HomeMy WebLinkAboutDocumentation_Regular_Tab 14H_04/08/1999i -r
Memo
Cl~
To Village Council
From Thomas G. Bradford, Vi11a4ge Manager
DateTme 4/2/99, 10:34AM
Subject Tequesta Life Insurance Benefit Plan; Recommendation to Switch to
Canada Life Insurance Company
O
Prior to the renev-ral of the UNUM Policy on January I, 1999, our
Agent, Steven J. Olsen of Acordia Southeast. at our request, reviewed
the current life insurance market in order to obtain equivalent
coverage at a competitive rate. In previous years, Mr. Olsen has not
been successful in finding a comparable polity at a competitive rate.
However. this year while shopping the insurance market for (ife
insurance proposals prior to the renewal of our current Policy,
Acordia Southeast has presented to the Village a life insurance polity
with Canada Life which is comparable to the current UNUM Polity, at
a competitive rate, with three (3) differences, as follows:
CANADA LIFE:
1. Retiree Reduction Schedule: GS% at age 65, 45% at age 70, 30%
at age 75. and 20% at age 80;
2. Disability Waiver of Premium would apply to age 65. After age
65, the employee can elect to keep the coverage, but they will
have to pay premiums;
3. ADd~D coverage is enhanced in that it will pay a benefit for loss
of use of a limb. Most contracts pay a benefR for a severed limb
only.
All other aspects of the proposed Polity are the same as UNUM Life.
For comparison purposes, the Retiree Reduction Schedule and
Disability Waiver of Premium Provisions of the UNUM Life Polity are
provided below.
UNUM LIFE INSURANCE:
• Retiree Reduction Schedule: 65% at age 70, 50% at age 75;
Lifetime Disability Waiver of Premium provision. This Disability
Waiver will continue even after a retirement unless:
employee is no bnger disabled
~~
Post Office Box 3273
Tequesta, R
33469-0273
(561}575-6200
(561} 575-6203 fax
employee fails to furnish continuing proof of total
disability
C!~
t~ employee refused to be examined as required
With the exception of the above noted three (3) differences, one of
which (AD&D coverage) is actually of greater benefit to the employee
Q,, than currently offered, the UNUM Life Insurance and Canada Life
Policies are equivalent
In light of the fact that these Policies are basically equal, effective May
O I, (999, it is recommended that the Village Council approve providing
eligible life insurance coverage with Canada Life Insurance in order to
provide equivalent coverage to the employee at a cost savings to the
Village. There is no cost incurred by the employee for either life
insurance policy.
The FOP and CWA bargaining units have been notified of the
• proposed change and no objections have been received. The Village
will save $ 8,099.88 per year based on our current employee census if
this request is approved
VILLAGE OF TEQUESTA
LIFE
COMPANY UNUM CANADA LIFE
Life Amount 1 1/2 x salary
up to $100,000 ~ ~ `',~Y
up to $154,0
otal Volume $3,667,678 $3;681,(300.
MONTHLY RATE PER $1000 OF
BENEFIT
Life Insurance
ccidental Death & Dismemberment
$0.41
$0.04
$0.23 5
$0.03
Rate Guarantee 2 Year
M N Y PRE RATE CURRENT PROPOSED
MONTHLY TOTAL
ANNUAL TOTAL $1,650.46
$19,805.46 $975.47
$11,705.58
71iis summary is not intended to be a complete explanation of benefits of the proposed insurance policies. Actual premiums and benefits will be determined
by the final enrotlment and are subject to underwriting approval.
RESOLUTION NO. 31-98/99
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, PALM BEACH COUNTY, FLORIDA, AWARDING BID TO
CANADA LIFE FOR VILLAGE OF TEQUESTA EMPLOYEES' GROUP LIFE
INSURANCE, AND AUTHORIZING THE VILLAGE MANAGER TO EXECUTE
THE DOCUMENTS NECESSARY TO EFFECTUATE THE SAME ON BEHALF
OF THE VILLAGE.
', THEREFORE BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE
TEQUESTA, PALM BEACH COUNTY, FLORIDA AS FOLLOWS:
The Proposal from Canada Life for Village of
Tequesta Employees' Group Life Insurance Attached
Hereto as Exhibit "A" and Incorporated by Reference
as Part of this Resolution is Hereby Approved and
the Village Manager of the Village of Tequesta is
Authorized to Execute the Same on Behalf of the
Village, and Other Necessary Documents.
[E FOREGOING RESOLUTION WAS OFFERED by Councilmember
who moved its adoption. The motion was seconded
Councilmember and upon being put to
vote, the vote was as follows:
FOR ADOPTION AGAINST ADOPTION
e Mayor thereupon declared the Resolution duly passed and adopted
is 8th day of April, A.D., 1999.
MAYOR OF TEQUESTA
ATTEST:
foann Manganiello
tillage Clerk
80\Resolution\Canada Life
- 12/02/98 12:00 FA% 1 305 ri1 2950 CANADA LIFE -~-~-~ ACORDIA VPPB f~J003004
EXHIBIT "A"
" ~CANALIA LIFE
GROUP LIFE and ADD COVERAGE
Village of Tequesta
This proposal coverage includes:
• All full-time, active employees working 30+ hours per week
• Retirees: Life only
Number of eligible employees for Group Life and ADf~D coverage:
• 68
Amor~nt of Insurance:
• One end one half times BAE rounded to the next higher $1,000 to a ~rcaxinrum of $150,400
Benefit Features:
• Reduction schedule: 65% at age 65, 459'° at age 70, 30°~ at age 75, 20% at age 80
• Two (2} years rate guarantee
• Accelerated death benefits
• Waiver of premium: to age 65 if disabled prior to age 60
• Seat Belt Benefit included with the AD&D Benefit
• Loss of Use coverage
COST SUMMARY
- ~ ~ V ~~~ e r ~ '~t~k~~lNlllx~i~ ~34-~' P ~
Pit S, f ib ~~~_2~° ~q '..;
r
~~~~
~~+~' ~i ~ ~ ~ ~~ $3,681,000 $.235/$1,000 $865.04
h ~'~~ ~„ ~~ $3,681,000 $A3/$1,000 $110.43
Final rates based on final enrollu~ent
Rates Hooted are effective for 4 months from date of proposal
1-Dec-98
CANADA LIFE
GENERAL COMPETITION
AD&D COMPARISON
Canada Life's LOSS of USE coverage is
unmatched in the industry.
AMOUNT AMOUNT
NATURE OF ~~LOSSy' PAYABLE PAYABLE
GENERAL
CANADA LIFE COMPETITION
Life 100% 100%
The sight of both eyes 100% 100%
Either both hands or both feet 100% I00%
One hand and one foot l00% 100%
The sight of one eye and either
one hand or one foot 100% 100%
Speech and hearing in boat ears 100% 0%
Either one ann or one leg 75% 50%
Either one hand or one foot 50% 50%
The sight of one eye 50% ~0%
Speech or hearing in both ears 50% 0%
Both tha thumb and index finger
of one hand 25% 0%
AU four fingers of one hand 25% 0%
Al! of the toes of one foot 1.2.5% 0%
Definition of "Loss" Loss of Use Complete Severance of
with regard to an arm,
leg, hand or foot
As this comparison shows, the Canada Life contract pays a higher percentage for eertaui
losses than the competition. The major strength of our contract, however, lies in tl:e
definition of "loss" with regard to an arm, leg, hand or foot. The Canada Life' contract
only requires "loss of use" for benefits to be paid. The competition requires "complete
severance of" before any AD&D benefits are paid. This single difference makes the
Canada Life contract infinitely better.
Please note that this is a "general" comparison. We will be happy to provide specific
company examples upon request.
NOV.-09'98(MON) 10:09 ACORD[A LIFE/HEALTH TEL:561-838-9683 P. 007
CANADA ICE
Group basic Life Insurance
Benefit The full amount of life insurance will be paid in the event of
an insured employee's death.
Beneficiary An employee, by giving written notice to Canada X.ife, may
appoint a beneficiary and may change tins appointment at
arty time.
'Waiver of premiu m ~' an insured employee becomes totally disabled prior to age
60, the amount of his/her life insurance may be continued
without payment of premium, Satisfactory initial proof of .
disability euust be received by Canada Life within twelve
mouths of the date of disability and proof of continued
disability mu9t be furnished as reasonably required by
Canada Life. The insurance continued under the waiver of
prctnium provision is subject to any reductions izi aonouat
due to age and will tennirate when the employee attains
age 65.
Cvnv~rsiion Privilege I~ an insured employee's life insurance is canceled due
to termination of employment or change of class the
employee utay convert the insurance to an individual
policy without submitting evidence of insurability. The
employee's application and the required premium must
be received by Canada Life within 31 days of termination of
employment.
Accelerated Benefit If an employee is diagnosed as having a termittal illness, the
crr~tployee may apply to receive 50°Ye of the death benefit up to a
maximum of $54.000. The ccnployer must Gonsc~t to the
acceleration and Canada Life must be fumisl3ed with
satisfactory proof of tGe diagnosis. The amount of iasurantce
payable up on the death of the employee will be reduced by any
amount received by the employee under this provision plus
merest
l.irS Rcv, l v9 ~
NOV.-09'98(MON) 10:10 ACORD[A LIFE/HEALTH TEL:561-838-9683 P. 009
~CANAL7A L1F~
Accidental Death and Dismembernnent
5. Bodily or n~entat infirmity or illness or disease of any kind,
or medical or surgical treatment Thereof.
6. poisoning inn any form, inhalation of gas or fiance.
7. Travel ar flight in arty aircraft except solely as a
passenger in a powered civil simrafl laving a valid and
ctirrEnt auworthi~ness cereif irate and operated by a duly
licensed or certified pilot while stick aircraft is being
used for the sole ptupase of transportation only. Descent
from any aircraft in flight will be deemed to be part of such
flight,
8. Committing or attetupting to commit a felony.
9. Bodily injury sustaintd while operating a motor vehicle
either while under the isxfluencc of aw-y intoxieastt or if the
blood alcohol concentration at the time of injury is in CXcess
of The state's legal limitation.
SeaE Selt $enefitt 1'he employer stray elect to include the Seat Belt Benefit with
the AD&D coverage. In the event of a death resulting from an
automobile a~ccadent, while an insured is wearing a seat belt,
Canada Life will pay an additional AD&D benefit aqual to the
lesser of:
1. $50,000 or
2. The amoucrt of the ADBtD benefit paid because of rho
insured's accidental death.
AD.TcD Rev.1 t197