Loading...
R13-079 II i I RESOLUTION NO. R13 -079 2 3 A RESOLUTION OF THE CITY COMMISSION OF BOYNTON 4 BEACH, FLORIDA, APPROVING THE RENEWAL OF A 5 PROVIDER AGREEMENT WITH METROPOLITAN LIFE 6 INSURANCE COMPANY OF PLANTATION, FLORIDA FOR 7 THE RFP #060 - 1610 -11 /JMA "FULLY INSURED DENTAL 8 PLAN" TO METROPOLITAN LIFE INSURANCE COMPANY 9 OF PLANTATION, FLORIDA FOR THE PERIOD OCTOBER 1, 10 2013 THROUGH SEPTEMBER 30, 2014; AUTHORIZING THE 11 CITY MANAGER TO EXECUTE THE PROVIDER 12 AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH 13 AND METROPOLITAN LIFE INSURANCE COMPANY FOR 14 DENTAL COVERAGE; AND PROVIDING AN EFFECTIVE 15 DATE. 16 17 WHEREAS, on August 2, 2011, the City Commission awarded a Provider 18 Agreement to MetLife for the City's Fully Insured Dental Plan as a result of RFP #060 -1610- 19 11 /JMA; and 20 WHEREAS, the RFP allowed for two (2) additional one (1) year period renewals of 21 which the City has already used one renewal; and 22 WHEREAS, the City Commission of the City of Boynton Beach, upon 23 recommendation of staff, deems it to be in the best interests of the residents and citizens of the 24 City of Boynton Beach to approve the renewal of the Provider Agreement for the RFP #060- 25 1610 -11 /JMA "Fully Insured Dental Plan" to Metropolitan Life Insurance Company of 26 Plantation, Florida for the period October 1, 2013 through September 30, 2014 and authorizes 27 the City Manager to execute the Provider Agreement between the City of Boynton Beach and 28 Metropolitan Life Insurance Company for dental coverage. 29 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF 30 THE CITY OF BOYNTON BEACH, FLORIDA, THAT: 31 Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed \ \apps3.city.cbb \auto\Data \182 \ Items \174\2522 \3338 \Reso - Dental Health Benefits 2013- 14.doc - 1 - 1 as being true and correct and are hereby made a specific part of this Resolution upon adoption 2 hereof. 3 Section 2. The City Commission of the City of Boynton Beach, Florida does i 4 hereby approve the renewal of the Provider Agreement for the RFP #060 - 1610- 11 /JMA "Fully 5 Insured Dental Plan" to Metropolitan Life Insurance Company of Plantation, Florida for the 6 period October 1, 2013 through September 30, 2014. 7 i Section 3. The City Manager is authorized to execute the Provider Agreement 8 with Metropolitan Life Insurance Company for dental coverage, a copy of which is attached 9 hereto as Exhibit "A ". 10 Section 4. That this Resolution shall become effective immediately upon passage. 11 PASSED AND ADOPTED this 6th day of August, 2013. 12 CITY OF BOYNTON BEACH, FLORIDA 13 14 15 M r —Je Tayl 16 ' 17 C i rs.� 18 • _ _ . _ — Woodrow L. Hay 19 20 21 Serv.erker 22 23 A•f 24 C + mmissio r — ael M. Fitzpat 25 26 '•+C. 27 • missioner — Joe Casello 28 ATTEST: G ® Y 29 30 • l �u at 31 If et M. Prainito, MMC 32 tty Clerk 33 e''; 34 (Corporate Seal) \ \apps3 city.cbb\ auto \ Data \182\ Items \174\2522\ 3338\ Reso_ -_ Dental _Health_Benefits_2013- 14.doc -2- R13 -079 PROVIDER AGREEMENT FOR GROUP BENEFITS: FULLY INSURED DENTAL PLAN THIS AGREEMENT is entered into between the City of Boynton Beach, hereinafter referred to as "the City ", and Metropolitan Life Insurance Company (MetLife) , hereinafter referred to as "the Provider ", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. PROJECT DESIGNATION. The Provider is retained by the City to provide a FULLY INSURED DENTAL PLAN for the City of Boynton Beach. 2. SCOPE OF SERVICES. Provider agrees to perform the services, identified on Exhibit "A" attached hereto and incorporated herein by reference, including the provision of all labor, materials, equipment and supplies. No modifications will be made to the original scope of work without the written approval of the City Manager or his designee. 3. TIME FOR PERFORMANCE. Work under this agreement shall commence upon the giving of written notice by the City to the Provider to proceed. Provider shall perform all services and provide all work product required pursuant to this agreement for the period beginning October 1, 2013 thru September 30, 2014, unless an extension of such time is granted in writing by the City. 4. TERM: This Agreement shall be for a period of one (1) year commencing on October 1, 2013 thru September 30, 2014. 5. PAYMENT. The Provider shall be paid by the City for services rendered under this agreement as follows: a. The monthly premium based on number of enrollees for the City's FULLY INSURED DENTAL PLAN , as referred to herein, for services provided under this agreement for the entire term of the Agreement b. The Provider's records and accounts pertaining to this agreement are to be kept available for inspection by representatives of the City and State for a period of three (3) years after the termination of the Agreement. Copies shall be made available upon request. 6. OWNERSHIP AND USE OF DOCUMENTS. All documents, drawings, specifications and other materials produced by the Provider in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The Provider shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with Provider's endeavors. 7. COMPLIANCE WITH LAWS. Provider shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state and local laws, ordinances and regulations that are applicable to the services to be rendered under this agreement. CA- I R13 -079 8. INDEMNIFICATION. Provider shall indemnify, defend and hold harmless the City, its offices, agents and employees, from and against any and all claims, losses or liability, or any portion thereof, including attorneys fees and costs, arising from injury or death to persons, including injuries, sickness, disease or death to Provider's own employees, or damage to property occasioned by a negligent act, omission or failure of the Provider. 9. INSURANCE. The Provider shall secure and maintain in force throughout the duration of this contract comprehensive general liability insurance with a minimum coverage of $1,000,000 per occurrence and $1,000,000 aggregate for personal injury; and $1,000,000 per occurrence /aggregate for property damage, and professional liability insurance in the amount of $1,000,000 per occurrence to 2 million aggregate with defense costs in addition to limits. Said general liability policy shall name the City of Boynton Beach as an additional named insured and shall include a provision prohibiting cancellation of said policy except upon thirty (30) days prior written notice to the City. Certificates of coverage as required by this section shall be delivered to the City within fifteen (15) days of execution of this agreement. 10. INDEPENDENT CONTRACTOR. The Provider and the City agree that the Provider is an independent contractor with respect to the services provided pursuant to this agreement. Nothing in this agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Provider nor any employee of Provider shall be entitled to any benefits accorded City employees by virtue of the services provided under this agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to Provider, or any employee of Provider. 11. COVENANT AGAINST CONTINGENT FEES. The Provider warrants that he has not employed or retained any company or person, other than a bona -fide employee working solely for the Provider, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bona -fide employee working solely for the Provider, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warranty, the City shall have the right to annul this contract without liability or, in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 12. DISCRIMINATION PROHIBITED. The Provider, with regard to the work performed by it under this agreement, will not discriminate on the grounds of race, color, national origin, religion, creed, age, sex or the presence of any physical or sensory handicap in the selection and retention of employees or procurement of materials or supplies. 13. ASSIGNMENT. The Provider shall not sublet or assign any of the services covered by this Agreement without the express written consent of the City. CA -2 R13 -079 14. NON - WAIVER. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 15. TERMINATION. a. The City reserves the right to terminate this Agreement at any time by giving thirty (30) days written notice to the Provider. 16. DISPUTES. Any disputes that arise between the parties with respect to the performance of this Agreement, which cannot be resolved through negotiations, shall be submitted to a court of competent jurisdiction in Palm Beach County, Florida. This Agreement shall be construed under Florida Law. 17. NOTICES. Notices to the City of Boynton Beach shall be sent to the following address: City of Boynton Beach 100 E. Boynton Beach Boulevard P.O. Box 310 Boynton Beach, FL 33425 -0310 Notices to Provider shall be sent to the following address: Metropolitan Life Insurance Company ATTN: Eric Ryan 1200 South Pine Island Road Suite 770 Plantation, FL 33324 18. PUBLIC RECORDS. The City of Boynton Beach is a public agency subject to Chapter 119, Florida Statutes. The Contractor shall comply with Florida's Public Records Law. Specifically, the Contractor shall: 1. Keep and maintain public records that ordinarily and necessarily would be required by the City in order to perform the service; 2. Provide the public with access to such records on the same terms and conditions that the City would provide the records and at a cost that does not exceed that provided in Chapter 119, Florida Statute, or as otherwise provided by law; 3. Ensure that public records that are exempt or that are confidential and exempt from public record requirements are not disclosed except as authorized by law; and 4. Meet all requirements for retaining public records and transfer to the City, at no cost, all public records in possession of the contractor upon termination of the contract and destroy any duplicate public records that are exempt or confidential and exempt. All records stored electronically must be provided to the City in a format that is compatible with the information technology systems of the agency. The failure of Contractor to comply with the provisions set forth in this Article shall constitute a Default and Breach of this Agreement and the City shall enforce the Default in accordance with the provisions set forth in item 15. CA -3 R13 -079 19. INTEGRATED AGREEMENT. This agreement, together with attachments or addenda, represents the entire and integrated agreement between the City and the Provider and supersedes all prior negotiations, representations, or agreements written or oral. This agreement may be amended only by written instrument signed by both City and Provider. DATED this (/ day of , 20 /3 . CITY OF BOYNTON BEACH City anager Provider Y o� i l e t P�6z �.i'� �( w Attest/Authenticated: .r G t f v- ., Z 0 U Title lerk ∎" Approved as to Form: Attest/Authenticated: . O ice of the Ci 1, A rn:,, Secretary CA -4 R13 -079 EXHIBIT "A" Scope of Services See attached Renewal Letter dated May 9, 2013 from MetLife. CA -5 Metropolitan Life Insurance Company 4150 N Mulberry Drive, Suite 300 Kansas City, MO 64116 BENEFITS ADMINISTRATOR CITY OF BOYNTON BEACH 100 E BOYNTON BEACH BLVD BOYNTON BEACH, FL 33435 Metropolitan Life Insurance Company 4150 N Mulberry Drive, Suite 300 Kansas City, MO 64116 • frs. Me May 9, 2013 REVISED BENEFITS ADMINISTRATOR CITY OF BOYNTON BEACH 100 E BOYNTON BEACH BLVD BOYNTON BEACH, FL 33435 Re Customer # 05985371 Dear Benefits Administrator We have completed our annual renewal evaluation of your group coverage with MetLife or Its affiliates Our analysis takes into consideration a variety of elements that include overall Industry trends in claims incidence, shifts in employee composition as well as other financial or premium related issues that have a bearing on our cost structure After careful consideration of the above factors, we have established our pricing for the upcoming policy year Following are both your current and renewal rates, which will be effective on October 1, 2013 Coverage Current Rates Renewal Rates Rate Basis DENTAL $27 550 $29 480 Employee $77 060 $82 450 Employee + Dependents Billing statements on and after October 1, 2013 will reflect the renewal rates Rates are guaranteed for twelve (12) months subject to the terms, conditions and provisions of your group insurance policy Any additional coverages not specifically mentioned in this letter that are active at the time of the renewal will have their rates continued through the coming year It is our expressed intent to provide the best possible relationship of benefit costs to the products we provide to your group Please be assured that our analysis has been completed with this in mind We appreciate the opportunity to provide your employee benefits and look forward to continuing our relationship If you have any questions regarding our assessment, please do not hesitate to contact us at 800 ASK -4 -MET Sincerely, MetLife Renewal Underwriting cc TAMPA SALES OFFICE Dental Managed Care Plan benefits are provided by Metropolitan Life Insurance Company, a New York corporation, in NY Dental HMO plan benefits are provided by SafeGuard Health Plans, Inc a California corporation in CA, SafeGuard Health Plans, Inc a Florida corporation in FL, SafeGuard Health Plans, Inc , a Texas corporation in TX, and MetLife Health Plans, Inc , a Delaware corporation and Metropolitan Life Insurance Company, a New York corporation, in NJ The Dental HMO /Managed Care companies are part of the Mettle family of companies INTERMEDIARY AND PRODUCER COMPENSATION NOTICE MetLife enters into arrangements concerning the sale, servicing and /or renewal of MetLife group insurance and certain other group - related products ('Products ") with brokers, agents, consultants, third - party administrators, general agents, associations, and other parties that may participate in the sale servicing and /or renewal of such Products (each an 'Intermediary ") MetLife may pay your Intermediary compensation, which may include base compensation, supplemental compensation and /or a service fee MetLife may pay compensation for the sale, servicing and /or renewal of Products, or remit compensation to an Intermediary on your behalf Your Intermediary may also be owned by, controlled by or affiliated with another person or party, which may also be an Intermediary and who may also perform marketing and /or administration services in connection with your Products and be paid compensation by MetLife Base compensation, which may vary from case to case and may change if you renew your Products with MetLife may be payable to your Intermediary as a percentage of premium or a fixed dollar amount In addition, supplemental compensation may be payable to your Intermediary Under MetLife's current supplemental compensation plan, the amount payable as supplemental compensation may range from 0% to 7% of premium The supplemental compensation percentage may be based on (1) the number of Products sold through your Intermediary during a prior one -year period, (2) the amount of premium or fees with respect to Products sold through your Intermediary dunng a prior one -year period, (3) the persistency percentage of Products enforce through your Intermediary during a prior one -year period, (4) a fixed percentage of the premium for Products as set by MetLife The supplemental compensation percentage will be set by MetLife prior to the beginning of each calendar year and it may not be changed until the following calendar year As such, the supplemental compensation percentage may vary from year to year, but will not exceed 7% under the current supplemental compensation plan The cost of supplemental compensation is not directly charged to the price of our Products except as an allocation of overhead expense, which is applied to all eligible group insurance products, whether or not supplemental compensation is paid in relation to a particular sale or renewal As a result, your rates will not differ by whether or not your Intermediary receives supplemental compensation If your Intermediary collects the premium from you in relation to your Products, your Intermediary may earn a return on such amounts Additionally, MetLife may have a variety of other relationships with your Intermediary or its affiliates that involve the payment of compensation and benefits that may or may not be related to your relationship with MetLife (e g , consulting or reinsurance arrangements) More information about the eligibility critena, limitations, payment calculations and other terms and conditions under MetLife's base compensation and supplemental compensation plans can be found on MetLife's Web site at www metlife com /brokercompensation Questions regarding Intermediary compensation can be directed to ask4met ©metlifeservice com or if you would like to speak to someone about Intermediary compensation, please call (800) ASK 4MET In addition to the compensation paid to an Intermediary, MetLife may also pay compensation to your MetLife sales representative Compensation paid to your MetLife sales representative is for participating in the sale, servicing, and/or renewal of Products, and the compensation paid may vary based on a number of factors including the type of Product(s) and volume of business sold If you are the person or entity to be charged under an insurance policy or annuity contract, you may request additional information about the compensation your MetLife sales representative expects to receive as a result of the sale or concerning compensation for any alternative quotes presented, by contacting your MetLife sales representative or calling (866) 796 -1800 L0611185224 [exp1213] [All States] THIS PAGE INTENTIONALLY LEFT BLANK MetLife City of Boynton Beach Rate Summary tr;at kr a + �a r ' ° '£ A q t � x ga^`S ;a;. Employer Sponsored Dental 918 $510,245 Per Em • to ee Per Month All Active Full Time Employees • Employee Only 570 $27.55 ■_� • Employee + Family 348 $77.06 Rates are guaranteed from October 1, 2011 - September 30, 2012 2nd year Rate Cap: The first year's renewal rates will not be increased by more than 5.0% above the current rates. MetLife Cost & Benefits Summary 8/19/2011 4:25 PM Page 2 of 9 P1009726.31429. MetLife Summary of Benefits Dental Insurance - 5% Rate Cap Employer Sponsored Dental Class Description All Active Full Time Employees In- Network Out -of- Network Reimbursement Negotiated Fee Schedule R &C 90th Percentile Type A — Preventive 100% 90% Type B — Basic 90% 70% Type C — Major 60% 50% Calendar Year Deductible applies B & C A, B & C to: • Individual $25 $25 No Limit No Limit • Family Calendar Year Maximum $2,000 $1,250 (applies to A,B,C services) Orthodontia 50% 50% Orthodontia Lifetime $1,500 $1,500 Maximum Out of Network benefits are payable for services rendered by a dentist who is not a participating provider The Reasonable and Customary charge is based on the lowest of (1) the dentist's actual charge (the 'Actual Charge'), (2) the dentist's usual charge for the same or similar services (the 'Usual Charge') or (3) the charge of most dentists in the same geographic area for the same or similar services as determined by MetLrfe (the 'Customary Charge') Services must be necessary in terms of generally accepted dental standards. MetLife Cost & Benefits Summary 8/19/2011 4:25 PM Page 3 of 9 P1009726.31429. MetLife Frequency & Allocations / Exclusions Class Description: All Active Full Time Employees TYPE A Benefits are payable immediately from the start date of an individual's benefits • Examinations • 2 times in 12 months • Examinations - Problem Focused • Combined with Examinations Limit • Prophylaxis: Cleanings • 2 times in 12 months • Sealants • 1 per molar in lifetime for a child under age 19 • Fluoride • 1 time in 12 months for a child under age 19 • Full Mouth X -Rays • Once in 36 months • Bitewing X -Rays • For a child under 14: 2 times in 12 months • Adult: 2 times in 12 months • Emergency Palliative Treatment • Periapical X -Rays • Other X -Rays TYPE B Benefits are payable immediately from the start date of an individual's benefits • Space Maintainers • 1 per lifetime for a child under age 19 • Amalgam Fillings • 1 replacement per surface in 24 Months • Root Canal • 1 in 24 months • Periodontal Maintenance • 2 perio. Treatments in 1 calendar yr, includes 2 cleanings (total comb: 2) • Periodontal Surgery • 1 per quadrant in any 36 month period • Scaling & Root Planing • 1 per quadrant in any 36 month period • Prefabricated Stainless Steel & Resin • 1 per tooth in 5 calendar years Crowns • Recementations • 1 in 12 months • Labs & Other Tests • Resin Composite Fillings(excludes coverage for composite fillings on molars) • Pulpotomy • Pulp Capping • Pulp Therapy • Apexification & Recalcification • Periodontal Surgery - Soft & Connective Tissue Grafts • Periodontics - Non - Surgical • Oral Surgery: Simple Extractions • Oral Surgery: Surgical Extractions • Other Oral Surgery • General Services • Harmful Habit Appliances TYPE C Benefits are payable after a 12 month wafting period from the start date of an individual's benefits MetLife Cost & Benefits Summary 8/19/2011 4:25 PM Page 4 of 9 P1009726.31429. MetLife • Cone Beam Imaging • 1 in 60 months • Consultations • 1 in 12 months • Crown Buildups / Post Core • 1 per tooth in 5 calendar years • Repairs • 1 in 12 months • Dentures • 1 in 5 calendar years • Immediate Temporary Dentures — • 1 replacement in 12 months Complete / Partial • Dentures — Rebases / Relines • 1 in 36 months • Denture Adjustments • 1 in 12 months • Fixed Bridges • 1 in 5 calendar years • Inlays / Onlays /Crowns • 1 replacement per tooth in 5 calendar years • Implant Services • 1 per tooth position in 10 calendar years • Implant Repairs • 1 per tooth in 10 calendar years • Implant Supported Prosthetic • 1 per toothin 10 calendar years • Tissue Conditioning • 1 in 36 months • Occlusal Adjustments • 1 in 12 months • General Anesthesia Orthodontics Benefits are payable after a 12 month waiting period from the start date of an individual's benefit* • Orthodontic Diagnostics • Orthodontic Treatment Exclusions All Active Full Time Employees • Services which are not dentally necessary, those which do not meet generally accepted standards of care for treating the particular dental condition, or which we deem experimental in nature. • Services for which a covered person would not be required to pay in the absence of dental insurance. • Services or supplies received by a covered person before the insurance starts for that person. • Services which are neither performed nor prescribed by a dentist except for those services of a licensed dental hygienist which are supervised and billed by a dentist and which are for scaling or polishing of teeth or fluoride treatment. • Services which are primarily cosmetic unless such service is: required for reconstructive surgery which is incidental to or follows surgery which results from a trauma, an infection or other disease of the involved part; or required for reconstructive surgery because if a congenital disease or anomaly of a Child which has resulted in a functional defect; or (For residents of Texas) required for the treatment or correction of a congenital defect of a newborn child). • Services or appliances which restore or alter occlusion or vertical dimension. • Restoration of tooth structure damaged by attrition, abrasion or erosion unless caused by disease. • Restorations or appliances used for the purpose of periodontal splinting. • Counseling or instruction about oral hygiene, plaque control, nutrition and tobacco. • Personal supplies or devices including, but not limited to: water piks, toothbrushes, or dental floss. • Initial installation of a Denture to replace one or more teeth which were missing before such person was insured for Dental Insurance, except for congenitally missing natural teeth. • Decoration or inscription of any tooth, device, appliance, crown or other dental work. MetLife Cost & Benefits Summary 8/19/2011 4:25 PM Page 5 of 9 P1009726.31429. MetLife • Missed appointments. • Services covered under any workers' compensation or occupational disease law. • Services paid under any employer liability law. • Services for which the employer of the person receiving such services is not required to pay. • Services received at a facility maintained by the Policyholder, labor union, mutual benefit association, or VA hospital. • Services covered under other coverage provided by the Policyholder. • Temporary or provisional restorations. • Temporary or provisional appliances. • Prescription drugs. • Services for which the submitted documentation indicates a poor prognosis. • Services, to the extent such services, or benefits for such services, are available under a government plan. This exclusion will apply whether or not the person receiving the services is enrolled for the government plan. We will not exclude payment of benefits for such services if the government plan requires that Dental Insurance under the group policy be paid first. • The following when charged by the dentist on a separate basis - Claim form completion; infection control such as gloves, masks, and sterilization of supplies; or local anesthesia, non - intravenous conscious sedation or analgesia such as nitrous oxide. • Dental services arising out of accidental injury to the teeth and supporting structures, except for injuries to the teeth due to chewing and biting of food. • Caries susceptibility tests. • Precision attachments associated with fixed and removable prostheses. • Adjustment of a denture made within 6 months after installation by the same dentist who installed it. • Duplicate prosthetic devices or appliances. • Replacement of a lost or stolen appliance, cast restoration or denture. • Infra and extraoral photographic images. • Appliances or treatment for bruxism (grinding teeth), including but not limited to occlusal guards and night guards. • Treatment of temporomandibular joint disorder. This exclusion does not apply to residents of Minnesota. MetLife Cost & Benefits Summary 8/19/2011 4:25 PM Page 6 of 9 P1009726.31429. MetLife Highlights Broker Commissions included in the rate: None Expected Participation: 100% Employee Contributions: 1% Financial Arrangement: Non - retrospectively Experience Rated Situs is FLORIDA Dependent Child Definition: A Child is covered up to age 26, A student is covered up to age 26. Ortho coverage applies to: Adult (employee / spouse) & Child. Children are covered to the dependent age limit. This quote assumes the plan is not a Section 125 plan. Late Entrant Employees who do not elect coverage during their 31 -day application period may still elect coverage later. Dental coverage would be subject to the following waiting periods: Type A Services No waiting period Type B Services (Fillings) 6 month waiting period Type B Services — All Other Services 12 month waiting period Type C Services 24 month waiting period Orthodontic Services (if applicable) 24 month waiting period MetLife Cost & Benefits Summary 8/19/2011 4:25 PM Page 7 of 9 P1009726.31429. MetLife Underwriting Assumptions If insurance coverage is provided, it will be governed by the terms and conditions of the insurance policy and applicable law. If administrative services are provided, they are governed by the terms and condition of the administrative services agreement and by applicable law. If MetLife is requested to duplicate contractual provisions from the prior carrier, such provisions must be compatible with all MetLife's standards. MetLife reserves the right to change its quoted rates and or fees at any time before the effective date. After the effective date, rate and or fees are subject to the terms and conditions of the policy and or administrative services agreement. Only those eligible persons residing in the United States may be covered. Any others must be approved by MetLife. SIC Code: 9111 MetLife Cost & Benefits Summary 8/19/2011 4:25 PM Page 8 of 9 P1009726.31429. Met Life INTERMEDIARY COMPENSATION NOTICE MetLife enters into arrangements concerning the sale, servicing and /or renewal of MetLife group insurance and certain other group - related products ( "Products ") with brokers, agents, consultants, third -party administrators, general agents, associations, and other parties that may participate in the sale, servicing and /or renewal of such Products (each an "Intermediary'). MetLife may pay your Intermediary compensation, which may include base compensation, supplemental compensation and /or a service fee. MetLife may pay compensation for the sale, servicing and /or renewal of Products, or remit compensation to an Intermediary on your behalf. Your Intermediary may also be owned by, controlled by or affiliated with another person or party, which may also be an Intermediary and who may also perform marketing and /or administration services in connection with your Products and be paid compensation by MetLife. Base compensation, which may vary from case to case and may change if you renew your Products with MetLife, may be payable to your Intermediary as a percentage of premium or a fixed dollar amount. In addition, supplemental compensation may be payable to your Intermediary. Under MetLife's current supplemental compensation plan, the amount payable as supplemental compensation may range from 0% to 2.25% of premium. The supplemental compensation percentage may be based on: (1) the number of Products sold or inforce through your Intermediary during a prior one -year period; (2) the amount of premium or fees with respect to Products sold or inforce through your Intermediary during a prior one -year period; and /or (3) a fixed percentage of the premium for Products as set by MetLife. The supplemental compensation percentage will be set by MetLife prior to the beginning of each calendar year and it may not be changed until the following calendar year. As such, the supplemental compensation percentage may vary from year to year, but will not exceed 2.25% under the current supplemental compensation plan. The cost of supplemental compensation is not directly charged to the price of our Products except as an allocation of overhead expense, which is applied to all eligible group insurance products, whether or not supplemental compensation is paid in relation to a particular sale or renewal. As a result, your rates will not differ by whether or not your Intermediary receives supplemental compensation. If your Intermediary collects the premium from you in relation to your Products, your Intermediary may earn a return on such amounts. Additionally, MetLife may have a variety of other relationships with your Intermediary or its affiliates that involve the payment of compensation and benefits that may or may not be related to your relationship with MetLife (e.g., consulting or reinsurance arrangements). More information about the eligibility criteria, limitations, payment calculations and other terms and conditions under MetLife's base compensation and supplemental compensation plans can be found on MetLife's Web site at www. whymetlife .com /brokercompensation. Questions regarding Intermediary compensation can be directed to ask4met @metlifeservice.com, or if you would like to speak to someone about Intermediary compensation, please call (800) ASK 4MET. In addition to the compensation paid to an Intermediary, MetLife may also pay compensation to your MetLife sales representative. Compensation paid to your MetLife sales representative is for participating in the sale, servicing, and /or renewal of Products, and the compensation paid may vary based on a number of factors including the type of Product(s) and volume of business sold. If you are the person or entity to be charged under an insurance policy or annuity contract, you may request additional information about the compensation your MetLife sales representative expects to receive as a result of the sale or concerning compensation for any alternative quotes presented, by contacting your MetLife sales representative or calling 1 -866 796-1800. L1010135700[exp0911][All States] L031 1 1 64620 [exp0312][All Territories] MetLife Cost & Benefits Summary 8/19/2011 4:25 PM Page 9 of 9 P1009726.31429.