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RESOLUTION NO. 8,485
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A ONE YEAR CONTRACT WITH UNUM LIFE
INSURANCE COMPANY TO PROVIDE LANG -TERM
DISABILITY INSURANCE COVERAGE FOR NON-
UNIFORM CITY EMPLOYEES EFFECTIVE MAY 1, 1991
THROUGH APRIL 30, 1992.
180
WHEREAS A Request for Proposal for long -term disability
insurance coverage for non - uniform City employees was issued
February 15, 1991; and
WHEREAS, UNUM Life Insurance Company was selected as the
most qualified provider.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1: The City Manager is hereby authorized to
execute a one year contract with UNUM Life Insurance Company to
provide long -term disability insurance coverage for non - uniform
City employees effective May 1, 1991.
ADOPTED: April 16, 1991
ATTEST:
ROBBIE :/•1N i
APPROVED • FORM:
THOMAS M. CARPENTER, VLTY ATTORNEY
APPROVED:
M w
EXHIBIT A •
LONG -TERM DISABILITY PROPOSALS RECEIVED
181
Based on rate proposals, three carriers were considered further:
UNUM
General American
Citizen Security
Detailed analysis regarding these carriers is presented in Exhibit B.
A q7
�a
RATE PER $100
ESTIMATED
OF COVERED
ANNUAL
COMPANY
PAYROLL
PREMIUM
COMMENTS
Citizen Security
.52
$108,000
Incomplete data submitted.
References not credible.
Benefit quoted does not
meet specification.
UNUM
.78
Excellent references. Leading
LTD provider in U.S. Strong
rehabilitation and risk
management programs. Two -
year rate guarantee.
General American
.78
$162,000
No comments.
Mutual Benefit Life
.81
$168,000
No comments.
(2 proposals:
separate agents)
Cigna
.84
$174,000
No comments.
Provident
.95
$197,000
No comments.
Prudential (2 proposals:
.97
$201,000
No Comments.
separate agents)
Hartford
$.99
$206,000
Incumbent carrier renewal
proposal.
Based on rate proposals, three carriers were considered further:
UNUM
General American
Citizen Security
Detailed analysis regarding these carriers is presented in Exhibit B.
A q7
�a
{
EXHIBIT B
'
NORMAL
COMPANY
BEST RATING
RESERVE EXHIBIT
FREQUENCY
RATE /$100
ASSETS
RENEWAL
SPECIAL
ITEMS 1, 2, & 6
TOLERABLE
'
MONTHLY PAYROLL
RATE GUARANTEE
REFERENCES
FORMULA
PROGRAMS
COMMENTS
FROM RFP
LOSS RATIO
1J
' {
UNUM
A+
1
Alltel
Experience
Work Incentive
$136,000,000
26,381
3.5 per 1,000
$38
$8,556,400,000
2
U of A
+ Manual
Program.
1989 gain from operations
35,666
employees per
2 Years
3
Murphy Oil
Rating;
Rehabilitation
Capital surplus
335,565
year
4
Ark. Best Corp.
Group
Coordinator.
$750,000,000
80%
,
Credibility
Loss Prevention
= 40 to 50%
Program.
'
General American
A+
None provided
Experience
Benefits in addition
$22,000,000
28,472
3.1 per 1,000
•
$.78
$5,583,750,000
+ Manual
to minimum required
1989 gain from operations
39,605
employees per
I Year
Rating; 40%
by RFP
Capital surplus
372,569
year
'
Credibility
$237,000,000
81%
after 3 Yrs.
,
Citizens Security
Not provided.
1
Central Ark.
Incomplete
Proposal indicates
Benefit option does not
None provided.
Not provided.
$.52
$32,600,000
Development
information
the program is
meet specifications.
70%
1 Year
2
Cobb- Vantress
provided
"reinsured by an
Benefit and renewal
3
Louisville, KY
A+ rated company."
questionnaire not
'
Chamber of Commerce
It is unacceptable
completed.
4
Integrated Telecom
that a group our
Capital surplus
size requires
$5,175,000
reinsurance for this
'
program.
Mutual Benefit Life
•'
$.81
Cigna
$.84
'
Provident
$.95
'
Prudential
$.97
'
Hartford
$.99
'\
00