HomeMy WebLinkAboutRFP - 7561 INSURANCEAddendum 1 - Page 1 of 3
ADDENDUM No. 1
REQUEST FOR PROPOSAL
Description of BID 7561: Insurance Brokerage Services
OPENING DATE: 3:00 PM (Our Clock) October 29, 2013
To all prospective bidders please see the attached questions and answers.
RFP Questions & Answers:
See attached questions and answers.
Please contact Gerry Paul, Director Purchasing and Risk Management at
(970) 221-6779 with any questions regarding this addendum.
RECEIPT OF THIS ADDENDUM MUST BE ACKNOWLEDGED BY A WRITTEN
STATEMENT ENCLOSED WITH THE BID/QUOTE STATING THAT THIS
ADDENDUM HAS BEEN RECEIVED.
Financial Services
Purchasing Division
215 N. Mason St. 2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6775
970.221.6707
fcgov.com/purchasing
Addendum 1 - Page 2 of 3
Addendum #1
Questions and Answers
1. Who is the City's current broker of record?
Answer: The City’s current broker of record is Arthur J. Gallagher, Denver office.
2. Describe the current compensation arrangement: fee; fee plus commission; commission;
other?
Answer: The City’s current agreement for brokerage services is paid annually a “not to
exceed” flat fee for services. The City does not pay commissions. Any commissions received
by the broker are returned to the City for credit.
3. If compensation structure is a fee, what is the annual fee?
Answer: The annual fee is $52,000.
4. With regard to loss control, does the City currently have a designated number of hours for
loss prevention? If yes, how many hours annually? If no, please provide an approximation.
Answer: 20 hours of “loss control” services are provided annually as part of our contract
with the current broker.
5. Please provide copy of current Summary of Insurance or, at minimum, a list of policies
currently in place.
Answer: See attached
6. Does the City utilize a RMIS system? If yes, which system is currently being used?
Answer: The City does not currently utilize an RMIS system. The City may however
utilize an RMIS system or similar in the future.
7. Does the City allow broker access to its RMIS system?
Answer: N/A at this time.
8. How often does the City require that claim audits be performed? Please briefly describe
the City's expectations with respect to the deliverables for the audits.
Answer: P&L - Once a year or as needed or requested. Because the City self- administers
and self-insures a large majority of claims we do not maintain a formalized audit schedule.
WC – The City meets quarterly for claim review with the TPA. These quarterly meetings do
not include the broker. Any WC claims moving from the self-insured retention value into
excess coverage are filed through the TPA to the broker for submission to the excess carrier.
Again, this is a rare occurrence and no formalized audit schedule is maintained.
Addendum 1 - Page 3 of 3
SUMMARY OF INSURANCE
Coverage Carrier Limits Deductible
Property Lexington 100,000,000 100k Flood / 50k Other
Auto Darwin 5,000,000 100k Veh. / 50k mobile
Equipment Breakdown Zurich 50,000,000 10k
Fine Arts ACE 2,000,000 1k
Crime Travelers 1,000,000 5k
Fiduciary Alterra 2,000,000 10k
Work Comp Midwest Employers Statutory/1M Liab. 500k
Liability States RRG 3/6,000,000 500k