/addenda number and date of receipt (i.e. Addendum No. 1, 7/1107). If no addendum/addenda was/were issued, please insert N/A. If Proposer has a Local Office, as defined under Chapter 18/Articlle III, Section 18-73 of the City Code, has Proposer filled out, notarized, and included with its RFP response the "City of Miami Local Office Certification" form? YES OR NO? (The City of Miami Local Office Certification form is located in the Oracle Sourcing system ("iSupplier"), under the Header/Notes and Attachments Section of this solicitation) Page 3 of 47 Line: 1 Description: Proposers are not required to enter their proposed Price in this section. Proposers shall complete Exhibit B, Price Proposal Schedule for proposed Price. Category: 95300-00 Unit of Measure: Dollar Unit Price: $ Number of Units: 1 Total: $ Page 4 of 47 68039t,3 Table of Contents Termsand Conditions......................................................................................................................................................6 1. General Conditions.................................................................................................. .......................................... .6 1.1. GENERAL TERMS AND CONDITIONS.............................................................................................6 2. Special Conditions...........................................................................................................................................n 2.1. PURPOSE.............................................................................................................................................26 2.2. DEADLINE FOR RECEIPT OF REQUEST FOR ADDITIONAL. INFO RMATION/CL.ARIFICATION..........................................................................................................26 2.3. DEFINITIONS......................................................................................................................................26 2.4. TERM OF CONTRACT.......................................................................................................................27 2.5. VOLUNTARY PRE -PROPOSAL CONFERENCE............................................................................27 2.6. CONDITIONS FOR RENEWAL.........................................................................................................27 2.7. NON -APPROPRIATION OF FUNDS.................................................................................................27 2.8. MINIMUM QUALIFICATION REQUIREMENTS............................................................................27 2.9. REFERENCES......................................................................................................................................28 2.14. EXECUTION OF AN AGREEMENT...............................................................................................28 2.11. FAILURE TO PERFORM..................................................................................................................28 2.12. INSURANCE REQUIREMENTS......................................................................................................28 2.13. CONTRACT ADMINISTRATOR.....................................................................................................31 2.14. SUBCONTRACTOR(S) OR SUBCONSULTANT(S)......................................................................31 2.15. TERMINATION.................................................................................................................................31 2.16. ADDITIONAL TERMS AND CONDITIONS..................................................................................32 2.17. COMPENSATION PROPOSAL........................................................................................................32 2.18. EVALUATIONISELECTION PROCESS AND CONTRACT AWARD.........................................32 2,19. ADDITIONAL SERVICES................................................................................................................33 2.20. CHANGES/ALTERATIONS.............................................................................................................34 2.21. RECORDS.........................................................................................................................................34 2.22. TRUTH IN NEGOTIATION CERTIFICATE...................................................................................34 3. Specifications..................................................................................................................................................35 3.1. SPECIFICATIONSISCOPE OF WORK..............................................................................................35 4. Submission Requirements................................................................................................................................41 4. I. Submission Requirements.....................................................................................................................41 5. Evaluation Criteria...........................................................................................................................................46 5.1. EVALUATION CRITERIA..................................................................................................................46 Page 5 of 47 680381,3 Terms and Conditions 1. General Conditions 1.1. GENERAL TERMS AND CONDITIONS Intent: The General Terms and Conditions described herein apply to the acquisition of goods/equipment/services with an estimated aggregate cost of $25,000,00 or more. Definition: A formal solicitation is defined as issuance of an Invitation for Bids, Request for Proposals, Request for Qualifications, or Request for Letters of Interest pursuant to the City of Miami Procurement Code and/or Florida Law, as amended. Formal Solicitation and Solicitation shall be defined in the same manner herein. 1.1. ACCEPTANCE OF GOODS OR EQUIPMENT - Any good(s) or equipment delivered tinder this formal solicitation, if applicable, shall remain the property of the seller until a physical inspection and actual usage of the good is made, and thereafter is accepted as satisfactory to the City. It must comply with the terms herein and be fully in accordance with specifications and of the highest quality. In the event the goods/equipment supplied to the City are found to be defective or does not conform to specifications, the City reserves the right to cancel the order upon written notice to the Contractor and return the product to the Contractor at the Contractor's expense. 1.2. ACCEPTANCE OF OFFER - The signed or electronic submission of your solicitation response shall be considered an offer on the part of the bidder/proposer; such offer shall be deemed accepted upon issuance by the City of a purchase order. 1.3. ACCEPTANCE/REJECTION — The City reserves the right to accept or reject any or all responses or parts of after opening/closing date and request re -issuance on the goods/services described in the formal solicitation. In the event of such rejection, the Director of Purchasing shall notify all affected bidders/proposers and make available a written explanation for the rejection. The City also reserves the right to reject the response of any bidder/proposer who has previously failed to properly perform under the terms and conditions of a contract, to deliver on time contracts of a similar nature, and who is not in a position to perform the requirements defined in this formal solicitation. The City further reserves the right to waive any irregularities or minor informalities or technicalities in any or all responses and may, at its discretion, re -issue this formal solicitation. 1.4. ADDENDA — It is the bidder'slproposer's responsibility to ensure receipt of all Addenda. Addenda are available at the City's website at: http://www.ci.miami.fl.us/procurement 1.5. ALTERNATE RESPONSES WILL NOT BE CONSIDERED. 1.6. ASSIGNMENT - Contractor agrees not to subcontract, assign, transfer, convey, sublet, or otherwise dispose of the resulting Contract, or any or all of its right, title or interest herein, without City of Miami's prior written consent. 1.7. ATTORNEY'S FEES - In connection with any litigation, mediation and arbitration arising out of this Contract, each party shall bear their own attorney's fees through and including appellate litigation and any post judgment proceedings, 1.8. AUDIT RIGHTS AND RECORDS RETENTION - The Successful Bidder/Proposer agrees to provide access at all reasonable times to the City, or to any of its duly authorized representatives, to any books, documents, papers, and records of Contractor which are directly pertinent to this formal solicitation, for the purpose of audit, examination, excerpts, and transcriptions. The Successfitl Bidder/Proposer shall maintain and retain any and all of Page 6 of 47 680381,3 the books, documents, papers and records pertinent to the Contract for three (3) years after the City makes final payment and all other pending matters are closed. Contractor's failure to or refusal to comply with this condition shall result in the immediate cancellation of this contract by the City. 1.9. AVAILABILITY OF CONTRACT STATE-WIDE - Any Governmental, not-for-profit or quasi -governmental entity in the State of Florida, may avail itself of this contract and purchase any and all goods/services, specified herein from the successful bidders)/proposer(s) at the contract price(s) established herein, when permissible by federal, state, and local laws, rules, and regulations. Each Governmental, not-for-profit or quasi -governmental entity which uses this formal solicitation and resulting bid contract or agreement will establish its own contractiagreement, place its own orders, issue its own purchase orders, be invoiced there from and make its own payments, determine shipping terms and issue its own exemption certificates as required by the suuccessfid bidders)/proposer(s). 1.10. AWARD OF CONTRACT: A. The Formal Solicitation, Bidder's/Proposer's response, any addenda issued, and the purchase order shall constitute the entire contract, unless modified in accordance with any ensuing contract/agreement, amendment or addenda. B. The award of a contract where there are Tie Bids will be decided by the Director of Purchasing or designee in the instance that Tie Bids can't be determined by applying Florida Statute 287.087, Preference to Businesses with Drug -Free Workplace Programs. C. The award of this contract may be preconditioned on the subsequent submission of other documents as specified in the Special Conditions or Technical Specifications. Bidder/Proposer shall be in default of its contractual obligation if such documents are not submitted in a timely manner and in the form required by the City. Where Bidder/Proposer is in default of these contractual requirements, the City, through action taken by the Purchasing Department, will void its acceptance of the Bidder's/Proposer's Response and may accept the Response from the next lowest responsive, responsible Bidder or Proposal most advantageous to the City or re -solicit the City's requirements. The City, at its sole discretion, may seek monetary restitution from Bidder/Proposer and its bid/proposal bond or guaranty, if applicable, as a result of damages or increased costs sustained as a result of the Bidder's/Proposer's default. D. The term of the contract shall be specified in one of three documents which shall be issued to the successful Bidder/Proposer. These documents may either be a purchase order, notice of award and/or contract award sheet. E. The City reserves the right to automatically extend this contract for up to one hundred twenty (120) calendar days beyond the stated contract term in order to provide City departments with continual service and supplies while a new contract is being solicited, evaluated, and/or awarded. If the right is exercised, the City shall notify the Bidder/Proposer, in writing, of its intent to extend the contract at the same price, terms and conditions for a specific number of days. Additional extensions over the first one hundred twenty (120) day extension may occur, if, the City and the Successfiul Bidder/Proposer are in mutual agreement of such extensions. F. Where the contract involves a single shipment of goods to the City, the contract term shall conclude upon completion of the expressed or implied warranty periods. G. The City reserves the right to award the contract on a split -order, lump sum or individual -item basis, or such combination as shall best serve the interests of the City unless otherwise specified. H. A Contract/Agreement maybe awarded to the Bidder/Proposer by the City Commission based upon the minimum qualification requirements reflected herein. As a result of a RFP, RFQ, or RFLI, the City reserves the right to execute or not execute, as applicable, an Agreement with the Proposer, whichever is determined to be in the Page 7 of 47 680381,3 City's best interests. Such agreement will be fiirnished by the City, will contain certain terms as are in the City's best interests, and will be subject to approval as to legal form by the City Attorney. 1,11. BID BOND/ BID SECURITY - A cashier's or certified check, or a Bid Bond signed by a recognized surety company that is licensed to do business in the State of Florida, payable to the City of Miami, for the amount bid is required from all bidders/proposers, if so indicated under the Special Conditions. This check or bond guarantees that a bidder/proposer will accept the order or contract/agreement, as bid/proposed, if it is awarded to bidder/proposer. Bidder/Proposer shall forfeit bid deposit to the City should City award contract/agreement to Bidder/Proposer and Bidder/Proposer fails to accept the award. The City reserves the right to reject any and all surety tendered to the City. Bid deposits are returned to unsuccessful bidders/proposers within ten (10) days after the award and successful bidder's/proposer's acceptance of award. If sixty (60) days have passed after the date of the formal solicitation closing date, and no contract has been awarded, all bid deposits will be returned on demand. 1.12. RESPONSE FOIVVI (HARDCOPY FORMAT) - All forms should be completed, signed and submitted accordingly. 1.13. BID SECURITY FORFEITED LIQUIDATED DAMAGES - Failure to execute an Agreement and/or file an acceptable Performance Bond, when required, as provided herein, shall be just cause for the annulment of the award and the forfeiture of the Bid Security to the City, which forfeiture shall be considered, not as a penalty, but in mitigation of damages sustained. Award may then be made to the next lowest responsive, responsible Bidder or Proposal most advantageous to the City or all responses may be rejected. 1.14. BRAND NAMES - If and wherever in the specifications brand names, makes, models, names of any manufacturers, trade names, or bidder/proposer catalog numbers are specified, it is for the purpose of establishing the type, function, minimum standard of design, efficiency, grade or quality of goods only. When the City does not wish to rale out other competitors' brands or makes, the phrase "OR EQUAL" is added, When bidding/proposing an approved equal, Bidders/Proposers will submit, with their response, complete sets of necessary data (factory information sheets, specifications, brochures, etc.) in order for the City to evaluate and determine the equality of the item(s) bid/proposed. The City shall be the sole judge of equality and its decision shall be final. Unless otherwise specified, evidence in the form of samples may be requested if the proposed brand is other than specified by the City. Such samples are to be famished after fornlal solicitation opening/closing only upon request of the City. If samples should be requested, such samples must be received by the City no later than seven (7) calendar days after a formal request is made. 1.15. CANCELLATION - The City reserves the right to cancel all formal solicitations before its opening/closing. In the event of bid/proposal cancellation, the Director of Purchasing shall notify all prospective bidders/proposers and make available a written explanation for the cancellation. 1.16. CAPITAL EXPENDITURES - Contractor understands that any capital expenditures that the firm makes, or prepares to make, in order to deliver/perform the goods/services required by the City, is a business risk which the contractor must assume. The City will not be obligated to reimburse amortized or unamortized capital expenditures, or to maintain the approved status of any contractor. If contractor has been unable to recoup its capital expenditures during the time it is rendering such goods/services, it shall not have any claim upon the City. 1.17. CITY NOT LIABLE FOR DELAYS - It is further expressly agreed that in no event shall the City be liable for, or responsible to, the Bidder/Proposer/Consultant, any sub-contractor/slab-consultant, or to any other person for, or on account of, any stoppages or delay in the work herein provided for by injunction or other legal or equitable proceedings or on account of any delay for any cause over which the City has no control. 1.18. COLLUSION —Bidder/Proposer, by submitting a response, certifies that its response is made without previous understanding, agreement or connection either with any person, firm or corporation submitting a response Page 8 of 47 680381,3 for the same items/services or with the City of Miami's Purchasing Department or initiating department. The Bidder/Proposer certifies that its response is fair, without control, collusion, fraud or other illegal action. Bidder/Proposer certifies that it is in compliance with the Conflict of Interest and Code of Ethics Laws. The City will investigate all potential situations where collusion may have occurred and the City reserves the right to reject any and all bids/responses where collusion may have occurred. 1.19. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS - Contractor understands that contracts between private entities and local governments are subject to certain laws and regulations, including laws pertaining to public records, conflict of interest, records keeping, etc. City and Contractor agree to comply with and observe all applicable laws, codes and ordinances as that may in any way affect the goods or equipment offered, including but not limited to: A. Executive Order 11246, which prohibits discrimination against any employee, applicant, or client because of race, creed, color, national origin, sex, or age with regard to, but not limited to, the following: employment practices, rate of pay or other compensation methods, and training selection. B. Occupational, Safety and Health Act (OSHA), as applicable to this Formal Solicitation. C. The State of Florida Statutes, Section 287,133(3)(A) on Public Entity Crimes. D. Environment Protection Agency (EPA), as applicable to this Formal Solicitation. E. Uniform Commercial Code (Florida Statutes, Chapter 672). F. Americans with Disabilities Act of 1490, as amended. G. National Institute of Occupational Safety Hazards (NIOSH), as applicable to this Formal Solicitation. H. National Forest Products Association (NFPA), as applicable to this Formal Solicitation. I. City Procurement Ordinance City Code Section 18, Article 1II. J. Conflict of Interest, City Code Section 2-611;61. K. Cone of Silence, City Code Section 18-74. L. The Florida Statutes Sections 218.73 and 218.74 on Prompt Payment. Lack of knowledge by the bidder/proposer will in no way be a cause for relief from responsibility. Non-compliance with all local, state, and federal directives, orders, and laws may be considered grounds for termination of contract(s). Copies of the City Ordinances may be obtained from the City Clerk's Office. 1.20. CONE OF SILENCE - Pursuant to Section 18-74 of the City of Miami Code, a "Cone of Silence" is imposed upon each RFP, RFQ, RFLI, or IFB after advertisement and terminates at the time the City Manager issues a written recommendation to the Miami City Commission. The Cone of Silence shall be applicable only to Contracts for the provision of goods and services and public works or improvements for amounts greater than $200,000. The Cone of Silence prohibits any communication regarding RFPs, RFQs, RFLI or IFBs (bids) between., among others: Potential vendors, service providers, bidders, lobbyists or consultants and the City's professional staff including, but not limited to, the City Manager and the City Manager's staff; the Mayor, City Commissioners, or their respective staffs and any member of the respective selection/evaluation committee. The provision does not apply to, among other communications: Page 9 of 47 680381,3 oral communications with the City purchasing staff, provided the communication is limited strictly to matters of process or procedure already contained in the formal solicitation document; the provisions of the Cone of Silence do not apply to oral communications at duly noticed site visits/inspections, pre -proposal or pre-bid conferences, oral presentations before selection/evaluation committees, contract negotiations during any duly noticed public meeting, or public presentations made to the Miami City Commission during a duly noticed public meeting; or communications in writing or by email at any time with any City employee, official or member of the City Commission unless specifically prohibited by the applicable RFP, RFQ, RFLI or IFS (bid) documents (See Section 2.2, of the Special Conditions); or communications in connection with the collection of industry comments or the performance of market research regarding a particular RFP, RFQ, RFLI OR IFB by City Purchasing staff. Proposers or bidders must file a copy of any written communications with the Office of the City Clerk, which shall be made available to any person upon request. The City shall respond in writing and file a copy with the Office of the City Clerk, which shall be made available to any person upon request. Written communications may be in the form of e-mail, with a copy to the Office of the City Clerk. In addition to any other penalties provided by law, violation of the Cone of Silence by any proposer or bidder shall render any award voidable. A violation by a particular Bidder, Proposer, Offeror, Respondent, lobbyist or consultant shall subject same to potential penalties pursuant to the City Code. Any person having personal knowledge of a violation of these provisions shall report such violation to the State Attorney and/or may file a complaint with the Ethics Commission. Proposers or bidders should reference Section 18-74 of the City of Miami Code for further clarification. This language is only a summary of the key provisions of the Cone of Silence. Please review City of Miami Code Section 18-74 for a complete and thorough description of the Cone of Silence. You may contact the City Clerk at 305-250-5360, to obtain a copy of same. 1.21. CONFIDENTIALITY - As a political subdivision, the City of Miami is subject to the Florida Sunshine Act and Public Records Law, If this Contract/Agreement contains a confidentiality provision, it shall have no application when disclosure is required by Florida law or upon court order. 1.22. CONFLICT OF INTEREST -- Bidders/Proposers, by responding to this Formal Solicitation, certify that to the best of their knowledge or belief, no elected/appointed official or employee of the City of Miami is financially interested, directly or indirectly, in the purchase of goads/services specified in this Formal Solicitation. Any such interests on the part of the Bidder/Proposer or its employees must be disclosed in writing to the City. Further, you must disclose the name of any City employee who owns, directly or indirectly, an interest of five percent (5%) or more of the total assets of capital stock in your firm. A. Bidder/Proposer further agrees not to use or attempt to use any knowledge, property or resource which may be within his/her/its trust, or perform his/her/its deities, to secure a special privilege, benefit, or exemption for himself/herself/itself, or others. Bidder/Proposer may not disclose or use information not available to members of the general public and gained by reason of his/her/its position, except for information relating exclusively to governmental practices, for his/her/its personal gain or benefit or for the personal gain or benefit of any other person or business entity. B. Bidder/Proposer hereby acknowledges that he/she/it has not contracted or transacted any business with the City or any person or agency acting for the City, and has not appeared in representation of any third party before any board, commission or agency of the City within the past two years. Bidder/Proposer fiirther warrants that he/she/it is not related, specifically the spouse, son, daughter, parent, brother or sister, to: (i) any member of the commission; (ii) the mayor; (iii) any city employee; or (iv) any member of any board or agency of the City. C. A violation of this section may subject the Bidder/Proposer to immediate termination of any professional services agreement with the City, imposition of the maximum fine and/or any penalties allowed by law. Page 10 of 47 680381,3 Additionally, violations may be considered by and subject to action by the Miami -Dade County Commission on Ethics. 1.23. COPYRIGHT OR PATENT RIGHTS — Bidders/Proposers warrant that there has been no violation of copyright or patent rights in manufacturing, producing, or selling the goods shipped or ordered and/or services provided as a result of this formal solicitation, and bidders/proposers agree to hold the City harmless from any and all liability, loss, or expense occasioned by any such violation. 1.24. COST INCURRED BY BIDDER/PROPOSER - All expenses involved with the preparation and submission of Responses to the City, or any work performed in connection therewith shall be borne by the Bidder(s)/Proposer(s). 1.25. DEBARNIENT AND SUSPENSIONS (See 18-107) (a) Authority and requirement to debar and suspend. After reasonable notice to an actual or prospective Contractual Party, and after reasonable opportunity for such party to be heard, the City Manager, after consultation with the Chief Procurement Officer and the city attorney, shall have the authority to debar a Contractual Party, for the causes listed below, from consideration for award of city Contracts. The debarment shall be for a period of not fewer than three years. The City Manager shall also have the authority to suspend a Contractual Party from consideration for award of city Contracts if there is probable cause for debarment, pending the debarment determination. The authority to debar and suspend contractors shall be exercised in accordance with regulations which shall be issued by the Chief Procurement Officer after approval by the City Manager, the city attorney, and the City Commission. (b) Causes for debarment or suspension. Causes for debarment or suspension include the following: (1) Conviction for commission of a criminal offense incident to obtaining or attempting to obtain a public or private Contract or subcontract, or incident to the performance of such Contract or subcontract, (2) Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty. (3) Conviction under state or federal antitrust statutes arising out of the submission of Bids or Proposals. (4) Violation of Contract provisions, which is regarded by the Chief Procurement Officer to be indicative of nonresponsibility. Such violation may include failure without good cause to perform in accordance with the terms and conditions of a Contract or to perforin within the time limits provided in a Contract, provided that failure to perform caused by acts beyond the control of a party shall not be considered a basis for debarment or suspension. (5) Debarment or suspension of the Contractual Party by any federal, state or other governmental entity. (6) False certification pursuant to paragraph (c) below. (7) Found in violation of a zoning ordinance or any other city ordinance or regulation and for which the violation remains noncompliant. (8) Found in violation of a zoning ordinance or any other city ordinance or regulation and for which a civil penalty or fine is due and owing to the city. (9) Any other cause judged by the City Manager to be so serious and compelling as to affect the Page I 1 of 47 680381,3 responsibility of the Contractual Party performing city Contracts. (c) Certification. All Contracts for goods and services, sales, and leases by the city shall contain a certification that neither the Contractual Party nor any of its principal owners or personnel have been convicted of any of the violations set forth above or debarred or suspended as set forth in paragraph (b)(5). (d) Debarment and suspension decisions. Subject to the provisions of paragraph (a), the City Manager shall render a written decision stating the reasons for the debarment or suspension. A copy of the decision shall be provided promptly to the Contractual Party, along with a notice of said party's right to seek judicial relief. 1.26. DEBARRED/SUSPENDED VENDORS —An entity or affiliate who has been placed on the State of Florida debarred or suspended vendor list may not submit a response on a contract to provide goods or services to a public entity, may not submit a response on a contract with a public entity for the construction or repair of a public building or public work, may not submit response on leases of real property to a public entity, may not award or perform work as a contractor, supplier, subcontractor, or consultant under contract with any public entity, and may not transact business with any public entity. 1.27. DEFAULT/FAILURE TO PERFORM - The City shall be the sole judge of nonperformance, which shall include any failure on the part of the successful Bidder/Proposer to accept the award, to furnish required documents, and/or to fulfill any portion of this contract within the time stipulated. Upon default by the successful Bidder/Proposer to meet any terms of this agreement, the City will notify the Bidder/Proposer of the default and will provide the contractor three (3) days (weekends and holidays excluded) to remedy the default. Failure on the contractor's part to correct the default within the required three (3) days shall result in the Contract being terminated and upon the City notifying in writing the contractor of its intentions and the effective date of the termination. The following shall constitute default: A. Failure to perform the work or deliver the goods/services required under the Contract and/or within the time required or failing to use the subcontractors, entities and personnel as identified and set forth, and to the degree specified in the Contract. B. Failure to begin the work under this Contract within the time specified. C. Failure to perform the work with sufficient workers and equipment or with sufficient materials to ensure timely completion. D. Neglecting or refusing to remove materials or perform new work where prior work has been rejected as nonconforming with the terms of the Contract. E. Becoming insolvent, being declared bankrupt, or committing any act of bankruptcy or insolvency, or making an assignment for the benefit of creditors, if the insolvency, bankruptcy, or assignment renders the successful Bidder/Proposer incapable of performing the work in accordance with and as required by the Contract. F. Failure to comply with any of the terms of the Contract in any material respect. All costs and charges incurred by the City as a result of a default or a default incurred beyond the time limits stated, together with the cost of completing the work, shall be deducted from any monies due or which may become due on this Contract. 1.28. DETERMINATION OF RESPONSIVENESS - Each Response will be reviewed to determine if it is responsive to the submission requirements outlined in the Formal Solicitation. A "responsive" response is one which follows the requirements of the formal solicitation, includes all documentation, is submitted in the format outlined in the formal solicitation, is of timely submission, and has appropriate signatures as required on each document. Failure Page 12 of 47 680381,3 to comply with these requirements may deem a Response non-responsive. A. Responsible Bidder shall mean a bidder/proposer who has submitted a bid/prposai and who has the capability, as determined under the City Procurement Ordinance, in all respects to fully perform the contract requirements, and the integrity and reliability of which give reasonable assurance of good faith and performance. 1.24. DISCOUNTS OFFERED DURING TERM OF CONTRACT - Discount Prices offered in the response shall be fixed after the award by the Commission, unless otherwise specified in the Special Terms and Conditions. Price discounts off the original prices quoted in the response will be accepted from successful Bidder(s)/Proposer(s) during the term of the contract. Stich discounts shall remain in effect for a minimum of 120 days from approval by the City Commission Any discounts offered by a manufacturer to Bidder/Proposer will be passed on to the City. 1.30. DISCREPANCIES, ERRORS, AND OMISSIONS - Any discrepancies, errors, or ambiguities in the Formal Solicitation or addenda (if any) should be reported in writing to the City's Purchasing Department. Should it be found necessary, a written addendum will be incorporated in the Formal Solicitation and will become part of the purchase agreement (contract documents). The City will not be responsible for any oral instructions, clarifications, or other communications. A. Order of Precedence — Any inconsistency in this formal solicitation shall be resolved by giving precedence to the following documents, the first of such list being the goveming documents. 1) Addenda (as applicable) 2) Specifications 3) Special Conditions 4) General Terms and Conditions 1.31. EMERGENCY / DISASTER PERFORMANCE - In the event of a hurricane or other emergency or disaster situation, the successfitl vendor shall provide the City with the commodities/services defined within the scope of this formal solicitation at the price contained within vendor's response. Further, successful vendor shall deliver/perform for the city on a priority basis during such times of emergency. 1.32. ENTIRE BID CONTRACT OR AGREEMENT - The Bid Contract or Agreement consists of this City of Miami Formal Solicitation and specifically this General Conditions Section, Contractor's Response and any written agreement entered into by the City of Miami and Contractor in cases involving RFPs, RFQs, and RFLIs, and represents the entire understanding and agreement between the parties with respect to the subject matter hereof and supersedes all other negotiations, understanding and representations, if any, made by and between the parties. To the extent that the agreement conflicts with, modifies, alters or changes any of the terms and conditions contained in the Formal Solicitation and/or Response, the Formal Solicitation and then the Response shall control. This Contract may be modified only by a written agreement signed by the City of Miami and Contractor. 1.33. ESTIMATED QUANTITIES —Estimated quantities or estimated dollars are provided for your guidance only. No guarantee is expressed or implied as to quantities that will be purchased during the contract period. The City is not obligated to place an order for any given amount subsequent to the award of this contract. Said estimates may be used by the City for purposes of determining the low bidder or most advantageous proposer meeting specifications. The City reserves the right to acquire additional quantities at the prices bid/proposed or at lower prices in this Formal Solicitation. 1.34. EVALUATION OF RESPONSES A.Rejection of Responses The City may reject a Response for any of the following reasons: Page I3 of 47 680381,3 1) Bidder/Proposer fails to acknowledge receipt of addenda; 2) Bidder/Proposer mistates or conceals any material fact in the Response ; 3) Response does not conform to the requirements of the Formal Solicitation; 4) Response requires a conditional award that conflicts with the method of award; 5) Response does not include required samples, certificates, licenses as required; and, 6) Response was not executed by the Bidder's/Proposer(s) authorized agent, The foregoing is not an all inclusive list of reasons for which a Response may be rejected. The City may reject and re -advertise for all or any part of the Formal Solicitation whenever it is deemed in the best interest of the City. B. Elimination From Consideration 1) A contract shall not be awarded to any person or firm which is in arrears to the City upon any debt or contract, or which is a defaulter as surety or otherwise upon any obligation to the City. 2) A contract may not be awarded to any person or film which has failed to perform under the terms and conditions of any previous contract with the City or deliver on time contracts of a similar nature. 3) A contract may not be awarded to any person or firm which has been debarred by the City in accordance with the City's Debarment and Suspension Ordinance. C. Determination of Responsibility 1) Responses will only be considered from entities who are regularly engaged in the business of providing the goods/equipment/services required by the Formal Solicitation. Bidder/Proposer must be able to demonstrate a satisfactory record of performance and integrity; and, have sufficient financial, material, equipment, facility, personnel resources, and expertise to meet all contractual requirements. The terms "equipment and organization" as used herein shall be construed to mean a fully equipped and well established entity in line with the best industry practices in the industry as determined by the City. 2) The City may consider any evidence available regarding the financial, technical and other qualifications and abilities of a Bidder/Proposer, including past performance (experience) with the City or any other governmental entity in making the award. 3) The City may require the Bidder(s)/Proposer(s) to show proof that they have been designated as an authorized representative of a manufacturer or supplier which is the actual source of supply, if required by the Formal Solicitation, 1.35. EXCEPTIONS TO GENERAL AND/OR SPECIAL CONDITIONS OR SPECIFICATIONS - Exceptions to the specifications shall be listed on the Response and shall reference the section. Any exceptions to the General or Special Conditions shall be cause for the bid (IFB) to be considered non-responsive. It also may be cause for a RFP, RFQ, or RFLI to be considered non-responsive; and, if exceptions are taken to the terms and conditions of the resulting agreement it may lead to terminating negotiations. 1.36. F.O.B. DESTINATION - Unless otherwise specified in the Formal Solicitation, all prices quoted/proposed by the bidder/proposer must be F.O.B. DESTINATION, inside delivery, with all delivery costs and charges included in the bid/proposal price, unless otherwise specified in this Formal Solicitation. Failure to do so may be cause for rejection of bid/proposal. 1.37. FIRiVI PRICES - The bidder/proposer warrants that prices, terms, and conditions quoted in its response will be firm throughout the duration of the contract unless othet-€vise specified in the Formal Solicitation. Such prices will remain firm for the period of performance or resulting purchase orders or contracts, which are to be performed Page 14 of 47 680381,3 or supplied over a period of time 1.38. FLORIDA MINIMUM WAGE - The Constitution of the State of Florida, Article X, Section 24, states that employers shall pay employee wages no less than the minimum wage for all hours worked in Florida. Accordingly, it is the contractor's and its' subcontractor(s) responsibility to understand and comply with this Florida constitutional minimum wage requirement and pay its employees the current established hourly minimum wage rate, which is subject to change or adjusted by the rate of inflation using the consumer price index for urban wage earners and clerical workers, CPC -W, or a successor index as calculated by the United States Department of Labor. Each adjusted minimum wage rate calculated shall be determined and published by the Agency Workforce Innovation on September 30th of each year and take effect on the following January ist. At the time of responding, it is bidder/proposer and his/her subcontractor(s), if applicable, full responsibility to determine whether any of its employees may be impacted by this Florida Law at any given point in time during the term of the contract. If impacted, bidder/proposer must fiumish employee name(s), job tide(s), job description(s), and current pay rate(s). Failure to submit this information at the time of submitting a response constitute successful bidder's/proposer's acknowledgement and understanding that the Florida Minimum Wage Law will not impact its prices throughout the term of contract and waiver of any contractual price increase request(s). The City reserves the right to request and successfiil bidder/proposer must provide for any and all information to make a wage and contractual price increase(s) determination. 1.39. GOVERNING LAW AND VENUE - The validity and effect of this Contract shall be governed by the laws of the State of Florida. The parties agree that any action, mediation or arbitration arising out of this Contract shall take place in Miami -Dade County, Florida. In any action or proceeding each party shall bear their own respective attorney's fees. 1.40, HEADINCS AND TERMS - The headings to the various paragraphs of this Contract have been inserted for convenient reference only and shall not in any manner be construed as modifying, amending or affecting in any way the expressed terms and provisions hereof. 1.41. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPPA) - Any person or entity that performs or assists the City of Miami with a function or activity involving the use or disclosure of "individually identifiable health information (IIHI) and/or Protected Health Information (PHI) shall comply with the Health Insurance Portability and Accountability Act (HIPAA) of 1996 and the City of Miami Privacy Standards. HIPAA mandates for privacy, security and electronic transfer standards, which include but are not limited to: A. Use of information only for performing services required by the contract or as required by law; B. Use of appropriate safeguards to prevent non -permitted disclosures; C. Reporting to the City of Miami of any non -permitted use or disclosure; D. Assurances that any agents and subcontractors agree to the same restrictions and conditions that apply to the Bidder/Proposer and reasonable assurances that IIHI/PHI will be held confidential; E. Making Protected Health Information (PHI) available to the customer; F. Making PHI available to the customer for review and amendment; and incorporating any amendments requested by the customer; G. Making PHI available to the City of Miami for an accounting of disclosures; and H. Making internal practices, books and records related to PHI available to the City of Miami for compliance audits. PHI shall maintain its protected status regardless of the form and method of transmission (paper records, and/or electronic transfer of data). The Bidder/ Proposer must give its customers written notice of its privacy information Page 15 of 47 680381,3 practices including specifically, a description of the types of uses and disclosures that would be made with protected health information. 1.42 INDEMNIFICATION - Contractor shall indemnify, hold/save harmless and defend at its own costs and expense the City, its officials, officers, agents, directors, and employees, from liabilities, damages, losses, and costs, including, but not limited to reasonable attorney's fees, to the extent caused by the negligence, recklessness or intentional wrongful misconduct of Contractor and persons employed or utilized by Contractor in the performance of this Contract and will indemnify, hold harmless and defend the City, its officials, officers, agents, directors and employees against, any civil actions, statutory or similar claims, injuries or damages arising or resulting from the permitted work, even if it is alleged that the City, its officials and/or employees were negligent. These indemnifications shall survive the term of this Contract. In the event that any action or proceeding is brought against City by reason of any such claim or demand, Contractor shall, upon written notice from City, resist and defend such action or proceeding by counsel satisfactory to City. The Contractor expressly understands and agrees that any insurance protection required by this Contract or otherwise provided by Contractor shall in no way limit the responsibility to indemnify, keep and save harmless and defend the City or its officers, employees, agents and instrumentalities as herein provided. The indemnification provided above shall obligate Contractor to defend at its own expense to and through appellate, supplemental or bankruptcy proceeding, or to provide for such defense, at City's option, any and all claims of liability and all suits and actions of every name and description which may be brought against City whether performed by Contractor, or persons employed or utilized by Contractor. This indemnity will survive the cancellation or expiration of the Contract. This indemnity will be interpreted under the laws of the State of Florida, including without limitation and which conforms to the limitations of §725.06 and/or §725.08, Fla. Statues, as amended from time to time as applicable. Contractor shall require all Sub -Contractor agreements to include a provision that they will indemnify the City. The Contractor agrees and recognizes that the City shall not be held liable or responsible for any claims which may result from any actions or omissions of the Contractor in which the City participated either through review or concurrence of the Contractor's actions. In reviewing, approving or rejecting any submissions by the Contractor or other acts of the Contractor, the City in no way assumes or shares any responsibility or liability of the Contractor or Sub -Contractor, under this Agreement. 1.43. FORMATION AND DESCRIPTIVE LITERATURE —Bidders/Proposer must furnish all information requested in the spaces provided in the Formal Solicitation. Further, as may be specified elsewhere, each Bidder/Proposer must submit for evaluation, cuts, sketches, descriptive literature, technical specifications, and Material Safety Data Sheets (MSDS)as required, covering the products offered. Reference to literature submitted with a previous response or on file with the Buyer will not satisfy this provision. 1.44. INSPECTIONS - The City may, at reasonable times during the term hereof, inspect Contractor's facilities and perform such tests, as the City deems reasonably necessary, to determine whether the goods and/or services required to be provided by the Contractor under this Contract conform to the temis and conditions of the Formal Solicitation. Contractor shall make available to the City all reasonable facilities and assistance to facilitate the performance of tests or inspections by City representatives. All tests and inspections shall be subject to, and made in accordance with, the provisions of the City of Miami Ordinance No. 12271 (Section 18-79), as same may be amended or supplemented from time to time. 1.45. INSPECTION OF RESPONSE - Responses received by the City pursuant to a Formal Solicitation will not be made available until such time as the City provides notice of a decision or intended decision or within 30 days after bid closing, whichever is earlier. Bid/Proposal results will be tabulated and may be furnished upon request via fax or e-mail to the Sr. Procurement Specialist issuing the Solicitation. Tabulations also are available on the City's Page 16 of 47 680381,3 Web Site following recommendation for award. 1.46. INSURANCE - Within ten (10) days after receipt of Notice of Award, the successful Contractor, shall furnish Evidence of Insurance to the Purchasing Department, if applicable. Submitted evidence of coverage shall demonstrate strict compliance to all requirements listed on the Special Conditions entitled "Insurance Requirements". The City shall be lasted as an "Additional Insured." Issuance of a Purchase Order is contingent upon the receipt of proper insurance documents. If the insurance certificate is received within the specified time frame but not in the manner prescribed in this Solicitation the Contractor shall be verbally notified of such deficiency and shall have an additional five (5) calendar days to submit a corrected certificate to the City. If the Contractor fails to submit the required insurance documents in the manner prescribed in this Solicitation within fifteen (15) calendar days after receipt Notice of Award, the contractor shall be in default of the contractual terms and conditions and shall not be awarded the contract. Under such circumstances,. the Bidder/Proposer may be prohibited from submitting fitture responses to the City. Information regarding any insurance requirements shall be directed to the Disk Administrator, Department of Risk Management, at 444 SW 2nd Avenue, 9th Floor, Miami, Florida 33130, 305-416-1604. The Bidder/Proposer shall be responsible for assuring that the insurance certificates required in conjunction with this Section remain in effect for the duration of the contractual period; including any and all option terns that may be granted to the Bidder/Proposer. 1.47. INVOICES - Invoices shall contain purchase order number and details of goods and/or services delivered (i.e. quantity, unit price, extended price, etc); and in compliance with Chapter 218 of the Florida Statutes (Prompt Payment Act). 1.48. LOCAL PREFERENCE A. City Code Section 18-85, states, "when a responsive, responsible non -local bidder submits the lowest bid price, and the bid submitted by one or more responsive, responsible local bidders who maintain a local office, as defined in Section 18-73, is within fifteen percent (15%) of the price submitted by the non -local bidder, then that non -local bidder and each of the aforementioned responsive, responsible local bidders shall have the opportunity to submit a best and final bid equal to or lower than the amount of the low bid previously submitted by the non -local bidder. Contract award shall be made to the lowest responsive, responsible bidder submitting the lowest best and final bid. In the case of a tie in the best and final bid between a local bidder and a non -local bidder, contract award shall be made to the local bidder." B. City Code Section 18-86, states, "the RFP, RFLI or RFQ, as applicable, may, in the exercise of the reasonable professional discretion of the City Manager, director of the using agency, and the Chief Procurement Officer, include a five (5%) percent evaluation criterion in favor of proposers who maintain a local office, as defined in Section 18-73. In such cases, this five (5%) percent evaluation criterion in favor of proposers who maintain a local office will be specifically defined in the RFP, RFLI or RFQ, as applicable; otherwise, it will not apply. 1.49. MANUFACTURER'S CERTIFICATION - The City reserves the right to request from bidders/proposers a separate Manufacturer's Certification of all statements made in the bid/proposal, Failure to provide such certification may result in the rejection of bid/proposal or termination of contract/agreement, for which the bidder/proposer must bear frill liability. 1.50. MODIFICATIONS OR CHANGES IN PURCHASE ORDERS AND CONTRACTS - No contract or understanding to modify this Formal Solicitation and resultant purchase orders or contracts, if applicable, shall be binding upon the City unless made in writing by the Director of Purchasing of the City of Miami, Florida through the issuance of a change order, addendum, amendment, or supplement to the contract, purchase order or award sheet Page 17 of 47 680381,3 as appropriate. 1.51. NO PARTNERSHIP OR JOINT VENTURE - Nothing contained in this Contract will be deemed or construed to create a partnership or joint venture between the City of Miami and Contractor, or to create any other similar relationship between the parties. 1.52. NONCONFORMANCE TO CONTRACT CONDITIONS - Items may be tested for compliance with specifications under the direction of the Florida Department of Agriculture and Consumer Services or by other appropriate testing Laboratories as determined by the City. The data derived from any test for compliance with specifications is public record and open to examination thereto in accordance with Chapter 119, Florida Statutes. Items delivered not conforming to specifications may be rejected and returned at Bidder's/Proposer's expense. These non -conforming items not delivered as per delivery date in the response and/or Purchase Order may result in bidder/proposer being found in default in which event any and all re -procurement costs may be charged against the defaulted contractor. Any violation of these stipulations may also result in the supplier's name being removed from the City of Miami's Supplier's list. 1.53. NONDISCRIMINATION—Bidder/Proposer agrees that it shall not discriminate as to race, sex, color, age, religion, national origin, marital status, or disability in connection with its performance under this formal solicitation. Furthermore, Bidder/Proposer agrees that no otherwise qualified individual shall solely by reason of his/her race, sex, color, age, religion, national origin, marital status or disability be excluded from the participation in, be denied benefits of, or be subjected to, discrimination under any program or activity. In connection with the conduct of its business, including performance of services and employment of personnel, Bidder/Proposer shall not discriminate against any person on the basis of race, color, religion, disability, age, sex, marital status or national origin. All persons having appropriate qualifications shall be afforded equal oppoitunity for employment. 1.54. NON-EXCLUSIVE CONTRACT/ PIGGYBACK PROVISION - At such times as may serve its best interest, the City of Miami reserves the right to advertise for, receive, and award additional contracts for these herein goods and/or services, and to make use of other competitively bid (governmental) contracts, agreements, or other similar sources for the purchase of these goods and/or services as may be available. It is hereby agreed and understood that this formal solicitation does not constitute the exclusive rights of the successful bidder(s)/proposer(s) to receive all orders that may be generated by the City in conjunction with this Formal Solicitation. In addition, any and all commodities, equipment, and services required by the City in conjunction with constriction projects are solicited under a distinctly different solicitation process and shall not be purchased under the terms, conditions and awards rendered under this solicitation, unless such purchases are determined to be in the best interest of the City. 1.55. OCCUPATIONAL LICENSE - Any person, firm, corporation orjoint venture, with a business location in the City of Miami and is submitting a Response under this Formal Solicitation shall meet the City's Occupational License Tax requirements in accordance with Chapter 31.I, Article I of the City of Miami Charter. Others with a location outside the City of Miami shall meet their local Occupational License Tax requirements. A copy of the license must be submitted with the response; however, the City may at its sole option and in its best interest allow the Bidder/Proposer to supply the license to the City during the evaluation period, but prior to award. 1.56. ONE PROPOSAL - Only one (1) Response from an individual, firm, partnership, corporation or joint venture will be considered in response to this Formai Solicitation. Page 18 of 47 680381,3 1.57. OWNERSHIP OF DOCUMENTS - It is understood by and between the parties that any documents, records, files, or any other matter whatsoever which is given by the City to the successful Bidder/Proposer pursuant to this formal solicitation shall at all times remain the property of the City and shall not be used by the Bidder/Proposer for any other purposes whatsoever without the written consent of the City. 1.58. PARTIAL INVALIDITY - If any provision of this Contract or the application thereof to any person or circumstance shall to any extent be held invalid, then the remainder of this Contract or the application of such provision to persons or circumstances other than those as to which it is held invalid shall not be affected thereby, and each provision of this Contract shall be valid and enforced to the fullest extent permitted by law. 1.59. PERFORMANCE/PAYMENT BOND --A Contractor may be required to furnish a Performance/Payment Bond as part of the requirements of this Contract, in an amount equal to one hundred percent (100%) of the contract price. 1.60. PREPARATION OF RESPONSES (HARDCOPY FORMAT) —Bidders/Proposers are expected to examine the specifications, required delivery, drawings, and all special and general conditions. All bid/proposed amounts, if required, shall be either typewritten or entered into the space provided with ink. Failure to do so will be at the Bidder's/Proposer's risk. A. Each Bidder/Proposer shall furnish the information required in the Formal Solicitation. The Bidder/Proposer shall sign the Response and print in ink or type the name of the Bidder/Proposer, address, and telephone number on the face page and on each continuation sheet thereof on which he/she makes an entry, as required. B. If so required, the unit price for each unit offered shall be shown, and such price shall include packaging, handling and shipping, and F.O.B. Miami delivery inside City premises unless otherwise specified. Bidder/Proposer shall include in the response all taxes, insurance, social security, workmen's compensation, and any other benefits normally paid by the Bidder/Proposer to its employees. If applicable, a unit price shall be entered in the "Unit Price" column for each item. Based upon estimated quantity, an extended price shall be entered in the "Extended Price" column for each item offered. In case of a discrepancy between the unit price and extended price, the unit price will be presumed correct. C. The Bidder/Proposer must state a definite time, if required, in calendar days for delivery of goods and/or services. D. The Bidder/Proposer should retain a copy of all response documents for future reference. E. All responses, as described, must be fully completed and typed or printed in ink and must be signed in ink with the firm's name and by an officer or employee having authority to bind the company or firm by his/her signature. Bids/Proposals having any erasures or corrections must be initialed in ink by person signing the response or the response may be rejected. F. Responses are to remain valid for at least 180 days. Upon award of a contract, the content of the Successful Bidder's/Proposer's response may be included as part of the contract, at the City's discretion. G. The City of Miami's Response Forms shall be used when Bidder/Proposer is submitting its response in hardcopy format. Use of any other forms will result in the rejection of the response. IF SUBMITTING HARDCOPY FORMAT, THE ORIGINAL AND THREE (3) COPIES OF THESE SETS OF FOI;LMS, UNLESS OTHERWISE SPECIFIED, AND ANY REQUIRED ATTACHMENTS MUST BE RETURNED TO THE CITY OR YOUR RESPONSE MAY BE DEEMED NON-RESPONSIVE. 1.61. PRICE ADJUSTMENTS — Any price decrease effectuated during the contract period either by reason of Page 19 of 47 680381,3 market change or on the part of the contractor to other customers shall be passed on to the City of Miami 1.62. PRODUCT SUBSTITUTES - In the event a particular awarded and approved manufacturer's product becomes unavailable during the term of the Contract, the Contractor awarded that item may arrange with the City's authorized representative(s) to supply a substitute product at the awarded price or lower, provided that a sample is approved in advance of delivery and that the new product meets or exceeds all quality requirements. 1.63. CONFLICT OF INTEREST, AND UNETHICAL BUSINESS PRACTICE PROHIBITIONS - Contractor represents and warrants to the City that it has not employed or retained any person or company employed by the City to solicit or secure this Contract and that it has not offered to pay, paid, or agreed to pay any person any fee, commission, percentage, brokerage fee, or gift of any kind contingent upon or in connection with, the award of this Contract. 1.64. PROMPT PAYMENT —Bidders/Proposers may offer a cash discount for prompt payment; however, discounts shall not be considered in determining the lowest net cost for response evaluation purposes. Bidders/Proposers are required to provide their prompt payment terms in the space provided on the Formal Solicitation. If no prompt payment discount is being offered, the Bidder/Proposer must enter zero (0) for the percentage discount to indicate no discount. If the Bidder/Proposer fails to enter a percentage, it is understood and agreed that the terns shall be 2% 20 days, effective after receipt of invoice or final acceptance by the City, whichever is later. When the City is entitled to a cash discount, the period of computation will commence on the date of delivery, or receipt of a correctly completed invoice, whichever is later. If an adjustment in payment is necessary due to damage, the cash discount period shall commence on the date final approval for payment is authorized. If a discount is part of the contract, but the invoice does not reflect the existence of a cash discount, the City is entitled to a cash discount with the period commencing on the date it is determined by the City that a cash discount applies. Price discounts off the original prices quoted on the Price Sheet will be accepted from successful bidders/proposers during the term of the contract. 1.65. PROPERTY - Property owned by the City of Miami is the responsibility of the City of Miami. Such property furnished to a Contractor for repair, modification, study, etc., shall remain the property of the City of Miami. Damages to such property occurring while in the possession of the Contractor shall be the responsibility of the Contractor. Damages occurring to such property while in route to the City of Miami shall be the responsibility of the Contractor. In the event that such property is destroyed or declared a total loss, the Contractor shall be responsible for replacement value of the property at the current market value, less depreciation of the property, if any. 1.66. PROVISIONS BINDING - Except as otherwise expressly provided in the resulting Contract, all covenants, conditions and provisions of the resulting Contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. 1.67. PUBLIC ENTITY CRIMES - A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a response on a contract to provide any goods or services to a public entity, may not submit a response on a contract with a public entity for the constriction or repair of a public building or public work, may not submit responses on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section 287.017, for CATEGORY TWO for a period of 36 months from the date of being placed on the convicted vendor list. Page 20 of 47 680381,3 1.68. PUBLIC RECORDS - Contractor understands that the public shall have access, at all reasonable times, to all documents and information pertaining to City contracts, subject to the provisions of Chapter 119, Florida Statutes, and City of Miami Code, Section 18, Article III, and agrees to allow access by the City and the public to all documents subject to disclosure under applicable law. Contractor shall additionally comply with the provisions of Section 119.0701, Florida Statutes, entitled "Contracts; public records". Contractor's failure or refusal to comply with the provision of this section shall result in the immediate cancellation of this Contract by the City. 1.69. QUALITY OF GOODS, MATERIALS, SUPPLIES, PRODUCTS, AND EQUIPMENT - All materials used in the manufacturing or constriction of supplies, materials, or equipment covered by this solicitation shall be new. The items bid/proposed must be of the latest make or model, of the best duality, and of the highest grade of workmanship, unless as otherwise specified in this Solicitation. 1.70. QUALITY OF WORK/SERVICES - The work/services performed must be of the highest quality and workmanship. Materials furnished to complete the service shall be new and of the highest quality except as otherwise specified in this Solicitation. 1.71. REMEDIES PRIOR TO AWARD (See. 18-106) - If prior to Contract award it is determined that a formal solicitation or proposed award is in violation of law, then the solicitation or proposed award shall be cancelled by the City Commission, the City Manager or the Chief Procurement Officer, as may be applicable, or revised to comply with the law. 1.72. RESOLUTION OF CONTRACT DISPUTES (Sec. 18-105) (a) Authority to resolve Contract disputes. The City Manager, after obtaining the approval of the city attorney, shall have the authority to resolve controversies between the Contractual Party and the city which arise under, or by virtue of, a Contract between them; provided that, in cases involving an amount greater than $25,000, the City Commission must approve the City Manager's decision. Such authority extends, without limitation, to controversies based upon breach of Contract, mistake, misrepresentation or lack of complete performance, and shall be invoked by a Contractual Party by submission of a protest to the City Manager. (b) Contract dispute decisions. If a dispute is not resolved by mutual consent, the City Manager shall promptly render a written report stating the reasons for the action taken by the City Commission or the City Manager which shall be final and conclusive. A copy of the decision shall be immediately provided to the protesting party, along with a notice of such party's right to seekjudicial relief, provided that the protesting party shall not be entitled to such judicial relief without first having followed the procedure set forth in this section. 1.73. RESOLUTION OF PROTESTED SOLICITATIONS AND AWARDS (Sec. 18-104) (a) Right to protest. The following procedures shall be used for resolution of protested solicitations and awards except for purchases of goods, supplies, equipment, and services, the estimated cost of which does not exceed $25,000. Protests thereon shall be governed by the Administrative Policies and Procedures of Purchasing. 1.Protest of Solicitation. i. Any prospective proposer who perceives itself aggrieved in connection with the solicitation of a Contract may protest to the Chief Procurement Officer, A written notice of intent to file a protest shall be filed with the Chief Procurement Officer within three days after the Request for Proposals, Request for Qualifications or Request for Letters of Interest is published in a newspaper of general circulation, A notice of intent to file a protest is considered filed when received by the Chief Procurement Officer; or Page 21 of 47 580381,3 H. Any prospective bidder who intends to contest the Solicitation Specifications or a solicitation may protest to the Chief Procurement Officer. A written notice of intent to file a protest shall be filed with the Chief Procurement Officer within three days after the solicitation is published in a newspaper of general circulation. A notice of intent to file a protest is considered filed when received by the Chief Procurement Officer. 2. Protest of Award. L A written notice of intent to file a protest shall be filed with the Chief Procurement Officer within two days after receipt by the proposer of the notice of the City Manager's recommendation for award of Contract, which will be posted on the City of Miami Purchasing Department website, in the Supplier Comer, Current Solicitations and Notice of Recommendation of Award Section. The notice of the City Manager's recommendation can be found by selecting the details of the solicitation and is listed as Recommendation of Award Posting Date and Recommendation of Award To fields. If "various" is indicated in the Recommendation of Award To field, the Bidder/Proposer must contact the buyer for that solicitation to obtain the suppliers name. It shall be the responsibility of the Bidder/Proposer to check this section of the website daily after responses are submitted to receive the notice; or H. Any actual Responsive and Responsible Bidder whose Bid is lower than that of the recommended bidder may protest to the Chief Procurement Officer. A written notice of intent to file a protest shall be filed with the Chief Procurement Officer within two days after receipt by the bidder of the notice of the city's determination of non responsiveness or non responsibility. The receipt by bidder of such notice shall be confirmed by the city by facsimile or electronic mail or U.S. mail, return receipt requested. A notice of intent to file a protest is considered filed when received by the Chief Procurement Officer. W. A written protest based on any of the foregoing must be submitted to the Chief Procurement Officer within five (5) days after the date the notice of protest was filed. A written protest is considered filed when received by the Chief Procurement Officer. The written protest may not challenge the relative weight of the evaluation criteria or the formula for assigning points in making an award determination. The written protest shall state with particularity the specific facts and law upon which the protest of the solicitation or the award is based, and shall include all pertinent documents and evidence and shall be accompanied by the required Filing Fee as provided in subsection (f). This shall form the basis for review of the written protest and no facts, grounds, documentation or evidence not contained in the protester's submission to the Chief Procurement Officer at the time of filing the protest shall be permitted in the consideration of the written protest. No time will be added to the above limits for service by mail. In computing any period of time prescribed or allowed by this section, the day of the act, event or default from which the designated period of time begins to nm shall not be included. The last day of the period so computed shall be included unless it is a Saturday, Sunday or legal holiday in which event the period shall nun until the end of the next day which is neither a Saturday, Sunday or legal holiday. Intermediate Saturdays, Sundays and legal holidays shall be excluded in the computation of the time for filing. (b) Authority to resolve protests. The Chief Procurement Officer shall have the authority, subject to the approval of the City Manager and the city attorney, to settle and resolve any written protest. The Chief Procurement Officer shall obtain the requisite approvals and communicate said decision to the protesting party and shall submit said decision to the City Commission within 30 days after he/she receives the protest. In cases involving more than $25,000, the decision of the Chief Procurement Officer shall be submitted for approval or disapproval thereof to the City Commission after a favorable recommendation by the city attorney and the City Manager. (c) Compliance with filing requirements. Failure of a parry to timely file either the notice of intent to file a protest or Page 22 of 47 680351,3 the written protest, together with the required Filing Fee as provided in subsection (f), with the Chief Procurement Officer within the time provided in subsection (a), above, shall constitute a forfeiture of such party's right to file a protest pursuant to this section. The protesting party shall not be entitled to seek judicial relief without first having followed the procedure set forth in this section (d) Stay of Procurements during protests. Upon receipt of a written protest filed pursuant to the requirements of this section, the city shall not proceed further with the solicitation or with the award of the Contract until the protest is resolved by the Chief Procurement Officer or the City Commission as provided in subsection (b) above, unless the City Manager makes a written determination that the solicitation process or the Contract award must be continued without delay in order to avoid an immediate and serious danger to the public health, safety or welfare. (e) Costs. All costs accruing from a protest shall be assumed by the protestor. (f) Filing Fee. The written protest must be accompanied by a filing fee in the form of a money order or cashier's check payable to the city in an amount equal to one percent of the amount of the Bid or proposed Contract, or $5000.00, whichever is less, which filing fee shall guarantee the payment of all costs which may be adjudged against the protestor in any administrative or court proceeding. If a protest is upheld by the Chief Procurement Officer and/or the City Commission, as applicable, the filing fee shall be refunded to the protestor less any costs assessed under subsection (e) above. If the protest is denied, the filing fee shall be forfeited to the city in lieu of payment of costs for the administrative proceedings as prescribed by subsection (e) above. 1.74. SAMPLES - Samples of items, when required, must be submitted within the time specified at no expense to the City. If not destroyed by testing, bidders)/proposer(s) will be notified to remove samples, at their expense, within 30 days after notification. Failure to remove the samples will result in the samples becoming the property of the City. 1.75. SELLING, TRANSFERRING OR ASSIGNING RESPONSIBILITIES - Contractor shall not sell, assign, transfer or subcontract at any time during the term of the Contract, or any part of its operations, or assign any portion of the performance required by this contract, except under and by virtue of written permission granted by the City through the proper officials, which may be withheld or conditioned, in the City's sole discretion. 1.76. SERVICE AND WARRANTY —When specified, the bidder/proposer shall define all warranty, service and replacements that will be provided. Bidders/Proposer must explain on the Response to what extent warranty and service facilities are available. A copy of the manufacturer's warranty, if applicable, should be submitted with your response. 1.77. SILENCE OF SPECIFICATIONS - The apparent silence of these specifications and any supplemental specification as to any detail or the omission from it of detailed description concerning any point shall be regarded as meaning that only the best commercial practices are to prevail and that only materials of first quality and correct type, size and design are to be used. All workmanship and services is to be first quality. All interpretations of these specifications shall be made upon the basis of this statement. If your firm has a current contract with the State of Florida, Department of General Services, to supply the items on this solicitation, the bidder/proposer shall quote not more than the contract price; failure to comply with this request will result in disqualification of bid/proposal. 1.78. SUBMISSION AND RECEIPT OF RESPONSES - Responses shall be submitted electronically via the Oracle System or responses may be submitted in hardcopy format to the City Clerk, City Hall, 3500 Pan American Drive, Miami, Florida 33133-5504, at or before, the specified closing date and time as designated in the IFB, RFP, RFQ, or RFLI. NO EXCEPTIONS. Bidders/Proposers are welcome to attend the solicitation closing; however, no Page 23 of 47 6803 81,3 award will be made at that time. A. Hardcopy responses shall be enclosed in a sealed envelope, box package. The face of the envelope, box or package must show the hour and date specified for receipt of responses, the solicitation number and title, and the name and return address of the Bidder/Proposer. Hardcopy responses not submitted on the requisite Response Forms may be rejected. Hardcopy responses received at any other location than the specified shall be deemed non-responsive. Directions to City Hall: FROM THE NORTH: I-95 SOUTH UNTIL IT TURNS INTO US 1. US I SOUTH TO 27TH AVE., TURN LEFT, PROCEED SOUTH TO SO. BAYSHORE DR. (3RD TRAFFIC LIGHT), TURN LEFT, 1 BLOCK TURN RIGHT ON PAN AMERICAN DR CITY HALL IS AT THE END OF PAN AMERICAN DR. PARKING IS ON RIGHT. FROM THE SOUTH: USI NORTH TO 27TH AVENUE, TURN RIGHT, PROCEED SOUTH TO SO. BAYSHORE DR. (3RD TRAFFIC LIGHT), TURN LEFT, 1 BLOCK TURN RIGHT ON PAN AMERICAN DR. CITY HALL IS AT THE END OF PAN AMERICAN DR. PARKING IS ON RIGHT. B. Facsimile responses will not be considered. C. Failure to follow these procedures is cause for rejection of bid/proposal. D. The responsibility for obtaining and submitting a response on or before the close date is solely and strictly the responsibility of Bidder/Proposer. The City of Miami is not responsible for delays caused by the United States mail delivery or caused by any other occurrence. Responses received after the solicitation closing date and time will be returned unopened, and will not be considered for award. E, Late responses will be rejected. F. All responses are subject to the conditions specified herein. Those which do not comply with these conditions are subject to rejection. G. Modification of responses already submitted will be considered only if received at the City before the time and date set for closing of solicitation responses. All modifications must be submitted via the Oracle System or in writing. Once a solicitation closes (closed date and/or time expires), the City will not consider any subsequent submission which alters the responses. H. If hardcopy responses are submitted at the same time for different solicitations, each response must be placed in a separate envelope, box, or package and each envelope, box or package must contain the information previously stated in 1.82.A. 1.79. TAXES - The City of Miami is exempt from any taxes imposed by the State and/or Federal Government. Exemption certificates will be provided upon request. Notwithstanding, Bidders/Proposers should be aware of the fact that all materials and supplies which are purchased by the Bidder/Proposer for the completion of the contract is subject to the Florida State Sales Tax in accordance with Section 212.08, Florida Statutes, as amended and all amendments thereto and shall be paid solely by the Bidder/Proposer. 1.80. TERtYIINATION —The City Manager on behalf of the City of Miami reserves the right to terminate this contract by written notice to the contractor effective the date specified in the notice should any of the following apply: A. The contractor is determined by the City to be in breach of any of the terms and conditions of the contract. B. The City has determined that such termination will be in the best interest of the City to terminate the contract for Page 24 of 47 680381,3 its own convenience; C. Funds are not available to cover the cost of the goods and/or services. The City's obligation is contingent upon the availability of appropriate funds. 1.8I. TERMS OF PAYMENT - Payment will be made by the City after the goods and/or services awarded to a Bidder/Proposer have been received, inspected, and found to comply with award specifications, free of damage or defect, and properly invoiced. No advance payments of any kind will be made by the City of Miami. Payment shall be made after delivery, within 45 days of receipt of an invoice and authorized inspection and acceptance of the goods/services and pursuant to Section 218.74, Florida Statutes and other applicable law. 1.82. TIMELY DELIVERY - Time will be of the essence for any orders placed as a result of this solicitation. The City reserves the right to cancel such orders, or any part thereof, without obligation, if delivery is not made within the time(s) specified on their Response. Deliveries are to be made during regular City business hours unless otherwise specified in the Special Conditions. 1.83. TITLE - Title to the goods or equipment shall not pass to the City until after the City has accepted the goods/equipment or used the goods, whichever comes first. 1.84.TRADE SECRETS EXECUTION TO PUBLIC RECORDS DISCLOSURE- All Responses submitted to the City are subject to public disclosure pursuant to Chapter 119, Florida Statutes. An exception may be made for "trade secrets." If the Response contains information that constitutes a "trade secret", all material that qualifies for exemption from Chapter 114 must be submitted in a separate envelope, clearly identified as "TRADE SECRETS EXCEPTION," with your firm's name and the Solicitation number and title marked on the outside. Please be aware that the designation of an item as a trade secret by you may be challenged in court by any person. By your designation of material in your Response as a "trade secret" you agree to indemnify and hold harmless the City for any award to a plaintiff for damages, costs or attorney's fees and for costs and attorney's fees incurred by the City by reason of any legal action challenging your claim. 1.85. UNAUTHORIZED WORK OR DELIVERY OF GOODS- Neither the qualified Bidder(s)/Proposer(s) nor any of his/her employees shall perform any work or deliver any goods unless a change order or purchase order is issued and received by the Contractor. The qualified Bidder(s)/Proposer(s) shall not be paid for any work performed or goods delivered outside the scope of the contract or any work performed by an employee not otherwise previously authorized. 1.86. USE OF NAME - The City is not engaged in research for advertising, sales promotion, or other publicity purposes. No advertising, sales promotion or other publicity materials containing information obtained from this Solicitation are to be mentioned, or imply the name of the City, without prior express written permission of the City Manager or the City Commission. 1.87. VARIATIONS OF SPECIFICATIONS - For purposes of solicitation evaluation, bidders/proposers must indicate any variances from the solicitation specifications and/or conditions, no matter how slight. If variations are not stated on their Response, it will be assumed that the product frilly complies with the City's specifications. Page 25 of 47 680381,3 2. Special Conditions 2.1. PURPOSE The purpose of this Solicitation is to establish a contract, for the provision of an Employee Disability Insurance Program, as specified herein, from a source(s), fiflly compliant with the terms, conditions and stipulations of the solicitation. 2.2. DEADLINE FOR RECEIPT OF REQUEST FOR ADDITIONAL INFORMATION/CLARIFICATION Any questions or clarifications concerning this solicitation shall be submitted by email or facsimile to the Procurement Department, Attn: Lydia Osborne, PhD, CPPD, CPPB; fax; (305) 400-5025 or email: losbomeCmiamigov.com, and a copy filed with the Office of the City Clerk, pursuant to Section 1.20. Cone of Silence. The solicitation title and number shall be referenced on all correspondence. All questions must be received no later than April 19, 2017 @ 5:00:00 PM. All responses to questions will be sent to all prospective bidders/proposers in the form of an addendum. NO QUESTIONS WILL BE RECEIVED VERBALLY OR AFTER SAID DEADLINE. 2.3. DEFINITIONS The following words and expressions used in this Solicitation shall be construed as follows, except when it is clear from the context that another meaning is intended: 1. The word "City" to mean the City of Miami, a municipal corporation of the State of Florida. 2. The words "Fully Insured Plan" to mean a benefits plan where the employer (City) contracts with another organization to assume financial responsibility for the Members' claims and for all incurred administrative costs. 3. The words "Member" or "Subscriber" to mean all City employees enrolled in the Disability Insurance Program. 4. The words "Plan Design or Plan" to mean designed benefit options to establish a course of coverage. 5. The words "Plan Year" to mean calendar year, January 1 through December 31. 6. The word "Proposer" to mean the person, firm, entity or organization, as stated on the Certification Statement Form, submitting a response to this Solicitation. 7. The words "Scope of Services" to mean Section 3.0 of this Solicitation, which details the specifications/work to be performed by the Successful Proposer. S. The word "Solicitation" to mean this Request for Proposals (RFP) document, and all associated addenda and attachments. 9. The word "Subcontractor" to mean any person, firm, entity or organization, other than the employees of the Successful Proposer, who contracts with the Successfid Proposer to fiirnish labor, or labor and materials, in connection with the Services to the City, whether directly or indirectly, on behalf of the Successful Proposer. 10. The word "Successful Proposer" to mean the Proposer that receives any award of a contract from the City as a result of this Solicitation, also to be known as "the prime Contractor". 11. The words "Work", "Services", "Program", or "Project" to mean all matters and things that will be required to be done by the Contractor in accordance with the Scope of Services and the terms and conditions of this Solicitation. Page 26 of 47 6803 31,3 2.4. TERM OF CONTRACT The Proposer(s) qualified to provide the service(s) requested herein (the "Successful Proposer(s)") shall be required to execute a contract ("Contract") with the City, which shall include, but not be limited to, the following terms: (1) The terns of the Contract(s) shall be for three (3) years with an option to renew for one (1) additional three (3) year period. (2) The City shall have the option to extend or terminate the Contract. Continuation of the contract beyond the initial period is a City prerogative; not a right of the Proposer. This prerogative will be exercised only when such continuation is clearly in the best interest of the City. 2.5. VOLUNTARY PRE -,PROPOSAL CONFERENCE Potential Proposers are encouraged to attend the Voluntary Pre -Proposal Conference, which will occur on Monday, April 10, 2017 rr 10:00:00 AM, at MRC Building, 444 SW 2nd Avenue, 6th Floor, South Conference Room. A discussion of the requirements of the solicitation will occur at that time. Each potential Proposer is required, prior to submitting a Proposal, to acquaint itself thoroughly with any and all conditions and/or requirements that may in any_ manner affect the work to be perfornied. No allowances will be made because of lack of knowledge of these conditions. The purpose of the pre -proposal conference is to allow potential Proposers an opportunity to present questions to staff and obtain clarification of the requirements of the solicitation documents. Because the City considers the conference to be critical to understanding the solicitation requirements, attendance is Voluntary, but highly recommended. 2.6. CONDITIONS FOR RENEWAL Each renewal of this contract is subject to the following: (1) Continued satisfactory performance compliance with the specifications, terms and conditions established herein. (2) Availability of hinds 2.7. NON -APPROPRIATION OF FUNDS In the event no funds or insufficient fiords are appropriated and budgeted or are otherwise unavailable in any fiscal period for payments due under this contract, then the City, upon written notice to the Successfitl Proposer(s) or his assignee of such occurrence, shall have the unqualified right to terminate the contract without any penalty or expense to the City, No guarantee, warranty or representation is made that any project(s) will be awarded to any firm(s). 2.8. MINIMUM QUALIFICATION REQUIREMENTS Page 27 of 47 680381,3 The City is seeking a single provider to provide all Program services. For a Proposer to be deemed responsive, the following minimum qualification requirements listed below shall be satisfied. In determining said responsiveness, such minimum qualification requirements shall be addressed in detail in the proposal submittal. Failure to meet each of the below minimum qualification requirements and/or failure to provide sufficient detailed documentation concerning the same, shall result in the Proposal being deemed non-responsive. Proposer shall: A. Be licensed by the State of Florida, Office of Insurance Regulations to provide the plan services at the time of proposal due date, and throughout the term of the contract; any renewals and extensions thereof, B. If an insurance carrier, hold a minimum "A" insurance rating from A.M. Best or a comparable financial rating organization (i.e., Moody's, Standard & Poor's or Weiss) and a Financial Classification or "VII" or higher, at the time of proposal submission, C. Have a record of performance of no less than five (S) consecutive years, operating under the same name, and providing group disability insurance programs for commercial or governmental entities, similar in nature and scope, as described in the specifications herein; O. Have no record of judgments or pending lawsuits against the City and/or bankruptcy, and not have any conflicts of interest that have not been waived by the City Commission; and, E. Have neither Proposer nor any member, officer, or stockholder of Proposer be in arrears or in default of any debt or contract involving the City, (as a party to a contract, or otherwise); nor have failed to perform faithfully on any previous contract with the City. 2.9. REFERENCES Each proposal MUST be accompanied by a list of three references, which shall include for each project, the name of the company, dates covering the term of the contract; description of the scope of work; client contact person and phone number, and statement of whether Proposer was the prime contractor or subcontractor. Where possible, list those references for those projects performed for government clients or similar size private entities. 2.10. EXECUTION OF AN AGREEMENT The Successful Proposer(s) evaluated and ranked in accordance with the requirements of this Solicitation, shall be awarded an opportunity to negotiate a Professional Services Agreement (Agreement) with the City. The City reserves the right to execute or not execute, as applicable, an Agreement with the Successful Proposer(s) in substantially the same form as the draft Agreement included as part of this Solicitation. Such Agreement will be famished by the City, will contain certain terms as are in the City's best interest, and will be subject to approval as to legal form by the City Attorney. 2.11. FAILURE TO PERFORM Should it not be possible to reach the Successful Proposer or Successful Proposer's Supervisor and/or should remedial action not be taken within 48 hours of any failure to perform according to specifications, the City reserves the right to declare Successful Proposer in default of the contract or make appropriate reductions in the contract payment. 2.12. INSURANCE REQUIREMENTS Page 28 of 47 68038I,3 Successfid Proposer shall pay on behalf of, indemnify and save City and its officials harmless, from and against any and all claims, liabilities, losses, and causes of action, which may arise out of Successful Proposer's performance under the provisions of the contract, including all acts or omissions to act on the part of SL1cceSSfi[l Proposer, including any person performing under this Contract for or on Successful Proposer's behalf, provided that any such claims, liabilities, losses and causes of such action are not attributable to the negligence or misconduct of the City and, from and against any orders, judgments or decrees which may be entered and which may result from this Contract, unless attributable to the negligence or misconduct of the City, and front and against all costs, attorneys' fees, expenses and liabilities incurred in the defense of any such claim, or the investigation thereof. The Successful Proposer shall furnish to City of Miami, c/o Procurement Department, 444 SW 2nd Avenue, 6th Floor, Miami, Florida 33130, Certificate(s) of Insurance which indicate that insurance coverage has been obtained which meets the requirements as outlined below: Commercial General Liability A. Limits of Liability Bodily Injury and Property Damage Liability Each Occurrence $1,000,000 General Aggregate Limit $ 2,000,000 Personal and Adv. Injury $ 1,000,000 Products/Completed Operations $ 1,000,000 B. Endorsements Required City of Miami listed as an additional insured Contingent and Contractual Liability -CGL FORM Premises and Operations Liability- CGL FORM Primary Insurance Clause II. Business Automobile Liability A. Limits of Liability Bodily Injury and Property Damage Liability Combined Single Limit Any Auto Including Hired, Borrowed or Non -Owned Autos Any One Accident $ I,000,000 B. Endorsements Required City of Miami listed as an additional insured Page 29 of 47 680381,3 III. Worker's Compensation Limits of Liability Statutory -State Florida Waiver of Subrogation Employer's Liability A. Limits of Liability $500,000 for bodily injury caused by an accident, each accident $500,000 for bodily injury caused by disease, each employee 5500,000 for bodily injury caused by disease, policy limit IV. Professional Liability/Errors and Omissions Coverage Combined Single Limit Each Claim $ 2,000,000 General Aggregate Limit $ 2,000,000 Retro date included V. Umbrella/Excess Liability A. Limits of Liability Each Occurrence $1,000,000 Policy Aggregate $1,000,000 City of Miami listed as an additional insured Excess Form over all applicable liability policies herein contained The above policies shall provide the City of Miami with written notice of cancellation or material change from the insurer not less than (30) days prior to any such cancellation or material change. Companies authorized to do business in the State of Florida, with the following qualifications, shall issue all insurance policies required above: The company must be rated no less than "A-" as to management, and no less than "Class V" as to Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent. All policies and /or certificates of insurance are subject to review and verification by Risk Management prior to insurance approval. The insurance coverage required shall include those classifications, as listed in standard liability insurance manuals, which most nearly reflect the operations of the Successful Proposer. NOTE: CITY RFP NUMBER AND/OR TITLE OF RFP MUST APPEAR ON EACH CERTIFICATE. Page 30 of 47 680381,3 Compliance with the foregoing requirements shall not relieve the Successfirl Proposer of his liability and obligation under this section or under any other section of this Agreement. --If insurance certificates are scheduled to expire during the contractual period, the Proposer shall be responsible for submitting new or renewed insurance certificates to the City at a minimum of ten (10) calendar days in advance of such expiration. --In the event that expired certificates are not replaced with new or renewed certificates which cover the contractual period, the City shall: (4) Suspend the contract until such time as the new or renewed certificates are received by the City in the manner prescribed in the Request for Proposal. (5) The City may, at its sole discretion, terminate this contract for cause and seek re -procurement damages from the Successful Proposer in conjunction with the General and Special Terms and Conditions of the solicitation. The Proposer shall be responsible for assuring that the insurance certificates required in conjunction with this Section remain in force for the duration of the contractual period; including any and all option terms that may be granted to the Successfirl Proposer. 2.13. CONTRACT ADMINISTRATOR Upon award, Successful Proposer shall report and work directly with Director, Risk Management, who shall be designated as the Contract Administrator for the City. 2.14. SUBCONTRACTOR(S) OR SUBCONSULTANT(S) A Sub -Consultant, herein known as Sub-Contractor(s) is an individual or firm contracted by the Proposer or Proposer's firm to assist in the performance of services required ander this Solicitation. A Sub -Contractor shall be paid through Proposer or Proposer's firm and not paid directly by the City. Sub -Contractors are allowed by the City in the performance of the services delineated within this Solicitation. Proposer must clearly reflect in its Proposal the major Sub -Contractors to be utilized in the performance of required services. The City retains the right to accept or reject any Sub -Contractors proposed in the response of Successful Proposer or prior to contract execution. Any and all liabilities regarding the use of a Sub -Contractor shall be borne solely by the Successfirl Proposer and insurance for each Sub -Contractors must be maintained in good standing and approved by the City throughout the duration of the Contract. Neither Successfiil Proposer nor any of its Sub -Contractors are considered to be employees or agents of the City. Failure to list all Sub -Contractors and provide the required information may disqualify any proposed Sub -Contractors from performing work under this Solicitation. Proposers shall include in their Responses the requested Sub -Contractor information and include all relevant information required of the Proposer. In addition, within five (5) working days after the identification of the award to the Successful Proposer, the Successfiil Proposer shall provide a list confirming the Sub -Contractors that the Successful Proposer intends to utilize in the Contract, if applicable. The list shall include, at a minimum, the name, location of the place of business for each Sub -Contractor, the services Sub -Contractor will provide relative to any contract that may result from this Solicitation, any applicable licenses, references, ownership, and other information required of Proposer. 2.15. TERMINATION Page 31 of 47 680381,3 A. FOR DEFAULT If Successfid Proposer defaults in its performance under this Contract and does not cure the default within 30 days after written notice of default, the City Manager may terminate this Contract, in whole or in part, upon written notice without penalty to the City of Miami. In such event the Successful Proposer shall be liable for damages including the excess cost of procuring similar supplies or services: provided that if, (1) it is determined for any reason that the Successful Proposer was not in default or (2) the Successful Proposer's failure to perform is without his or his Subcontractor's control, fault or negligence, the termination will be deemed to be a termination for the convenience of the City of Miami. B. FOR CONVENIENCE The City Manager may terminate this Contract, in whole or in part, upon 30 days prior written notice when it is in the best interest of the City of Miami. If this Contract is for supplies, products, equipment, or software, and so terminated for the convenience by the City of Miami the Successful Proposer will be compensated in accordance with an agreed upon adjustment of cost. To the extent that this Contract is for services and so terminated, the City of Miami shall be liable only for payment in accordance with the payment provisions of the Contract for those services rendered prior to termination. 2.16. ADDITIONAL TERMS AND CONDITIONS No additional terms and conditions included as part of your solicitation response shall be evaluated or considered, and any and all such additional terms and conditions shall have no force or effect and are inapplicable to this solicitation. If submitted either purposely, through intent or design, or inadvertently, appearing separately in transmittal letters, specifications, literature, price lists or warranties, it is understood and agreed that the General Conditions and Special Conditions in this solicitation are the only conditions applicable to this solicitation and that the Proposer's authorized signature affixed to the Proposer's acknowledgment form attests to this. If a Professional Services Agreement (PSA) or other Agreement is provided by the City and is expressly included as part of this solicitation, no additional terms or conditions which materially or substantially vary, modify or alter the terms or conditions of the PSA or Agreement, in the sole opinion and reasonable discretion of the City will be considered. Any and all such additional terms and conditions shall have no force or effect and are inapplicable to this PSA or Agreement. 2.17. COMPENSATION PROPOSAL Each Proposer shall detail any and all fees and costs, on Form B, Price Proposal Schedule, to provide the required services as listed herein. Proposer shall additionally provide a detailed list of all costs to provide all services as detailed in Section 3, Scope of Services, as proposed. The City reserves the right to add or delete any service, at any time. Should the City determine to add an additional service for which pricing was not previously secured, the City shall request the Successful Proposer to provide reasonable cost(s) for same. Should the City determine the pricing unreasonable, the City reserves the right to negotiate cost(s) or seek another vendor for the provision of said service(s). Failure to submit compensation proposal as required shall disqualify Proposer from consideration. 2.18. EVALUATION/SELECTION PROCESS AND CONTRACT AWARD The procedure for response evaluation, selection and award is as follows: Page 32 of 47 6803$1,3 (1) Solicitation issued; (2) Receipt of responses; (3) Opening and listing of all responses received; (4)• Procurement staff will review each submission for compliance with the submission requirements of the solicitation, including verifying that each submission includes all documents required; (5) An Evaluation Committee ("Committee"), appointed by the City Manager, comprised of appropriate City Staff and members of the community, as deemed necessary, with the appropriate technical expertise and/or knowledge, shall meet to evaluate each response in accordance with the requirements of this solicitation and based upon the evaluation criteria as specified herein; (6) The Committee reserves the right, in its sole discretion, to request Proposers to make oral presentations before the Committee as part of the evaluation process. The presentation may be scheduled at the convenience of the Committee and shall be recorded; (7) The Committee reserves the right to rank the proposals and shall make its recommendation to the City Manager requesting the authorization to negotiate. No Proposer(s) shall have any rights against the City arising from such negotiations thereof; (8) The City Manager reserves the right to reject the Committee's recommendation to negotiate, and instruct the Committee to re-evaluate and make another recommendation, or reject all proposals. No Proposer(s) shall have any rights against the City arising from such negotiations thereof; (9) If the City Manager accepts the Committee's recommendation to negotiate, Procurement will negotiate a final contract with the Successful Proposer, and submit a recommendation to award a contract (s) to the City Manager; (10) The City Manager shall then submit his or her award recommendation and negotiated contract(s) to the City Commission for approval. Written notice shall be provided to all proposers. (11) If the City Manager accepts the award recommendation, the City Manager's recommendation for award of contract will be posted on the City of Miami Procurement Department website, in the Supplier Corner, Current Solicitations and Notice of Recommendation of Award Section. The notice of the City Manager's recommendation can be found by selecting the details of the solicitation and is listed as Recommendation of Award Posting Date and Recommendation of "Award To" fields. If "various" is indicated in the Recommendation of "Award To" field, the Proposer must contact the Contracting Officer for that solicitation to obtain the suppliers names. (12) Alter reviewing the City Manager's recommendation, the City Commission may: 1. Approve the City Manager's award recommendation and negotiated contract(s); 2. Reject all proposals, 3. Reject all proposals and instruct the City Manager to reissue a solicitation; or 4. Reject all proposals and instruct the City Manager to enter into competitive negotiations with at least three individuals or firms possessing the ability to perform such services and obtain information from said individuals or firms relating to experience, qualifications and the proposed cost or fee for said services, and make a recommendation to the City Commission. The decision of the shall be final. Written notice of the award shall be given to the Successfial Proposer. 2.19. ADDITIONAL SERVICES Services not specifically identified in this Solicitation, may be added to any resultant contract upon successfid negotiation and mutual consent of the contracting parties. Page 33 of 47 680381,3 2.20. CHANGES/ALTERATIONS Proposer may change or withdraw a Proposal at any time prior to Proposal submission deadline; however, no oral modifications will be allowed. Written modifications shall not be allowed following the proposal deadline. 2.21. RECORDS During the contract period, and for a least five (5) subsequent years thereafter, Successful Proposer shall provide City access to all files and records maintained on the City's behalf. 2.22. TRUTH IN NEGOTIATION CERTIFICATE Execution of the resulting agreement by the Successful Proposer shall act as the execution of truth -in -negotiation certificate stating that wage rates and other factual unit costs supporting the compensation of the resulting Agreement are accurate, complete, and current at the time of contracting. The original contract price and any additions thereto shall be adjusted to exclude any significant sums by which City determines the contract price was increased due to inaccurate, incomplete, or non-current wage rates and other factual unit costs. All such contract adjustments shall be made within one (1) year following the end of the Agreement. Page 34 of 47 680381,3 3. Specifications 3.1. SPECIFICATIONS/SCOPE OF WORK 3.1.1 Background The City of Miami, hereinafter referred to as the "City," as represented by the City of Miami's Risk Management Department (Risk), is soliciting proposals from experienced and qualified firms to provide an insured employer sponsored Executive Employee Group Short -Term Disability (STD), and Long -Term Disability (LTD) Insurance Program, with the option to allow executive employees to buy -up to a Premier Long -Term Benefit ("Premier LTD"), and related services. Currently, there are no disability benefits in place for executive employees. There are approximately 117 lives eligible for participation in this Program (refer to Exhibit 1, Executive Employee Census). 3.1.2 Disability Plan Designs Solicited 1. The Plans shall be fully insured. 2. The effective date of all benefits shall be January 1, 20IS. In the event the City's process for award is completed in advance of January 1, 2018, the effective date may be earlier. 3. Benefits for short and long terni disability are anticipated to be 100% employer paid. Employees may voluntarily buy -up to (Premier LTD). Employees interested in buying up to the Premier LTD, will only pay for the difference in rate between the core and the buy -up. The elimination period for the Premier LTD is ninety (90) days. 4. Employees are eligible for coverage on the first day of the month, following 60 days of employment. 5. Employees must work 60 continuous days of employment. 6. The City would prefer that the Proposer include no minimum participation. However, for the purposes of this Solicitation, the Proposer shall present guaranteed rates for the following minimum participation in the employee funded plan, for the initial three years of the contract: 1) If participation is greater than 25%; 2) If participation is between 20% and 25%; 3) If participation is between 15% and 20%p; 4) If participation is between 10% and 15%; and 5) If participation falls below 10%. 7. Variations in actual enrollment in the employer funded plan shall have no effect on the rates. 8. For the LTD and Premier LTD, a pre-existing condition shall mean a sickness or injury for which the insured received medical treatment, consultation, care or services, including diagnostic measures, or had taken prescribed dregs or medicines in the three (3) months prior to the effective date of coverage of the insured person. The above pre-existing condition clause shall not apply once the person has been insured under the Plan for twelve (12) consecutive months. 9. The City's STD plan does not include a pre-existing condition clause. 10. At the 2017 open enrollment for the Plan Year 2018, all executive employees shall be eligible without evidence of insurability (guaranteed issue). 11. A single provider shall underwrite both the STD and LTD/Premier plans. Note: Attached as Exhibit 2, Plan Designs is a snapshot of the plan Page 35 of 47 680381,3 design benefits desired. Proposals shall be based upon disability plan designs listed in Exhibit 2, titled Disability Plan Designs Solicited, however, the City may consider and review alternatives. All alternative plans shall clearly designate deviations from the listed schedule of benefits. The City will evaluate the Proposals to access the capabilities in each of the following areas: 1, Organization's qualifications, experience and financial stability; 2. Plan design and benefits; 3. Claims administration and customer service; 4. Financial reporting and records; and, 5. Overall plan cost/value. Refer to Section 5, Evaluation Criteria. 3.1.3 Disability Program Requirements and Services A. General Program Information Listed below are some of the highlights for the anticipated Program. 1. Executive employees accrue three (3) or four (4) hours of sick leave per pay period with a maximum accrual of 96 hours per year. 2. There is no cap on the number of sick leave hours that can be accumulated. 3. Executive employees will be enrolled in the STD/LTD Plan, and may choose to voluntarily enroll in the Premier LTD plan. Enrollment in the Premier LTD plan cannot be combined with the STD and LTD plans, because the pians are mutually exclusive. 4. The Successful Proposer shall administer the Program in accordance with all applicable state and federal laws, in addition to monitoring any legislation affecting the delivery of services. 5. The premiums for the Program will be paid on a payroll volume basis by the employer for the STD/LTD plans. Voluntary participation in the Premier LTD plan shall be employee funded. The City recognizes the existence of Florida Statutes, Section 624.1275, The Successful Proposer shall administer the Program in accordance with all applicable state and federal laws. 6. Situs is Florida. 7. The Successful Proposer will provide the City with a 60 -day premium grace period. B. Call Intake/Customer Service The Successful Proposer shall: 1. Accept incoming calls from employees and others (i.e., City representatives, family members, physician, or supervisor). 2. Provide a Call Intake System that has an "automated call distribution" feature with message capability for after hours. Return calls shall be made within 24 hours. 3. Provide customer service in English, Spanish and Creole, during the City's normal business hours (M -F 8:00 a.m. to 5:00 p.m., Eastern Time). t Page 36 of 47 6803$1,3 C. Clinical Support Services The clinical and vocational aspects of disability claims require significant detailed medical data in addition to discussions with attending physicians. Therefore, the Successfiul Proposer shall: 1. Provide clinical review by an appropriate medical professional, including initial claim determination approval/denial and determination of levels of impairment; 2. Coordinate with healthcare providers to obtain objective clinical information; 3. Contact and discuss with the City's personnel representative, the claimant's job duties and functional requirements, etc. 4. Provide expert testimony by the appropriate medical professional, when necessary, to support claim decisions; and, 5. Provide telephone interaction with other appropriate healthcare and vocational vendors, as applicable. D. Claims Administration and Management The Successful Proposer shall comply with the Department of Labor's final claims procedure regulations, including the appropriate timeframe for a) adjusting claims, and b) notice of appeals decisions. 1. Assume full risk on the Plan effective date for all lives effective on or after the Plan effective date; 2. Maintain a file to support payments, denials, Social Security activities, appeals, and vocational assistance; 3. Conduct claimant interviews, if deemed appropriate; 4. Allow an independent claim management audit by a third -party, selected by the City, as requested by the City; 5. Maintain an internal audit program, 6. Process payments and negotiate settlements, as applicable; 7. Provide tax reporting in accordance with the Federal tax code; 8. Provide vocational/occupational and rehabilitation services to claimants, if appropriate; 9. Maintain database for the management of each claimant; 10. Provide implementation assistance to the City including internal training, communication materials, and an administration manual; 11. Administer a written appeals process for reconsideration of any benefit denial; 12. Resolve all appeals within 30 calendar days of receipt of completed documentation; 13. Maintain all required fomes and authorization guidelines such as employer and employee statements, attending physician statements, and authorizations to release information statements; 14. Accept Evidence of Insurability directly from employees through the provisions of return envelopes, facsimile or online submission; 15. Provide appropriate level of personnel to attend Open Enrollment and Employee Workshop meetings; 16. Accept the use of the current City Enrollment Form and/or use the City's on-line enrollment process; and, 17. Assume responsibility for claims incurred prior to contract termination/expiration date. If, at some date in the future, it becomes necessary to terminate the contract, the Successfid Proposer shall transfer to the City, or the City's new Program provider, within 30 days of termination, all data and records necessary to administer the Program, at no cost to the City. Page 37 of 47 680381,3 F. Financial Reporting & Records The Successful Proposer shall provide to the City, at a minimum, the following reports separately for each of the plans designs: 1. A quarterly Account Reconciliation Report of cost components within 30 days of the end of each quarter. The components should include areas such as the number of new submissions, date tracking to assure initial determination and ongoing medical reviews are occurring at the required times, the number of open files, and the number of closed files. The latter must denote reasons for case termination. 2. A quarterly Utilization Report for each disability income benefit plan with the following year-to-date, within 30 days of the end of each quarter and plan year reporting periods: a. Earned premium; b. Administrative charges; c. Paid claims; d. Open reported (pending) claims; e. Change in "Incurred But Not Reported" (IBNR) reserve; f. Cost/premium ratio; and, g. Claims denied. 3. An Annual Savings Report, including comparison of actual, approved and benchmark durations by diagnosis, within 60 days following the close of the reporting period. 4. A Semi -Annual Summary Report of claims activity by reported diagnosis within 60 days following the close of the reporting period. 5. Annual reporting of the status of each claim, within the Social Security process, to the City within 45 days following the close of the reporting period. F. Fiduciary Protection In addition to the other insurance requirements stated in the Section 2. 10, titled, Insurance Requirements, the Successful Proposer shall provide indemnification and liability protection for the clinical and non -clinical administration components of the Program. The Successful Proposer shall indemnify and hold the City harmless from any clinical, professional, or administrative decisions made by the Successful Proposer rendering services, including the administration of the appeals process. G. Premium Rate Guarantee All premium rates shall be guaranteed for a minimum of 24 months (the initial two (2) plan years, January 1, 2018 through December 31, 2019), independent of actual enrollment or any other premium rate contingencies. The Successful Proposer shall provide the rates for Plan Year 2020 (the third year of the initial term) by May 1, 2019. The renewal rates for the three-year option to renew period, shall be provided by May 1, 2020 by the Successful Proposer to the City, and are subject to negotiations and acceptance by the City. H. Guaranteed Issue For all Plans, the Successful Proposer shall guarantee issue for an employee's first time enrollment in any of the Plans (including current enrollees and new enrollees, applying within their initial eligibility period). If an employee chooses to enroll at a subsequent enrollment, the Successfttl Proposer may require medical underwriting. Medical underwriting shall be performed for subsequent enrollments only. Page 38 of 47 680381,3 I. Actively at Wgrk Provision For all Plans, employees must be actively at work with the City in order for their coverage to become effective. However, should the effective date be a non -work day for an employee, insurance will still become effective on that date, if the employee is otherwise actively -at -work and performed in his/her customary manner all of the regular duties of his/her employment or occupation on the last preceding scheduled work day, and is not disabled. If an employee is not actively at work with the City on the date when their coverage would otherwise become effective, coverage becomes effective on the date of their return to active work with the City. .I. Pre-existing Conditions Clause For the LTD and Premier Ptans, a pre-existing condition means a sickness or injury for which the insured received medical treatment, consultation, care of services including diagnostic measures, or had taken prescribed drugs or medicines for in the three (3) months prior to the effective date of coverage of the insured person. The above pre-existing condition clause shall not apply once the person has been insured by the Plan for twelvc'(12) consecutive months. The City's STD Plan should not include a pre-existing condition clause. K. Pavment The City anticipates the STD/LTD plans to be fully funded by the employer and therefore benefit from 100% executive employee participation. The Premier Plan shall be voluntary and wholly employee funded. Notwithstanding, the City reserves the right, at its sole discretion, to offer all benefits on a voluntary basis, to be funded exclusively by employees. Should the City proceed with offering the disability benefits on a voluntary basis, the City shall providea bi-weekly remittance, for the prior pay period, accompanied by an electronic file of employee salary deductions to the Successfiil Proposer for the all plans. The Successful Proposer shall allow retroactive premium adjustments and honor claims that are incurred within 120 days of reporting for eligible employees who are inadvertently and incorrectly excluded from employer remittance files. L. Master Contract/Certificates of Coverage The Successfiil Proposer shall duplicate the requested benefit plan design provisions. The Certificates of Coverage for all Plans shall be provided to the City no later than May 1, 2018, The Successfiil Proposer shall mail the approved Certificates of Coverage to members' homes within 60 days of the beginning of the initial plan year and to subsequent members upon enrollment. M. Year -End Accounting The Successful Proposer shall deliver to the City a final year-end report which includes, but is not limited to, premiums, claims and reserves, if applicable, no later than 90 days after the close of each calendar year. /P> M. N. Privacy and Confidentiality Successful Proposer shall: a) Develop, adopt, and implement standards to safeguard the privacy and confidentiality of all personal information about eligible employees and members of the Program. Successful Proposer's procedures shall include but not Page 39 of 47 680381,3 limited to safeguarding the identity of members as members of the Program and preventing unauthorized disclosure of personal information. b) Report any unauthorized use or disclosure of the members' personal information to the City, within twenty-four (24) hours of any incident of which it becomes aware. c) Comply with all federal and state laws concerning the privacy and confidentiality of members' information, and agrees to implement any regulations when they become effective. d) Not disclose any member's personal information to another business associate for pecuniary gain, without prior written authorization from the City. e) Mitigate, to the extent practicable, any harmfitl effect that is known to the Successfitl Proposer of a use or disclosure of members' information by the Successful Proposer in violation of the requirements of this Agreement or federal or state laws. 0 Implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of the electronic personal information of members that Successful Proposer creates, receives, maintains, or transmits. g) Report to the City any security incident of which the Successfitl Proposer becomes aware, and (iii) ensure that any agent of the Successful Proposer, including any subcontractor or subconsultant, agrees to the same restrictions and conditions that apply to the Successful Proposer with respect to such information. h) Not sell member information. Successfitl Proposer shall not use member information unless it is aggregated blinded data, which is not identifiable on a member basis. Successful Proposer shall not use member identified or non -aggregated information for advertising, marketing, promotion or any activity intended to influence sales or market share of any product or service. i) Full financial responsibility for any penalties, fines, or other payments imposed or required as a result of Successful Proposer's non-compliance with, or violation of, federal or state requirements, and the Successfitl Proposer shall indemnify the City with respect to any such penalties, fines, or payments. j) Assure that all Successful Proposer's staff, including subcontractor or subconsultant, are trained in all privacy requirements, as applicable. k) At the request of the City, offer credit protection for those times in which a member's personal information is accidentally or inappropriately disclosed. Page 40 of 47 68{1381,3 4. Submission Requirements 4.1. Submission Requirements Proposers shall carefully follow the format and instruction outlined below, observing format requirements where indicated. Proposals should contain the information itemized below and in the order indicated. This information should be provided for the Proposer and any Sub -Consultants to be utilized for the work contemplated by this Solicitation. Proposals submitted which do not include the following items may be deemed non-responsive and may not be considered for contract award. Proposers shall submit responses in a hardcopy format, consisting of one (1) original and seven (7) copies, and in an electronic format via a CD-ROM. On-line submittals, via the Oracle System, shall not be accepted. Failure to do so may deem the Proposal non-responsive. Section 4.1. Submission Requirements supersedes Section 1.78. Submission and Receipt of Responses of this RFP document. PROPOSAL FORMAT The response to this solicitation should be presented in the following format. Failure to do so may deem your Proposal non-responsive. 1. Cover Page The Cover Page should include the Proposer's name; Contact Person for the RFP; Firm's Liaison for the Contract; Primary Office Location; Local Business Address, if applicable; Business Phone and Fax Numbers, if applicable Email addresses; Title of RFP; RFP Number; Federal Employer Identification Number. 2. Table of Contents The table of contents should outline, in sequential order, the major sections of the Proposal as listed below, including all other relevant documents requested for submission. All pages of the Proposal, including the enclosures, should be clearly and consecutively numbered and correspond to the table of contents. 3. Executive Summary Provide an Executive Summary describing elements contained within Proposer's Proposal, including such factors as Organization, Qualifications and Capabilities; Proposed Disability Plan Designs; Customer Service, Reporting Capabilities, Claims Administration; and Price and Cost Effectiveness. A. Proposer's Organization, Qualifications, Capabilities & Financial Stability 1) Provide documentation that demonstrates Proposer's ability to satisfy all of the minimum qualification requirements pursuant to Section 2.7. Proposers who do not meet the minimum qualification requirements or who fail to provide supporting documentation may be deemed non-responsive. 2) Describe the Proposer's organizational history and structure; years proposing firm has been in business providing a similar service(s), and indicate whether the City has previously awarded any contracts to the proposing firm. Proposer should include the name of the organization, business phone/fax/email address, contact person and Federal Employee Identification Number. 3) Provide a list of all principals, owners, directors and key personnel to be assigned to this project. Identify the Account Manager for the Program, their office location, their current case load and provide a brief biography of Page 41 of 47 680381,3 such Account Manager 4) Provide a) the number of years in existence of Proposer, both nationally and in the Florida market; b) the current number of members enrolled in the Proposer's plan, both nationally and in Florida, and c) the primary markets served. Also, discuss specifically, Proposer's involvement in providing disability benefits, particularly in the South Florida market. 5) Provide the current number of employees of Proposer; Proposer employees' depth and experience, and number and job classifications of employees anticipated to be assigned to the City's account, including the overall qualifications of assigned staff, particularly its experience with disability benefit administration in Florida and with public entities. Include discussion of employees' diversity and ability of speaking more than one language, particularly Spanish and Creole. 6) Provide a list of clients of equivalent size to the City which, for whatever reason, discontinued their use of Proposer's services within the past year and indicate the reasons for same. Include contact name, phone number and email for discontinued clients. 7) Provide three (3) existing clients, of equivalent size to the City, including contact name, phone number and email address, size of group and services provided. The City reserves the right to contact any reference as part of the evaluation process. 8) List Proposer's subcontractors or sub consultants which will work on the City's Program and include a brief history of their background and experience. 9) Provide any other information which the Proposer deems relevant to its organization and its ability to provide quality group disability benefit services to the City. 10) Provide Proposer's implementation plan that will be utilized in implementing the City's Program, anticipated to become effective January I, 2018. This shall include, but not be limited to: a) training offered to City staff, b) sample of communication materials and administration manual, and c) all anticipated City assigned action items. 11) Identify if Proposer has taken any exception(s) to the terms of this Solicitation. If so, indicate the alternative being offered and the cost implications of the exception(s). 12) Provide information concerning any prior or pending litigation either civil or criminal, involving a governmental agency or which may affect the performance of the services to be rendered herein, in which the Proposer, any of its employees or subcontractors, is or has been, involved within the past three (3) years. 13) Confirm Proposer's organization has complied with all State of Florida, Office of Insurance Regulation filing requirements for plan/product being offered to the City. B. Proposed Plan Design and Benefits 1) Provide detailed response as to how well Proposer's Proposed Plan Design mirrors the City's identified plan benefits, as outlined in Section 3.1.2 and Exhibit 2. Proposer should also provide a brief description of its ability to provide all the services requested herein. Page 42 of 47 680381,3 2) If different than the City's identified Plan Design, describe Proposer's exceptions, deviations, etc. 3) Confirm if Proposer will not include minimum participation requirements. For employee funded plan, if Proposer is proposing minimum participation requirements, refer to guarantee participation listed in Section 3, Specifications/Scope of Work, subsection 3.1.2, Item 6. Proposer shall enter this information on Form B, Price Proposal Schedule. 4) Confirm insurance is offered on a "Guaranteed Issue" basis as required by the Scope of Services. Describe the underwriting requirements? 5) Identify if an eligibility feed is required to manage the Program? 6) Provide as an attachment, a description of Proposer's eligibility file record layout specifications. 7) Provide a sample of the Proposer's STD and LTD disability policies. 8) Describe Proposer's available resources to assist Members in staying at work prior to becoming a disability claim. 9) Provide any other information which the Proposer deems relevant to its organization and its ability to provide quality managed disability claims administration services to the City. C. Claims Administration and Customer Service 1) Address Claims Office Operations to include intake adjudication, clinical support, capacity for phone/email inquiries and any services off -shored. a. Identify where the claims office that will handle claims for the City is located. b. Indicate whether the same claims office that handles STD claims, will also handle LTD claims. c. Provide the hours of operation for the claims office. d. Describe the training provided to Proposer's Claims Representatives. e. Describe Proposer's expected team's current case load, each (number of clients). f. Describe Proposer's database utilized for the management of each claimant. g. Describe maximum number of open and new claims handled, per Proposer's examiners or clinicians. h. Identify at what point in the proposed claims process, that Proposer begin to transition a claim from STD to LTD. i. Provide as an attachment, Proposer's processed claims process, if no eligibility file is in place. j. Identify how Proposer's claims representatives will "warm transfer" claimant Members to other vendors (i.e., EAP, Disease Management, etc.), if necessary. 2) Describe Proposer's Customer Service Center Operations: a. Provide the hours of operation for the customer service center. b. Indicate whether there will be dedicated Customer Service Representatives specifically for City employees. If so, how many? c. Indicate how many members each Customer Service Representative will be servicing on average. d. Describe the training provided to Proposer's Customer Service Representatives. Page 43 of 47 680381,3 3) Indicate whether Proposer maintains separate toll-free numbers for customer service and claims. Explain how members' questions regarding the status of their claim are addressed. Will Proposer's customer service center address inquiry or will Member be directed to contact claims examiner directly? 4) Indicate whether there is an internet site available for Member use. Describe the capabilities. 5) Describe Proposer's telephonic intake of STD/LTD claims. a. Identify if members are able to provide voice authorization in order to release medical records. b. Identify whether Proposer utilizes robo-calls in any part of their disability claims processing, If so, please specify purpose of usage (e.g., reminders of outstanding recommendations, approval notifications, etc.). 6) Indicate whether Proposer offers on-line intake of STD/LTD claims. If so, describe the process. 7) Describe Proposer's written claims appeal process utilized for recommendation of benefit denial. 8) Describe the role(s) that the Proposer's staff types (claim analysts, nurses, physicians, claim supervisors) have in benefits determination (both acceptance and denial). 9) Identify Proposer's proposed conunitment to implementing the following performance guarantees and the premium at risk associated with each: a. Speed of answering calls; b. Length of time on hold; c. Responding to after-hours callers; d. Abandonment rate of calls; e. Claim himaround time; f. Percent of claims audited; g. Claims payment accuracy; and h. Social Security award success for LTD claimants. 10) Describe Proposer's approach to client services as it relates to resolving complaints from the City and/or resolution of errors. 11) Describe Proposer's internal audit program. 12)' Provide examples of Proposer's standard notifications, forms, letters and reimbursement agreements. D. Financial Reporting and Records 1) Provide a list of recent improvements to similar Proposer programs and the respective outcomes. Specifically describe how Proposer has successfully applied the proposed approach in comparable contracts to make recommendations to improving benefits, and describe the net effect outcome of these recommendations. 2) Describe Proposer's compliance with HIPAA regulations. 3) Proposer shall provide a statement affirming that Proposer will develop, adopt, and implement standards to safeguard the privacy and confidentiality of all personal information about eligible employees and members of the Page 44 of 47 680381,3 Program. Provide description of some of the safeguards that Proposer has implemented for any of the three (3) existing clients listed above in A(7). 4) Provide samples of required reports (refer to Section 3.1.3, Letter E, Items 1-5) and list any other standard and non-standard report available, including report function, data elements and distribution frequency, Note: It is the Proposer's responsibility to redact all confidential information, prior to submitting sample reports. 5) Describe Proposer's capabilities to provide on-line reporting. Identify if Claims Status Reports automatically push out to the City or does the City need to log onto Proposer's portal to download reports. 6) Describe Proposer's plan at contract expiration/termination to transfer the required information to the City. 7) Describe hove Proposer assures accurate and timely remittance of federal income tax withholdings to the IRS. Additionally, describe how accurate calculation of federal income tax withholding is assured. E. Price and Cost Effectiveness 1) Provide detailed rates for STD per S 100 of weekly benefit; and LTD per S1 00 covered monthly payroll, as it were employer funded or employee paid. Proposer shall also provide rates for employee voluntary buy up to Premier Plan, per 5100 covered monthly payroll. Please submit proposed pricing utilizing Form B, Price Proposal Schedule. Notes: a. All fees shall be guaranteed for a minimum of 24 months (the initial two (2) Plan Yeats (January 1, 2018 through December 31, 2019)), b. Premium payment to the Successful Proposer shall be based on actual enrollment of employees. c. Fees shall not be adjusted at any time during City requests and agrees to contractual changes. d. Rates for the three (3) year option to renew period shall remain firm and fixed unless adjustments are agreed upon by the City and the Successful Proposer. Any requests for adjustments niust be provided by the Successful Proposer to the City's Contract Administrator by May Ist of the year prior to the start of the affected Plan Year, A justification including the Successful Proposer's underwriting/actuarial methodology used to determine the requested adjustment must be submitted with the request. If no request for adjustment is received by May 1st, the rates shall remain the same for the option to renew period. Any rate adjustment shall be negotiated and may be based on any other legislative mandates and industry trend factors. F. Local Preference For Proposers seeking local preference consideration in the evaluation process, the following information must be provided with proposal, pursuant to Section 1.49 of the General Conditions: a) State the Primary Office Location of the Proposer, b) Provide location from which the Proposer will be based to perform the work. Page 45 of 47 68038I,3 5. Evaluation Criteria 5.1. EVALUATION CRITERIA 5.2 Evaluation Criteria Proposals will be reviewed to determine if proposal is responsive to the submission requirements, outlined in this Solicitation. A responsive proposal is one which follows the requirements of this Solicitation, includes all documentation, is submitted in the format outlined in this Solicitation, is of timely submission, and has the appropriate signatures as required. Failure to comply may result in the proposal being deemed non-responsive. Proposals will be evaluated and ranked by an Evaluation/Selection Committee (Committee) based on criteria and weight listed below. The Committee will be comprised of appropriate City personnel and members of the community, as deemed necessary, with the appropriate experience and/or knowledge. The criteria are itemized with their respective weights for a maximum total of one hundred (100) points per Committee member, with five (5) additional points added for Local Preference, if applicable. Technical Criteria and Points 1. Proposer's organization, qualifications, capabilities and financial stability 25 oints 2. Proposed plan designs and Benefits 20points) 3. Customer services and claims administration 20points) 4. Financial reporting and records 20points) Price Criteria and Points 5. Proposer's proposed price and cost effectiveness J15 oints Oral Presentations Upon completion of the technical and price evaluation indicated above, rating and ranking, the Committee may choose to conduct an oral presentation with the Proposer(s) which the Conunittee deems to warrant further consideration, based on the highest ranked proposal(s) providing the highest quality of service to the City, significant breaks in scoring, and or maintaining competition. Upon completion of the oral presentation (s), the Committee will re-evaluate, re -rate, and re -rank the proposals remaining in consideration, based upon the written documents combined with the oral presentation. Price (Evaluation The price proposal will be evaluated subjectively in combination with the technical proposal, including an evaluation of how well it matches Proposer's understanding of the City's needs described in the solicitation, the Proposer's assumptions, and the value of the proposed services. The pricing evaluation is used as part of the evaluation process to determine the highest ranked Proposer. The City reserves the right to negotiate the final terms, conditions and pricing of the contract, as may be in the best interest of the City. Page 46 of 47 680381,3 Local Office Pursuant to City Code, Section 18-86, the solicitation includes a five percent (5%) evaluation criteria in favor of proposers who maintain a local office as defined in Section 18.73. Page 47 of 47 City of Miami, Florida EXHIBIT B SCOPE OF WORK Contract No. RFP680381 Provide the Fully Employer Funded Long Term Disability Insurance Program; the Voluntary Premier (Buy -up) Long Term Disability Insurance Program; and the Employee Funded Short Term Disability Insurance Program, per specifications. 22 Employee Disabifity Insurance Program Rev. 8/2/17 City of Miami, Florida EXHIBIT B SCOPE OF SERVICES Contract No. RFP680381 1. Background The City of Miami, hereinafter referred to as the "City," as represented by the City of Miami's Risk Management Department (Risk), is contracting with Standard Insurance Company to provide an insured employer sponsored Executive Employee Group Short -Term Disability (STD), and Long - Term Disability (LTD) Insurance Program, with the option to allow executive employees to buy - up to a Premier Long -Term Benefit ("Premier LTD"), and related services. Currently, there are no disability benefits in place for executive employees. There are approximately 117 lives eligible for participation in this Program. 2. Disability Pian Designs: 1) The Plans shall be fully insured. 2) The effective date of all benefits shall be as of the date on the first page of the Professional Services Agreement (PSA), or later as determined by the City. 3) Benefits for LTD are 100% employer paid: • 180 day benefit waiting period Benefits to age 65 or normal Social Security retirement age • 60% benefit to a monthly maximum of $10,000 4) Employees may voluntarily buy -up to (Premier LTD). Employees interested in buying up to the Premier LTD, will only pay for the difference in rate between the core and the buy - up. The elimination period for the Premier LTD is ninety (90) days. 5) Benefits for Voluntary STD are 100% employee paid: • 30 day benefit waiting period • 150 day maximum benefit period • 60% benefit to a monthly maximum of $2,000 6) Employees are eligible for coverage on the first day of the month, following 60 days of employment. 7) Employees must work 60 continuous days of employment. 8) For the term of the contract, minimum participation shall be no less than twenty percent (20%). 9) Variations in actual enrollment in the employer funded plan shall have no effect on the rates. 1 Employee Disability Insurance Program Rev. 6129/17 City of Miami, Florida Contract No. RFP680381 10) For the LTD and Premier LTD, a pre-existing condition shall mean a sickness or injury for which the insured received medical treatment, consultation, care or services, including diagnostic measures, or had taken prescribed drugs or medicines in the three (3) months prior to the effective date of coverage of the insured person. The above pre- existing condition clause shall not apply once the person has been insured under the Plan for twelve (12) consecutive months. 11) The City's STD plan does not include a pre-existing condition clause. 12) At the 2017 open enrollment for the Plan Year 2018, all executive employees shall be eligible without evidence of insurability (guaranteed issue). 13) The Contractor shall underwrite both the STD and LTD/Premier plans. The City relied on the Contractor's proposal to determine the capabilities in each of the following areas:. a) Organization's qualifications, experience and financial stability; b) Plan design and benefits; c) Claims administration and customer service; d) Financial reporting and records; and, e) Overall plan cost/value. 3. Disability Program Requirements and Services A. General Program Information Listed below are some of the highlights for the Program. 1) Executive employees accrue three (3) or four (4) hours of sick leave per pay period with a maximum accrual of 96 hours per year. 2) There is no cap on the number of sick leave hours that can be accumulated. 3) Executive employees may be enrolled in the STD/LTD Plan, and may choose to voluntarily enroll in the Premier LTD plan. Enrollment in the Premier LTD plan cannot be combined with the STD and LTD plans, because the plans are mutually exclusive. 4) The Contractor shall administer the Program in accordance with all applicable state and federal laws, in addition to monitoring any legislation affecting the delivery of services. 5) The premiums for the Program will be paid on a payroll volume basis by the employer for the LTD plans. Voluntary participation in the STD and Premier LTD plan shall be employee funded. The City recognizes the existence of Florida Statutes, Section 2 Employee Disability Insurance Program Rev. 6129/17 City of Miami, Florida Contract No. RFP680381 624.1275. The Contractor shall administer the Program in accordance with all applicable state and federal laws. 6) Situs is Florida. 7) The Contractor shall provide the City with a 60 -day premium grace period. B. Call Intake/Customer Service The Contractor shall: 1) Accept incoming calls from employees and others (i.e., City representatives, family members, physician, or supervisor). 2) Provide a Call Intake System that has an "automated call distribution" feature with message capability for after hours. Return calls shall be made within 24 hours. 3) Provide customer service in English, Spanish, and Creole, during the City's normal business hours (M -F 8:00 a.m. to 5:00 p.m., Eastern Time). C. Clinical Support Services The clinical and vocational aspects of disability claims require significant detailed medical data in addition to discussions with attending physicians. Therefore, the Contractor shall: 1) Provide clinical review by an appropriate medical professional, including initial claim determination approvalldenial and determination of levels of impairment. 2) Coordinate with healthcare providers to obtain objective clinical information. 3) Contact and discuss with the City's personnel representative, the claimant's job duties and functional requirements, etc. 4) Provide expert testimony by the appropriate medical professional, when necessary, to support claim decisions. 5) Provide telephone interaction with other appropriate healthcare and vocational vendors, as applicable. D. Claims Administration and Management The Contractor shall comply with the Department of Labor's final claims procedure regulations, including the appropriate timeframe for a) adjusting claims, and b) notice of appeals decisions. 1) Assume full risk on the Plan effective date for all lives effective on or after the Plan effective date. 2) Maintain a file to support payments, denials, Social Security activities, appeals, and 3 Employee Disability Insurance Program Rev. 6129117 City of Miami, Florida Contract No. RFP680381 vocational assistance. 3) Conduct claimant interviews, if deemed appropriate. 4) Allow an independent claim management audit by a third -party, selected by the City, as requested by the City. 5) Maintain an internal audit program. 6) Process payments and negotiate settlements, as applicable. 7) Provide tax reporting in accordance with the Federal tax code. 8) Provide vocational/occupational and rehabilitation services to claimants, if appropriate, 9) Maintain database for the management of each claimant. 10) Provide implementation assistance to the City including internal training, communication materials, and an administration manual. 11) Administer a written appeals process for reconsideration of any benefit denial, 12) Resolve all appeals within thirty (30) calendar days of receipt of completed documentation. 13) Maintain all required forms and authorization guidelines such as employer and employee statements, attending physician statements, and authorizations to release information statements. 14) Accept Evidence of Insurability directly from employees through the provisions of return envelopes, facsimile or online submission. 15) Provide appropriate level of personnel to attend Open Enrollment and Employee Workshop meetings. 16) Accept the use of the current City Enrollment Form and/or use the City's on-line enrollment process. 17) Assume responsibility for claims incurred prior to contract terminationlexpiration date. If, at some date in the future, it becomes necessary to terminate the contract, the Contractor shall transfer to the City, or the City's new Program provider, within thirty (30) days of termination, all data and records necessary to administer the Program, at no cost to the City. E. Financial Reporting & Records The Contractor shall provide to the City, at a minimum, the following reports separately for each of the plans designs: 1) A quarterly Account Reconciliation Report of cost components within thirty (30) days of the end of each quarter. The components should include areas such as the number of 4 Employee Disability Insurance Program Rev. 6129117 City of Miami, Florida Contract No. RFP680381 new submissions, date tracking to assure initial determination and ongoing medical reviews are occurring at the required times, the number of open files, and the number of closed files. The latter must denote reasons for case termination. 2) A quarterly Utilization Report for each disability income benefit plan with the following year-to-date, within thirty (30) days of the end of each quarter and plan year reporting periods; a. Earned premium; b. Administrative charges; c. Paid claims; d. Open reported (pending) claims; e. Change in "Incurred But Not Reported" (IBNR) reserve; f. Cost/premium ratio; and, g. Claims denied. 3) An Annual Savings Report, including comparison of actual, approved and benchmark durations by diagnosis, within sixty (60) days following the close of the reporting period. 4) A Semi -Annual Summary Report of claims activity by reported diagnosis within sixty (60) days following the close of the reporting period. 5) Annual reporting of the status of each claim, within the Social Security process, to the City within forty-five (45) days following the close of the reporting period. F. FiduciaU Protection In addition to the other insurance requirements, the Contractor shall provide indemnification and liability protection for the clinical and non -clinical administration components of the Program. The Contractor shall indemnify and hold the City harmless from any clinical, professional, or administrative decisions made by the Contractor rendering services, including the administration of the appeals process. G. Premium Rafe Guarantee All premium rates shall be guaranteed for a minimum of thirty-six 36 months (the initial three (3) plan years, January 1, 2018 through December 31, 2020), independent of actual enrollment or any other premium rate contingencies. The Contractor shall provide the renewal rates for the three-year option to renew period by May 1, 2020, to the City, and are such renewal rates are subject to negotiations and acceptance by the City. 5 Employee Disability Insurance Program Rev. 6129/17 City of Miami, Florida H. Guaranteed Issue Contract No. RFP680381 For all Plans, the Contractor shall guarantee issue for an employee's first time enrollment in any of the Plans (including current enrollees and new enrollees, applying within their initial eligibility period). If an employee chooses to enroll at a subsequent enrollment, the Contractor may require medical underwriting. Medical underwriting shall be performed for subsequent enrollments only. 1. Actively -at Work Provision For all Plans, employees must be actively at work with the City in order for their coverage to become effective. However, should the effective date be a non -work day for an employee, insurance will still become effective on that date, if the employee is otherwise actively -at - work and performed in his/her customary manner all of the regular duties of his/her employment or occupation on the last preceding scheduled work day, and is not disabled. If an employee is not actively at work with the City on the date when their coverage would otherwise become effective, coverage becomes effective on the date of their return to active work with the City. J. Pre-existing Conditions Clause For the LTD and Premier Plans, a pre-existing condition means a sickness or injury for which the insured received medical treatment, consultation, care of services including diagnostic measures, or had taken prescribed drugs or medicines for in the three (3) months prior to the effective date of coverage of the insured person. The above pre-existing condition clause shall not apply once the person has been insured by the Plan for twelve (12) consecutive months. The City's STD Pian should not include a pre-existing condition clause. K. Payment The LTD plan will be fully funded by the employer and therefore benefit from 100% executive employee participation. The STD and Premier Plan shall be voluntary and wholly employee funded. Notwithstanding, the City reserves the right, at its sole discretion, to offer all benefits on a voluntary basis, to be funded exclusively by employees. Should the City proceed with 6 Employee Disability Insurance Program Rev. 6129117 City of Miami, Florida Contract No. RFP680381 offering the disability benefits on a voluntary basis, the City shall provide a bi-weekly remittance, for the prior pay period, accompanied by an electronic file of employee salary deductions to the Contractor for the all plans. The Contractor shall allow retroactive premium adjustments and honor claims that are incurred within 120 days of reporting for eligible employees who are inadvertently and incorrectly excluded from employer remittance files. L. Master Contract/Certificates of Coverage The Contractor shall duplicate the requested benefit plan design provisions. The Certificates of Coverage for all Plans shall be provided to the City no later than October 1, 2017. The Contractor shall mail the approved Certificates of Coverage to members' homes within sixty (60) days of the beginning of the initial plan year and to subsequent members upon enrollment. M. Year -End Accounting The Contractor shall deliver to the City a final year-end report which includes, but is not limited to, premiums, claims and reserves, if applicable, no later than ninety (90) days after the close of each calendar year. N. Privacy and Confidentiality Contractor shall: 1) Develop, adopt, and implement standards to safeguard the privacy and confidentiality of all personal information about eligible employees and members of the Program. Contractor's procedures shall include, but not limited to safeguarding the identity of members as members of the Program and preventing unauthorized disclosure of personal information. 2) Report any unauthorized use or disclosure of the members' personal information to the City, within twenty-four (24) hours of any incident of which it becomes aware. 3) Comply with all federal and state laws concerning the privacy and confidentiality of members' information, and agrees to implement any regulations when they become effective. 4) Not disclose any member's personal information to another business associate for 7 Employee Disability Insurance Program Rev. 6/29/17 City of Miami, Florida Contract No. RFP680381 pecuniary gain, without prior written authorization from the City. 5) Mitigate, to the extent practicable, any harmful effect that is known to the Contractor of a use or disclosure of members' information by the Contractor in violation of the requirements of this Agreement or federal or state laws. 6) Implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of the electronic personal information of members that Contractor creates, receives, maintains, or transmits. 7) Report to the City any security incident of which the Contractor becomes aware, and ensure that any agent of the Contractor, including any subcontractor or sub consultant, agrees to the same restrictions and conditions that apply to the Contractor with respect to such information. 8) Not sell member information. Contractor shall not use member information unless it is aggregated blinded data, which is not identifiable on a member basis. Contractor shall not use member identified or non -aggregated information for advertising, marketing, promotion or any activity intended to influence sales or market share of any product or service. 9) Full financial responsibility for any penalties, fines, or other payments imposed or required as a result of Contractor's non-compliance with, or violation of, federal or state requirements, and the Contractor shall indemnify the City with respect to any such penalties, fines, or payments. 10) Assure that all Contractor's staff, including subcontractor or sub consultant, are trained in all privacy requirements, as applicable. 11) At the request of the City, offer credit protection for those times in which a member's personal information is accidentally or inappropriately disclosed. 8 Employee disability Insurance Program Rev. 6129/17 City of Miami, Florida Contract No. RFP680381 EXHIBIT C PROPOSAL AND NEGOTIATED PRICE SCHEDULE 23 Fmployee Disability Insurance Program Rev. 8/2/17 EXHIBIT C PRICE SHEET City Of Miami Executive's Long Term Disability and Short Term Disability 3 Year Rate Guarantee Included EMPLOYER FUNDED LONG TERM DISABILITY PLAN 1.80 day benefit waiting period, benefits to age 65 or normal Social Security retirement age. 60% benefit to a monthly maximumof $10,000 Monthly Billed rate: .341% of covered payroll Monthly premium based upon salaries quoted: $4,556 VOLUNTARY SHORT TERM DISABILITY PLAN 30 day benefit waiting period, 150 day maximum benefit period. 60% benefit to a maximum weekly benefit amount of $2,000 Monthly Bi -weekly 0-29 0.383 0.177 30-34 0.432 0.199 35-39 0.328 0.151 40-44 0.302 0.139 45-49 0.363 0.168 50-54 0.423 0.195 55-59 0.58 0.268 60-64 0.71 0.328 65-69 0.71 0.328 70-74 0.71 0.328 75-99 0.71 0.328 Certification Statement Please quote on this form, if applicable, net prices for the item(s) listed. Return signed original and retain a cop), for your files. Prices should include all costs, including transportation to destination. TheCity resen-es the right to acceptor reject all or any part of this submission. Prices should be firm for a minimum of I80 days following the time set for closing of the submissions. The proposal is valid for 90 days. In the event of errors in extension of totals, the unit prices shall govern in determining the quoted prices. %Ve (1) certify that we have read your solicitation, completed the necessary documents, and propose to furnish and deliver, F.0,13. DESTINAT10N, the items or services specified herein. The undersigned hereby certifies that neither the contractual party nor any of its principal owners or personnel have been convicted of any of the violations, or debarred or suspended as set in section IS -107 or Ordinance No. 12271. All exceptions to this submission have been documented in the section below (refer to paragraph and section). EXCEPTIONS: 4Ve (I) certify that any and all information contained in this submission is true; and we (I) further certify that this submission is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a submission for the same materials, supplies, equipment, or service, and is in all respects fair and without collusion or fraud. 'We (I) agree to abide by all terms and conditions of this solicitation and certify that I am authorized to sign this submission for the submitter. Please print the following and sign your name: PROPOSER NAME: Standard Insurance Company (The Standard) ADDRESS: 920 SUV 611 Avenue, Portland, OR 97204 Pf30NE: 971-321-2529 EMAIL: Graeme.Queen(Wstandard.com SIGNED BY: 2"e Vice President TITLE: Strategic Account Services FAX: NIA CELL(Optional): DATE: 4!26117 F.ATLCRE TO CONIPLETE. SIGN. AND RETLRN THIS FOR\1 SFTALL DISQUALIFY THIS RESPONSE. Certifications Legal Name of Firm: Standard Insurance Company Entity Type: Partnership, Sole Proprietorship, Corporation, etc. Corporation Year Established: 1906 Office Location: City of Miami, Miami -Dade County, or Other Our home office is in Portland, Oregon. Our Miami field office is in Ft. Lauderdale, Florida. Business Tax Reccipt/Occupational License Number: 739510 Business Tax Receipt/Occupational License Issuing Aeency: City of Fort Lauderdale Business Tax Division Business Tax ReceiptlOccupational License Expiration Date: 9130?2017 Will Subcontractors) be used? (Yes or No Yes. Please list and ackno-wled,e all addendumiaddenda received. List the addendum?addenda number and date of receipt (i.e. Addendum No. 1, 7/1/07). if no addendum/addenda was'w ere issued, please insert N/A. Addendum No. 3. 41141172. No. 2. 411117 (Census) If Proposer has a Local Office, as defined under Chapter 18.'Articlle III, Section 16-73 of the City Code, has Proposer filled out, notarized, and included with its RFP response the "City of Miami Local Office Certification" form? YES OR NO? (The City of Miami Local Office Certification form is located in the Oracle Sourcing system ("iSupplier"), under the Header/Notes and Attachments Section of this solicitation) We do not have a Local Office as defined here. Proposal Prepared on: July 14, 2017 Proposed Effective Date: January 1, 2018 Standard Insurance Company Long Term Disability Insurance Short Term Disability Insurance LThe&t7andardl Proposed Effective Date Prepared for: January 01, 2018 City of Miami Uk Protect your employees' income and your company's bottom line. This insurance comes with innovative resources designed to help you build a more productive workplace. Our Workplace Possibilities(SM) program, included at no extra cost, helps employees stay on the job and return to work sooner. While not all claims can be shortened, the program has proven to reduce disability duration by an average of 24 days per claimant (as of Mar. 31, 2014, based on internal company data). That's just one example of how we add real value as your partner. Covered Members A regular Executive employee of the Employer working 30 or more hours per week. Benefit Schedule Insured Predisability a Earnings j Maximum Monthly Benefit Minimum Monthly Benefit Benefit Waiting Period Maximum Benefit Period '. Guarantee Issue Amount Employer Contribution Minimum Participation Taxability of Benefits Own Occupation Period Partial/Residual Disability Preexisting Condition Period 4 Mental & Nervous Limitation — Substance Abuse Limitation '4 Other Limited Conditions Musculoskeletal/Connective Tissue Limitation Return to Work Incentive Employee Assistance Program 12 months 12 months 12 months Included: 3 face-to-face Opportunity ID: 006AOOOOOOXVp6SIAT Standard Insurance Company 1 Proposed Effective Date Prepared for: January 01, 2018 City of Miami I&, Additional Plan Design Details - - The Standard pays the employer's matching FICA and Medicare taxes and prepares W -2s for members receiving LTD benefits. - The plan includes the Workplace Possibilities(SM) program, an innovative approach to addressing and reducing the causes of absence and disability - with innovative tools and resources designed to help keep your employees productive and on the job. - This coverage includes a $25,000 Reasonable Accommodation Expense Benefit, which reimburses employers for workplace modifications that enable employees to return to or remain at work. The Reasonable Accommodation Expense Benefit is separate from the LTD claim payment. - A Rehabilitation Plan Benefit is included, which increases the LTD benefit amount by 10% of predisability earnings, not to exceed the maximum benefit, when member is participating in an approved rehabilitation plan. This benefit will also assist in paying for approved expenses incurred by a disabled membera part of an approved rehabilitation plan. - Survivors Benefit pays a lump sum equal to 3 times the non-integrated LTD benefit. - The limitations included in the policy are combined lifetime limitations. Opportunity ID: 006AOOOOOOXVp6SIAT Standard Insurance Company Proposed Effective Date Prepared for: January 01, 2018 City of Miami la. Members Volume Rate: Percent of earnings Monthly Premium Rate Guarantee Ass Sick leave payable to the memberwill be used as deductible income. - Workers' compensation benefits will be considered deductible income. - Primary and dependents Social Security benefits will be used as deductible income. - Rates assume the group participates in Social Security. - Rates include electronic documents. Printed certificates are available for an additional cost. - Rates assume billing is centralized in one location. Conditions - Rate assumes that coverage is not currently in force. - Confirmation that you participate in Social Security is required. - STD benefit payments end once the disabled member begins to receive LTD benefits. More Information For additional information on the available features and benefits of Long Term Disability Insurance from The Standard: Click here for California: httpJ/www.standard.com/ca-group-long-term-disability Click here for all otherstates: http://www.standard.com/group-long-term-disability Opportunity ID: 006A000000XVp6SIAT Standard Insurance Company 3 Proposed Effective Date Prepared for: January 01, 2018 City of Miami I&, When it comes to handling Short Term Disability claims, our team of experts is standing by. Our claims examiners have been with us for an average of 5 years, and our nurse case managers boast an average of 27 years of experience in thaIr field (internal company data as of Mar, 31, 2013). With this kind of expertise, we can typically render our initial claim decision in just 3-5 days, because the last thing a claimant needs is a delay. Covered Members A regular Executive employee of the Employer working 30 or more hours per week. Benefit Schedule 60% Insured Predisability Earnings $3,333 Maximum Weekly Benefit $2,000 Minimum Weekly Benefit X$15 Benefit Waiting Period Accident 30 Days Benefit Waiting Period Sickness 30 Days Maximum Benefit Period 150 Days Guarantee Issue Full Benefit ^i Employer Contribution 0% Minimum Participation Greater of 20% or 10 lives Taxability of Benefits Non -Taxable Partial/Residual Disability Included Temporary Recovery 90 Days Y Maternity ...... ....... dam Covered the same as any other illness t Additional Plan Design Details - This is a non -occupational plan providing coverage for disabilities occurring off the job. - The Standard prepares W -2s for members receiving benefits. - Evidence of Insurability is required for members who enroll more than 31 days afterthey are first eligible for coverage. - STD benefits are no longer payable once an insured member begins receiving LTD benefits. Opportunity ID: 006A000000XVp6SIAT Standard Insurance Company 4 Proposed Effective Date Prepared for: January 01, 2018 City of Miami TheStandard Members To Be Determined Volume To Be Determined ................ - _.,__... - _ ....... ..... -_.._ ,,...... - .....e ._... - Rate: Per $10 of Benefit - Lives Age Rate Volume Premium TBD 0-29 .383 TBD TBD 30-34 .423 35-39 .328 40-44 .302 45-49 .363 50-54 .423 55-59 .580 60-64 .71p 65-69 .710 70-74 .710 75-99 .710 i Monthly Premium 1 TBD M__ Guarantee _ _Rate 3 yearS_... Assumptions - Sick leave will not be used as deductible income unless the STD benefit plus the sick leave exceeds 100% of indexed predisability earnings. Only the excess above 100% will be used as deductible income. - Final rates are subject to change if actual enrollment varies from the assumed enrollment of 20% i • Rates include electronic documents. Printed certificates are available for an additional cost. Conditions � • We require evidence of insurability for: — Members who enroll more than 31 days after they are first eligible for coverage. - Rate assumes coverage not currently in force.. More Information Foradditional information on the available features and benefits of Short Term Disability Insurance from The Standard: Click here for California: http://www.standard.com/ca-short-term-disability Click here for all other states: http://www.standard-com/group-short-term-disability Opportunity ID: 006A000000XVp6SIAT Standard Insurance Company 5 Proposed Effective Data Prepared for: January 01, 2018 City of Miami Producer Compensation Disclosure We recognize the valuable role of insurance advisors, consultants and brokers ("producers") in helping their clients design an employee benefits program, and we support reasonable and fair compensation for these services. Producers may be eligible to receive compensation from The Standard. The commission quoted in this proposal are noted below. Additionally, fees for administrative, marketing or consulting services may apply. If applicable, fees are noted below. Normal commission scale (www.standard.com/compensation/eb/) included for LTD and STD. Unless participation is declined by the producer or client, contingent compensation is additional compensation that may also be paid and is dependent on the satisfaction of one or more minimum requirements, such as a specified amount of now premium volume or persistency in connection with the producer's block of business. For information about our customary producer rewards program visit vvww.standard.com/compensation/eb/. Some producers may have a contingent compensation arrangement that differs from our customary program. Please consult with your producer for additional details. About This Employee Benefits Proposal We appreciate the opportunity to provide you with this benefit and cost summary proposal from The Standard. This document outlines certain important features of the group insurance coverages available. This is not a contract or an offer to contract for such coverages.. Detailed information about other important features of the coverage proposed is available on request. Just ask your broker/consultant or your representative at The Standard. A completed application must be submitted before a group can be considered for coverage. Insurance will be effective after the application is accepted by The Standard. If approved, we will issue a contract containing our customary language. It will not duplicate policy language from another carrier. The group contract will contain provisions and defined terms not described in this Employee Benefits Proposal. The group contract will control if there are discrepancies between it and this proposal. This benefit and cost summary proposal expires on October 11, 2017, uniess replaced or withdrawn by The Standard. The proposed premium rate and plan design for each coverage are based on the underwriting data received by The Standard. Final premium rates and plan provisions will be determined by The Standard on the basis of: applicable state laws, policyholder contributions, confirmation of occupations, the actual composition of the group of personswho will become insured and our current underwriting rules and practices. Financial Strength Ratings For information about our Financial strengths ratings visit www.standard.com/about Opportunity ID: 006A000000XVp6SIAT Standard Insurance Company Group Long Term Disability Insurance Safeguarding Your Employees' Income :fir 7��rs'x-��'{ Ab Standard Insurance Company The Standard Life Insurance Company of New York .. 6 �k jr� LThe&7tandjard .. AWN. Your Proposed Group Insurance Pian The Standard# appreciates the opportunity ID proWde you with a proposal for Group Long Terris Dlsa4i insurance. This rld the Employee Benefits P ogether outline the bas : eatures of your proposed LTD in6ii l ce pian. They are not contract. Establishing group LTD insurance coverage with The Standard requires your completed, signed application for group insurance and our acceptance of it When we approve your` application, we will issue you a group policy containing our customary language. tt will not duplicate the language of any existing policies you may have. Your group policy with The Standard will contain prov►sions and defined terms not described in this booklt*"jnryour Employee' proposal, If ar r crepancies a li etween the group P Errtployee� Iis booklet, your' Your group �" a determined �y oil We LTD = germine float pr eons n „�vuuorls 0 -Upations _ the actual composition on p ` i of th a 9 w ,> � become insured . e.r current underwriting rules and practices - Will expire on the date shown in your Empkiyee r Tfiarikyoir#ar Gond enna and fi rouP LTD in insurance needs. roup Nsabii4ii�' mart' .. business. Having this li; a used expert` terns our people understand your needs tetter and tx loyee benefiits v'' ` work harder to support pp your -goals. With _ gned � help Jducerm. kioad and a proactive approachto help you 1bWroductive and efficient workplace, were here tdwith ou for the long term. MOW The proposed policy woLdd pmwWe group disability income insurance only. It does nut f vAde basic hospital, baste medical armajar medical insurance as defined by the Hew Yark ' Stafe trtsurance DeparhnenL _ t The Standard is a marketing name for StanCorp Financial Group, Inc. and subsidiaries. InsurwMp roducts are Offered by Standard lists w Company afft iatd, &a. in all states ezceptNew Ynrtc, offeredbyThe whrene aanze;praducts are standard rife Insurance �I�ew NJ W:_m Group Long Term Disab�Hty fnsuranee A Vital Part Of Your Employee Benefits Package Long Term Disability insurance from The Standard provides a monthly benefit to eligible employees who are partially or totally disabled due to a covered physical disease, injury, pregnancy or mental disorder. It is key to smart financial planning for both employers and employees. Employees most likely purchase home, automobile and life insurance to safeguard themselves against the threat of loss. Yet they may not understand the importance of insuring a portion of their incomes against the threat of disability. The risk of disability is greater than most people might think. Recent statistics have shown: • A disabling injury occurs nearly every second of each day -- on and off the job. That's more than 70,000 every day, more than 25 million every year. National Safety Council, Injury Facts 2011 • Three in 10 workers entering the workforce today will become disabled before retiring. Social Security Administration Fact Sheet 2011 LTD insurance from The Standard provides benefits to replace a portion of lost income for eligible employees who meet the definition of disability under the group policy. This helps disabled employees recuperate with fewer financial worries. Financial Support For Employees, A Recruitment Tool For Employers Savings, sick leave, workers' compensation, Social Security, friends and family are some of the sources used to replace income lost due to disability. However, the financial impact of a long term disability often exceeds these limited resources. The Standard's LTD insurance supplements other sources of income and provides incentives and assistance to facilitate a return to work whenever possible. LTD coverage also helps employers by enhancing their benefits package — one of the best ways to attract and retain high-caliber employees. The Standard offers LTD insurance with flexible plan designs and claims management expertise, all at competitive group rates. Grog -p Long Terre Disability Insurance Plan Design Information LTD Benefit Schedule LTD benefits replace a specified percentage of a disabled employee's predisability earnings, as defined in the group policy. The percentage can range from 30 to 70 percent, subject to minimum and maximum LTD benefit amounts. As part of an income -replacement program, LTD benefits will be reduced by other amounts, called deductible income, which the employee receives or is eligible to receive. Coverage up to a certain level, the guarantee issue amount, is available without submitting evidence of insurability. Evidence may be required for higher amounts. For detailed information about this plan's design, please refer to the Employee Benefits Proposal. D,efinEUo�n Of Fred€sa ilfty Earnings Most definitions of predisability earnings include: • Salary • Shift differential pay • Commissions averaged over the preceding 12 -month period or over the period of employment if less than 12 months • Employee contributions made through a salary reduction agreement with the employer to an Internal Revenue Code (IRC) Section 401(k), 403(b), 408(k), 408(p) or 457 deferred compensation arrangement, or an executive non-qualified deferred compensation arrangement • Amounts contributed to fringe benefits according to salary reduction agreements under IRC Section 125 plans The definition of predisability earnings generally excludes bonuses, overtime or any other extra compensation. However, these items may be included if approved by The Standard. If so, they will be shown in the Employee Benefits Proposal. An employer's contributions on the employee's behalf to any deferred compensation arrangement or pension plan are also generally excluded from the definition of predisability earnings. Coverage up to a certain level, the guarantee issue amount, is available without submitting evidence of insurability. Evidence may be required for higher amounts. When LTD Benefits Begin When LTD benefits are payable, they begin at the end of the benefit waiting period. Benefits are not payable during the benefit waiting period. For disabilities subject to the Preexisting Condition Limitation' described on pages 8 and 9, the benefit waiting period is the longer of (a) and (b): (a) the 12 -month period beginning on the date the employee becomes insured under the group policy; and (b) from 30 - 180 days of continuous disability (the most common selection is 90 days of continuous disability). Periods (a) and (b) run concurrently. 7 Preexisting condition is considered a Limitation in New York, in ail states it is considered an Exclusion. For disabilities not subject to the Preexisting Condition Limitation oe Exclusion, the benefit waiting period is from 30 -180 days of continuous disability. The most common selection is 90 days of continuous disability; however, the period can range from 30 days to one year depending on the specific needs of the employer. For more information about benefit waiting period options, piease refer to the Employee Benefits Proposal. When LTD Eenef Its End LTD benefits end automatically on the date the employee: • Ceases to be disabled or dies • Fails to provide proof of continuing disability • Becomes eligible for benefits under another LTD plan during a period of temporary recovery • Reaches the end of the maximum benefit period for which LTD benefits are payable for any one period of continuous disability, whether from one or more causes LTD benefits are not payable after the end of the maximum benefit period, even if the employee remains disabled. For employees who become disabled after age 60, The Standard offers three age -graded reduction schedules that provide benefits beyond age 65. If the proposed pan design has a shorter maximum benefit period, such as two or five years, the maximum benefit period is adjusted accordingly for older employees. 4 The Standard Definitions Of Disability The definition of disability determines whether benefits are payable and the extent to which disabilities are covered. The Standard's definitions of disability offer flexibility in designing a benefit program to meet each organization's specific needs. Some employees will meet the applicable definition and also retain the ability to perform some of their work duties full-time or part-time, or be able to work in another occupation. The Standard's disability definitions provide coverage for individuals who work while disabled, as defined by the group policy, Material Duties And Indexed Predisability Earrings The Standard offers own occupation and any occupation definitions of disability. Most plans include both definitions, but they can be separated, and the time periods when they apply may vary in order to meet the needs of the organization and its employees. Our basic plan includes a 24 -month own occupation period followed by an any occupation period. Both own occupation and any occupation definitions refer to material duties and indexed predisability earnings. Material duties are the essential tasks, functions, operations, skills, abilities, knowledge, training and experience generally required by employers from those engaged in a particular occupation that cannot be reasonably modified or omitted. However, in no event would a requirement to work an average of more than 40 hours per week be considered a material duty. Indexed predisability earnings are based upon predisability earnings and the U.S. Consumer Price Index, and are calculated strictly for purposes of determining disability, indexed predisability earnings may apply in determining whether an employee meets the own occupation or any occupation definition of disability. Own Occupation disability During the benefit waiting period and the first 24 months of the own occupation period thereafter, employees are disabled if, as a result of physical disease, injury, pregnancy or mental disorder they: • Are unable to perform with reasonable continuity the material duties of their own occupation, and Group Long Term Disability Insurance • Suffer a loss of at least 20 percent in their indexed predisability earnings when working in their own occupation. Own occupation means any employment, business, trade, profession, calling or vocation that involves material duties of the same general character as the occupation the employee is regularly performing for the employer when the disability begins. However, own occupation is not limited to how the employee specifically performs the job for the employer. Rather, The Standard may view how the occupation is generally performed in the national economy. If the own occupation involves the rendering of professional services and requires a professional or occupational license in order to work, the definition of own occupation is as broad as the scope of the license. While this definition applies, employees who are disabled from their own occupation may work in another occupation and continue to qualify for LTD benefits as song as their work earnings do not meet or exceed 80 percent of their indexed predisability earnings. Work earnings will be used to reduce the LTD benefits as noted under "Return To Work Incentive" on page 6. Any Occupation Disability During the any occupation period, after the 24 months of the own occupation period, employees are disabled if, as a result of physical disease, injury, pregnancy or mental disorder, they are unable to perform with reasonable continuity the material duties of any occupation. Any occupation means any occupation or employment that the employee is able to perform, whether due to education, training or experience, which is available at one or more locations in the national economy, and in which the employee could be expected to earn at least 60 percent of indexed predisability earnings within 12 months following his or her return to work, regardless of whether the employee is working in his or her own or any other occupation. While this definition applies, disabled employees may work and continue to qualify for LTD benefits as long as they meet the any occupation definition of disability. Work earnings will reduce the LTD benefits as noted under "Return To Work Incentive." Optional Definitions Of Disability The Standard understands the specialized training and financial investment required for many professional careers. We offer definitions of disability specifically designed for professionals, key management employees and certain employer groups. Own Occupation To Age 66 The Standard offers a definition of disability that requires employees to be disabled from only their own occupations. This definition applies during the benefit waiting period and throughout the maximum benefit period. Employees who are disabled from their own occupations may work in another occupation. However, they will no longer meet the definition of disability when their work earnings meet or exceed 80 percent of indexed predisability earnings. Own Specialty Protection For physicians and attorneys, The Standard offers two-year, five-year, and to end of maximum benefit period own specialty protection. For physicians, own occupation is defined as the medical specialty the physician is board-certified to practice. For attorneys, own occupation is defined as the one or two legal subject -matter areas or types of legal practice in which the attorney has specialized, provided the attorney has been in practice for at least five years .2 Certain percentages of the gross professional fee income must have been earned in those specialty areas or types of practice during the 24 months just before disability began. These percentages are at least 60 percent for physicians and 85 percent for attorneys. During the remainder of the maximum benefit period, the employee must meet the usual own occupation definition of disability. Those who meet this definition of disability may work in another occupation. However, they will no longer be considered as disabled when their work earnings exceed 100 percent of indexed predisability earnings. Triaf attomey or trial practice will not be considered one of the specialty legal subject matter areas or types of legal practice unless the attorney personally appears and actively participates In legal proceedings on behalf of clients at least four hours per day on an average of at least 50 days per year during the 24 months just before disability begins. Time the attorney spends preparing to actively participate in legal proceedings can be Included when calculating up to one-half of the hours -per -day and days -per -year requirement Legal proceedings include civil or criminal triats, administrative rule-making or contested -case hearings, workers' compensation hearings, arbitration and mediation hearings, and the taking or defending of depositions. Returning To Work Our claims management services have been carefully designed to promote and optimize the return of disabled employees to a productive life whenever possible. Our benefits analysts work with vocational experts, nurses and physicians to provide early screening, assess disability durations and identify return -to -work opportunities. As a result, disabled employees may return to work earlier than anticipated, which may reduce the likelihood of permanent disability. This helps employers regain valuable employees and contain disability claims costs. Return To Work Incentive Providing incentives for disabled employees to return to work at their full potential is critical for any successful rehabilitation plan. The Standard's Return to Work Incentive is one of the most comprehensive in the employee benefits industry. It is automatically included in every LTD policy to provide valuable financial support to eligible employees in their efforts to return to work. During the 12 (or optional 24) months immediately after a disabled employee first returns to work, the LTD benefit is reduced by only the amount of work earnings that, when added to the employee's maximum LTD benefit, exceeds 100 percent of indexed predisability earnings. Following 12 (or optional 24) months, The Standard will deduct one-half of work earnings while the employee remains disabled. This typically means that employees who return to work will receive more total income than those who do not. Work earnings will include amounts they could earn if they worked to their full potential in work that is reasonably available. Reasonable Accommodation Expense Benefit To help employers return employees with disabilities to active work whenever possible, The Standard automatically includes a Reasonable Accommodation Expense Benefit in its LTD policies. This reimburses an employer up to $25,000 for worksite modifications made on behalf of a disabled employee, when the modifications enable the employee to return to work. Reimbursable modifications are subject to The Standard's prior approval. 6 The Standard Rehabilitation Plan Provision To help employees with disabilities prepare to return to active work, The Standard automatically includes a Rehabilitation Plan Provision in all LTD policies. Subject to The Standard's prior approval, employees may participate in a rehabilitation plan at any time, and in doing so, may receive an additional 10 percent of their predisability earnings, not to exceed the maximum LTD benefit as a result of this increase. Some or all of the expenses incurred by employees that are intended to support a return to work, include; • Training and education • Family (child and elder) care • Job -search and other job-related expenses Temporary Recovery The Standard automatically includes a Temporary Recovery provision in every LTD policy to further encourage employees to return to work. Our flexible policy language enables us to work with employees to make permanent recoveries out of temporary ones. Employees who recover from a disability for a period of time, but later suffer a relapse and become disabled again from the same cause or causes, may not have to serve a new benefit waiting period if the period of recovery does not exceed 90 days during the benefit waiting period or 180 days during the maximum benefit period. in either case, the recovery period does not count toward the benefit waiting period, the maximum benefit period or the own occupation period. LTD benefits are not payable during the recovery period. Predisability earnings used to determine the LTD benefits will not change. No LTD benefits will be payable after benefits become payable under any other disability plan under which the employee became insured during the recovery period. Otherwise, the group policy is applied as if the disability were uninterrupted. Return To Work Pesponsibility In addition to providing financial incentives to return to work, The Standard's LTD policy also establishes clear expectations for those who are able to return to work. Disabled employees who are capable of part-time work Group Long Term Disability Insurance have a responsibility to take advantage of available work opportunities. They must accept part-time work in their own occupation during the own occupation period and in any occupation during the any occupation period, if they are able to earn at least 20 percent of indexed predisability earnings. LTD benefits will not be payable for any period when partially disabled employees fail to meet this return to work responsibility. Workplace Possibilitiess" To help employers proactively manage absence and disability, this innovative program aims to keep employees at work by addressing and reducing the causes of absence and disability. For employers with 1,000 or more employees, we offer to place a Workplace Possibilities Consultant onsite, as part of their group disability insurance through The Standard. The Consultant — a certified case manager who may be a nurse or vocational rehabilitation specialist — works to keep employees on the job and get them back to work quicker. The goal is a more productive workplace with measurable reductions in absence and disability -related costs. And it takes a big burden off the HR team. Cost Containment Features Disabilities Subject To Limited Pay Periods Payment of LTD benefits is limited to 24 (or optional 12) months during the employee's lifetime for disabilities caused or contributed to by any one or more of the following, or medical or surgical treatment of one or more of the following: • Any mental, emotional or psychological disorder regardless of cause (such as depression, anxiety, stress, bipolar affective disorder, organic brain syndrome, schizophrenia); at the end of the limited pay period, benefits may continue if the employee is continuously confined in a hospital solely because of a mental disorder, however; hospital does not include a rest home, nursing home, convalescent home, home for the aged or a facility primarily affording custodial, educational or rehabilitative care • The use of alcohol or any drug (including hallucinogens), alcoholism or drug addiction Other limited conditions include chronic fatigue conditions (such as chronic fatigue syndrome and post viral syndrome), any allergy or sensitivity to chemicals or the environment (such as sick building syndrome and multiple chemical sensitivity syndrome), chronic pain conditions (such as fibromyalgia, reflex sympathetic dystrophy and myofascial pain), carpal tunnel or repetitive motion syndrome, temporomandibular or craniomandibular joint disorder3 As an additional cost-containment option, employers may elect to limit payment of LTD benefits for disabilities caused or contributed to by musculoskeletal or connective tissue disorders, such as arthritis, diseases or disorders of the cervical, thoracic or lumbosacral back and its surrounding soft tissue, and strains or sprains of joints or muscles. This expanded limitation would not apply to rheumatoid or psoriatic arthritis, herniated disks with neurological abnormalities that are documented by electromyogram and computerized tomography or magnetic resonance imaging, scoliosis, traumatic spinal cord injuries, diseases or inflammations of the spinal cord, overlapping vertebrae (grade 11 or higher), osteoporosis, discitis or Paget's disease. 3 This limitation does not apply to neoplastic diseases, neurologic diseases, endocrine diseases, hematologic diseases, asthma, allergy -induced reactive lung disease, tumors, malignancies, vascular malformations, demyelinating diseases or lupus. Standard Insurance Company Limitations No LTD benefits will be paid for any period when the disabled employee is: • Not under the ongoing care of a physician in an appropriate specialty as determined by The Standard • Not participating in good faith in a plan of medical treatment, vocational training or education approved by The Standard, unless the disability prevents the employee from participating • Able to work part time, but elects not to (.e., the employee fails to meet his return to work responsibility) • Confined for any reason in a penal or correctional institution In addition, payment of LTD benefits is limited to 12 months for any period when the employee resides outside the United States or Canada. Exclusions From Coverage Disabilities are not covered when caused or contributed to by: • War or any act of war • An intentionally self-inflicted injury, whether the insured employee is sane or insane' • Loss of professional or occupational license or certification • Committing or attempting to commit an assault or felony • Active participation in a violent disorder or riot • A preexisting condition or treatment of a preexisting condition, unless, on the date disability begins, the employee has been continuously insured under the group policy for the entire 12 months for groups with 20 or more lives and 24 months for groups with fewer than 20 lives and has been actively at work for at least one full day after the end of that exclusion period Diagnosed or misdiagnosed, a preexisting condition is a mental or physical condition: • That was discovered or suspected as a result of any routine or other medical examination at any time during the preexisting condition period, or • For which the employee has (or a reasonably prudent person would have) consulted a physician or other licensed medical professional, received medical treatment, services or advice, undergone diagnostic procedures (including self-administered procedures), or taken prescribed drugs or medications at any time during the preexisting condition period. The preexisting condition period is the three- or six-month period just before the employee's insurance becomes effective, as specified in the Employee Benefits Proposal. The Standard grants credit for time served toward satisfying the preexisting condition exclusion period for eligible employees insured under the employer's prior group LTD plan that was replaced by The Standard, 4 For Colorado and Missouri residents, "insane" is not applicable. The Standard The Standard Life Insurance Company of New York Limitations No LTD benefits will be paid for any period when the disabled employee is: • Not under the ongoing care of a physician in an appropriate specialty as determined by The Standard • Not participating in good faith in a plan of medical treatment, vocational training or education approved by The Standard, unless the disability prevents the employee from participating • Able to work part time, but elects not to (i.e., the employee fails to meet his return to work responsibility) Payment of the LTD benefit will be limited if disability is caused or contributed to by a preexisting condition or the medical or surgical treatment of a preexisting condition unless, on the date the employee becomes disabled they: • Have been continuously insured under the group policy for a period of 12 months, and • Have been actively at work for at least one full day at the and of that 12 months A preexisting condition is a mental or physical condition (whether diagnosed or misdiagnosed) that occurs at any time during the preexisting condition period specified in the Employee Benefits Proposal and, • For which the employee has (or a reasonably prudent person would have): consulted a physician or other licensed medical professional; received medical treatment, services or advice; undergone diagnostic procedures, including self-administered procedures; or taken prescribed drugs or medications, or • Which was discovered or suspected as a result of any routine or other medical examination. In addition, payment of LTD benefits is limited to 12 months for any period when the employee resides outside the United States or Canada. Exclusions From Coverage Disabilities are not covered when caused or contributed to by, • War or any act of war • An intentionally self-inflicted injury, while sane • Loss of professional or occupational license or certification • Committing or attempting to commit an assault or felony • Active participation in a violent disorder or riot Croup Long Term Disability Insurance Deductible Income The Standard's LTD insurance helps replace part of the income lost as a result of disability. Often employees are eligible for other sources of income, such as workers' compensation or Social Security, To prevent overinsurance, LTD benefits are reduced by an employee's deductible income, which generally includes the following, although these may vary depending on if the employer is a public or private entity: • Work earnings, as described under "Return To Work Incentive" • Sick pay, annual or personal leave pay, severance pay or other salary continuation, including donated amounts (but not vacation pay), which, when added to the maximum LTD benefit, exceed 100 percent of indexed predisability earnings • Benefits from the Federal Social Security Act, the Canada Pension Plan, the Quebec Pension Plan, the Railroad Retirement Act or similar plans or acts providing benefits that the employee or the employee's dependents receive or are eligible to receives • Benefits the employee receives or is eligible to receive from workers' compensation, state disability income benefits law, the Jones Act; Maritime Doctrine of Maintenance, Wages or Cure; Longshore and Harbor Workers' Act; or any similar acts or law • Any earnings or compensation included in predisability earnings which an employee receives or is eligible to receive while LTD benefits are payable • Any amount an employee receives or is eligible to receive under any unemployment compensation law or similar act or law • Any amount an employee receives or is eligible to receive from or on behalf of a third party • Any disability or retirement benefits an employee receives from a private employer's retirement plan • Any disability or retirement benefits an employee receives or is eligible to receive from a public employer's retirement plan and any lump sum refund, withdrawal or distribution of contributions and 5 Employers may choose a plan design that offsets LTD benefits by part or none of the dependent's benefits. earnings received' • Any amount received by compromise, settlement or other method, as a result of a claim for any of the above, disputed or undisputed Exceptions To Deductible Income The following are generally not considered deductible income, although exceptions may vary depending on if the employer is a public or private entity: « Any amounts attributable to the employee's contributions to the employer's retirement plan or which the employee could have received upon termination of employment without being disabled or retired • Benefits from a profit-sharing plan, thrift or savings plan, deferred -compensation plan, 401(k), 408(k) or 457 plan, IRA, tax-sheltered annuity under IRC Section 403(b), stock ownership plan or Keogh (HR -10) plan • Any lump -sum refund, withdrawal or distribution of the employee's contributions and earnings received from the employer's retirement plan because the employee is not vested under the plan • Social Security early-retirement benefits not received by the insured employee • Group credit, mortgage disability insurance benefits and accelerated death benefits paid under a life insurance policy • Any cost -of -living increases in deductible income, other than work earnings • Reimbursement for hospital, medical or surgical expenses • Reasonable attorney fees incurred in connection with a claim for deductible income Additional LTD Plan Provisions And Services Employee Assistance Program' 6 If the employee receives a lump sum refund, withdrawal or distribution of contributions and earnings, LTD benefits are determined using a Iifetime monthly annuity amount with no survivor income. Employee and employer contributions are considered as distributed simultaneously throughout the employee's lifetime, regardless of how funds are distributed from the retirement plan. An Employee Assistance Program (EAP) can help increase productivity by assisting employees with their attempts to balance work and personal life. An EAP can address concerns such as health, marital, family, financial, alcohol, drug, legal, emotional and other personal issues that may adversely affect employee job performance. EAP and Worklife services are included with The Standard's Long Term Disability policies and are offered as optional enhancements with our group Life insurance. A specialist will provide consultation by phone as well as arrange for up to three face-to-face assessments and short-term counseling from a network provider when necessary. The services also include Critical Incident Stress Debriefings in which a counselor will provide on-site, group counseling for employees if a traumatic event occurs in the workplace. The services also include referrals to community resources and educational materials. Coverage For New Disabilities If a period of disability is extended by a new cause while LTD benefits are payable, benefits will continue while the employee remains disabled, but not beyond the end of the original maximum benefit period. In addition, all policy limitations and exclusions apply to the new cause of disability. Survivors Benefit If an employee who has been continuously disabled for at least 180 days dies while LTD benefits are payable, The Standard will pay a Survivors Benefit. The benefit is a lump sum equal to three times the employee's monthly LTD benefit without reduction by deductible income. The Survivors Benefit is intended to meet a portion of a family's financial needs in the event of the employee's death. The benefit is paid to the surviving spouse" or unmarried chi€dren under age 25. As an option, it may also be paid to the deceased employee's estate, However, The Standard will first use the Survivors Benefit to reduce any overpayment on the employee's claim. Direct Deposit The Standard offers direct deposit (also known as Electronic Funds Transfer or EFT), a convenient and secure benefit payment option. With direct deposit, 7 Provided for employers with 10-2,499 employees. Employers with more than 2,500 employees can customize their coverage by adding this feature to their LTD policy. EAP services are provided through an arrangement with Horizon Behavioral Services, LLC, which is not affiliated with The Standard. EAP is not an Insurance product, 8 Spouse may include a clvll union partner. EligiblPty not available In all states. Contact your sales representative for details. 10 The Standard employees' LTD benefit payments will be automatically deposited into their designated checking or savings account on their payment due date, even if that date falls on a weekend or a holiday. Social Security Assistance The Standard offers eligible disabled employees assistance with Social Security benefits starting with the initial application. Each of our claims management teams includes a specialist who helps administer our Social Security assistance program and acts as a liaison to our nationwide network of contracted specialists. Payment 016 F 7 axes The Standard automatically pays the employer's portion of FICA (Social Security and Medicare) taxes for all LTD claims. Also, The Standard prepares and mails W-2 forms and reports yearly totals to the IRS and Social Security Administration for all LTD claims. This service saves the employer time and helps to expedite tax preparation for the employee. Automatic V!a; imus Benefit Increase The Automatic Maximum Benefit increase feature provides for the maximum LTD benefit of the plan to automatically increase by 5 percent annually for five years. This is a convenient way to assure the LTD plan design keeps pace with salary increases without having to amend the group policy each year. There is no cost to add this feature to your coverage, but it must be requested — it's not automatically included in coverage plans. Options Available At Additional Cost Benefits For The Severely Disabled The Standard offers three enhancements to group LTD coverage to address the needs of severely disabled employees: • Assisted Living Benefit, which may increase the income replacement level up to 80 or 100 percent of insured predisability earnings (up to a $5,000 maximum benefit) • Housing Assistance Benefit, which provides an additional 25 percent of predisability earnings to pay for rent or mortgage (up to a $5,000 maximum benefit) • Lifetime Security Benefit, which extends the maximum benefit period to the severely disabled employee's lifetime Employers may choose one of the above or include the Lifetime Security Benefit in conjunction with either of the two other options. When one of these options is included, an employee to whom LTD benefits are payable may receive the additional benefits if, as a result of physical disease or injury, the employee: • Is unable to safely and completely perform two or more activities of daily livings without assistance due to loss of functional capacity, or • Requires substantial supervision for health or safety due to severe cognitive impairment. The disabling condition must be expected to last 90 days or more and be certified by a physician in the appropriate specialty as determined by The Standard. Other provisions and benefits may not be available and certain limitations and exclusions will apply. 8 The six activities of dally living are bathing, continence, dressing, eating, Colleting and transferring. Group Long Terre Disability Insurance 1t Annuity Contribution Benefit The Annuity Contribution Benefit is an optional Group Long Term Disability insurance feature designed to bridge the savings gap created when disabled employees may no longer have the financial means or opportunity to fund a retirement plan. After a claimant has been disabled for 36 months, The Standard will set up and fund an individual annuity in the claimant's name. Each month, a designated percentage of the disabled employee's predisability earnings, not to exceed $5,000, will be deposited into the annuity. Family Care Expenses Adjustment As another return to work incentive, employers may add the Family Care Expenses Adjustment provision as an option to their group policy. If selected, the provision applies during the 12 (or optional 24) months immediately after a disabled employee first returns to work. While this applies, work earnings used to calculate LTD benefits may be reduced by a portion of the employee's family -care expenses, up to a monthly maximum of $250 per family member or $500 per family Certain restrictions apply. �z Dependent Education Benefit The Dependent Education Benefit provides a monthly benefit for disabled employees who have children or a spouse1° who are registered and in full-time attendance at an accredited educational institution beyond high school. Disabled employees can receive $150 for each eligible student, with a maximum of $600 per month for all eligible students. Spouses must be attending an institution for the purpose of obtaining employment or increasing earnings. Other restrictions may apply. Conversion Provision The Conversion of Insurance provision allows qualified employees to buy LTD conversion insurance after their insurance under the group policy ends. To qualify, an employee must meet the eligibility requirements for conversion as outlined in the group policy. Employees may maintain the same benefit level, up to a $4,000 monthly benefit, without submitting evidence of insurability. A benefit of up to $5,000 a month may be available with approved evidence of insurability. Conversion is available with most plan designs, although exclusions, limitations and reductions may apply. Cost Of Living Adjustment (COLA) Benefit The COLA benefit helps protect an employee's LTD benefits from inflation. The Standard offers COLA benefit options calculated according to the current Consumer Price Index. if on April 1 an employee has been disabled for the required number of calendar years (one or five), the LTD benefit will be adjusted with the COLA increase. Age -graded Maximum Benefit Periods The Standard offers a variety of maximum benefit period schedules for employers to provide LTD benefits to employees who work beyond age 65. Typically, the maximum benefit period is determined by the employee's age when the disability begins. The typical age -graded benefit reduction schedule includes a maximum benefit period to age 65 for employees who become disabled before age 62, with the benefit duration age -graded for employees who become disabled on or after age 62. With the Social Security normal retirement age (SSNRA) maximum benefit period option, the maximum benefit period corresponds to the employee's SSNRA under the federal Social Security Act. Additional options for maximum benefit periods beyond age 70 are also available. 10 Spouse may include a civil union partner. Child may include a child of a civil union partner, Eligibility not available in all states. Contact your sales representative for details. 12 The Standard Commonly Asked Questions V1ho Is Eigg.ibEe For Coverage? Coverage is available to all of an employer's active employees who: • Are citizens or residents of the United States or Canada' • Are actively at work at least 30 hours each week • Meet the required eligibility waiting period as shown in the Employee Benefits Proposal Temporary and seasonal employees, full-time members of the armed forces of any country, leased employees and independent contractors are not eligible for coverage. There is no age limit on eligibility for coverage under The Standard's group insurance plans. What Is The Effective [date Of This Plan? Subject to the active work requirement, coverage is effective as follows: • Coverage requiring evidence of insurability is not effective until evidence is approved 11 For The Standard Life Insurance Company of New York policies only: Area regular employee of the employer working in the United States. • For noncontributory plans, coverage is effective on the date the employee becomes eligible • For contributory plans, employees must apply in writing for coverage. Coverage is effective on the later of: - The date the employee becomes eligible - The date the employee applies if the employee submits an application within 31 days of becoming eligible - The date required evidence of insurability is approved, if the employee applies more than 31 days after becoming eligible Vlhat is The Active WorkRequirement? Employees who are performing the material duties of their own occupation at the employer's usual place of business meet the active work requirement. Employees who are not capable of active work due to physical disease, injury, pregnancy or mental disorder on the day before insurance would otherwise become effective will not become insured until the day after completing one full day of active work as an eligible employee. Group Lona Terra Disability Insurance 13 What Leve? Of E-mpfoyee Participation is Required? For noncontributory plans, 100 percent of the eligible employees must participate. If a plan is contributory (partially or fully funded by employees), a minimum number of eligible employees must participate, as specified in the Employee Benefits Proposal. When Does Coverage End? LTD insurance ends automatically on the earliest of the following: • The date the last period ends for which a premium contribution is received • The date the group policy terminates • The date employment terminates • The date the employee fails to meet the definition Of a member (however, LTD insurance may be continued under certain conditions, such as during an approved leave of absence scheduled to last no more than 30 days) When Does The Group Palfoy Terminate? An employer may terminate a group policy by providing The Standard with written notice. The group policy will automatically terminate if premium is not received by the end of the grace period shown in the Employee Benefits Proposal. The Standard may terminate the group policy if the number of employees insured is less than the minimum participation requirement as shown in the Employee Benefits Proposal. The Standard may also terminate the group policy if we determine that the policyholder has failed to promptly furnish any necessary information requested by us or has failed to perform any other obligations relating to the group policy. Performance Guarantee The Standard is committed to providing world-class customer service. We guarantee we will meet the policyholder's overall service expectations or we will refund 5 percent of the quarterly expenses charged to the policyholder's account (for administration and paying claims) for any quarter in which we do not meet this guarantee 12 12 The minimum group size for Performance Guarantee for LTD coverage is 1,000 covered employees. No more than one refund per quarter will be paid. Claim decisions are made based on the terms of the plan. The ultimate claim decision, whether to approve or deny, is not covered by this Performance Guarantee. This guarantee is in effect for the initial rate guarantee period shown in the group policy. Thereafter, The standard reserves the right to modify the terms or terminate this guarantee at any time at its sole discretion, 14 The Standard Standard Insurance Company's first group policy, written in 1951 and still in force today, stands as a testament to our commitment to building long-term relationships. The Standard Life Insurance Company of New York founded in White Plains, New York in 2000 is the sister company of Standard Insurance Company founded in Portland, Oregon in 1906, a nationally recognized provider of group Disability, Life, Dental and Vision insurance. To learn more about group LTD insurance from The Standard, contact your insurance advisor, call the Employee Benefits Sales and Service Office for your area at 800.633.8575 or visit us at www.standard.com. The Standard is a marketing name for StanGorp Financial Group, Inc. and subsidiaries. Insurance products are offered by Standard Insurance Company of Portland, Ore. in all states except New York, where insurance products are offered by The Standard Life Insurance Company of New York of White Plains, N.Y. Product features and availability vary by state and company, and are solely the responsibility of each subsidiary. Each company is solely responsible for its own financial condition. Standard Insurance Company is licensed to solicit insurance business in all states except New York. The Standard Life Insurance Company of New York is licensed to solicit insurance business in only the state of New York. Group LTD Insurance underwritten by Standard Insurance Company is provided under policy form numbers: GP190-LTD/S399, GP190-LTD/TRUST/S399, GP399-LTD/ TRUST, GPi90-LTD/ASSOC/S399, GP491-LTD/TRUST/S399, GP899-LTD, GP209-LTD, OP608-LTD Group LTD Insurance underwritten by The Standard Life Insurance Company of New York Company Is provided under policy form number, GPNY0500-LTO Group Long Term Disability Insurance 16544 (4/13) SI/S NY PR/ER Proposal Prepared on: April 28, 2017 Proposed Effective Date: January 1, 2018 Standard Insurance Company Long Term Disability Insurance Short Term D sability Insurance Proposed Effective Date Prepared for: January 01, 2018 City of Miami I& - Protect your employees' income and your company's bottom line. This insurance comes with innovative resources designed to help you build a more productive workplace. Our Workplace Possibilities(SM) program, included at no extra cost, helps employees stay on the job and return to work sooner. While not all claims can be shortened, the program has proven to reduce disability duration by an average of 24 days per ? claimant (as of Mar. 31, 2014, based on internal company data), That's just one example of how we add real value as your partner. Covered Members A regular Executive employee of the Employer working 30 or more hours per week. Opportunity ID: 006A000000XVp6SIAT Standard Insurance Company Base 9 uy-up : 3 Benefit Schedule 60% = 60% 60% 60% Insured Predisability $16,667 $16,667 $16,667 $16,667 Earnings Maximum Monthly Benefit $10,000 $10,000 ----------- -- ----- $10,000 $1U00 Minimum Minimum Monthly Benefit - $100 or 10% $100 or 10% $100 or 10% $900 or 10% Benefit Waiting Period 180 Days 180 Days 180 Days 90 Days —� Maximum Benefit Period To SSNRA To SSNRA k To SSNRA To SSNRA Guarantee Issue Amount _ Full Benefit Full Benefit = Full Benefit Full Benefit Employer Contribution °= 100% 0% --- 100% 0% Minimum Participation 100% Greater of 25% or 10 lives 100% Greater of 25% or 10 lives 'taxability of Benefits _ Taxable Non -Taxable = Taxable Non -Taxable Own Occupation Period 24 Months 24 Months 24 Months 24 Months Partial/Residual Disability Included -_--_------ - Included t Included Included Preexisting Condition Period ---'-- 3112 -3112 � _-- 3112—_---�-- 3112 ----_--- .Mental & Nervous Limitation 24 months T � 24 months �— 24 months 24 months � - Substance Abuse Limitation j 24 months 24 months 24 months 24 months F Other Limited Conditions 24 months k 24 months = 24 months 24 months Return to Work Incentive 12 months 12 months _ 12 months 12 months Employee Assistance `s Program Included: 3 face-to-face Included: 3 face-to-face Included: 3 face-to-face Included: 3 face-to-face Opportunity ID: 006A000000XVp6SIAT Standard Insurance Company Proposed Effective Gabe Prepared for: January 01, 2018 City of Miami Additional Plan Design Details = 4 - fi - The Standard pays the employer's matching FICA and Medicare taxes and prepares W -2s for members receiving LTD benefits, LThe-S7tan7clarld - The plan includes the Workplace Possibilities(SM) program, an innovative approach to addressing and reducing the causes of absence and disability - with innovative tools and resources designed to help keep your employees productive and on the job. - This coverage includes a $25,000 Reasonable Accommodation Expense Benefit, which reimburses employers for workplace modifications that enable employees to return to or remain at work. The Reasonable Accommodation Expense Benefit is separate from the LTD claim payment. - A Rehabilitation Plan Benefit is included, which increases the LTD benefit amount by 10% of predisability earnings, not to exceed the maximum benefit, when member is participating in an approved rehabilitation plan. This benefit will also assist in paying for approved expenses incurred by a disabled membera part of an approved rehabilitation plan. - Survivors Benefit pays a lump sum equal to 3 times the non-integrated LTD benefit, - The limitations included in the policy are combined lifetime limitations. Opportunity ID: 006AOOOOOOXVp6SIAT Standard Insurance Company Proposed Effective Date Prepared for: January 01, 2018 City of Miami C0SI _ Members Volume Rate: Percent of earnings Monthly Premium Rate Guarantee Members Volume Rate: Percent of earnings i Monthly Premium (tate Guarantee Lives TBD 122 $1,337,932 .409 $5,472 2 years Age 0-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-99 LTheSt.7ardkaard' Base Buy -up - 122 31 $1,337,932 --f--- $334,483 .413 .244 -- $5,526 —�-_-_ $816 2 years 2 years To Be Determined To Be Determined Rate Volume 107 j TBD .203 .364 .545 .826 1.171 1.295 1.141 1.119 2.261 I 2.909 Premium TBD TBD 3 years Plan 4 - LTD rates forthe Buy -up Plan applyto the total monthly predisability earnings (including the monthly predisability earnings covered underthe Base Plan). - The premium and volume figures shown above for the Base Plan reflect the volume, rate and the employer's portion of the total premium for both plans. - The policy will describe the Base and Buy -up LTD plans as separate and distinct plans, identified as Plan 1 and Plan 2 within the contract. Members will be insured under either the Base or Buy -up Plan, but not both. The total cost for the Buy -up Plan will be the sum of the base and buy -up premiums for each memberas determined by the rates shown above. Opportunity ID: 006A000O00XVp6SIAT Standard Insurance Company 3 Proposed Effective Date Prepared for: January 01, 2018 City of Miami LTheTheStandard �� A,ssumptlons (continued) Rates assume billing is centralized in one location. Plan 2 - Final rates are subject to change if actual enrollment varies from the assumed enrollment of 25% - i Rate assumes that coverage is not currently in force. - Confirmation that you ,participate in Social Security is required. - STD benefit payments end once the disabled member begins to receive LTD benefits. Plan 2 - We require evidence of insurability for: — Members who enroll more than 31 days afterthey are first eligible for coverage. — Members eligible under the current plan but not enrolled. - Final rates will be based on actual enrollment. Plan 4 We require evidence of insurability for: — Members who enroll more than 31 days afterthey are first eligible for coverage. — Members eligible under the current plan but not enrolled. More Information For additional information on the available features and benefits of Long Term Disability Insurance from The Standard: Click here for California: http://www.standard.com/ca-group-long-term-disability Click here for all other states: http://www.standard.corn/group-long-term-disability Opportunity ID: 006A000000XVp6SIAT Standard Insurance Company 4 Sample Disability Income Report Standard Insurance Company produces Disability Income Reports to help employers prepare year- end W-2 Wage and Tax Statements and identify eligible employees who will receive a W-2 from The Standard, The reports show yearly totals for benefit payments and tax withholding for each employee who received group Short Term Disability or Long Term Disability benefits during the previous calendar year. Ccs 2010 StanCorp Financial Group, Inc. Standard InStll'a ICe Company produces Disability Income Reports to help employers prepare year-end VV -2 Wage and Tax Statements and identify eliclible employees :^1hr) v"Jll receive a VV -2 fron} The Standard, The reports yearly totals for benefit payrn_nts and tax %vithholding for each 2niployee ,,%,ho received grr3up Short Term Disabi%( or Lol)i Term Disability benefits during tho prl=_`,'i1Dus calendar Year. The portion of your employee's benefit Mal Is considertA taxable. Please nolifyTlle' Standard If this Information Is Incorrect. F-7nter Social 5ecurfty Taxes 41'idJhckl In Box 4 on your 04'.2 form for t111s employee. Enler Aletlirare Taxes Willi seld in Bax G on your W -c" Farm far this employee. O ;4• U4 ft Your federal tax i l"1 ---,Standard' ldentUlcatlun ^s���l.•>I number, vAilch VAR appear on your emploYPIA 1A`2 statement. Please nc'tify 41 99x9^9 TAY. MCT Tts0! The Standard If P1DDL TAX LDt OPOropjtl this Infonnatbn I,< C-MrANY is Incorrect. 2la ,nYHOLL mwr 134 Y4:P. ETRCL`: TUua SIAM OR 1,1115 RA7al 17l1112pni fAOP 1 9064 PI3PMIL17T IlYt.11s RtMH'P Your employee is P'M3 '.'- 1 , 99.6CE ML•IAIll 1))CHAAI>_'-G CmRIF.P9 1v F. ew' THE Wig= or OIrAE:L77-Y PAYMFRTS 11Ams To YCUF t:» "VEJZ LA Yom. ME 1TJ97 ALO PTPCRT Tp YCU TAE MOM]17i rec E'i`iing beneflis -IT 0J49 m'D nn I -MME, '7),R 1Pr.'0Fl1.5T70V r.1'ef. r,•, Jt1P TIUR usr. IN PRFPAP.Juc T1"[ from tills hype of Insurance. TMP7 TAVM PLC98E nl;'.'IE!H Illi YNC:ArM tWRP.IT1 PGA IYrVV.T!%r.. INIIMT:0p AY.:AI'l "I,, Rrra:r. :HnirA�-15R T11► !LAIN WAS SET UP = 2001. IP .15PAYNDIr GA HFlMS'1't: WIT11HELM DATA APHAR CHITHE x4nie, -mrm Tp 7HE-J:1mA131t.%w I.\Lmm R87CA:• I;mnY.,n=, ak!:-pjom :M ]]II TNY rA^.M P�1 9ti MIX CAMIT MAY HY MYLE-"1"EG i1 :RM W-2. • -11 M.11 7'vrvu =J:A&1«TY•-• C1].-=. tJl7�ET %-MMF 25 Litt 2= t TAXES MI'IMMMV • -YOM HHP«-'YYY AvaprT5 Ts5= 19.179 Al [:prim TPXA11LF M-4^'4 = :. 1d -•v55. RrvAy:.11r."5 -nn T.W 7Le ❑ 1pn21 129 ANI 5;.rf( T W11FT" NITJR.p 92.9.19 1r -P .na t,OCM Y7MIJ LA I374G .1^.-T pEN-SMI.31 9,7.1-- RTATE .07 p'1lt£lr f`1eL TsLI".k11Ie + NET TAJlJ tx AM 9, 7i.1 21 Pmp AMI0 t1f11bV1Jil 1F1 Bax t .3". 8 RITY '3 MA M.' 7.455SECU M Ai�.: on you �V-2 form HrS dWz ,+Oil 7.156:12 MYple 109..1 TILR 3 WAUZ AM .UO HL. TISF .nH - for dlLsemployee. •",T - NE FpE- ,,-R a z--- TIER L Y2. MIN .01 TZ3P- .M'J - - - - - -- - - ----- - - - - - - -------- -- - - 12 PP4PAT, ie-: •'^••+ 2Rn1YSS' T''AL-1 CLAIX COWr L RP1G�P-TP 'Mim .SO. I"A.41 TuMYeH@r.' .00 RL}== x1TPL^ 421.19 lY X .09 PrruPlAl" But 9.751.27 11TA:6 .01 Th1S 5£C1.10n 00d)JYeS vxx �L3 Aril:"' 9.751.:.; MMAL 4n.00 the fltfornLition dmt 6E bhlrC v 7.655,12 s sFVRr7Y 2.29 H8n R7.CE )Ji^ 7,456.11 HEiD.::AHF. IA ,17 The Standard has T%MH I Wn.:v V!C G4 MM ::vn 3 ^•G Included in our 7' -Ek 1 M7D MACH G0 ^ITR I Pae a W-2 statement for Ow ernpltpee. Do not irr-'ludo tills Informallon in your VV -2. ror more Informatlon about The Standard's financial reports, contact your Insurance advisor or the Employee Benefks Sales and Service Orrice for your area at 87!7.633.8575. Ccs 2010 StanCorp Financial Group, Inc. Standard InStll'a ICe Company produces Disability Income Reports to help employers prepare year-end VV -2 Wage and Tax Statements and identify eliclible employees :^1hr) v"Jll receive a VV -2 fron} The Standard, The reports yearly totals for benefit payrn_nts and tax %vithholding for each 2niployee ,,%,ho received grr3up Short Term Disabi%( or Lol)i Term Disability benefits during tho prl=_`,'i1Dus calendar Year. The portion of your employee's benefit Mal Is considertA taxable. Please nolifyTlle' Standard If this Information Is Incorrect. F-7nter Social 5ecurfty Taxes 41'idJhckl In Box 4 on your 04'.2 form for t111s employee. Enler Aletlirare Taxes Willi seld in Bax G on your W -c" Farm far this employee. O ;4• U4 Sample Group Benefits Activity Report Standard Insurance Company produces the Group Benefits Activity Report at the end of each month when there is some type of claim activity. This report provides a summary of disability benefit payments made during the month, Social Security and Medicare taxes withheld and any other deductions withheld during the month. This information can be reported in aggregate, by employer location or by affiliate. vr_v PT I.s-rJ-,c cP,u} ncl.trtti Lrrl \tn vaJw .. r�•iwl 'rx PiTCY it; tt .,! tJs ra.F .Ir pfrTLPr�t' I[„L. .V14 P JN+t 11—TIS #:Il: 1L.++-!S:S RIK INTI; .. rr + 1'i WYPVXI 6r1' D.,y .1.4 N-4 .0:. ... ..... r...Ls !. ciiA: vRn >TentSa•5 YPieer• T 0 2010 StanCorp Financial Group, htc. l7educCmis Tbics and other s> •nhhold'ings. ror a lia of codes, rekr to the res -o se Side of this i'inlple R'.poR. Adjusted Net RaLleflt Sign Ihc- l nefii :anclt 11L payable bc'Fore d cd ncnons lltmlefks Vldtli:3ld AmQan t ded acted to recover a daim ostrpalment Offsets Lista deductible 6 n exits or 1 nnonie li-ohn other vAarce& For list of -od{_'=L refer * the terse side of this wnple report. ^W AV CD 13 O W . rY ,PD ly^5 _.'i. -. k..e96- tA• Xv`5 i r..+. .y"'rT� 4 moi! - - - w<.•A ar'tweT. rb. IYIF S+LA KX v'r.r, axrrs. x±rrrP x..•4,Fwse TA alr rer a.{. rsvn - _,y, v. a>t„-.t aP«i'rrt it [IAF! [LFt. x: rN,: ]2?_ aPetre. T axc eLTs, _.• ,SP<. rvwl t_. ir}Tr P i� T%. Pt1151 'i Srk avc Lia�•. rl.{r-t NCF HS+�L.`rF. Pr NRF'! Ti:�l RN\l r"rA AXT c1�'IEt- -- - -------------------------- wrwJn r.. • -. _err.. , lh n..r..<..._....,<.,•nY niir. r:a,., e.. < .,}are I a.l. ,� S •rr. v rr J,..rno`av'T'+•f•+a=x._,�r�� . ,r.... r... r..+ r•�,+r:[ . x. .tcA Ki •[ i tr P P. A..ne n+r t LI • 1 l-.PI'}J,wt Pe rte .r[ p . � .. f ...,,r.,r•..............r...._.. .................. ......... ., ............... _ ......................... is.... •.:L- fIj! 0 2010 StanCorp Financial Group, htc. l7educCmis Tbics and other s> •nhhold'ings. ror a lia of codes, rekr to the res -o se Side of this i'inlple R'.poR. Adjusted Net RaLleflt Sign Ihc- l nefii :anclt 11L payable bc'Fore d cd ncnons lltmlefks Vldtli:3ld AmQan t ded acted to recover a daim ostrpalment Offsets Lista deductible 6 n exits or 1 nnonie li-ohn other vAarce& For list of -od{_'=L refer * the terse side of this wnple report. ^W AV CD 13 O W Sample FICA Tax Activity Report Standard Insurance Company produces a daily FICA Tax Activity report when an employee's Short Term Disability or Long Term Disability claim has any type of Social Security or Medicare tax activity—either withholding or adjustment. The report details the amount of Social Security and Medicare taxes withheld. Information can be reported by employer location or affiliate with different taxpayer identification numbers, if requested. I r -Standard' AAWN 65, ZIN17 xrl Z-UX1'A3%' 13s� Yuvu rl::A,'T1,-r: 1 71•r. A 1-ilrY MW41 DS, 2NIT 1'->•F IS"5'r: i; •: rjv:. _^.vc. / YED r CAP (1;' Y.1:XII 1'.A KAxt..." ."ur. .4( '.AIAI1:,11 '.: C7 , ':::YY 1 YLq 1!1-,VIII'.k .;!7K (:-.A: V. "r.I-17 r:XllZ7TT 4:71.71:S.A V: 7ull:'iiLA .%:I:N i:M::.. ^.'I 1:. 5703 100.01:4 Gi4-EA ..-S4 •1� 111 -EO -1313 a00-DD91 1214 t 100. Out. .7.. GG 1£. GODD05DZ .:0.'Y. VM;L:2Yr.1r S':7 109.04♦• :TL. GC C. %4 .. 41 GG -1!1J 01500D•✓G7 1234:[ Y IAL *i! +.57'.371 GG 11..43 '.•11 5«nkril :n.�rxl�i4:�rsfnn7 II 41SW4:ah 4— F, -1(A 9.:11112 IS 0 2010 StanCorp Financial Group, Inc. CITY OF MIAMI Account Service and Claims Management Teams Account Management Philosophy Standard Insurance Company understands that as an employer, you have distinct employee benefits needs. These are best served by dedicated, experienced resources you can trust to provide innovative solutions, n superior service and a firm commitment to your satisfaction. 0 The following list includes the designated resources that would work with City of Miami and its employees to get _. d 0 r_ CD the most out of your group insurance plan. While each member has distinct responsibilities and expertise, the as well as outstanding customer service. common theme is that our business is founded on building long lasting relationships with our customers through Will provide assistance to City of Miami on daily account management issues. superior customer service. > Direct phone numbers and emails for every resource listed below will be provided if we are the selected carrier. Account Service - Home Office Portland, OR Toll-free: 800.642.9888 Fax: 979.329.5072 Josh Gar[ington Provides a consistent underwriting approach, analyzes claims trends and Associate Underwriter projects future plan costs. When the City of Miami policy renews, the Underwriter will work to suggest ways to enhance the plan, control costs or offer other plan changes. Account Service - Sales and Service Office Ft. Lauderdale, FL Tel: 954.771.6828 Toll-free: 800.530.2299 Fax: 954.779.7086 0 2010 StanCorp Financial Group, Inc. Scott Wheeler Works to find a solution for City of Miami's employee benefits needs, and is Employee Benefits committed to working with underwriting and claims professionals and others to Consultant make sure that we meet our goal to provide quality products at an affordable cost, as well as outstanding customer service. Isabel Palacios Will provide assistance to City of Miami on daily account management issues. Account Specialist The Account Manager works closely with the entire Home Office team. Claim Management - Home Office Altavista, VA and Portland, OR Tall -free: 800.368.1135 Fax: 971.321.6400 4 - Cary Geist Manages the STD benefit analysts and support staff that will administer claims Manager - STD Benefits for City of Miami employees. The Manager's role is to help assure that the accounts assigned to the team receive the care and level of service that they expect and deserve. The Manager checks the quality of the team's work, monitors workflow and workloads, and adjusts as appropriate. Relene Shrader Manages the LTD benefit analysts and support staff that will administer claims Manager - LTD Benefits for City of Miami employees. The Manager's role is to help assure that the accounts assigned to the team receive the care and level of service that they expect and deserve. The Manager checks the quality of the team's work, monitors workflow and workloads, and adjusts as appropriate. 0 2010 StanCorp Financial Group, Inc. Biographies Josh Garlington, Associate Underwriter, Portland, Oregon Josh began working for The Standard in 2014 as a policy admin in the CTA department and moved into the Underwriting department as a Rating Analyst. I've been an Assoc. UW since 2016 working primarily on the SE team. Cary Geist, Manager - Disability Benefits, Portland, OR Cary is a Manager in Disability Benefits (STD), a position he has held since 2016. He is responsible for supervising the Benefits Team, communicating with our field offices and other teams. Cary joined The Standard in 2002 as a STD Benefits Examiner and then moved to the LTD department in 2006 where he was a Disability Benefits Analyst and a Senior Disability Benefits Analyst (2012-2016), In addition to his claims experience, Cary earned his Bachelor's of Science in Political Science from Oregon State University. Relene Shrader, FMLI, Manager, Disability Benefits - LTD, Altavista, VA Relene is a Manager, Disability Benefits (LTD) in our Altavista, Virginia location with nearly 20 years of experience in the insurance industry. She is responsible for managing a team of Analysts, ensuring that claims decisions are made accurately and on a timely basis, handling escalations and provides coaching and mentoring to her team members. Prior to joining The Standard she worked as a Team Leader and in IT and Operations positions at Genworth Financial, Inc. Relene is a member of the Life Office Management Association (LOMA) and in 2002 earned her Fellow, Life Management Institute (FMLI) professional designation. 0 2010 StanCorp Financia] Group,Dic. ( $ Scott Wheeler, Employee Benefits Consultant �- Tampa Employee Benefit Sales and Service Office. o n � (D Scottjoined The Standard in June, 2016 and is responsible for new sales and retention of clients in the South 90 r+ Florida market. Prior to joining The Standard, Scott worked with several group carriers in bath a sales and management capacity and was most recently working as an Employee Benefits Producer at a National �. Brokerage firm. Scott earned his Bachelor's degree at the USF College of Business (Finance). Isabel Palacios, Account Specialist - Miami Employee Benefits Sales and Service r? Office Isabel joined The Standard in the Spring of 2012 and is an Account Specialist in our Miami Office. She is responsible for servicing groups anywhere between two and 500 lives. Isabel has experience in the Employee Benefits field from both the broker and carrier sides of the business.. Prior to joining The Standard she was employed by one of our Broker Strategic Partners. Although some of her years in the industry were spent in Sales, the majority of her career has been on the Servicing of Clients. This includes 8 years with several well- known consulting firms, 6 years with a Non -Occupational TPA firm, and 14 years with one of our disability competitors. Isabel has a Bachelor of Arts degree in International Studies with an emphasis in Economics from The Ohio State University and holds a Health, Life and Variable Annuity license in multiple states. Cary Geist, Manager - Disability Benefits, Portland, OR Cary is a Manager in Disability Benefits (STD), a position he has held since 2016. He is responsible for supervising the Benefits Team, communicating with our field offices and other teams. Cary joined The Standard in 2002 as a STD Benefits Examiner and then moved to the LTD department in 2006 where he was a Disability Benefits Analyst and a Senior Disability Benefits Analyst (2012-2016), In addition to his claims experience, Cary earned his Bachelor's of Science in Political Science from Oregon State University. Relene Shrader, FMLI, Manager, Disability Benefits - LTD, Altavista, VA Relene is a Manager, Disability Benefits (LTD) in our Altavista, Virginia location with nearly 20 years of experience in the insurance industry. She is responsible for managing a team of Analysts, ensuring that claims decisions are made accurately and on a timely basis, handling escalations and provides coaching and mentoring to her team members. Prior to joining The Standard she worked as a Team Leader and in IT and Operations positions at Genworth Financial, Inc. Relene is a member of the Life Office Management Association (LOMA) and in 2002 earned her Fellow, Life Management Institute (FMLI) professional designation. 0 2010 StanCorp Financia] Group,Dic. I& meStandard° The Standard's Information Security Program Overview: The Standard's Information Security Program has a documented and approved Information Security Policy and an associated set of standards based on the internationally recognized code of practice for information security management as defined in ISO 27002:2013. The Program has achieved ISO 27001 certification. The policy and standards represent the expressed intent of The Standard's senior management with regard to the protection and security of customer, policyholder, and employee information as well as The Standard's approach to meeting legal and regulatory requirements. The policy and standards specifically address privacy and security as well as data classification, operational management, data processing and access management. Information Security Team: The Standard has an established Information Security team dedicated to information security risk identification, assessment, education and advisory services to the organization. This team coordinates handling security and privacy incidents response across the organization. Security Governance: The Standard also has an Information Security and Privacy Oversight group (IPOG) that includes representation from all parts of the business. Part of its charter is to provide governance and direction to the Information Security Program. User Access Control: The Standard has established access management procedures that require management approval of access and provides for the segregation and separation of duties, The Standard uses industry - standard tools and best practices to validate the identity of information system users, including the use of two - factor authentication for remote access to systems. These controls include: a. Unique User identifiers (User IDs) to ensure accountability b. Controls to lock account access after several consecutive failed login attempts, c. Controls on the number of invalid login requests before locking out a User. d. Controls to ensure generated initial passwords must be reset on first use. e. Controls to force a User password to expire after a period of use. f. Controls to terminate a User session alter a period of inactivity. g. Password length, complexity and history controls to limit password reuse. h. Verification question before resetting password. Upon termination of employment, user access is revoked following established procedures Network Protection: The Standard restricts and controls access between The Standard's network and other networks, including the Internet, using firewalls and other commercially available control mechanisms. Viruses / Anti -Virus Protection: The Standard uses and maintains appropriate anti-virus measures to protect networks, systems, and end-user devices (e.g, desktops, laptops, mobile devices). Security Logs and Intrusion Detection: The Standard records all relevant system activity (including for firewalls, routers, network switches, and operating systems). The Standard proactively monitors for unauthorized access attempts to its systems and services using industry -standard tools and practices. Third party security event and incident monitoring protects our organization from a broad range of threats by systematically collecting, correlating and analyzing data from security devices and critical IT assets in real time. Data Ownership: The Standard owns all data stored, transmitted and processed on its information systems, including on systems provided by third parties and will not use or disclose the data for any purpose except as permitted to provide contractual service to customers and support internal business operations. Information Security Standard Insurance Company 1100 SW Sixth Avenue Portland OR 97204 tel 888.937.4783 ensures the protection of the information assets by understanding the information security risks and designing appropriate controls. Data Residence: To the best of its ability, The Standard will not transmit or stare its data on systems, devices, or in printed form outside the boundaries of the United States and its territories. Data Encryption: The Standard uses data encryption methods and practices that meet current industry standards and best practices. The Standard encrypts electronic data when transmitted or otherwise transferred over data networks between The Standard and external parties. When in non -electronic farm, the data is protected using reasonable standards of care that may include, but is not limited to, the use of tamper evident packages and tracking of shipment for printed material. The Standard encrypts electronic data at rest, including mobile devices (e.g. laptops, tablets, PDAs, smart phones) as well as removable media (e.g. Backup media, USB thumb drives, CD/DVD, portable hard drives). Data Retention: The Standard retains customer data as needed to meet business, legal, and regulatory requirements that may exceed the term of contracts with the customer. An example of this is an active claim against an insurance policy that needs continued administration after the termination of the policy. Data Destruction / Media Sanitization: Prior to the disposal of media that stores data, The Standard implements media sanitization practices, including the sanitization of server disks and the shredding of paper documents. Such practices are as identified by NIST SP 800-88 "Guidelines for Media Sanitization" or (pursuant to the guidelines in DoD 5220-M) the Defense Security Service (DSS) "Clearing and Sanitization Matrix (C&SM)". Vendor Management: The Standard requires the assessment of the information security, business continuity and disaster recovery practices of contractors, subcontractors, or other third -party providers involved in providing and/or supporting services for and by The Standard. Third parties that will store, process or transport data must meet information and business continuity / disaster recovery requirements through contracts and service agreements. These terms include requirements to protect data and meet service level agreements, recovery time objectives and recovery point objectives as specified in the contractual documents. Information Security Incident Management: The Standard has developed and maintains security incident management policies and procedures, including detailed security incident escalation procedures. The Standard will notify affected individuals in the event The Standard becomes aware of an actual or reasonably suspected unauthorized disclosure of the individual's data that creates a reasonable risk of harm to the individual. This notification will occur as part of the incident response process following The Standard taking any necessary actions needed to contain and mitigate the continuation of the event. Vulnerability Management: Applications developed by and used in the providing of services by The Standard are tested for security vulnerabilities prior to deployment and identified vulnerabilities are appropriately r mediated or otherwise mitigated. The Standard provides for the regular security testing of application and system changes and regularly scans systems for vulnerabilities using a third -party service with findings appropriately remediated or otherwise mitigated. In addition, to gain an independent view of its security posture, The Standard also engages third -party resources for security assessments at least annually. Change Management: The Standard maintains a change management program that ensures all system, application, and service changes have been appropriately reviewed, tested, and approved by management prior to deployment into production environment. Physical Security: The Standard physically secures its production data centers and restricts access to only authorized personnel that have a need to access the security areas. The Standard also employs video recording of its data center and maintains these recordings for a reasonable period of time. Standard Insurance Company 1100 SW Sixth Avenue Portfand OR 97204 tel 888.937.4783 Certification Statement Please quote on this form, if applicable, net prices for the item(s) listed. Return signed original and retain a copy for your files. Prices should include all costs, including transportation to destination. The City reserves the right to accept or reject all or any part of this submission. ;Prices should be firm for a minimum of 184 days following the time set for closing of the submissions. The proposal is valid for 90 days. In the event of errors in extension of totals, the unit prices shall govern in determining the quoted prices. We (I) certify that we have read your solicitation, completed the necessary documents, and propose to furnish and deliver, F.O.B. DESTINATION, the items or services specified herein. The undersigned hereby certifies that neither the contractual party nor any of its principal owners or personnel have been convicted of any of the violations, or debarred or suspended as set in section I8-107 or Ordinance No. 12271. All exceptions to this submission have been documented in the section below (refer to paragraph and section), EXCEPTIONS: We (1) certify that any and all information contained in this submission is true; and we (I) further certify that this submission is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a submission for the same materials, supplies, equipment, or service, and is in all respects fair and without collusion or fraud. We (1) agree to abide by all terms and conditions of this solicitation and certify that I am authorized to sign this submission for the submitter. Please print the following and sign your name: PROPOSERNAME: Standard Insurance Company (The Standard) ADDRESS: 920 SW 6t' Avenue, Portland, OR 97204 PHONE. _ 874-321-2529 FAX: NIA EMAIL: Graeme.Queen standard.com CELL(Optional): SIGNED BY: (� 2"d Vice President TITLE: Strategic Account Services DATE: 4126/17 FAILURE TO COMPLETE, SIGN AND RETURN THIS F01 M SHALL DISQUALIFY THIS RESPONSE. Page 2 of 47 C= OF FORT LAUDERDALE BUSINESS TAX YEAR 2016-2017 BUSINEss TAX DIVISION 100 N. ANDREWS AVENUE, 1 ST FLOOR, FORT LAUDERDALE, FLORIDA 33301 (954) 82 8 -5195 Business TD: 1300584 Business Name. STANDARD INSURANCE COMPANY Business Address: 800 CORPORATE DR 4 210 Tax Category: OFFICE USE ONLY Tax*: 739510 Dee: STANDARD INSURANCE J GREG NESS CEO 1100 SW SIXTH AVE PORTLAND, OR 97006 ***DETACH AND POST THIS RECEIPT INA CONSPICUOUS PLACE*** ............. -........... ..........,................ ....... ....., x ........................... ...... ............................... ............ .............. x. ....... ........... ............,................................................... Business TD: 1300584 Tax Number: 739510 Business Name: STANDARD INSURANCE COMPANY Business Address: 800 CORPORATE DR # 210 Business Owner: NESS, J GREG CEO ■ This Receipt is issued for the period commencing October 1st and ending September 30th of the years shown above. ■ If you have moved out of the city, please provide a written statement. ■ A transfer of business location within the city limits is subject to zoning approval. Please complete a Business Tax Transfer Application and bring it to our office to obtain the necessary approval. ■ A Transfer fee applies of 10% of the annual business tax fee. The fee shall not be less than $3.00, nor greater than $25.00. ■ If you have sold your business, please provide us with a copy of the Bill of Sale. Please be advised that this issuance of a Business Tax Receipt establishes that the business you intend to conduct is a use permitted by the City Zoning Cade for the location at which you intend to operate. The issuance of a Business Tax Receipt in no way certifies that the property located at this address is in compliance with other provisions of the City Carie of Ordinances. BUSINESS TAX DIVISION 100 N. ANDREWS AVENUE, IST FLOOR, FORT LAUDERDALE, FLORIDA 33301 TEL (954)828-5195 FAX (954)828-5881 Rev. 5/20/2016 WWW.FORTLAUDERDALE,GOV Ac" 10P CERTIFICATE OF LIABILITY INSURANCE 4iDAT DATE 7 p>tY, THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Woodruff -Sawyer Oregon, Inc. 1001 SW 5th Avenue, Suite 1000 Portland OR 97204 CONTACT NAME: Jessica Carpenter PHONE 503-416 7758 F°x 503-243-1815 -1. c No E-MAIL . car enter wsandco.com e 1 P @ INSURERS AFFORDING COVERAGE NAIC # X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE r OCCUR INSURER A: Federal Insurance Company 20281 INSURED STANFIN-01 INSURER B:Sentry Insurance, A Mutual Company 24988 Standard Insurance Company 1100 SW Sixth Avenue, P11 C Portland, OR 97204 INSURERC:Atlantic Specialty Insurance Cam an 127154 INSURER D: MED EXP (Any one person) $10,000 INSURER IE: INSURER F: COVERAGES CERTIFICATE NUMBER: 1511868799 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. !LTR TYPE OF INSURANCE 1NSD WVD I POLICY NUMBER MMIDD EFF I MMIODY EXP LIMITS C X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE r OCCUR 7120077550009 71112C16 71112017 EACH OCCURRENCE $1,000,000 PREMI ETORENTED PREMISES Ea occurrence $1,000,000 MED EXP (Any one person) $10,000 PERSONAL & ADV INJURY $1,000,000 GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $2,000,000 POLICY PRO LOG PRODUCTS - COMP/OP AGG I s2,000,000 Is OTHER: C AUTOMOBILE LIAH14ITY 7120077550009 7/1/2016 711/2017BIND C $ SINGLE LIMIT Co,EaccidEent 1,000,000 BODILY INJURY (Per person) $ ANY AUTO ALL OWNED SCHEDULED AUTOS AUTOS BODILY INJURY iPer accident) HIRED AUTOS X NON-DWNE❑ AUTOS PRDPERTYDAMAGE $ per accident $ C X UMBRELLA LIAB X OCCUR 7120077550009 71112016 7/112017 EACH OCCURRENCE $1,000,000 AGGREGATE $1,000,000 EXCESS LIAR CLAIMS MADE DEC, RETENTIONS $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN 9016875 7/112016 711/2017 X PER OTH- STATUTE ER E.L. EACH ACCIDENT $1,000,000 ANY PROPRIETORIPARTNERfEXECUTIVE ❑ OFFICERlMEMBER EXCLUDED?(Mandatory E.L. DISEASE -EA EMPLOYE $1,000,000 In NH) INIA If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE -POLICY LIMIT $1,000,000 A Professional Liability82086841 7/112016 7!112017 Aggregate $2,000,000 Each Claim $1,000,000 DESCRIPTION OF OPERATIONS f LOCATIONS! VEHICLES (ACORO 101, Additional Remarks Schedule, may be attached If more space is required) Operations of the Named Insured subject to the terms, conditions and exclusions of the policy issued fay the Insurance Company. RE: Evidence of Coverage (RFP) City of Miami is included as additional insured per attached forms VCA201 and VCG205 as required by written contract. Waiver of subrogation applies perform WC000313. %,=M t it'll.A I C r1UE-U17- N t.,ANUr-LLA I IVN City of Miami Procurement Department Miami Riverside Center 444 SW 2nd Ave, 6th Floor Miami FL 33130 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE: POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE 1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2094/01) The ACORD name and logo are registered marks of ACORD CERTIFICATE OF REGISTRATION Information Security Management System ISO 27001: 2013 This is to certify that the Information Security Management System of: Standard Insurance 1100 SW 6th Ave. Portland, Oregon 97204 conforms with the requirements of ISO 27001: 2013 for the scope of service listed below: StanCorp Financial Group and its affiliates (the Company and/or The Standard) has established an Information Security Management System (ISMS) in accordance with the requirements of ISO standard ISO/IEC 27001:2013 that preserves the Confidentiality, Integrity, and Availability (CIA) of the Standard's information technology infrastructure and operations. The ISMS framework serves as StanCorp Financial Group's mechanism to appropriately identify, select, maintain and improve information security controls that are critical to its clients and businesses. The ISMS scope includes the following services: • Logical access to critical network servers & databases • Secure storage, transmission and replication of sensitive information • Client support services • Application development • Internal IT Certificate Number: SEC1588 Issue Date: 10/21/2016 Issued by: JA r I v Partner, A-LIGN 4 ANM A C C R E D I T E D MANAGEMENT SYSTEMS CERTIFICATION BODY • 1T Compliance • Human Resources • Legal • Physical and environmental access controls • Incident management— "security incidents" Statement of Applicability: as of 06/7/2016 v1 Expiration Date: 10/21/2019 This certificate was issued electronically and is bound by the terms and conditions set forth in the agreement. Further clarification regarding the scope of this certificate and applicability to the ISO 27001: 2013 standard may be obtained at www.a-lign.com. A-LIGN Headquarters: 400 N. Ashley Dr. Suite 1325 Tampa, Florida 33602 Tel: 888-702-5446 STANDARD INSURANCE COMPANY A Stock Life Insurance Company 900 SW Fifth Avenue Portland, Oregon 97204-1282 (503) 321-7000 GROUP SHORT TERM DISABILITY INSURANCE POLICY Policyholder: Policy Number: Effective Date: Sample K2000 Non--occ Private Group 720100-B January 1, 2013 The consideration for this Group Policy is the application of the Policyholder and the payment by the Policyholder of premiums as provided herein. Subject to the Policyholder Provisions and the Incontestability Provisions, this Group Policy (a) is issued for the Initial Rate Guarantee Period shown in the Coverage Features, and (b) may be renewed for successive renewal periods by the payment of the premium set by us on each renewal date. The length of each renewal period will be set by us, but will not be less than 12 months. For purposes of effective dates and ending dates under this Group Policy, all days begin and end at 12:00 midnight Standard Time at the Policyholder's address. All provisions on this and the following pages are part of this Group Policy. ''You" and "your" mean the Member. "We", "us", and "our" mean Standard Insurance Company. Other defined terms appear with their initial letters capitalized. Section headings, and references to them, appear in boldface type. STANDARD INSURANCE COMPANY is THIS POLICY IS NOT AVAILABLE IN CALIFORNIA, FLORIDA, MARYLAND, NEW YORK, OR VERMONT This is a sample policy. Product availability, plan provisions and features may vary by state. The proposed premium rate and plan design is based on the underwriting data received by us. Final premium rates and pian provisions will be determined on the basis of: applicable state laws, Policyholder contributions, confirmation of occupations, the actual composition of the group of persons who will become insured, and our current underwriting rules and practices. GF399-STD Table of Contents COVERAGE FEATURES .......... .................................. .................................................. I GENERAL POLICY INFORMATION ............ . . ........................... . ............................... I SCHEDULE OF INSURANCE.................................................................................. I PREMIUM CONTRIBUTIONS..................................................................................2 PREMIUM AND RENEWALS................................................................................... 2 INSURINGCLAUSE..................................................................................................... 3 BECOMING INSURED................................................................... WHEN YOUR INSURANCE BECOMES EFFECTIVE...................................................... 3 ACTIVE WORK PROVISIONS ........................... WHEN YOUR INSURANCE ENDS................................................................................. 4 REINSTATEMENT OF INSURANCE...............................................................................5 DEFINITION OF DISABILITY........................................................................................ 5 RETURN TO WORK PROVISIONS ............................................ ................... 6 REASONABLE ACCOMMODATION EXPENSE BENEFIT ............................................... 7 TEMPORARY RECOVERY............................................................................................ 7 WHEN STD BENEFITS END ........................................................ . ............................... 8 PREDISABILITY EARNINGS......................................................................................... 8 DEDUCTIBLE INCOME............................................................................................... 9 EXCEPTIONS TO DEDUCTIBLE INCOME.................................................................. 10 RULES FOR DEDUCTIBLE INCOME.......................................................................... 11 SUBROGATION......................................................................................................... 11 BENEFITS AFTER INSURANCE ENDS OR IS CHANGED ............................................ 12 EFFECT OF NEW DISABILITY................................................................................... 12 DISABILITIES EXCLUDED FROM COVERAGE........................................................... 12 LIMITATIONS..................................................................... ....................................... 12 CLAIMS....................................................................................... ........ ..................... 13 ALLOCATION OF AUTHORITY ............................................. ... ................................... 15 TIME LIMITS ON LEGAL ACTIONS............................................................................ 16 INCONTESTABILITY PROVISIONS............................................................................. 16 CLERICAL ERROR, AGENCY AND MISSTATEMENT................................................... 16 TERMINATION OR AMENDMENT OF THE GROUP POLICY ........................................ 17 DEFINITIONS............................................................................................................ 17 POLICYHOLDER PROVISIONS................................................................................... 18 Index of Defined Terms Maximum STD Benefit, 1 Active Work, Actively At Work, 4 Member, 1, 3 Allowable Periods, 7 Mental Disorder, i8 Minimum Participation Number, 2 Benefit Waiting Period, 2, 17 Minimum Participation Percentage, 2 Minimum STD Benefit, 1 Class Definition, 1 Contributory, 17 Deductible Income, 9 Eligibility Waiting Period, 1 Employer, 17 Employer(s), 1 Enrollment Period, 2 Evidence Of Insurability, 4 Group Policy, 17 Group Policy Effective Date, 1 Group Policy Number, 1 Hospital, 17 Initial Rate Guarantee Period, 2 Injury, 17 L.L.C. Owner -Employee, 17 Maximum Benefit Period, 2, 18 Noncontributory, 18 P.C. Partner, 18 Physical Disease, 18 Physician, 18 Policyholder, 1 Predisability Earnings, 8 Pregnancy, 18 Premium Due Dates, 2 Prior Plan, 18 Proof Of Loss, 13 Reasonable Accommodation Expense Benefit, 7 STD Benefit, 1, 18 Temporary Recovery, 7 War, 12 Work Earnings, 6 INSURING CLAUSE If you become Disabled while insured under the Group Policy, we will pay STD Benefits according to the terms of the Group Policy after we receive Proof Of Loss satisfactory to us. ST.IC.OT.1 BECOMING INSURED To become insured you must be a Member, complete your Eligibility Waiting Period, and meet the requirements in Active Work Provisions and When Your Insurance Becomes Effective. You are a Member if you are: I. A regular employee of the Employer; 2. Actively At Work at least 30 hours each week (for purposes of the Member definition, Actively At Work will include regularly scheduled days off, holidays, or vacation days, so long as you are capable of Active Work on those days); and 3. A citizen or resident of the United States or Canada. You are not a Member if you are a temporary or seasonal employee, a full-time member of the armed forces of any country, a leased employee, or an independent contractor. Eligibility Waiting Period means the period you must be a Member before you become eligible for insurance. Your Eligibility Waiting Period is shown in the Coverage Features. (VARMMRDEF) ST.BI.oT,l WHEN YOUR INSURANCE BECOMES EFFECTIVE A. When Insurance Becomes Effective Subject to the Active Work Provisions, your insurance becomes effective as follows; 1. Insurance Subject To Evidence Of Insurability Insurance subject to Evidence Of Insurability becomes effective on the date we approve your Evidence Of Insurability. 2. Insurance Not Subject To Evidence Of Insurability The Coverage Features states whether insurance is Contributory or Noncontributory. a. Noncontributory Insurance Noncontributory insurance not subject to Evidence Of Insurability becomes effective on the date you become eligible. b. Contributory Insurance You must apply in writing for Contributory insurance and agree to pay premiums. Contributory insurance not subject to Evidence Of Insurability becomes effective on: i. The date you become eligible if you apply on or before that date; or ii. The date you apply if you apply after the date you become eligible. Note: If you do not apply during the Enrollment Period, then until you have been insured under the Group Policy for 12 consecutive months, you will have a longer Benefit Waiting Period for Disabilities caused by Physical Disease, Pregnancy or Mental Disorder. The Enrollment Period and applicable Benefit Waiting Periods are shown in Coverage Features. Printed 03/22/2013 - 3 - 720106-B B. Takeover Provisions 1. If you were insured under the Prior Plan on the day before the effective date of your Employer's coverage under the Group Policy, your Eligibility Waiting_ Period is waived on the effective date of your Employer's coverage under the Group Policy. 2. You must submit satisfactory Evidence Of Insurability to become insured if you were eligible for insurance under the Prior Placa for more than 31 days but were not insured. C. Evidence Of Insurability Requirement Evidence Of Insurability satisfactory to us is required: a. For Members eligible for more than 31 days but not insured under the Prior Plan. b. For reinstatements if required. Providing Evidence Of Insurability means you must: 1. Complete and sign our medical history statement; 2. Sign our form authorizing us to obtain information about your health; 3. Undergo a physical examination, if required by us, which may include blood testing; and 4. Provide any additional information about your insurability that we may reasonably require. (VAR BOI_WITH 80 DAY PD) ST.EF.OT.3 ACTIVE WORK PROVISIONS A. Active Work Requirement You must be capable of Active Work on the day before the scheduled effective date of your insurance or your insurance will not become effective as scheduled. If you are incapable of Active Work because of Physical Disease, Injury, Pregnancy or Mental Disorder on the day before the scheduled effective date of your insurance, your insurance will not become effective until the day after you complete one full day of Active Work as an eligible Member. Active Work and Actively At Work mean performing with reasonable continuity the Material Duties of your Own Occupation at your Employer's usual place of business. B. Changes In Insurance This Active Work requirement also applies to any increase in your insurance. ST.Aw.oT.1 WHEN YOUR INSURANCE ENDS Your insurance ends automatically on the earliest of: 1. The date the last period ends for which a premium contribution was made for your insurance. 2, The date the Group Policy terminates. 3. The date your employment terminates. 4. The date you cease to be a Member. However, your insurance will be continued during the following periods when you are absent from Active Work, unless it ends under any of the above. a. During the first 90 days of a temporary or indefinite administrative or involuntary leave of absence or sick leave, provided your Employer is paying you at least the same Predisability Earnings paid to you immediately before you ceased to be a Member. A period when you are Printed 03/22/2013 - 4 - 720106-B absent from Active Work as part of a severance or other employment termination agreement is not a leave of absence, even if you are receiving the same Predisability Earnings. b. During a leave of absence if continuation of your insurance under the Group Policy is required by a state -mandated family or medical leave act or law. c. During any other temporary leave of absence approved by your Employer in advance and in writing and scheduled to last 30 days or less. A period of Disability is not a leave of absence. d. During the Benefit Waiting Period and while STD Benefits are payable. ST.EN.OT.1 REINSTATEMENT OF INSURANCE If your insurance ends, you may become insured again as a new Member. However, the following will apply: 1. If you cease to be a Member because of a Disability that is not covered solely because of the exclusion for work related Disabilities, your insurance will end. However, if you become a Member again immediately after workers' compensation temporary benefits end, the Eligibility Waiting Period will be waived. 2. If your insurance ends because you cease to be a Member for any reason other than item 1 above, and if you become a Member again within 90 days, the Eligibility Waiting Period will be waived. 3. If your insurance ends because you fail to make a required premium contribution, you must provide Evidence Of Insurability to become insured again. 4. If your insurance ends because you are on a federal or state -mandated family or medical leave of absence, and you become a Member again immediately following the period allowed, your insurance will be reinstated pursuant to the federal or state -mandated family or medical leave act or law. 5. In no event will insurance be retroactive. (NONOCC) sT.i2E.OTA DEFINITION OF DISABILITY You are Disabled if you meet the following Own Occupation definition of Disability You are required to be Disabled only from your Own Occupation. You are Disabled from your Own Occupation if, as a result of Physical Disease, Injury, Pregnancy or Mental Disorder: 1. You are unable to perform with reasonable continuity the Material Duties of your Own Occupation; and 2. You suffer a loss of at least 20% in your Predisability Earnings when working in your Own Occupation, Note: You are not Disabled merely because your right to perform your Own Occupation is restricted, including a restriction or loss of license. You may work in another occupation while you meet the Own Occupation definition of Disability. However, you will no longer be Disabled when your Work Earnings from another occupation exceed 80% of your Predisability Earnings. Your Work Earnings may be Deductible Income. See Return To Work Provisions and Deductible Income. Own Occupation means any employment, business, trade, profession, calling or vocation that involves Material Duties of the same general character as the occupation you are regularly performing for your Printed 03/22/2013 - 5 - 720106-B Employer when Disability begins. In determining your Own Occupation, we are not limited to looking at the way you perform your job for your Employer, but we may also look at the way the occupation is generally performed in the national economy. If your Own Occupation involves the rendering of professional services and you are required to have a professional or occupational license in order to work, your Own Occupation is as broad as the scope of your license. Material Duties weans the essential tasks, functions and operations, and the skills, abilities, knowledge, training and experience, generally required by employers from those engaged in a particular occupation, that cannot be reasonably modified or omitted. In no event will we consider working an average of more than 40 hours per week to be a Material Duty. (WTFH 40_WITH PARTL) 5T.DD.OT.1 RETURN TO WORK PROVISIONS A. Return To Work Responsibility No S'I'D Benefits will be paid for any period of Disability when you are able to work in your Own Occupation and able to earn at least 20% of your Predisability Earnings, but you elect not to work. B. Return To Work Incentive You may serve your Benefit Waiting Period while working if you meet the Own Occupation definition of Disability. You are eligible for the Return To Work Incentive on the first day you work after the Benefit Waiting Period if STD Benefits are payable on that date. Your Work Earnings will be Deductible Income as determined in 1., 2. and 3. 1. Determine the amount of your STD Benefit as if there were no Deductible Income, and add your Work Earnings to that amount. 2. Determine 100% of your Predisability Earnings. 3. If 1. is greater than 2., the difference will be Deductible Income. C. Work Earnings Definition Work Earnings means your gross weekly earnings from work you perforin while Disabled, plus the earnings you could receive if you worked as much as you are able to, considering your Disability, in work that is reasonably available in your Own Occupation. Work Earnings includes sick pay, vacation pay, annual or personal leave pay or other salary continuation earned or accrued while working. Earnings from work you perform will be included in Work Earnings when you have the right to receive them. If you are paid in a lump sum or on a basis other than weekly, we will prorate your Work Earnings over the period of time to which they apply. If no period of time is stated, we will use a reasonable one. In determining your Work Earnings we: 1. Will use the financial accounting method you use for income tax purposes, if you use that method on a consistent basis. 2. Will not be limited to the taxable income you report to the Internal Revenue Service 3. May ignore expenses under section 179 of the IRC as a deduction from your gross earnings. 4.. May ignore depreciation as a deduction from your gross earnings. 5. May adjust the financial information you give us in order to clearly reflect your Work Earnings. Printed 03/22/2013 - 6 - 720106-B If we determine that your earnings vary substantially from week to week, we may determine your Work Earnings by averaging your earnings over the most recent four-week period. You will no longer be Disabled when your average Work Earnings over the last four weeks exceed 80% of your Predisability Earnings. STAMOTA REASONABLE ACCOMMODATION EXPENSE BENEFIT If you return to work in any occupation for any employer, not including self-employment, as a result of a reasonable accommodation made by such employer, we will pay that employer a Reasonable Accommodation Expense Benefit in an amount agreed to by us, but not to exceed the expenses incurred. The Reasonable Accommodation Expense Benefit is payable only if the reasonable accommodation is approved by us in writing prior to its implementation. ST.RA.OT.1 TEMPORARY RECOVERY You may temporarily recover from. your Disability during the Maximum Benefit Period, and then become Disabled again from the same cause or causes, without having to serve a new Benefit Waiting Period. Temporary Recovery means you cease to be Disabled for no longer than the applicable allowable period. See Definition Of Disability. A. Allowable Period The allowable period of recovery during the Magnum Benefit Period is: a total of 90 days of recovery. B. Effect Of Temporary Recovery If your Temporary Recovery does not exceed the Allowable Period, the following will apply. 1. The Predisability Earnings used to determine your STD Benefit will not change. 2. The period of Temporary Recovery will not count toward your Maximum Benefit Period. 3. No STD Benefits will be payable for the period of Temporary Recovery. 4. No STD Benefits will be payable after benefits become payable to you under any other disability insurance plan under which you become insured during your period of recovery. 5. Except as stated above, the provisions of the Group Policy will be applied as if there had been no interruption of your Disability. ST.TR.OT. 2 Printed 03/22/2013 - 7 - 720106-B WHEN STD BENEFITS END Your STD Benefits end automatically on the earliest of. 1. The date you are no longer Disabled. 2. The date your Maximum Benefit Period ends. 3. The date you die. 4. The date long term disability benefits become payable to you under a group long term disability policy, even if that occurs before the end of the Maximum Benefit Period. 5. The date benefits become payable to you under any other disability insurance plan under which you become insured through employment during a period of Temporary Recovery. 6. The date you fail to provide proof of continued Disability and entitlement to STD Benefits. (REV LTD IZK ST.BE.DT.3 PREDISABILITY EARNINGS Your Predisability Earnings will be based on your earrings in effect on your last full day of Active Work. However, if you are a Partner, L.L.C. Owner -Employee, Sole Proprietor or S -Corporation Shareholder, your Predisability Earnings will be based on your Employer's prior tax year or the Policyholder's prior tax year if you are a P.C. Partner. Any subsequent change in your earnings will not affect your Predisability Earnings. A. Partners, P.C. Partners, L.L.C. Owner-Ernployces, Sole Proprietors and S -Corporation Shareholders If you are a Partner, L.L.C. Owner -Employee, Sole Proprietor or S -Corporation Shareholder, Predisability Earnings means your average weekly compensation from your Employer during the Employer's prior tax year. If you are a P.C. Partner, Predisability Earnings means the average weekly compensation received by your professional corporation from the Policyholder during the Policyholder's prior tax year. Your average weekly compensation is determined by adding the following amounts as reported on the applicable Schedule K-1, Schedule C, Form W-2 or S -Corporation federal income tax return, and dividing by 52 (or by the number of weeks you were a Partner, P.C. Partner, L.L.C. Owner -Employee, Sole Proprietor or S -Corporation Shareholder if less than 52) : 1. Your ordinary income (loss) from trade or business activity(ies). 2. Your guaranteed payments, if you are a Partner. 3. Your net profit (loss) from business. 4. Your compensation (as an officer), salary, or wages, if you are an S -Corporation Shareholder. If you were not a Partner, P.C. Partner, L.L.C. Owner -Employee, Sole Proprietor or S -Corporation Shareholder during the entire prior tax year, your Predisability Earnings will be your average weekly compensation for your period as a Partner, P.C. Partner, L.L.C. Owner -Employee, Sole Proprietor or S -Corporation Shareholder. B. All Other Members Predisability Earnings means your weekly rate of earnings from your Employer, including: 1. Commissions averaged over the prior 52 weeks or over the period of your employment if less than 52 weeks. 2. Shift differential pay. Predisability Earnings does not include: Printed 03/22/2013 - 8 - 720106-B 1. Bonuses. 2. Overtime pay. 3. Any other extra compensation. If you are paid on an annual contract basis, your weekly rate of earnings is one fifty-second (1/52nd) of your annual contract salary. If you are paid hourly, your weekly rate of earnings is based on your hourly pay rate multiplied by the number of hours you are regularly scheduled to work per week, but not more than 40 hours. If you do not have regular work hours, your weekly rate of earnings is based on the average number of hours you worked per week during the preceding 52 calendar weeks (or during your period of employment if less than 52 weeks), but not more than 40 hours. C. All Members Predisability Earnings includes: 1. Contributions you make through a salary reduction agreement with your Employer to: a. An Internal Revenue Code (IRC) Section 401(k), 403(b), 408(k), 408(p), or 457 deferred compensation arrangement, or b. An executive nonqualified deferred compensation arrangement. 2. Amounts contributed to your fringe benefits according to a salary reduction agreement under an IRC Section, 125 plan. Predisability Earnings does not include: 1. Your Employer's contributions on your behalf to any deferred compensation arrangement or pension plan, or 2. Stock options or stock bonuses. X1_REG wm-i COM -NO STOCK) ST.P11.0T.1 DEDUCTIBLE INCOME Subject to Exceptions To Deductible Income, Deductible Income means: Printed 03/22/2013 - 9 - 720105-B 1. Your Work Earnings, as described in the Return To Work Provisions. 2. Any amount you receive or are eligible to receive because of your disability under a state disability income benefit law or similar law. 3. Any amount you receive or are eligible to receive because of your disability under another group insurance coverage. 4, Any disability or retirement benefits you receive under your Employer's retirement plan. 5. Any earnings or compensation included in Predisability Earnings which you receive or are eligible to receive while STD Benefits are payable. 6. Any amount you receive or are eligible to receive under any unemployment compensation law or similar act or law. 7. Any amount you receive or are eligible to receive from or on behalf of a third party because of your disability, whether by judgment, settlement or other method. If you notify us before filing suit or settling your claim against such third party, the amount used as Deductible Income will be reduced by a pro rata share of your costs of recovery, including reasonable attorney fees. 8. Any amount you receive by compromise, settlement, or other method as a result of a claim for any of the above, whether disputed or undisputed. (PRW-NONOCC WITH RTW NO OTHR OFFST_WITH 3RD) ST.DI.OT.I EXCEPTIONS TO DEDUCTIBLE INCOME Deductible Income does not include: 1. Any cost of living increase in any Deductible Income other than Work Earnings, if the increase becomes effective while you are Disabled and while you are eligible for the Deductible Income. 2. Reimbursement for hospital, medical, or surgical expense. 3. Reasonable attorneys fees incurred in connection with a claim for Deductible Income. 4. Benefits from any individual disability insurance policy. 5. Group credit or mortgage disability insurance benefits. 6. Accelerated death benefits paid under a life insurance policy. 7. Benefits from the following: a. Profit sharing plan. b. Thrift or savings plan. e. Deferred compensation plan. d. flan under IRC Section 401(k), 408(k), 408(p), or 457. e. Individual Retirement Account (IRA). f. Tax Sheltered Annuity (TSA) under IRC Section 403(b). g. Stock ownership plan. h. Keogh (HR -10) plan. S. The following amounts under your Employer's retirement plan: a. A lump sum distribution of your entire interest in the plan. b. Any amount which is attributable to your contributions to the pian. Printed 03%22/2013 - 10- 720106-B c. Any amount you could have received upon termination of employment without being disabled or retired. RULES FOR DEDUCTIBLE INCOME A. Weekly Equivalents (FRiV_NO OTHR OFFST) ST.ED.OT.1 Each week we will determine your STD Benefit using the Deductible Income for the same weekly period, even if you actually receive the Deductible Income in another week. If you are paid Deductible Income in a lump sum or by a method other than weekly, we will determine your STD Benefit using a prorated amount. We will use the period of time to which the Deductible Income applies. If no period of time is stated, we will use a reasonable one. B. Your Duty To Pursue Deductible Income You must pursue Deductible Income for which you may be eligible. We may ask for written documentation of your pursuit of Deductible Income. You must provide it within 60 days after we mail you our request. Otherwise, we may reduce your STD Benefits by the amount we estimate you would be eligible to receive upon proper pursuit of the Deductible Income. C. Pending Deductible Income We will not deduct pending Deductible Income until it becomes payable. You must notify us of the amount of the Deductible Income when it is approved. You must repay us for the resulting overpayment of your claim. D. Overpayment Of Claim We will notify you of the amount of any overpayment of your claim under any group disability insurance policy issued by us. You must immediately repay us. You will not receive any STD Benefits until we have been repaid in full. In the meantime, any STD Benefits paid, including the Minimum STD Benefit, will be applied to reduce the amount of the overpayment. We may charge you interest at the Iegal rate for any overpayment which is not repaid within 30 days after we first mail you notice of the amount of the overpayment. ST.RU.0T.1 SUBROGATION If STD Benefits are paid or payable to you under the Group Policy as the result of any act or omission of a third party, we will be subrogated to all rights of recovery you may have in respect to such act or omission. You must execute and deliver to us such instruments and papers as may be required and do whatever else is needed to secure such rights. You must avoid doing anything that would prejudice our rights of subrogation. If you notify us before filing suit or settling your claim against such third party, the amount to which we are subrogated will be reduced by a pro rata share of your costs of recovery, including reasonable attorney fees. If suit or action is filed, we may record a notice of payments of STD Benefits, and such notice shall constitute a lien on any judgment recovered. If you or your legal representative fail to bring suit or action promptly against such third party, we may institute such suit or action in our name or in your name. We are entitled to retain from any judgment recovered the amount of STD Benefits paid or to be paid to you or on your behalf, together with our costs of recovery, including attorney fees. The remainder of such recovery, if any, shall be paid to you or as the court may direct. ST,SG.OT.1 Printed 03/22/2013 - 11 - 720106-B BENEFITS AFTER INSURANCE ENDS OR IS CHANGED During each period of continuous Disability, we will pay STD Benefits according to the terms of the Group Policy in effect on the date you become Disabled. Your right to receive STD Benefits will not be affected by: 1. Any amendment to the Group Policy that is effective after you become Disabled; or 2. Termination of the Group Policy after you become Disabled. ST.B& DT.1 EFFECT OF NEW DISABILITY If a period of Disability is extended by a new cause while STD Benefits are payable, STD Benefits will continue while you remain Disabled. However, 1 and 2 below will apply. 1. STD Benefits will not continue beyond the end of the original Maximum Benefit Period. 2. All provisions of the Group Policy, including the Disabilities Excluded From Coverage and Limitations sections, will apply to the new cause of Disability. DISABILITIES EXCLUDED FROM COVERAGE A. War &TAD.OTJ You are not covered for a Disability caused or contributed to by War or any act of War. War means declared or undeclared war, whether civil or international, and any substantial armed conflict between organized forces of a military nature. B. Intentionally Self -Inflicted Injury You are not covered for a Disability caused or contributed to by an intentionally self-inflicted Injury, while sane or insane. C. Work Related You are not covered for a Disability arising out of or in the course of any employment for wage or profit. D. Violent Or Criminal Conduct You are not covered for a Disability caused or Contributed to by your committing or attempting to commit an assault or felony, or actively participating in a violent disorder or riot. Actively participating does not include being at the scene of a violent disorder or riot while performing your official duties. E. Loss Of License Or Certification You are not covered for a Disability caused or contributed to by the loss of your professional license, occupational license or certification. LIMITATIONS A. Care Of A Physician (NONOcc) sT.XD.OT.l You must be under the ongoing care of a Physician in the appropriate specialty as determined by us during the Benefit Waiting Period. No STD Benefits will be paid for any period of Disability Printed 03/22/2013 - 12- 720106-B when you are not under the ongoing care of a Physician in the appropriate specialty as determined by us. B. Occupational Benefits No STD Benefits will be paid for any period when you are eligible to receive benefits for your Disability under a workers' compensation law or similar law. If your claim for these benefits is accepted, compromised or settled (whether disputed or undisputed), you must repay us for the full amount of any payments we make to you while your claim for occupational benefits is pending. C. Paid Sick Leave Or Other Salary Continuation No STD Benefits will be paid for any period when you are receiving paid sick leave pay, annual or personal leave pay, or other salary continuation, including donated amounts, (but not vacation pay) from your Employer. D. Imprisonment No STD Benefits will be paid for any period of Disability when you are confined for any reason in a penal or correctional institution. E. Return To Work Responsibility No STD Benefits will be paid for any period of Disability when you are able to work in your Own Occupation and able to earn at least 20% of your Predisability Earnings, but you elect not to work. F. Rehabilitation Program No STD Benefits will be paid for any period of Disability when you are not participating in good faith in a plan, program or course of medical treatment or vocational training or education approved by us unless your Disability prevents you from participating. CLAIMS A. Filing A Claire (NONOCC-RTW RSP-MAND REHB) ST.LM.OT.I Claims should be filed on our forms. If you do not receive our forms within 15 days after you ask for them, you may submit your claim in a letter to us. The letter should include the date Disability began, and the cause and nature of the Disability. B. Time Limits On Filing Proof Of Loss You must give us Proof Of Loss within 90 days after the end of the Benefit Waiting Period. If you cannot do so, you must give it to us as soon as reasonably possible, but not later than one year after that 90 -day period, If Proof Of Loss is filed outside these time limits, your claim will be denied. These limits will not apply while you lack legal capacity. C. Proof Of Loss Proof Of Loss means written proof that you are Disabled and entitled to STD Benefits. Proof Of Loss must be provided at your expense. For claims of Disability due to conditions other than Mental Disorders, we may require proof of physical impairment that results from anatomical or physiological abnormalities which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques. D. Documentation Completed claims statements, a signed authorization for us to obtain information, and any other items we may reasonably require in support of a claim must be submitted at your expense. If the required documentation is not provided within 45 days after we mail our request, your claim may be denied. Printed 03/22/2013 - 13- 720100-B E. Investigation Of Claim We may investigate your claim, at any time. At our expense, we may have you examined at reasonable intervals by specialists of our choice. We may deny or suspend STD Benefits if you fail to attend an examination or cooperate with the examiner. F. Time Of Payment We will pay STD Benefits within 60 days after you satisfy Proof Of Loss. STD Benefits will be paid to you at the end of each week you qualify for them. STD Benefits remaining unpaid at your death will be paid to your estate. G. Notice Of Decision On Claire We will evaluate your claim promptly after you file it. Within 45 days after we receive your claim we will send you: (a) a written decision on your claim; or (b) a notice that we are extending the period to decide your claim for 30 days. Before the end of this extension period we will send you: (a) a written decision on your claim; or (b) a notice that we are extending the period to decide your claim for an additional 30 days. If an extension is due to your failure to provide information necessary to decide the claim, the extended time period for deciding your claim will not begin until you provide the information or otherwise respond. If we extend the period to decide your claim, we will notify you of the following: (a) the reasons for the extension; (b) when we expect to decide your claim.; (c) an explanation of the standards on which entitlement to benefits is based; (d) the unresolved issues preventing a decision; and (e) any additional information we need to resolve those issues. If we request additional information, you will have 45 days to provide the information. If you do not provide the requested information within. 45 days, we may decide your claim based on the information we have received. If we deny any part of your claim, you will receive a written notice of denial containing: a. The reasons for our decision. b. Reference to the parts of the Group Policy on which our decision is based. c. Reference to any internal rule or guideline relied upon in making our decision. d. A description of any additional information needed to support your claim. e. Information concerning your right to a review of our decision. f. Information concerning your right to bring a civil action for benefits under section 502(x) of ERISA if your claim is denied on review. H. Review Procedure If all or part of a claim is denied, you may request a review. You must request a review in writing within 180 days after receiving notice of the denial. You may send us written comments or other items to support your claim. You may review and receive copies of any non -privileged information that is relevant to your request for review. There will be no charge for such copies. You may request the names of medical or vocational experts who provided advice to us about your claim. The person conducting the review will be someone other than the person who denied the claim and will not be subordinate to that person. The person conducting the review will not give deference to the initial denial decision. If the denial was based on a medical judgment, the person conducting the review will consult with a qualified health care professional. This health care professional will be someone other than the person who made the original medical judgment and will not be Printed 03/22/2013 -14- 720106-B subordinate to that person. Our review will include any written comments or other items you submit to support your claim. We will review your claim promptly after we receive your request. Within 45 days after we receive your request for review we will send you: (a) a written decision on review; or (b) a notice that we are extending the review period for 45 days. If the extension is due to your failure to provide information necessary to decide the claim on review, the extended time period for review of your claim will not begin until you provide the information or otherwise respond. If we extend the review period, we will notify you of the following: (a) the reasons for the extension; (b) when we expect to decide your claim on review; and (c) any additional information we need to decide your claim. If we request additional information, you will have 45 days to provide the information. If you do not provide the requested information within 45 days, we may conclude our review of your claim based on the information we have received, If we deny any part of your claim on review, you will receive a written notice of denial containing: a. The reasons for our decision. b. Reference to the parts of the Group Policy on which our decision is based. c. Reference to any internal rule or guideline relied upon in malting our decision. d. Information concerning your right to receive, free of charge, copies of non -privileged documents and records relevant to your claim. e. Information concerning your right to bring a civil action for benefits under section 502(a) of ERISA. The Group Policy does not provide voluntary alternative dispute resolution options. However, you may contact your local U.S. Department of Labor Office and your State insurance regulatory agency for assistance. L Assignment The rights and benefits under the Group Policy are not assignable. (REV PRIV WRDG) ST.CL.OT,2 ALLOCATION OF AUTHORITY Except for those functions which the Group Policy specifically reserves to the Policyholder or Employer, we have full and exclusive authority to control and manage the Group Policy, to administer claims, and to interpret the Group Policy and resolve all questions arising in its administration, interpretation, and application of the Group Policy. Our authority includes, but is not limited to: 1. The right to resolve all matters when a review has been requested; 2. The right to establish and enforce rules and procedures for the administration of the Group Policy and any claim under it; 3. The right to determine: a. Eligibility for insurance; b. Entitlement to benefits; c. The amount of benefits payable; d. The sufficiency and the amount of information we may reasonably require to determine a., b., or c., above. Printed 03/22/2013 - 15- 720106-B Subject to the review procedures of the Group Policy, any decision we make in the exercise of our authority is conclusive and binding. ST.AL.OT.1 TIME LIMITS ON LEGAL ACTIONS No action at law or in equity may be brought until 60 days after you have given us Proof Of Loss. No such action may be brought more than three years after the earlier of: 1. The date we receive Proof Of Loss; and 2. The time within which Proof Of loss is required to be given. ST.TL.oT. I INCONTESTABILITY PROVISIONS A. Incontestability Of Insurance Any statement you make to obtain or to increase insurance is a representation and not a warranty. No misrepresentation will be used to reduce or deny a claim or contest the validity of insurance unless: 1. The insurance would not have been approved if we had known the truth; and 2. We have given you or any person claiming benefits a copy of the signed written instrument which contains your misrepresentation. After insurance has been in effect for two years, during the lifetime of the insured, we will not use a misrepresentation to reduce or deny the claim., unless it was a fraudulent misrepresentation. B. Incontestability Of The Group Policy Any statement made by the Policyholder or Employer to obtain the Group Policy is a representation and not a warranty. No misrepresentation by the Policyholder or your Employer will be used to deny a claim or to deny the validity of the Group Policy unless: 1. The Group Policy would not have been issued if we had known the truth; and 2. We have given the Policyholder or Employer a copy of a written instnunent signed by the Policyholder or Employer which contains the misrepresentation. The validity of the Group Policy will not be contested after it has been in force for two years, except for nonpayment of premiums or fraudulent misrepresentations. ST.1N.oT.1 CLERICAL ERROR, AGENCY AND MISSTATEMENT A. Clerical Error Clerical error by the Policyholder, your Employer, or their respective employees or representatives will not: 1. Cause a person to become insured. 2. Invalidate insurance under the Group Policy otherwise validly in force. 3. Continue insurance under the Group Policy otherwise validly terminated. Printed 03/22/2013 - 16- 720106-B B. Agency The Policyholder and your Employer act on their own behalf as your agent, and not as our agent. The Policyholder and your Employer have no authority to alter, expand or extend our liability or to waive, modify or compromise any defense or right we may have under the Group Policy, C. Misstatement Of Age If a person's age has been misstated, we will make an equitable adjustment of premiums, benefits, or both. The adjustment will be based on: 1. The amount of insurance based on the correct age; and 2. The difference between the amount paid and the amount which would have been paid if the age had been correctly stated. ST. CE.OT.1 TERMINATION OR AMENDMENT OF THE GROUP POLICY The Group Policy may be terminated by us or the Policyholder according to its terms. It will terminate- automatically erminateautomatically for nonpayment of premium. The Policyholder may terminate the Group Policy in whole, and may terminate insurance for any class or group of Members, at any time by giving us written notice. Benefits under the Group Policy are limited to its terms, including any valid amendment. No change or amendment will be valid unless it is approved in writing by one of our executive officers and given to the Policyholder for attachment to the Group Policy. If the terms of the certificate differ from the Group Policy, the terms stated in the Group Policy will govern. The Policyholder, your Employer, and their respective employees or representatives have no right or authority to change or amend the Group Policy or to waive any of its terms or provisions without our signed written approval. We may change the Group Policy in whole or in part when any change or clarification in law or governmental regulation affects our obligations under the Group Policy, or with the Policyholder's consent. Any such change or amendment of the Group Policy may apply to current or future Members or to any separate classes or groups of Members. ST.TA.OT.1 DEFINITIONS Benefit Waiting Period means the period you must be continuously Disabled before STD Benefits become payable. No STD Benefits are payable for the Benefit Waiting Period, See Coverage Features. Contributory means insurance is elective and Members pay all or part of the premium for insurance. Employer means an employer (including approved affiliates and subsidiaries) for which coverage under the Group Policy is approved in writing by us. Group Policy means the group STD insurance policy issued by us to the Policyholder and identified by the Group Policy Number. Hospital means a legally operated hospital providing full-time medical care and treatment under the direction of a full-time staff of licensed physicians. Rest homes, nursing homes, convalescent homes, homes for the aged, and facilities primarily affording custodial, educational, or rehabilitative care are not Hospitals. Injury means an injury to the body. L.L.C. Owner -Employee means an individual who owns an equity interest in an Employer and is actively employed in the conduct of the Employer's business. Printed 03/22/2013 - 17- 720100-B Maximum Benefit Period means the longest period for which STD Benefits are payable for any one period of continuous Disability, whether from one or more causes. It begins at the end of the Benefit Waiting Period. No STD Benefits are payable after the end of the Maximum Benefit Period, even if you are still Disabled. See Coverage Features. Mental Disorder means any mental, emotional, behavioral, psychological, personality, cognitive, mood or stress-related abnormality, disorder, disturbance, dysfunction or syndrome, regardless of cause (including any biological or biochemical disorder or imbalance of the brain) or the presence of physical symptoms. Mental Disorder includes, but is not limited to, bipolar affective disorder, organic brain syndrome, schizophrenia, psychotic illness, manic depressive illness, depression and depressive disorders, anxiety and anxiety disorders. Noncontributory means (a) insurance is nonelective and the Policyholder or Employer pay the entire premium for insurance; or (b) the Policyholder or Employer require all eligible Members to have insurance and to pay all or part of the premium for insurance. P.C. Partner means the sole active employee and majority shareholder of a professional corporation in partnership with the Policyholder. Physical Disease means a physical disease entity or process that produces structural or functional changes in your body as diagnosed by a Physician. Physician means a licensed M.D. or D.O., acting within the scope of the license. Physician does not include you or your spouse, or the brother, sister, parent, or child of either you or your spouse. Pregnancy means your pregnancy, childbirth, or related medical conditions, including complications of pregnancy. Prior Plan means your Employer's group short term disability insurance pian in effect on the day before the effective date of your Employer's coverage under the Group Policy and which is replaced by the Group Policy. STD Benefit means the weekly benefit payable to you under the terms of the Group Policy POLICYHOLDER PROVISIONS A. Premiums ST.DF.OT.1 The premium due on each Premium Due Date is the sum of the premiums for all persons then insured. Premium Rates are shown in the Coverage Features. B. Contributions From Members The Policyholder determines the amount, if any, of each Member's contribution toward the cost of insurance under the Group Policy. C. Changes In Premium Rates We may change Premium Rates whenever: 1. A change or clarification in law or governmental regulation affects the amount payable under the Group Policy, Any such change in Premium Rates will reflect only the change in our obligations. 2. Factors material to underwriting the risk we assumed under the Group Policy with respect to an Employer, including, but not limited to, number of persons insured, age, Predisability Earnings, gender, and occupational classification, change by 25% or more. 3. The premium contribution arrangement for Members is changed or varies from that stated in the Group Policy when issued or last renewed. Printed 03/22/2013 - 18- 720106-B 4. We and the Policyholder or the Employer mutually agree to change Premium Rates. Except as provided above, Premium Rates will not be change Period shown in the Coverage Features. Thereafter, except Premium Rates upon 31 days advance written notice to the Premium Rates may be made effective on any Premium Due made more than once in any contract year. Contract years computed from the end of the Initial Rate Guarantee Period. D. Payment Of Premiums d during the Initial Rate Guarantee as provided above, we may change Policyholder. Any such change in Date, but no such change will be are successive 12 month periods All premiums are due on the Premium Due Dates shown in the Coverage Features. Each premium is payable on or before its Premium Due Date directly to us at our home office. The payment of each premium by the Policyholder as it becomes due will maintain the Group Policy in force until the next Premium Due Date. E. Grace Period And Termination For Nonpayment If a premium, is not paid on or before its Premium Due Date, it may be paid during the following Grace Period of 31 days. The Group Policy or an Employer's coverage under the Group Policy will remain in force during the Grace Period. If the premium is not paid during the Grace Period, the Group Policy will terminate automatically at the end of the Grace Period. The Policyholder is liable for premium for insurance under the Group Policy during the Grace Period. We may charge interest at the legal rate for any premium which is not paid during the Grace Period, beginning with the first day after the Grace Period. F. Termination For Other Reasons The Policyholder may terminate the Group Policy by giving us written notice. The effective date of termination will be the later of: 1. The date stated in the notice; and 2. The date we receive the notice. We may terminate the Group Policy as follows; 1. On any Premium Due Date if the number of persons insured is less than the Minimum Participation shown in the Coverage Features. 2. On any Premium Due Date if we determine that the Policyholder has failed to promptly furnish any necessary information requested by us, or has failed to perform any other obligations relating to the Group Policy. The minimum advance notice of termination by us is 31 days. G. Premium Adjustments Premium adjustments involving a return of unearned premiums to the Policyholder will be limited to the 12 months just before the date we receive a request for premium adjustment. H. Certificates We will issue certificates to the Policyholder showing the coverage under the Group Policy. The Policyholder will distribute a certificate to each insured Member. If the terms of the certificate differ from the Group Policy, the terms stated in the Group Policy will govern. Printed 03/22/2013 - 19- 72010E -B I. Records And Reports The Policyholder or Employer will furnish on our forms all information reasonably necessary to administer the Group Policy. We have the right at all reasonable times to inspect the payroll and other records of the Policyholder or Employer which relate to insurance under the Group Policy. J. Agency And Release Individuals selected by the Policyholder or by any Employer to secure coverage under the Group Policy or to perform their administrative function under it, represent and act on behalf of the person selecting them, and do not represent or act on behalf of Standard. The Policyholder, Employer and such individuals have no authority to alter, expand or extend our liability or to waive, modify or compromise any defense or right we may have under the Group Policy. The Policyholder and each Employer hereby release, hold harmless and indemnify Standard from any liability arising from or related to any negligence, error, omission, misrepresentation or dishonesty of any of there or their representatives, agents or employees. K. Notice Of Suit The Policyholder and Employer shall promptly give us written notice of any lawsuit or other legal proceedings arising under the Group Policy. L. Entire Contract, Changes The Group Policy and the application of the Policyholder constitute the entire contract between the parties. A copy of the Policyholder's application is attached to the Group Policy when issued. The Group Policy may be changed in whole or in part. No change in the Group Policy will be valid unless it is approved in writing by one of our executive officers and given to the Policyholder for attachment to the Group Policy. No agent has authority to change the Group Policy, or to waive any of its provisions. M. Effect On Workers' Compensation, State Disability Insurance The coverage provided under the Group Policy is not a substitute for coverage under a workers' compensation or state disability income benefit law and does not relieve the Employer of any obligation, to provide such coverage. ST YM OT.1 AK/STDP2000 Printed 03/22/2013 -20- 720106-B ( JOIN% M1,9M M F o r t r it n s ra n ce, Protect Your Employees From Loss Of Income Standard Insurance Company Short Term Disability Insurance Group Short Term Disability Insurance An Attractive Option For Your Employee Benefits Package Short Term Disability insurance from The Standard is designed to provide coverage for disabilities resulting from physical disease, injury, pregnancy or mental disorder. STD insurance offers an attractive option for employers who want to supplement a sick leave or statutory disability benefits program. The proposed STD benefit amount and maximum benefit period are shown in the Employee Benefits Proposal. STD Product information Definition Of Disability Insured employees are disabled if, as a result of physical disease, injury, pregnancy or mental disorder, they are unable to perform with reasonable continuity the material duties of their own occupation and suffer a loss of at least 20 percent in their predisability earnings when working in their own occupation. Own occupation means the job the employee is regularly performing for their employer when disability begins.* Material duties means the usual duties the employee performs in their regular job** with the employer that cannot be reasonably modified or omitted. In no event will we consider working more than 8 hours per day or an average of more than 40 hours per week to be a material duty. Employees who are disabled from their own occupation may work in another occupation and continue to qualify for STD benefits as long as their work earnings do not exceed 80 percent of their predisability earnings. Work earnings will be used to reduce the STD benefit as noted under "Return To Work Incentive." *In Oregon, Own Occupation means the usual job an employee is ordinarily performing for their employer when disability begins. ** In Oregon, usual job is substituted for regular job. Coverage For New Disabilities If a period of disability is extended by a new cause while STD benefits are payable, benefits will continue while the employee remains disabled but not beyond the end of the original maximum benefit period. In addition, all policy limitations and exclusions apply to the new cause of disability. Plan Options The Standard offers STD pians that provide both non- occupational and 24-hour coverage. Non -occupational plans provide coverage for disabilities occurring off the job as a complement to workers' compensation coverage. 24-hour STD plans provide coverage for disabilities occurring on or off the job. Minimum STD Benefit For STD plans that are integrated with deductible income, the minimum STD benefit is $15 per week. The Employee Benefits Proposal will indicate whether this applies to this proposed plan. Group Short Term Disability Insurance Returning To 'Mork Our claims management services have been carefully designed to promote and optimize the return of disabled employees to a productive life whenever possible. When a disability occurs, our focus is on returning the employee to work through our claims management process, the services we provide and the policy provisions we offer. Reasonable Accommodation Expense Benefit To help employers return employees with disabilities to active work whenever they are able, The Standard automatically includes a Reasonable Accommodation Expense Benefit in its STD policies. This benefit reimburses an employer for worksite modifications made on behalf of a disabled employee, which result in a return to work for the employee. The reimbursable modifications are subject to The Standard's prior approval. Return To Work Incentive Providing incentives for disabled employees to return to work at their full potential is critical for any successful rehabilitation plan. Automatically included in our STD policies, The Standard's Return To Work Incentive provision is designed to provide valuable financial support to disabled employees in their efforts to return to work. The Standard's STD benefit is reduced by only the amount of work earnings which, when added to the employee's maximum STD benefit, exceeds 100 percent of predisability earnings. This typically means that employees who return to work receive more total income than those who do not. Work earnings will include amounts they could earn if they worked to their full potential in work that is reasonably available. Return To Work Responsibility In addition to providing positive financial incentives to return to work, The Standard's STD policy also establishes a clear expectation for those who are able to return to work. Disabled employees who are capable of part-time work have a responsibility to take advantage of available work opportunities. They are expected to accept part-time work in their own occupation if they are able to earn at least 20 percent of predisability earnings. No STD benefits are payable for any period when partially disabled employees fail to meet this responsibility. Temporary Recovery The Standard automatically includes a Temporary Recovery provision in every STD policy to further encourage employees to return to work. Our policy language is among the most flexible in the industry and enables us to work with employees to make permanent recoveries out of temporary ones. Employees who recover from a disability for a period of time during the maximum benefit period but later suffer a relapse and become disabled again from the same cause or causes, may not have to serve a new benefit waiting period, depending on the length of the period of temporary recovery. A new benefit waiting period is not required if the periods of recovery during the maximum benefit period do not exceed a total of 90 days. In addition: • Benefits are not payable for the recovery period • The recovery period does not count toward the maximum benefit period • Predisability earnings used to determine the STD benefit will not change • No STD benefits will be payable after benefits become payable to the employee under any other disability plan for which the employee became insured during the period of temporary recovery Other than the above, the group policy is applied as if the disability were uninterrupted. Additional Cost Options Daily Hospital Benefit With the Daily Hospital Benefit, the eligible insured employee will receive STD benefits for each day of hospitalization during the benefit waiting period. First-day Hospital Benefit If an insured employee is hospital -confined for at least four hours during the benefit waiting period, the benefit waiting period will be satisfied. Hospital -confined means the employee is admitted to a hospital as an in-patient, for which they are charged room and board. They must be under the ongoing care of a physician while they are hospital -confined. STD benefits will become payable on the date of hospitalization. The maximum benefit period will also begin on that date. 4 Standard Insurance Company Exclusions From Coverage The Standard's STD policies do not cover disabilities caused or contributed to by: • War or any act of war • An intentionally self-inflicted injury, while sane or insane" • A disability arising out of, or in the course of, any employment for wage or profit (applies to non -occupational plans only) • Committing or attempting to commit an assault or felony, or active participation in a violent disorder or riot • Loss of a professional or occupational license or certification Limitations No STD benefit will be paid for any period when the disabled employee is: • Not under the ongoing care of a physician in an appropriate specialty as determined by The Standard • Eligible to receive benefits under any workers' compensation or similar law (applies to non -occupational plans only) • Able to work part-time, but elects not to work (i.e., fails to meet the return to work responsibility) • Confined for any reason in a penal or correctional institution • Not participating in good faith in a plan of medical treatment or vocational training or education approved by The Standard, unless the disability prevents the employee from participating • Receiving sick leave pay or other salary continuation from the employer, unless a sick leave integration option is chosen Preexisting Condition Limitation The preexisting condition limitation typically applies to STD benefit amounts of $2,500 per week or more. If on the date disability begins, the employee has not been continuously insured under the group policy for the 12- (or optional 24-) month limitation period and has not been actively at work for at least one full day after that limitation period, the weekly STD benefit will be limited to not more than $2,500 if the disability results from a preexisting condition. "For Colorado and Missouri residents, "insane" is not applicable, A preexisting condition is a mental or physical condition whether or not diagnosed or misdiagnosed: • Which was discovered or suspected as a result of any routine or other medical examination at any time during the preexisting condition period For which the employee has (or a reasonably prudent person would have) consulted a physician or other licensed medical professional, received medical treatment, services or advice, undergone diagnostic procedures, including self administered procedures, or taken prescribed drugs or medications at anytime during the preexisting condition period The preexisting condition period is the three- or six- month period just before the employee's insurance becomes effective, as specified in the Employee Benefits Proposal. We grant credit for time served toward satisfying the preexisting condition limitation period for eligible employees insured under the employer's prior group STD plan that was replaced by The Standard's coverage. Group Short Term Disability Insurance Deductible Income The Standard's STD insurance helps replace a portion of income lost as a result of a disability. Often employees are eligible for other sources of income. To prevent overinsurance, the STD benefit is reduced by deductible income, which generally includes the following, although it may vary depending on whether the employer is a public or private entity: • Work earnings, as described under "Return To Work Incentive" • Benefits the employee receives or is eligible to receive from workers' compensation; state disability income benefit law; the Jones Act; Maritime Doctrine of Maintenance, Wages, and Cure; Longshore and Harbor Worker's Act or any similar acts or laws (applies to 24-hour coverage only) • Benefits from other insurance (including group insurance for non-professionals) the employee receives or is eligible to receive • Any disability or retirement benefits received from the employer's retirement plan • Any earnings or compensation included in predisability earnings which the employee receives or is eligible to receive while STD benefits are payable Commonly Asked Questions Who Is Eligible For Coverage? Coverage is available to all of an employer's active employees who: • Are citizens or residents of the United States or Canada • Are actively at work at least 30 hours each week • Meet the required eligibility waiting period as shown in the Employee Benefits Proposal Temporary and seasonal employees, full-time members of the armed forces of any country, leased employees and independent contractors are not eligible for coverage. There is no age limit on eligibility for coverage under The Standard's group insurance plans. When Is Coverage Effective? Subject to the active work requirement, coverage is effective as follows: • Coverage requiring evidence of insurability is not effective until evidence is approved • For noncontributory plans, coverage is effective on the date the employee becomes eligible • Any amount the employee receives or is eligible to For contributory plans, employees must apply in receive under any unemployment compensation law writing for coverage. Coverage is effective on or similar act or law the later of: • Any amount the employee receives or is eligible to - The date the employee becomes eligible receive from, or on behalf of, a third party - The date the employee applies if the employee • Any amount received by compromise, settlement or submits an application within 31 days of other method, as a result of a claim for any of the becoming eligible above, whether disputed or undisputed - The date that required evidence of insurability is Exceptions To Deductible Income approved, if the employee applies more than 31 days after becoming eligible The following are generally not considered deductible income, although exceptions vary depending on whether the employer is a private or public entity: • Group credit, mortgage disability insurance benefits and accelerated death benefits paid under a life insurance policy • Any cost -of -living increase in deductible income, other than work earnings • Reimbursement for hospital, medical or surgical expenses • Reasonable attorney fees incurred in connection with a claim for deductible income What Is The Active Work Requirement? Employees who are performing the material duties of their own occupation at the employer's usual place of business meet the active work requirement. Employees who are not capable of active work due to physical disease, injury, pregnancy or mental disorder on the day before insurance would otherwise become effective will not become insured until the day after completing one full day of active work as an eligible employee. 6 Standard Insurance Company What Level Of Employee Participation Is Required? For noncontributory plans, 100 percent of the eligible employees must participate. If a plan is contributory (partially or fully funded by employees), a minimum number of eligible employees must participate, as specified in the Employee Benefits STD Proposal, When Does The Coverage End? STD insurance ends automatically on the earliest of the following: • The date the last period ends for which a premium contribution is received • The date the group policy terminates • The date employment terminates • The date the employee fails to meet the definition of a member (however, STD insurance may be continued under certain conditions, such as during an approved leave of absence scheduled to last no more than 30 days) When Does The Croup Policy Terminate? An employer may terminate a group policy by providing The Standard with written notice. The group policy will automatically terminate if premium is not received by the end of the grace period shown in the Employee Benefits Proposal. The Standard may terminate the group policy if the number of employees insured is less than the minimum participation requirement shown in the Employee Benefits Proposal, The Standard may also terminate the group policy if we determine that the policyholder has failed to promptly furnish any necessary information requested by us or has failed to perform any other obligations relating to the group policy. Founded in Portland, Oregon in 1906, The Standard is a nationally recognized provider of group Disability, Life, Dental and Vision insurance and Individual Disability insurance. We provide insurance to nearly 26,500 groups covering more than 8.4 million employees nationwide.' Our first group policy, written in 1951 and still in force today, stands as a testament to our commitment to building long-term relationships. We always strive to do what's right — for our policyholders and their employees. This dedication has resulted in a national reputation for quality products, superior service and industry expertise. To (earn more about group STD insurance from The Standard, contact your insurance advisor or the Employee Benefits Sales and Service Office for your area at 800.633.8575 or visit us at www.standard.com As of September 30, 2011, based on internal data developed by Standard Insurance Company. Standard Insurance Company 1100 SW Sixth Avenue Portland OR 97204 www.standard.com GP399-STD, GP399-STD/TRUST, GP19()-STD/S399, GP309-STD, GP209-STD, GP399-STD/ASSOC, GP899-STD Group STD Proposal Booklet SI 8844 (4115) PR/ER STANDARD INSURANCE COMPANY A Stock Life Insurance Company 900 SW Fifth Avenue Portland, Oregon 97204-1282 (503) 321-7000 GROUP LONG TERM DISABILITY INSURANCE POLICY Policyholder: Policy Number: Effective Date: Sample K2000 Public Group 720100-B January 1, 2013 The consideration for this Group Policy is the application of the Policyholder and the payment by the Policyholder of premiums as provided herein. Subject to the Policyholder Provisions and the Incontestability Provisions, this Group Policy (a) is issued for the Initial Rate Guarantee Period shown in the Coverage Features, and (b) may be renewed for successive renewal periods by the payment of the prernium set by us on each renewal date. The length of each renewal period will be set by us, but will not be less than 12 months. For purposes of effective dates and ending dates under this Group Policy, all days begin and end at 12:00 midnight Standard Time at the Policyholder's address, All provisions on this and the following pages are part of this Group Policy. "You" and "your" mean the Member, "We", "us", and "our" mean Standard Insurance Company. Other defined terms appear with their initial letters capitalized. Section headings, and references to them, appear in boldface type. STANDARD INSURANCE COMPANY THIS POLICY IS NOT AVAILABLE IN CALIFORNIA, MARYLAND, OR NEW YORK This is a sample policy. Product availability, plan provisions and features may vary by state. The proposed premium rate and plan design is based on the underwriting data received by us. Final premium rates and plan provisions will be determined on the basis of: applicable state laws, Policyholder contributions, confirmation of occupations, the actual composition of the group of persons who will become insured, and our current underwriting rules and practices.. GP190-=/S399 Table of Contents COVERAGEFEATURES.............................................................................................. 1 GENERAL POLICY INFORMATION......................................................................... 1 SCHEDULE OF INSURANCE.................................................................................. 1 PREMIUM CONTRIBUTIONS..................................................................................2 PREMIUM AND RENEWALS................................................................................... 2 INSURINGCLAUSE.....................................................................................................3 BECOMINGINSURED.................................................................................................3 WHEN YOUR INSURANCE BECOMES EFFECTIVE...................................................... 3 ACTIVE WORK PROVISIONS.......................................................................................4 CONTINUITY OF COVERAGE......................................................................................4 WHEN YOUR INSURANCE ENDS................................................................................. 5 WAIVEROF PREMIUM................................................................................................ 5 REINSTATEMENT OF INSURANCE..............................................................................6 DEFINITION OF DISABILITY........................................................................................ 6 RETURN TO WORK PROVISIONS................................................................................ 7 REASONABLE ACCOMMODATION EXPENSE BENEFIT...............................................8 REHABILITATION PLAN PROVISION............................................................................ 9 TEMPORARY RECOVERY............................................................................................ 9 WHEN LTD BENEFITS END...................................................................................... 10 PREDISABILITY EARNINGS ......... .............................................................................. 10 DEDUCTIBLEINCOME............................................................................................. I I EXCEPTIONS TO DEDUCTIBLE INCOME................................................................. 12 RULES FOR DEDUCTIBLE INCOME ....................................................... . .................. 13 SUBROGATION......................................................................................................... 13 SURVIVORS BENEFIT............................................................................................... 14 BENEFITS AFTER INSURANCE ENDS OR IS CHANGED ............................................ 14 EFFECT OF NEW DISABILITY................................................................................... 14 DISABILITIES EXCLUDED FROM COVERAGE........................................................... 14 DISABILITIES SUBJECT TO LIMITED PAY PERIODS ................................................. 15 LIMITATIONS............................................................................................................ 16 CLAIMS.................................................................................................................... 17 ALLOCATION OF AUTHORITY................................................................................... 19 TIME LIMITS ON LEGAL ACTIONS............................................................................ 19 INCONTESTABILITY PROVISIONS............................................................................. 19 CLERICAL ERROR, AGENCY, AND MISSTATEMENT.................................................. 20 TERMINATION OR AMENDMENT OF THE GROUP POLICY ........................................ 20 DEFINITIONS..................................................................... . ............................ , ......... 21 POLICYHOLDER PROVISIONS................................................................................... 22 Index of Defined Terms Active Work, Actively At Work, 4 Allowable Periods, 9 Any Occupation, 7 Any Occupation Period, 1 Benefit Waiting Period, 2, 21 Class Definition, 1 Contributory, 21 CPI -W, 21 Deductible Income, 11 Disabled, 6 Eligibility Waiting Period, I Employer, 21 Employer(s), 1 Evidence Of Insurability, 4 Grace Period, 22 Group Policy, 21 Group Policy Effective Date, 1 Group Policy Number, 1 Hospital, 16 Indexed Predisability Earnings, 21 Initial Rate Guarantee Period, 2 Injury, 21 L.L.C, Owner -Employee, 21 LTD Benefit, 21 Material Duties, 7 Maximum Benefit Period, 2, 21 Maximum LTD Benefit, 2 Member, 1, 3 Mental Disorder, 15 Minimum LTD Benefit, 2 Minimum Participation Number, 2 Minimum Participation Percentage, 2 Noncontributory, 21 Other Limited Conditions, 16 Own Occupation, 7 Own Occupation Period, 1 P.C. Partner, 21 Physical Disease, 21 Physician, 21 Policyholder, 1 Predisability Earnings, 10 Preexisting Condition, 15 Pregnancy, 22 Premium Due Dates, 2 Premium Rates, 2 Prior Plan, 22 Reasonable Accommodation Expense Benefit, 8 Rehabilitation Plan, 9 Substance Abuse, 16 Survivors Benefit, 14 Temporary Recovery, 9 War, 14 Work Earnings, S COVERAGE FEATURES This section contains many of the features of your long term disability (LTD) insurance. Other provisions, including exclusions, limitations, and Deductible Income, appear in other sections. Please refer to the text of each section for full details. The Table of Contents and the Index of Defined Terms help locate sections and definitions. GENERAL POLICY INFORMATION Group Policy Number: 720100-B Policyholder: Sample K2000 Public Group Employer(s): Sample K2000 Public Group Group Policy Effective Date: January1, 2013 Policy Issued in: Alaska Member means: 1. A regular employee of the Employer; 2. Actively At Work at least 30 hours each week (for purposes of the Member definition, Actively At Work will include regularly scheduled days off, holidays, or vacation days, so long as the person is capable of Active Work on those days); and 3. A citizen or resident of the United States or Canada. Member does not include a temporary or seasonal employee, a full-time member of the armed forces of any country, a Ieased employee, or an independent contractor. Class Definition: None SCHEDULE OF INSURANCE Eligibility Waiting Period: You are eligible on one of the following dates: If you are a Member on the Group Policy Effective Date, you are eligible on that date. If you become a Member after the Group Policy Effective Date, you are eligible on the first day of the calendar month coinciding with or next following 90 consecutive days as a Member. Eligibility Waiting Period means the period you must be a Member before you become eligible for insurance. Own Occupation Period: The first 24 months for which LTD Benefits are paid.. Any Occupation Period: From the end of the Own Occupation Period to the end of the Maximum Benefit Period. LTD Benefit: 60% of the first $16,667 of your Predisability Earnings, reduced by Deductible Income. Printed 04/01/2013 - 1 - 720100-B Maximum: $10,000 before reduction by Deductible Income. Minimum: $100 Benefit Waiting Period: 90 days. Maximum Benefit Period: Determined by your age when Disability begins, as follows: Age Maximum Benefit Period 61 or younger ....................................... To age 65, or 3 years 6 months, if longer. 62 ........................................................ 3 years 6 months 63 ........................................................ 3 years 64 ........................................................ 2 years 6 months 65 ........................................................ 2 years 66 ................. ....................................... 1 year 9 months 67 ........................................................ 1 year 6 months 68 ........................................................ I year 3 months 69 or older ............................................ 1 year PREMIUM CONTRIBUTIONS Insurance is: Noncontributory Premium Rates: LTD Insurance: Premium Due Dates: Initial Rate Guarantee Period: Minimum Participation Number: Minimum Participation Percentage: PREMIUM AND RENEWALS 0.880% of the first $16,667 of each insured Member's insured Predisability Earnings. January 1, 2013 and the first day of each calendar month thereafter, January 1, 2013 to January 1, 2015 10 insured Members 100% of eligible Members Printed 04/01/2013 - 2 - 720100-B INSURING CLAUSE If you become Disabled while insured under the Group Policy, we will pay = Benefits according to the terms of the Group Policy after we receive Proof Of Loss satisfactory to us. LT.IC.0T.1 BECOMING INSURED To become insured you must be a Member, complete your Eligibility Waiting Period, and meet the requirements in Active Work Provisions and When Your Insurance Becomes Effective. You are a Member if you are; 1. A regular employee of the Employer; 2. Actively At Work at least 30 hours each week (for purposes of the Member definition, Actively At Work will include regularly scheduled days off, holidays, or vacation days, so long as you are capable of Active Work on those days); and 3. A citizen or resident of the United States or Canada. You are not a Member if you are a temporary or seasonal employee, a full-time member of the armed forces of any country, a leased employee, or an independent contractor. Eligibility Waiting Period means the period you must be a Member before you become eligible for insurance. Your Eligibility Waiting Period is shown in the Coverage Features. (VAR MBR DER) LT.BLOTA WHEN YOUR INSURANCE BECOMES EFFECTIVE A. When Insurance Becomes Effective Subject to the Active Work Provisions, your insurance becomes effective as follows: 1. Insurance Subject To Evidence Of Insurability Insurance subject to Evidence Of Insurability becomes effective on the date we approve your Evidence Of Insurability. 2. Insurance Not Subject To Evidence of Insurability The Coverage Features states whether insurance is Contributory or Noncontributory. a. Noncontributory Insurance Noncontributory insurance not subject to Evidence Of Insurability becomes effective on the date you become eligible. b. Contributory Insurance You must apply in writing for Contributory insurance and agree to pay premiums. Contributory insurance not subject to Evidence Of Insurability becomes effective on.- i. n;i. The date you become eligible if you apply on or before that date; or ii. The date you apply if you apply within 31 days after you become eligible. Late application: Evidence Of Insurability is required if you apply more than 31 days after you become eligible. Printed 04/01/2013 - 3 - 720100-B B. Takeover Provisions 1. If you were insured under the Prior Plan on the day before the effective date of your Employer's coverage under the Group Policy, your Eligibility Waiting Period is waived on the effective date of your Employer's coverage under the Group Policy. 2. You must submit satisfactory Evidence Of Insurability to become insured if you were eligible for insurance under the Prior Plan for more than 31 days but were not insured. C. Evidence Of Insurability Requirement Evidence Of Insurability satisfactory to us is required: a. For late application for Contributory insurance. b. For Members eligible but not insured under the Prior Plan. c. For reinstatements if required. Providing Evidence Of Insurability paeans you must: 1. Complete and sign our medical history statement; 2. Sign our form authorizing us to obtain information about your health, 3. Undergo a physical examination, if required by us, which may include blood testing; and 4. Provide any additional information about your insurability that we may reasonably require. {VAR E% LT.EF.OT.1 ACTIVE WORK PROVISIONS A. Active Work Requirement You must be capable of Active Work on the day before the scheduled effective date of your insurance or your insurance will not become effective as scheduled. If you are incapable of Active Work because of Physical Disease, Injury, Pregnancy or Mental Disorder on the day before the scheduled effective date of your insurance, your insurance will not become effective until the day after you complete one full day of Active Work as an eligible Member. Active Work and Actively At Work mean performing with reasonable continuity the Material Duties of your Own Occupation at your Employer's usual place of business. B. Changes In Insurance This Active Work requirement also applies to any increase in your insurance. LT.AW.QT.1 CONTINUITY OF COVERAGE If your Disability is subject to the Preexisting Condition Exclusion, LTD Benefits will be payable if: 1. You were insured under the Prior Plan on the day before the effective date of your Employer's coverage under the Group Policy; 2. You became insured under the Group Policy when your insurance under the Prior Plan ceased; 3. You were continuously insured under the Group Policy from the effective date of your insurance under the Group Policy through the date you became Disabled from the Preexisting Condition; and 4. Benefits would have been payable under the terms of the Prior Plan if it had remained in force, taking into account the preexisting condition exclusion, if any, of the Prior Plan, Printed 04/01/2013 - 4 - 720100-B For such a Disability, the amount of your LTD Benefit will be the lesser of: a. The monthly benefit that would have been payable under the terms of the Prior Pian if it had remained in force; or b. The LTD Benefit payable under the terms of the Group Policy, but without application of the Preexisting Condition Exclusion. Your LTD Benefits for such a Disability will end on the earlier of the following dates: a. The date benefits would have ended under the terms of the Prior Plan if it had remained in force; or b. The date LTD Benefits end under the terms of the Group Policy. (PX) LT.CC.OT.1 WHEN YOUR INSURANCE ENDS Your insurance ends automatically on the earliest of: 1. The date the last period ends for which a premium contribution was made for your insurance. 2. The date the Group Policy terminates. 3. The date your employment terminates. 4. The date you cease to be a Member. However, your insurance will be continued during the following periods when you are absent from Active Work, unless it ends under any of the above. a. During the first 90 days of a temporary or indefinite administrative or involuntary leave of absence or sick leave, provided your Employer is paying you at least the same Predisability Earnings paid to you immediately before you ceased to be a Member. A period when you are absent from Active Work as part of a severance or other employment termination agreement is not a leave of absence, even if you are receiving the same Predisability Earnings. b. During a leave of absence if continuation of your insurance under the Group Policy is required by a state -mandated family or medical leave act or law. c. During any other temporary leave of absence approved by your Employer in advance and in writing and scheduled to last 30 days or less. A period of Disability is not a leave of absence. d. During the Benefit Waiting Period. WAIVER OF PREMIUM We will waive payment of premium for your insurance while LTD Benefits are payable. LT.ELY.OT.1 LT. WP. OT.1 Printed 04/01/2013 - 5 - 720100-B REINSTATEMENT OF INSURANCE If your insurance ends, you may become insured again as a new Member. However, the following will apply: 1. If you cease to be a Member because of a covered Disability following the Benefit Waiting Period, your insurance will end; however, if you become a Member again immediately after LTD Benefits end, the Eligibility Waiting Period will be waived and, with respect to the condition(s) for which LTD Benefits were payable, the Preexisting Condition Exclusion will be applied as if your insurance had remained in effect during that period of Disability. 2. If your insurance ends because you cease to be a Member for any reason other than a covered Disability, and if you become a Member again within 90 days, the Eligibility Waiting Period will be waived. 3. If your insurance ends because you fail to make a required premium contribution, you must provide Evidence Of Insurability to become insured again. 4. If your insurance ends because you are on a federal or state -mandated family or medical leave of absence, and you become a Member again immediately following the period allowed, your insurance will be reinstated pursuant to the federal or state -mandated family or medical leave act or law. 5. The Preexisting Conditions Exclusion will be applied as if insurance had remained in effect in the following instances: a. If you become insured again within 90 days. b. If required by federal or state -mandated family or medical leave act or law and you become insured again immediately following the period allowed under the family or medical leave act or law. 6. In no event will insurance be retroactive. LT.RE.oT.2 DEFINITION OF DISABILITY You are Disabled if you meet the following definitions during the periods they apply: A. Own Occupation Definition Of Disability. B. Any Occupation Defmition Of Disability. A. Own Occupation Definition Of Disability During the Benefit Waiting Period and the Own Occupation. Period you are required to be Disabled only from your Own Occupation. You are Disabled from your Own Occupation if, as a result of Physical Disease, Injury, Pregnancy or Mental Disorder: 1. You are unable to perform with reasonable continuity the Material Duties of your Own Occupation; and 2. You suffer a loss of at least 20% in your Indexed Predisability Earnings when working in your Own Occupation. Note: You are not Disabled merely because your right to perform your Own Occupation is restricted, including a restriction or loss of license. During the Own Occupation Period you may work in another occupation while you meet the Own Occupation Definition Of Disability. However, you will no longer be Disabled when your Work Printed 04/01/2013 - 6 - 720100-B Earnings from another occupation meet or exceed 80% of your Indexed Predisability Earnings. Your Work Earnings may be Deductible Income. See Return To Work Provisions and Deductible Income. Own Occupation means any employment, business, trade, profession, calling or vocation that involves Material Duties of the same general character as the occupation you are regularly performing for your Employer when Disability begins. In determining your Own Occupation, we are not limited to looking at the way you perform your job for your Employer, but we may also look at the way the occupation is generally performed in the national economy. If your Own Occupation involves the rendering of professional services and you are required to have a professional or occupational license in order to work, your Own Occupation is as broad as the scope of your license. Material Duties means the essential tasks, functions and operations, and the skills, abilities, knowledge, training and experience, generally required by employers from those engaged in a particular occupation that cannot be reasonably modified or omitted. In no event will we consider working an average of more than 40 hours per week to be a Material Duty. B. Any Occupation Definition Of Disability During the Any Occupation Period you are required to be Disabled from all occupations. You are Disabled from all occupations if, as a result of Physical Disease, Injury, Pregnancy or Mental Disorder, you are unable to perform with reasonable continuity the Material Duties of Any Occupation. Any Occupation means any occupation or employment which you are able to perform, whether due to education, training, or experience, which is available at one or more locations in the national economy and in which you can be expected to earn at least 60% of your Indexed Predisability Earnings within twelve months following your return to work, regardless of whether you are working in that or any other occupation. Material Duties means the essential tasks, functions and operations, and the skills, abilities, knowledge, training and experience, generally required by employers from those engaged in a particular occupation that cannot be reasonably modified or omitted. In no event will we consider working an average of more than 40 hours per week to be a Material Duty. Your Own Occupation Period and Any Occupation Period are shown in the Coverage Features. (oWNOCC_ANY_WITH 40) LT.DD.oT.1 RETURN TO WORK PROVISIONS A. Return To Work Responsibility During the Own Occupation Period no LTD Benefits will be paid for any period when you are able to work in your Own Occupation and able to earn at least 20% of your Indexed Predisability Earnings, but you elect not to work. During the Any Occupation Period no LTD Benefits will be paid for any period when you are able to work in Any Occupation and able to earn at least 20% of your Indexed Predisability Earnings, but you elect not to work. B. Return To Work Incentive You may serve your Benefit Waiting Period while working if you meet the Own Occupation Definition Of Disability. Printed 04/01/2013 - 7 -- 720100-B You are eligible for the Return To Work Incentive on the first day you work after the Benefit Waiting Period if LTD Benefits are payable on that date. The Return To Work Incentive changes 12 months after that date, as follows: 1. During the first 12 months, your Work Earnings will be Deductible Income as determined in a., b. and c:. a. Determine the amount of your LTD Benefit as if there were no Deductible Income, and add your Work Earnings to that amount. b. Determine 100% of your Indexed Predisability Earnings. c. If a. is greater than b., the difference will be Deductible Income. 2. After those first 12 months, 50% of your Work Earnings will be Deductible Income. C. Work Earnings Definition Work Earnings means your gross monthly earnings from work you perform while Disabled, plus the earnings you could receive if you worked as much as you are able to, considering your Disability, in work that is reasonably available: a. In your Own Occupation during the Own Occupation Period; and b. In Any Occupation during the Any Occupation Period. Work Earnings includes earnings from your Employer, any other employer, or self-employment, and any sick pay, vacation pay, annual or personal leave pay or other salary continuation earned or accrued while working. Earnings from, work you perform will be included in Work Earnings when you have the right to receive them. If you are paid in a Iump sum or on a basis other than monthly, we will prorate your Work Earnings over the period of tiTnc to which they apply. If no period of time is stated, we will use a reasonable one. In determining your Work Earnings we: 1. Will use the financial accounting method you use for income tax purposes, if you use that method on a consistent basis. 2. Will not be limited to the taxable income you report to the Internal Revenue Service. 3. May ignore expenses under section 179 of the IRC as a deduction from your gross earnings. 4. May ignore depreciation as a deduction from your gross earnings. 5. May adjust the financial information you give us in order to clearly reflect your Work Earnings. If we determine that your earnings vary substantially from month to month, we may determine your Work Earnings by averaging your earnings over the most recent three-month period. During the Own Occupation Period you will no longer be Disabled when your average Work Earnings over the last three months exceed 80% of your Indexed Predisability Earnings. During the Any Occupation Period you will no longer be Disabled when your average Work Earnings over the last three months exceed 60% of your Indexed Predisability Earnings. LT.Rw.oT. i REASONABLE ACCOMMODATION EXPENSE BENEFIT If you return to work in any occupation for any employer, not including self-employment, as a result of a reasonable accommodation made by such employer, we will pay that employer a Reasonable Accommodation Expense Benefit of up to $25,000, but not to exceed the expenses incurred. Printed 04/01/2013 - 8 - 720100-B The Reasonable Accommodation Expense Benefit is payable only if the reasonable accommodation is approved by us in writing prior to its implementation. LT.RA.OT.1 REHABILITATION PLAN PROVISION While you are Disabled you may qualify to participate in a Rehabilitation Plan- Rehabilitation Plan means a written plan, program or course of vocational training or education that is intended to prepare you to return to work. To participate in a Rehabilitation Plan you must apply on our forms or in a letter to us. The terms, conditions and objectives of the plan mast be accepted by you and approved by us in advance. We have the sole discretion to approve your Rehabilitation Plan. While you are participating in an approved Rehabilitation Plan, your LTD Benefit will be increased by 10% of your Predisability Earnings. Your LTD Benefit may not exceed the Maximum LTD Benefit shown in the Coverage Features as a result of this increase. An approved Rehabilitation Plan may include our payment of some or all of the expenses you incur in connection with the plan, including: a. Training and education expenses. b. Family care expenses. c. Job-related expenses. d, Job search expenses. (WITH REHAB INC BFT) LT,RH.0T,1 TEMPORARY RECOVERY You may temporarily recover from your Disability and then become Disabled again from the same cause or causes without having to serve a new Benefit Waiting Period. Temporary Recovery means you cease to be Disabled for no longer than the applicable Allowable Period. See Definition Of Disability. A. Allowable Periods 1, During the Benefit Waiting Period: a total of 90 days of recovery. 2. During the Maximum Benefit Period: 180 days for each period of recovery. B. Effect Of Temporary Recovery If your Temporary Recovery does not exceed the Allowable Periods, the following will apply. 1. The Predisability Earnings used to determine your LTD Benefit will not change. 2. The period of Temporary Recovery will not count toward your Benefit Waiting Period, your Maximum Benefit Period or your Own Occupation Period. 3. No LTD Benefits will be payable for the period of Temporary Recovery. 4. No LTD Benefits will be payable after benefits become payable to you under any other disability insurance plan under which you become insured during your period of Temporary Recovery. 5. Except as stated above, the provisions of the Group Policy will be applied as if there had been no interruption of your Disability. (NEW TR PERIOD) LT.TR.OT,1 Printed 04/01/2013 - 9 - 720100-B WHEN LTD BENEFITS END Your LTD Benefits end automatically on the earliest of: 1. The date you are no longer Disabled. 2, The date your Maximum Benefit Period ends. 3. The date you die. 4. The date benefits become payable under any other LTD plan under which you become insured through employment during a period of Temporary Recovery. 5. The date you fail to provide proof of continued Disability and entitlement to LTD Benefits. LT.BE.OT.1 PREDISABILITY EARNINGS Your Predisability Earnings will be based on your earnings in effect on your last full day of Active Work. Any subsequent change in your earnings after that last full day of Active Work will not affect your Predisability Earnings. Predisability Earnings means your monthly rate of earnings from your Employer, including: 1. Contributions you make through a salary reduction agreement with your Employer to: a. An Internal Revenue Code (IRC) Section 401(k), 403(b), 408(k), 408(p), or 457 deferred compensation arrangement; or b. An executive nonqualified deferred compensation arrangement. 2. Commissions averaged over the preceding 12 months or over the period of your employment if less than 12 months. 3. Shift differential pay. .4. Amounts contributed to your fringe benefits according to a salary reduction agreement under an IRC Section 125 plan. Predisability Earnings does not include: 1. Bonuses. 2. Overtime pay. 3. Stock options or stock bonuses. 4. Your Employer's contributions on your behalf to any deferred compensation arrangement or pension plan. 5. Any other extra compensation. If you are paid on an annual contract basis, your monthly rate of earnings is one -twelfth (1/12th) of your annual contract salary. If you are paid hourly, your monthly rate of earnings is based on your hourly pay rate multiplied by the number of hours you are regularly scheduled to work per month, but not more than 173 hours. If you do not have regular work hours, your monthly rate of earnings is based on the average number of hours you worked per month during the preceding 12 calendar months (or during your period of employment if less than 12 months), but not more than 173 hours. (REG WITH COM NO STOCK) LT.PD.OT.1 Printed 04/01/2013 - 10- 720100-B DEDUCTIBLE INCOME Subject to Exceptions To Deductible Income, Deductible Income means: 1. Sick pay, annual or personal leave pay, severance pay, or other salary continuation, including donated amounts, (but not vacation pay) paid to you by your Employer, if it exceeds the amount found in a. , b., and c. a. Determine the amount of your LTD Benefit as if there were no Deductible Income, and add your sick pay or other salary continuation to that amount. b. Determine 100% of your Indexed Predisability Earnings. c. If a. is greater than b., the difference will be Deductible Income. 2. Your Work Earnings, as described in the Return To Work Provisions. 3. Any amount you receive or are eligible to receive because of your disability, including amounts for partial or total disability, whether permanent, temporary, or vocational, under any of the following: a. A workers' compensation law; b. The Jones Act; e. Maritime Doctrine of Maintenance, Wages, or Cure; d. Longshoremen's and Harbor Worker's Act; or c. Any similar act or law. 4. Any amount you, your spouse, or your child under age 18 receive or are eligible to receive because of your disability or retirement under: a. The Federal Social Security Act; b. The Canada Pension Plan, c. The Quebec Pension Plan; d. The Railroad Retirement Act; or e. Any similar plan or act. Full offset: Both the primary benefit (the benefit awarded to you) and dependents benefit are Deductible Income. Benefits your spouse or a child receives or are eligible to receive because of your disability are Deductible Income regardless of marital status, custody, or place of residence. The term "child" has the meaning given in the applicable plan or act. Printed 04/01/2013 - 11 - 720100-B 5. Any amount you receive or are eligible to receive because of your disability under any state disability income benefit law or sin lar law. 6. Any amount you receive or are eligible to receive because of your disability under another group insurance coverage. 7. Any disability or retirement benefits you receive or are eligible to receive under your Employer's retirement plan, including a public employee retirement system, a state teacher retirement system, and a plan arranged and maintained by a union or employee association for the benefit of its members. You and your Employer's contributions will be considered as distributed simultaneously throughout your lifetime, regardless of how funds are distributed from the retirement plan. If any of these plans has two or more payment options, the option which comes closest to providing you a monthly income for life with no survivors benefit will be Deductible Income, even if you choose a different option. 8. Any earnings or compensation included in Predisability Earnings which you receive or are eligible to receive while LTD Benefits are payable. 9. Any amount you receive or are eligible to receive under any unemployment compensation law or similar act or law. 10. Any amount you receive or are eligible to receive from or on behalf of a third party because of your disability, whether by judgment, settlement or other method. If you notify us before filing suit or settling your claim against such third party, the amount used as Deductible Income will be reduced by a pro rata share of your costs of recovery, including reasonable attorney fees. 11. Any amount you receive by compromise, settlement, or other method as a result of a claim for any of the above, whether disputed or undisputed. (NO OTHR OFFST_PUB WITH 3RD) LT.DI.OT.1 EXCEPTIONS TO DEDUCTIBLE INCOME Deductible Income does not include: 1. Any cost of living increase in any Deductible Income other than "Work Earnings, if the increase becomes effective while you are Disabled and while you are eligible for the Deductible Income. 2. Reimbursement for hospital, medical, or surgical expense. 3. Reasonable attorneys fees incurred in connection with a claim for Deductible Income. 4. Benefits from any individual disability insurance policy. 5. Early retirement benefits under the Fcdcral Social Security Act which are not actually received. 6. Group credit or mortgage disability insurance benefits. 7. Accelerated death benefits paid under a life insurance policy. 8. Benefits from the following: a. Profit sharing plan. b. Thrift or savings plan. c. Deferred compensation plan. d. Plan under IRC Section 401(k), 408(k), 408(p), or 457. e. Individual Retirement Account (IRA). f. Tax Sheltered Annuity (TSA) under IRC Section 403(b). Printed 04/01/2013 -12- 720100-B g. Stock ownership plan. h. Keogh (HR -10) plan. RULES FOR DEDUCTIBLE INCOME A. Monthly Equivalents (PUB -NO OTHR OFFST) LT.ED.OT.1 Each month we will determine your LTD Benefit using the Deductible Income for the same monthly period, even if you actually receive the Deductible Income in another month. If you are paid Deductible Income in a lump sum or by a method other than monthly, we will determine your LTD Benefit using a prorated amount. We will use the period of time to which the Deductible Income applies. If no period of time is stated, we will use a reasonable one. B. Your Duty To Pursue Deductible Income You must pursue Deductible Income for which you may be eligible. We may ask for written documentation of your pursuit of Deductible Income. You must provide it within 60 days after we mail you our request. Otherwise, we may reduce your LTD Benefits by the amount we estimate you would be eligible to receive upon proper pursuit of the Deductible Income. C. Pending Deductible Income We will not deduct pending Deductible Income until it becomes payable. You must notify us of the amount of the Deductible Income when it is approved. You must repay us for the resulting overpayment of your claim. D. Overpayment Of Claim We will notify you of the amount of any overpayment of your claim under any group disability insurance policy issued by us. You must immediately repay us. You will not receive any LTD Benefits until we have been repaid in full. In the meantime, any LTD Benefits paid, including the Minimum LTD Benefit, will be applied to reduce the amount of the overpayment. We may charge you interest at the legal rate for any overpayment which is not repaid within 30 days after we first mail you notice of the amount of the overpayment. LT.RYJ.OT.l SUBROGATION If LTD Benefits are paid or payable to you under the Group Policy as the result of any act or omission of a third party, we will be subrogated to all rights of recovery you may have in respect to such act or omission. You must execute and deliver to us such instruments and papers as may be required and do whatever else is needed to secure such rights. You must avoid doing anything that would prejudice our rights of subrogation. If you notify us before filing suit or settling your claim against such third party, the amount to which we are subrogated will be reduced by a pro rata share of your costs of recovery, including reasonable attorney fees. If suit or action is filed, we may record a notice of payments of LTD Benefits, and such notice shall constitute a lien on any judgment recovered. If you or your legal representative fail to bring suit or action promptly against such third party, we may institute such suit or action in our name or in your name. We are entitled to retain from any judgment recovered the amount of LTD Benefits paid or to be paid to you or on your behalf, together with our costs of recovery, including attorney fees. The remainder of such recovery, if any, shall be paid to you or as the court may direct. LT.SG.OT.1 Printed 04/01/2013 - 13 - 720100-B SURVIVORS BENEFIT If you die while LTD Benefits are payable, and on the date you die you have been continuously Disabled for at least 180 days, we will pay a Survivors Benefit according to I through 4 below. 1. The Survivors Benefit is a lump sum equal to 3 times your LTD Benefit without reduction by Deductible Income. 2. The Survivors Benefit will first be applied to reduce any overpayment of your claim. 3. The Survivors Benefit will be paid at our option to any one or more of the following: a. Your surviving spouse; b. Your surviving unmarried children, including adopted children, under age 25; c. Your surviving spouse's unmarried children, including adopted children, under age 25; or d. Any person providing the care and support of any person listed in a., b., or c. above. 4. No Survivors Benefit will be paid if you are not survived by any person listed in a., b., or c. above. (MULTPL) LT.SB.OT.1 BENEFITS AFTER INSURANCE ENDS OR IS CHANGED During each period of continuous Disability, we will pay LTD Benefits according to the terms of the Group Policy in effect on the date you become Disabled. Your right to receive LTD Benefits will not be aff' ctcd by: 1. Any amendment to the Group Policy that is effective after you become Disabled. 2. Termination of the Group Policy after you become Disabled. LT.BA.OT.1 EFFECT OF NEW DISABILITY If a period of Disability is extended by a new cause while LTD Benefits are payable, LTD Benefits will continue while you remain Disabled. However, 1 and 2 apply. 1. LTD Benefits will not continue beyond the end of the original Maximum Benefit Period. 2. The Disabilities Excluded From Coverage, Disabilities Subject To Limited Pay Periods, and Limitations sections will apply to the new cause of Disability. DISABILITIES EXCLUDED FROM COVERAGE A. War LT.ND.OT.1 You are not covered for a Disability caused or contributed to by War or any act of War. War means declared or undeclared war, whether civil or international, and any substantial armed conflict between organized forces of a military nature. B. Intentionally Self -Inflicted Injury You are not covered for a Disability caused or contributed to by an intentionally self-inflicted Injury, while sane or insane. Printed 04/01/2013 - 14 - 720100-B C. Preexisting Condition 1. Definition Preexisting Condition means a mental or physical condition whether or not diagnosed or misdiagnosed: a. For which you have done or for which a reasonably prudent person would have done any of the following: i. Consulted a physician or other licensed medical professional; ii. Received medical treatment, services or advice; W. Undergone diagnostic procedures, including self-administered procedures; iv. Taken prescribed drugs or medications; b. Which, as a result of any medical examination, including routine examination, was discovered or suspected; at any time during the 90 -day period just before your insurance becomes effective. 2. Exclusion You are not covered for a Disability caused or contributed to by a Preexisting Condition or medical or surgical treatment of a Preexisting Condition unless, on the date you become Disabled, you: a. Have been continuously insured under the Group Policy for 12 months; and b. Have been Actively At Work for at least one full day after the end of that 12 months. D. Loss Of License Or Certification You are not covered for a Disability caused or contributed to by the loss of your professional license, occupational license or certification. E. Violent Or Criminal Conduct You are not covered for a Disability caused or contributed to by your committing or attempting to commit an assault or felony, or actively participating in a violent disorder or riot. Actively participating does not include being at the scene of a violent disorder or riot while performing your official duties. (WITH PRUDNT) LT.XD.OT.1 DISABILITIES SUBJECT TO LIMITED PAI' PERIODS A. Mental Disorders, Substance Abuse and Other Limited Conditions Payment of LTD Benefits is limited to 24 months during your entire lifetime for a Disability caused or contributed to by any one or more of the following, or medical or surgical treatment of one or more of the following: 1. Mental Disorders; 2. Substance Abuse; or 3, Other Limited Conditions. However, if you are confined in a Hospital solely because of a Mental Disorder at the end of the 24 months, this limitation will not apply while you are continuously confined. Mental Disorder means any mental, emotional, behavioral, psychological, personality, cognitive, mood or stress-related abnormality, disorder, disturbance, dysfunction or syndrome, regardless of Printed 04/01/2013 - 15- 720100-B cause (including any biological or biochemical disorder or imbalance of the brain) or the presence of physical symptoms. Mental Disorder includes, but is not limited to, bipolar affective disorder, organic brain syndrome, schizophrenia, psychotic illness, manic depressive illness, depression and depressive disorders, anxiety and anxiety disorders. Substance Abuse means use of alcohol, alcoholism, use of any drug, including hallucinogens, or drug addiction, Other Limited Conditions means chronic fatigue conditions (such as chronic fatigue syndrome, chronic fatigue immunodeficiency syndrome, post viral syndrome, limbic encephalopathy, Epstein- Barr virus infection, herpes virus type 6 infection, or myalgic encephalomyelitis), any allergy or sensitivity to chemicals or the environment (such as environmental allergies, sick building syndrome, multiple chemical sensitivity syndrome or chronic toxic encephalopathy), chronic pain conditions (such as fibromyalgia, reflex sympathetic dystrophy or myofascial pain) , carpal tunnel or repetitive motion syndrome, temporomandibular joint disorder, or craniomandibular joint disorder. However, Other Limited Conditions does not include neoplastic diseases, neurologic diseases, endocrine diseases, hematologic diseases, asthma, allergy -induced reactive lung disease, tumors, malignancies, or vascular malformations, demyelinating diseases, or lupus. Hospital means a legally operated hospital providing full-time medical care and treatment under the direction of a full-time staff of licensed physicians. Rest homes, nursing homes, convalescent homes, homes for the aged, and facilities primarily affording custodial, educational, or rehabilitative care are not Hospitals. B. Rules For Disabilities Subject To Limited Pay Periods 1. If you are Disabled as a result of a Mental Disorder or any Physical Disease or Injury for which payment of LTD Benefits is subject to a limited pay period, and at the same time are Disabled as a result of a Physical Disease, Injury, or Pregnancy that is not subject to such limitation, LTD Benefits will be payable first for conditions that are subject to the limitation. 2. No LTD Benefits will be payable after the end of the limited pay period, unless on that date you continue to be Disabled as a result of a Physical Disease, Injury, or Pregnancy for which payment of LTD Benefits is not limited. LIMITATIONS A. Care Of A Physician LT.LP.OT.1 You must be under the ongoing care of a Physician in the appropriate specialty as determined by us during the Benefit Waiting Period. No LTD Benefits will be paid for any period of Disability when you are not under the ongoing care of a Physician in the appropriate specialty as determined by us. B, Return To Work Responsibility During the Own Occupation, Period no LTD Benefits will be paid for any period of Disability when you are able to work in your Own Occupation and able to earn at least 20% of your Indexed Predisability Earnings, but you elect not to worn. During the Any Occupation Period, no LTD Benefits will be paid for any period of Disability when you are able to work in Any Occupation and able to earn at least 20% of your Indexed Predisability Earnings, but elect not to work. Printed 04/01/2013 - 16- 720100-B C. Rehabilitation Program No LTD Benefits will be paid for any period of Disability when you are not participating in good faith in a plan, program or course of medical treatment or vocational training or education approved by us unless your Disability prevents you from participating. D. Foreign Residency Payment of LTD Benefits is limited to 12 months for each period of continuous Disability while you reside outside of the United States or Canada. E. Imprisonment No LTD Benefits will be paid for any period of Disability when you are confined for any reason in a penal or correctional institution. CLAIMS A. Filing A Claim LT.LM.oT.I Claims should be filed on our forms. If we do not provide our forms within 15 days after they are requested, you may submit your claim in a letter to us. The letter should include the date disability began, and the cause and nature of the disability. B. Time Limits On Filing Proof Of Loss You must give us Proof Of Loss within 90 days after the end of the Benefit Waiting Period. If you cannot do so, you must give it to us as soon as reasonably possible, but not later than one year after that 90 -day period. If Proof Of Loss is filed outside these time limits, your claim will be denied. These limits will not apply while you lack legal capacity. C. Proof Of Loss Proof Of Loss means written proof that you are Disabled and entitled to LTD Benefits. Proof Of Loss must be provided at your expense. For claims of Disability due to conditions other than Mental Disorders, we may require proof of physical impairment that results from anatomical or physiological abnormalities which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques. D. Documentation Completed claims statements, a signed authorization for us to obtain information., and any other items we may reasonably require in support of a claim must be submitted at your expense. If the required documentation is not provided within 45 days after we mail our request, your claim may be denied. E. Investigation Of Claim We may investigate your claim at any time. At our expense, we may have you examined at reasonable intervals by specialists of our choice. We may deny or suspend LTD Benefits if you fail to attend an examination or cooperate with the examiner. F. Time Of Payment We will pay LTD Benefits within 60 days after you satisfy Proof Of Loss. LTD Benefits will be paid to you at the end of each month you qualify for them. LTD Benefits remaining unpaid at your death will be paid to the person(s) receiving the Survivors Benefit. If no Survivors Benefit is paid, the unpaid LTD Benefits will be paid to your estate. Printed 04/01/2013 -17- 720100-B G. Notice Of Decision On Claim We will evaluate your claim promptly after you file it, Within 45 days after we receive your claim we will send you: (a) a written decision on your claim; or (b) a notice that we are extending the period to decide your claim for 30 days. Before the end of this extension period we will send you: (a) a written decision on your claim; or (b) a notice that we are extending the period to decide your claim for an additional 30 days. If an extension is due to your failure to provide information necessary to decide the claim, the extended time period for deciding your claim will not begin until you provide the information or otherwise respond. If we extend the period to decide your claim, we will notify you of the following: (a) the reasons for the extension; (b) when we expect to decide your claim; (c) an explanation of the standards on which entitlement to benefits is based; (d) the unresolved issues preventing a decision; and (e) any additional information we need to resolve those issues. If we request additional information, you will have 45 days to provide the information. If you do not provide the requested information within 45 days, we may decide your claim based on the information we have received. If we deny any part of your claim, you will receive a written notice of denial containing: a. The reasons for our decision. b. Reference to the parts of the Group Policy on which our decision is based. c. A description of any additional information needed to support your claim. d. Information concerning your right to a review of our decision. H. Review Procedure If all or part of a claim is denied, you may request a review. You must request a review in writing within 180 days after receiving notice of the denial. You may send us written comments or other items to support your claim. You may review and receive copies of any non -privileged information that is relevant to your request for review. There will be no charge for such copies. You may request the names of medical or vocational experts who provided advice to us about your claim. The person conducting the review will be someone other than the person who denied the claim and will not be subordinate to that person. The person conducting the review will not give deference to the initial denial decision. If the denial was based on a medical judgment, the person conducting the review will consult with a qualified health care professional. This health care professional will be someone other than the person who made the original medical judgment and will not be subordinate to that person. Our review will include any written comments or other items you submit to support your claim. We will review your claim promptly after we receive your request. Within 45 days after we receive your request for review we will send you: (a) a written decision on review; or (b) a notice that we are extending the review period for 45 days. If the extension is due to your failure to provide information necessary to decide the claim on review, the extended time period for review of your claim will not begin until you provide the information or otherwise respond. If we extend the review period, we will notify you of the following: (a) the reasons for the extension; (b) when we expect to decide your claim on review; and (c) any additional information we need to decide your claim. If we request additional information, you will have 45 days to provide the information. If you do not provide the requested information within 45 days, we may conclude our review of your claim based on the information we have received. If we deny any park of your claim on review, you will receive a written notice of denial containing: Printed 04/01/2013 - 18 - 720100-B a. The reasons for our decision. b. Reference to the parts of the Group Policy on which our decision is based. c. Information concerning your right to receive, free of charge, copies of non -privileged documents and records relevant to your claim. I. As signment The rights and benefits under the Group Policy are not assignable. (REV PUH WRD,G) LT. M OT.2 ALLOCATION OF AUTHORITY Except for those functions which the Group Policy specifically reserves to the Policyholder or Employer, we have full and exclusive authority to control and manage the Group Policy, to administer claims, and to interpret the Group Policy and resolve all questions arising in the administration, interpretation, and application of the Group Policy. Our authority includes, but is not limited to: 1. The right to resolve all matters when a review has been requested; 2. The right to establish and enforce rules and procedures for the administration of the Group Policy and any claim under it; 3. The right to determine: a. Eligibility for insurance; b. Entitlement to benefits; c. The amount of benefits payable; and d. The sufficiency and the amount of information we may reasonably require to determine a., b„ or c., above. Subject to the review procedures of the Group Policy, any decision we make in the exercise of our authority is conclusive and binding. LT AI..OT.1 TIME LIMITS ON LEGAL ACTIONS No action at law or in equity may be brought until 60 days after you have given us Proof Of Loss. No such action may be brought more than three years after the earlier of: 1. The date we receive Proof Of Loss; and 2. The time within which Proof Of loss is required to be given. LT.TL.OT.1 INCONTESTABILITY PROVISIONS A. Incontestability Of Insurance Any statement made to obtain insurance or to increase insurance is a representation and not a warranty. No misrepresentation will be used to reduce or deny a claim or contest the validity of insurance unless: 1. The insurance would not have been approved if we had known the truth; and Printed 04/01/2013 - 19- 720100-B 2. We have given you or any other person claiming benefits a copy of the signed written instrument which contains the misrepresentation. After insurance has been in effect for two years during the lifetime of the insured, we will not use a misrepresentation to reduce or deny the claire, unless it was a fraudulent misrepresentation. B. Incontestability Of The Group Policy Any statement made by the Policyholder or Employer to obtain the Group Policy is a representation and not a warranty. No misrepresentation by the Policyholder or your Employer will be used to deny a claim or to deny the validity of the Group Policy unless: 1. The Group Policy would not have been issued if we had known the truth; and 2. We have given the Policyholder or Employer a copy of a written instrument signed by the Policyholder or Employer which contains the misrepresentation. The validity of the Group Policy will not be contested after it has been in force for two years, except for nonpayment of premiums or fraudulent misrepresentations. CLERICAL ERROR, AGENCY, AND MISSTATEMENT A. Clerical Error MIN, 07.1 Clerical error by the Policyholder, your Employer, or their respective employees or representatives will not: 1. Cause a person to become insured. 2. Invalidate insurance under the Group Policy otherwise validly in force. 3. Continue insurance under the Group Policy otherwise validly terminated. B. Agency The Policyholder and your Employer act on their own behalf as your agent, and not as our agent. The Policyholder and your Employer have no authority to alter, expand or extend our liability or to waive, modify or compromise any defense or right we may have under the Group Policy. C. Misstatement Of Age If a person's age has been misstated, we will make an equitable adjustment of premiums, benefits, or both. The adjustment will be based on: 1. The amount of insurance based on the correct age; and 2. The difference between the premiums paid and the premiums which would have been paid if the age had been correctly stated. M CL. oT.1 TERMINATION OR AMENDMENT OF THE GROUP POLICY The Group Policy may be terminated by us or the Policyholder according to its terms. It will terminate automatically for nonpayment of premium. The Policyholder may terminate the Group Policy in whole, and may terminate insurance for any class or group of Members, at any time by giving us written notice. Benefits under the Group Policy are limited to its terms, including any valid amendment. No change or amendment will be valid unless it is approved in writing by one of our executive officers and given to Printed 04/01/2013 -20- 720100-B the Policyholder for attachment to the Group Policy. If the terms of the certificate differ from the Group Policy, the terms stated in the Group Policy will govern. The Policyholder, your Employer, and their respective employees or representatives have no right or authority to change or amend the Group Policy or to waive any of its terms or provisions without our signed written approval. We may change the Group Policy in whole or in part when any change or clarification in law or governmental regulation affects our obligations under the Group Policy, or with the Policyholder's consent. Any such change or amendment of the Group Policy may apply to current or future Members or to any separate classes or groups of Members. LT.TA.OT. I DEFINITIONS Benefit Waiting Period means the period you must be continuously Disabled before LTD Benefits become payable. No LTD Benefits are payable for the Benefit Waiting Period. See Coverage Features, Contributory means insurance is elective and Members pay all or part of the premium for insurance. CPI -W means the Consumer Price Index for Urban Wage Earners and Clerical Workers published by the United States Department of Labor. If the CPI -W is discontinued or changed, we may use a comparable index. Where required, we will obtain prior state approval of the new index. Employer means an employer (including approved affiliates and subsidiaries) for which coverage under the Group Policy is approved in writing by us. Group Policy means the group LTD insurance policy issued by us to the Policyholder and identified by the Group Policy Number. Indexed Predisability Earnings means your Predisability Earnings adjusted by the rate of increase in the CPI -W. During your first year of Disability, your Indexed Predisability Earnings are the same as your Predisability Earnings. Thereafter, your Indexed Predisability Earnings are determined on each anniversary of your Disability by increasing the previous year's Indexed Predisability Earnings by the rate of increase in the CPI -W for the prior calendar year. The maximum adjustment in any year is 10%. Your Indexed Predisability Earnings will not decrease, even if the CPI -W decreases. Injury means an injury to the body. L.L.C. Owner -Employee means an individual who owns an equity interest in an Employer and is actively employed in the conduct of the Employer's business. LTD Benefit means the monthly benefit payable to you under the terms of the Group Policy. Maximum Benefit Period means the longest period for which LTD Benefits are payable for any one period of continuous Disability, whether from one or more causes. It begins at the end of the Benefit Waiting Period. No LTD Benefits are payable after the end of the Maximum Benefit Period, even if you are still Disabled. See Coverage Features. Noncontributory means (a) insurance is nonelective and the Policyholder or Employer pay the entire premium for insurance; or (b) the Policyholder or Employer require all eligible Members to have insurance and to pay all or part of the premium for insurance. P.C. Partner means the sole active employee and majority shareholder of a professional corporation in partnership with the Policyholder. Physical Disease means a physical disease entity or process that produces structural or functional changes in the body as diagnosed by a Physician. Physician mans a licensed M.D. or D.O., acting within the scope of the license. Physician does not include you or your spouse, or the brother, sister, parent, or child of either you or your spouse. Printed 04/01/2013 -21- 720100-B Pregnancy means your pregnancy, childbirth, or related medical conditions, including complications of pregnancy. Prior Plan means your EmpIoyer's group long term disability insurance plan in effect on the day before the effective date of your Employer's participation under the Group Policy and which is replaced by coverage under the Group Policy. POLICYHOLDER PROVISIONS A. Premiums LT, DF. oT.1 The premium due on each Premium Due Date is the sum of the premiums for all persons then insured. Premium Rates are shown in Coverage Features. B. Contributions From Members The Policyholder determines the amount, if any, of each Member's contribution toward the cost of insurance. C. Changes In Premium Rates We may change Premium Rates whenever: 1. A change or clarification in law or governmental regulation affects the amount payable under the Group Policy. Any such change in Premium Rates will reflect only the change in our obligations. 2. Factors material to underwriting the risk we assumed under the Group Policy with respect to an Employer, including, but not limited to, number of persons insured, age, Predisability Earnings, gender, and occupational classification, changes by 25% or more. 3. The premium contribution arrangement for Members is changed or varies from that stated in the Group Policy when issued or last renewed. 4. We and the Policyholder or the Employer mutually agree to change Premium Rates. Except as provided above, Premium Rates will not be changed during the Initial Rate Guarantee Period shown in Coverage Features. Thereafter, except as provided above, we may change Premium Rates upon 31 days advance written notice to the Policyholder. Any such change in Premium, Rates may be made effective on any Premium Due Date, but no such change will be made more than once in any contract year. Contract years are successive 12 month periods computed from the end of the Initial Rate Guarantee Period. D. Payment Of Premiums All premiums are due on the Premium Due Dates shown in Coverage Features. Each premium is payable on or before its Premium Due Date directly to us at our home office. The payment of each premium by the Policyholder as it becomes due will maintain the Group Policy in force until the next Premium Due Date. E. Grace Period And Termination For Nonpayment If a premium is not paid on or before its Premium Due Date, it may be paid during the following Grace Period of 31 days. The Group Policy or an Employer's coverage under the Group Policy will remain in force during the Grace Period. If the premium is not paid during the Grace Period, the Group Policy will terminate automatically at the end of the Grace Period. Printed 04/01/2013 -22- 720100-B The Policyholder is liable for premium for coverage during the Grace Period. We may charge interest at the legal rate for any premium which is not paid during the Grace Period, beginning with the first day after the Grace Period. F. Termination For Other Reasons The Policyholder may terminate the Group Policy by giving us written notice. The effective date of termination will be the later of 1. The date stated in the notice; and 2. The date we receive the notice. We may terminate the Group Policy as follows; 1. On any Premium Due Date if the number of persons insured is less than the Minimum Participation shown in Coverage Features. 2. On any Premium Due Date if we determine that the Policyholder has failed to promptly furnish any necessary information requested by us, or has failed to perform any other obligations relating to the Group Policy. The minimum advance notice of termination by us is 31 days. G. Premium Adjustments Premium adjustments involving a return of unearned premiums to the Policyholder will be limited to the 12 months ,just before the date we receive a request for premium adjustment. H. Certificates We will issue certificates to the Policyholder showing the coverage under the Group Policy. The Policyholder will distribute a certificate to each insured Member. If the terms of the certificate differ from the Group Policy, the terms stated in the Group Policy will govern. I. Records And Reports The Policyholder will furnish on our forms all information reasonably necessary to administer the Group Policy. We have the right at all reasonable times to inspect the payroll and other records of the Policyholder which relate to insurance under the Group Policy. J. Agency And Release Individuals selected by the Policyholder or by any Employer to secure coverage under the Group Policy or to perform their administrative function under it, represent and act on behalf of the person selecting them, and do not represent or act on behalf of Standard, The Policyholder, Employer and such individuals have no authority to alter, expand or extend our liability or to waive, modify or compromise any defense or right we may have under the Group Policy. The Policyholder and each Employer hereby release, hold harmless and indemnify Standard from any liability arising from or related to any negligence, error, omission, misrepresentation or dishonesty of any of them or their representatives, agents or employees. K. Notice Of Suit The Policyholder or Employer shall promptly give us written notice of any lawsuit or other legal proceedings arising under the Group Policy. L. Entire Contract, Changes The Group Policy and the applications of the Policyholder constitute the entire contract between the parties. A copy of the Policyholder's application is attached to the Group Policy when issued. The Group Policy may be changed in whole or in part, No change in the Group Policy will be valid unless it is approved in writing by one of our executive officers and given to the Policyholder for Printed 04/01/2013 -23- 720100-B attachment to the Group Policy. No agent has authority to change the Group Policy, or to waive any of their provisions. M. Effect On Workers' Compensation, State Disability Insurance The coverage provided under the Group Policy is not a substitute for coverage under a workers' compensation or state disability income benefit law and does not relieve the Employer of any obligation to provide such coverage. {ND DM LT.PH.DT.1 AK/LTDP2000 Printed 04/01/2013 -24- 720100-B City of Miami, Florida Form B Price Proposal Schedule RFP No. 680381. The Proposer's price shall be submitted on this Form -"Price Proposal Schedule", and in the manner stated herein. Proposer is requested to fill in the applicable blanks on this form. A. EMPLOYER FUNDED (FULL- PARTICIPATION) DISABILITY INSURANCE PROGRAM The proposed price for providing all services as stated in Section 3.0, Scope of Services, including the plan designs identified in Exhibit 2, shall be as stipulated below. The price shall be for a fully -insured program. The City intends to award all lines of business to one provider. Prices requested below shall be provided on a bi- weekly basis. SHORT-TERM DISABILITY {STD] see attached page for detail (carrier bill will be monthly) Plan Design Bi -weekly Rate Per $100 of Weekly Benefit $2,000 maximum benefit per week (14 -day waiting period) Pign Year 2018 111118-12131118 $ .137 Bi Weekly Plan Year 2019 Plan Year 2020 111120-12131120 $NA 111119-12131119 $.137 Bi -Weekly LONG-TERM DISABILITY (LTD), see attached page for detail (carrier bill will be monthly) Plan Design Bi -weekly Rate Per $100 of $2,000 maximum benefit per week Covered Monthly Payroll $10,000 maximum benefit per month Plan Year 20218 Plan Year 2019 Plan Year 2020 (180 -day waiting period) 111118-12131118 111119-12131119 111120-12131120 $ See attached page $ .189 Bi -Weekly $ .189 Bi -Weekly $ NA B. FULLY EMPLOYEE FUNDED (VOLUNTARY PARTICIPATION) DISABILITY INSURANCE PROGRAM The proposed price for providing all services as stated in Section 3.0, Scope of Services, including the plan designs identified in Exhibit 2, shall be as stipulated below. The price shall be for a fully -insured, vollintar program. The City intends to award all lines of business to one provider. Prices requested below shall be provided on a bi-weekly basis. SHORT-TERM DISABILITY STD Age Banded Rates, see attached 12age f r detail Plan Design Bi -weekly Rate Per $100 of Weekly Benefit $2,000 maximum benefit per week Plan Year 2018 Plan Year 2019 Plgn Y2ar 2020 (14 -day waiting period) 111118-12131118 111119-12131119 111120-12131120 119-12131119 111120-12131120 $ See attached page See att. page $ NA LONG-TERM DISABILITY (LTD) Arse Banded Ratg5, see next gage for detail Plan Design Bi -weekly Rate Per $100 of Covered Monthly Payroll $10,000 maximum benefit per month Plan Year 2018 Plan Year 2019 Plan Year 2020 (180 -day waiting period) 111118-12131118 119-12131119 111120-12131120 $ See attached page See attached page $ Page 1 EMPLOYEE DISABILITY INSURANCE PROGRAM Rev. 3.15.17 City of Aliami, Florida RFP No. 680381 PREMIER LONG-TERM DISABILITY See attached Rate Page for detail Plan Design Bi -weekly Rate Per $100 of No Covered Monthly Payroll $10,000 maximum benefit per month Plan Year 2018 Plan Year 2019 Plan Year 2020 (90 -day waiting period) 111/18-12131118 111119-12121/19„, 111120-12131120 $ .283 $ .283 $NA MINIMUM PARTICIPATION REQUIREMENTS (01tional] Based on Proposer's proposed employee funded rates, indicate guarantee participation periods: Participation Guarantee Period (Number of Plan Years) Greater than 25% 25 % required 2 rears Between 20% and 25% Between 15% and 20% Between 10% and 15% Below 10% N off: 1. The rates shall be guaranteed for first two (2) Plan years (through December 31, 2019). It is preferable that rates not be contingent upon minimum participation requirements, however, Proposer may list the guarantee periods relating to minimum requirements in the chart above. For Plan Year 2020 and the optional renewal period, the then current rates will remain, unless the City approves an increase in the rates, pursuant to Section 4 of the Agreement. 2. Notwithstanding the Proposer's proposed rates, payment to the Successful Proposer shall be based on the actual enrollment of employees and the actual volume of insurance in the Plans. 3. Proposed rates in Sections A & B will be used to determine the price points for the Price criterion as indicated. 4. Proposers may confirm optional year guaranteed rate commitment as provided for below in Section C. C. OPTION TO RENEW YEARS The City prefers that Proposer guarantee rates for optional 3 -year period (beyond initial term). Proposer should state whether Proposer will hold rates for the three-year option to renew period by completing the below information. Optional Renew Period (January 1, 2020- December 31, 2023) Yes No Will Proposer guarantee its prior year rates for the three-year option to renew period? If so, please provide rates. Subject to Underwriting Re`°tew Note: Section C is for informational and negotiation purposes only and will not be utilized for scoring purposes. Page 2 EMPLOYEE DISABILfTY INSURANCE PROGRAM Rev. 3.15.17 City of Miami Alternative Form B Price Proposal Schedule A) Employer Funded STD 14-14-180 Day Duration Bi -weekly Rate 0.137 Monthly Billed rate Rates Guaranteed to 12/31/2019 B) Employee Funded STD with 180 Day Benefit Period. 25% minimum participation Required. Age banded Rates I A) Employer Funded LTD with 180 Day Waiting Period ' I Bi -weekly Rate 0.189 Monthly Billed rate 0.409 Rates Guaranteed to 12/31/2019 B) Employee Funded LTD with 180 Day Waiting Period. 25% minimum participation Required. Age banded Rates. gilled Bi -weekly monthly STD Age STD Rates rates 0-29 0.218 0.472 30-34 0.241 0.523 35-39 0.188 0.408 40-44 0.175 0.380 45-49 0.210 0.456 50-54 0.244 0.530 55-59 0.336 0.728 60-64 0.411 0.891 65-69 0.411 0.891 70-74 0.411 0.891 75-99 0.411 0.891 Rates Guaranteed to 12/31/2019 I A) Employer Funded LTD with 180 Day Waiting Period ' I Bi -weekly Rate 0.189 Monthly Billed rate 0.409 Rates Guaranteed to 12/31/2019 B) Employee Funded LTD with 180 Day Waiting Period. 25% minimum participation Required. Age banded Rates. B) Employee Funded Dual Option LTD plan: Base 180 Day Benefit Waiting Period With Option To Buy Up to a 90 Day K Benefit waiting Period. 25% participation required I i E 180 Day Base Voluntary LTD Plan Additional Rate for 90 Day Buy -up LTD Bi -weekly Rate 0.191 Bi -weekly Rate 0.092 Monthly Billed rate 0.413 Monthly Billed rate 0.200 Rates Guaranteed to 12/31/2019 Rates Guaranteed to 12/31/2019 B) Employee Funded STD Tied To Dual Option LTD Plan. Class 1: Employees in the 180 day LTD plan. Class 2: Employees buying up to 90 day LTD plan Rate is the same for both classes Bi -weekly Rate 0.128 Monthly Billed rate 0.276 Rates Guaranteed to 12/31/2019 Bified Bi -weekly monthly LTD Age LTD Rates rates 0-29 0.050 0.107 30-34 0.093 0.203 35-39 0.168 0.364 40-44 0.252 0.545 45-49 0.381 0.826 50-54 0.540 1.171 55-59 0.598 1.295 60-64 0.564 1,141 65-69 0.517 1.119 70-74 1.043 2.261 75-99 1.343 2,909 Rates Guaranteed to 12/31/2019 B) Employee Funded Dual Option LTD plan: Base 180 Day Benefit Waiting Period With Option To Buy Up to a 90 Day K Benefit waiting Period. 25% participation required I i E 180 Day Base Voluntary LTD Plan Additional Rate for 90 Day Buy -up LTD Bi -weekly Rate 0.191 Bi -weekly Rate 0.092 Monthly Billed rate 0.413 Monthly Billed rate 0.200 Rates Guaranteed to 12/31/2019 Rates Guaranteed to 12/31/2019 B) Employee Funded STD Tied To Dual Option LTD Plan. Class 1: Employees in the 180 day LTD plan. Class 2: Employees buying up to 90 day LTD plan Rate is the same for both classes Bi -weekly Rate 0.128 Monthly Billed rate 0.276 Rates Guaranteed to 12/31/2019 City of Miami, Florida EXHIBIT D INSURANCE REQUIREMENTS 24 Contract No. RFP680381 Empfoyee Disability Insurance Program Rev. 8/2/17 City of Miami INSURANCE REQUIREMENTS Contract No. RFP 680381 Contractor shall pay on behalf of, indemnify and save City and its officials harmless, from and against any and all claims, liabilities, losses, and causes of action, which may arise out of Contractor's performance under the provisions of the contract, including all acts or omissions to act on the part of Contractor, including any person performing under this Contract for or on Contractor's behalf, provided that any such claims, liabilities, losses and causes of such action are not attributable to the negligence or misconduct of the City and, from and against any orders, judgments or decrees which may be entered and which may result from this Contract, unless attributable to the negligence or misconduct of the City, and from and against all costs, attorneys' fees, expenses and liabilities incurred in the defense of any such claim, or the investigation thereof. The Contractor shall furnish to City of Miami, c/o Procurement Department, 444 SW 2nd Avenue, 6th Floor, Miami, Florida 33130, Certificate(s) of Insurance which indicate that insurance coverage has been obtained which meets the requirements as outlined below: Commercial General Liability A. Limits of Liability Bodily Injury and Property Damage Liability Each Occurrence $1,000,000 IV II A. General Aggregate Limit $ 2,000,000 Personal and Adv. Injury $ 1,000,000 Products/Completed Operations $ 1,000,000 Endorsements Required City of Miami listed as an additional insured Contingent and Contractual Liability -CGL FORM Premises and Operations Liability- CGL FORM Primary Insurance Clause Business Automobile Liability Limits of Liability Bodily Injury and Property Damage Liability Combined Single Limit Any Auto Including Hired, Borrowed or Non -Owned Autos Any One Accident B. Endorsements Required City of Miami listed as an additional insured $ 1,000,000 City of Miami Worker's Compensation Limits of Liability Statutory -State Florida Waiver of Subrogation Employer's Liability Contract No. RFP 680381 A. Limits of Liability $500,000 for bodily injury caused by an accident, each accident $500,000 for bodily injury caused by disease, each employee $500,000 for bodily injury caused by disease, policy limit IV. Professional Liability/Errors and Omissions Coverage Combined Single Limit Each Claim $ 2,000,000 General Aggregate $ 2,000,000 Limit Retro date Umbrella/Excess Liability A. Limits of Liability Each Occurrence $1,000,000 Policy Aqqreqate $1,000,000 City of Miami listed as an additional insured Excess Form over all applicable liability policies herein contained The above policies shall provide the City of Miami with written notice of cancellation or material change from the insurer not less than (30) days prior to any such cancellation or material change. Companies authorized to do business in the State of Florida, with the following qualifications, shall issue all insurance policies required above: The company must be rated no less than "A-" as to management, and no less than "Class V" as to Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oidwick, New Jersey, or its equivalent. All policies and for certificates of insurance are subject to review and verification by Risk Management prior to insurance approval. City of Miami Contract No. RFP 680381 The insurance coverage required shall include those classifications, as listed in standard liability insurance manuals, which most nearly reflect the operations of the Contractor. NOTE: CITY RFP NUMBER AND/OR TITLE OF RFP MUST APPEAR ON EACH CERTIFICATE. Compliance with the foregoing requirements shall not relieve the Contractor of his liability and obligation under this section or under any other section of this Agreement. --If insurance certificates are scheduled to expire during the contractual period, the Proposer shall be responsible for submitting new or renewed insurance certificates to the City at a minimum of ten (10) calendar days in advance of such expiration. --In the event that expired certificates are not replaced with new or renewed certificates which cover the contractual period, the City shall: (4) Suspend the contract until such time as the new or renewed certificates are received by the City in the manner prescribed in the Request for Proposal. (5) The City may, at its sole discretion, terminate this contract for cause and seek re - procurement damages from the Contractor in conjunction with the General and Special Terms and Conditions of the solicitation. The Proposer shall be responsible for assuring that the insurance certificates required in conjunction with this Section remain in force for the duration of the contractual period; including any and all option terms that may be granted to the Contractor. City of Miami, Florida Contract No. RFP680381 EXHIBIT E CORPORATE RESOLUTIONS AND EVIDENCE OF QUALIFICATION TO DO BUSINESS IN FLORIDA (To be provided upon document execution) 25 Employee Disability Insurance Program Rev. 8/2/17 Detail by Entity Name Flonda Department of State Department of Slate ! Division of Corporations ! Search Records 1 DntaN By Documenl Number 1 Detail by Entity Name Foreign Profit Corporation STANDARD INSURANCE COMPANY Filing Information Document Number P13468 FEIIEIN Number 93-0242990 Date Filed 03/04/1987 State OR Status ACTIVE Principal Address 1100 S.W. 6TH AVENUE PORTLAND, OR 97204 Changed: 04/30!2013 Mailing Address 1100 S.W. 6TH AVENUE PORTLAND, OR 97204 Changed: 04/30/2013 Registered Agent Name & Address FLORIDA CHIEF FINANCIAL OFFICER AS R/A 200 E. GAiNES ST TALLAHASSEE, FL 32399-0000 Name Changed: 03/25/2014 Address Changed: 03/25/2014 Officer/Director Detail Name & Address Titfe Chairman, President and Chief Executive Officer Ness, J. Greg 1100 S.W. 6TH AVENUE PORTLAND, OR 97204 Title Senior Vice President and Chief Financial Officer Chadee, Floyd F. Pagel of 3 DIVISION Or CORPGPATIONS http://search.sunbiz.orb/Inquiry/CorporationSearch/SearchRestiltDetaii?ingL irytype=Entity... 6/20/2017 Detail by Entity Name 1100 S.W. 6TH AVENUE PORTLAND, OR 97204 Title Vice President Individual Disability Insurance and Corporate Marketing & Communications Durham, Katherine M. 1100 S.W. 6TH AVENUE PORTLAND, OR 97204 Title Vice President Chief Investment Officer Hibbs , Scott A. 1100 S.W. 6TH AVENUE PORTLAND, OR 97204 Title Vice President Employee Benefits McMillan, Daniel J. 1100 S.W. 67H AVENUE PORTLAND, OR 97204 Title Senior Vice President Information Technoiogy O'Brien, David M. 1100 S.W. 6TH AVENUE PORTLAND, OR 97204 Title Vice President Human Resources Hooper, John A. 1100 S.W. 6TH AVENUE PORTLAND, OR 97204 Title Vice President Chief Legal Officer & Corporate Secretary Franklin, Holley Y. 1100 S.W. 6TH AVENUE PORTLAND, OR 97204 Annual Reports Report Year Filed Date 2015 01/14/2015 2016 04/11/2016 2017 03/21/2017 Document Images 03121/2017 — ANNUAL REPORT 041111201(3--ANNIIAI RFPnPT 03125i2014 — ANNUAL REPORT n4l'3n12nl2 _ ANNIIAI Pr7pnRT 01/06/2012 —ANNUAL REPORT View image in PDF formal View image in PDF format View image in PDF format Uiew image in PDF formal View image in PDF format Paoe 2 of 3 http://search.SLiribiz.orc,/Inquiry/CorporationSearch/SearchResultDetaiI?ingttirytyi)e=Entity... 6/20/2017 Detail by Entity Name Page 3 of 3 View image in PDF formal f 04;1912001 -ANNUAL REPORTL View image in PDF formal 01;0612011-AhJNUAL REPORT Vied image in PDF format 04,'2511999-AiNNUAL REPORT 01,,'2112010 - ANNUAL REPORT View image in PDF format View image in PDF format 01,•12;2009 - ANNUAL REPORT View image in PDF format 0424,1996 --ANNUAL REPORT 01124i2008 -ANNUAL REPORT View image in PDFformat View image in PDF format 03121/2007 -_ANNUAL REPORT View image in PDF formai 03/3012006 -ANNUAL REPORT View image in PDF format 02.+0112005 -ANNUAL REPORT View image in PDF format 07!30/2004 - ANNUAL REPORT View image in PDF format 02/28/2003 - ANNUAL REPORT View image in PDF format View image in PDF formal f 04;1912001 -ANNUAL REPORTL View image in PDF formal 09/1212000 - ANNUAL REPORT View image in PDF format 04,'2511999-AiNNUAL REPORT View image in PDF formal 06!04;1998 -ANNUAL REPORT View image in PDF format 04=2211997 -ANNUAL REPORT View image in PDF format 0424,1996 --ANNUAL REPORT View image in PDF format 05/01/1995 -ANNUAL REPORT/ View image in PDF format -.en�a veF': mant ,! Ste��, �iviser: or _oryaraeart� http://search.sLinbiz.orb/ing tiirylCorporationSearch/SearchResultDetait?ingtilrytype=Entity... 6/20/2017