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R18-124
RESOLUTION NO. R18-124 A RESOLUTION OF THE CITY COMMISSION OF BOYNTON BEACH, FLORIDA, APPROVING AN : AGREEMENT WITH MINNESOTA LIFE INSURANCE COMPANY FOR GROUP LIFE INSURANCE AND ACCIDENTAL DEATH & DISMEMBERMENT FROM • OCTOBER 1, 2018 THROUGH SEPTEMBER 30, 2021; II AUTHORIZING THE CITY MANAGER TO SIGN THE 11 PROVIDER AGREEMENT AND PROVIDING AN 1• EFFECTIVE DATE. 1 1, 1' WHEREAS, the City Commission of the City of Boynton Beach, upon 1: recommendation of staff, deems it to be in the best interests of City employees to approve a 1 Provider Agreement with Minnesota Life Insurance Company for the Life Insurance and I: Accidental Death & Dismemberment plan for a term commencing October 1, 2018 to 1• September 30, 2021, for city employees. 2I NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF 21 THE CITY OF BOYNTON BEACH, FLORIDA, THAT: 22 Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed 23 as being true and correct and are hereby made a specific part of this Resolution upon 24 adoption hereof 25 Section 2. The City Commission of the City of Boynton Beach, Florida does 26 hereby approve an Agreement with Minnesota Life Insurance Company for the Life Insurance 27 and Accidental Death & Dismemberment plan for City employees for a term commencing 28 October 1, 2018 to September 30, 2021, a copy of which is attached hereto as Exhibit"A". 29 Section 3. The City Manager is authorized to sign the Provider Agreement with 30 Minnesota Life Insurance Company. - 1 - C:\Users\Stanzionet\Appdata\Local\Microsoft\Windows\Temporary Internet Files\Content.IES\V AGZE6P0\Minnesota_Life_Insurance_(ADD)_2018-21_-_Reso.Docx 3 3. Section 4. That this Resolution shall become effective immediately upon passage. 3 PASSED AND ADOPTED this 6th day of September, 2018. 34 3- 31 CITY OF BOYNTON BEACH, FLORIDA 3 3: YES NO 3. 40 Mayor— Steven B. Grant 41 4. Vice Mayor—Christina L. Romelus 4 44 Commissioner—Mack McCray 4.. 4: Commissioner—Justin Katz 4 4: Commissioner—Joe Casello 4• 51 S--10 s l VOTE 5• 53 ATTEST: 5. 55 5. , -1.- 5 Judith A. le, CMC 58 City Cler 5• 60 61 62 (Corporate Seal) 63 64 -2— C:\Users\Stanzionet\Appdata\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\VAGZE6P0\Minnesota_Life_lnsurance_(ADD)_2018-21_-_Reso.Docx �lg -- la SUBJECT TO REVISIONS PRIOR TO SIGNING. AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH AND BENEFITS PROVIDER THIS AGREEMENT is entered into between the City of Boynton Beach, hereinafter referred to as "the City", and MINNESOTA LIFE INSURANCE COMPANY, hereinafter referred to as "PROVIDER", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. PROJECT DESIGNATION. The PROVIDER is retained by the City to provide Basic Life and Accidental Death & Dismemberment (AD&D) Insurance in connection with the RFP FOR GROUP MEDICAL, DENTAL,VISION, LIFE, LONG TERM DISABILITY AND SHORT TERM DISABILITY INSURANCE; RFP No.: 025-1610-18/IT. 2. SCOPE OF SERVICES. PROVIDER agrees to perform the services, identified in Section II —Scope of Services and attached hereto as Exhibit A. 3. TIME FOR PERFORMANCE. Work under this agreement shall commence upon 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 upon written notice to proceed. 4. TERM: This Agreement shall be for an initial period of three (3) years commencing October 1, 2018 thru September 30, 2021. The City of Boynton Beach may extend the contract with the same terms and conditions for an additional, one-year renewal term subject to vendor acceptance, satisfactory performance and determination that renewal will be in the best interest of the City. At the City's request, the Firm shall continue services beyond the final expiration date as approved by the City Manager or City Commission. Such extension(s) shall not exceed a six-month period. The Firm shall be compensated at the rate in effect when this extension period is invoked by the City. 5. PAYMENT: The City will pay the PROVIDER, the fees as set forth in Exhibit B, Fees and Payments, which is attached hereto and made a part hereof. These fees will be paid by the City for completed work and for services rendered under this agreement as follows: a. Payment for the work provided by PROVIDER shall be made promptly on all invoices submitted to the City properly, provided that the total amount of payment to PROVIDER shall not exceed the total contract price without express written modification of the Agreement signed by the City Manager or her designee. b. The PROVIDER may submit invoices to the City once per month during the progress of the work for partial payment for project completed to date. Such invoices will be reviewed by the City, and upon approval thereof, payment will be made to the PROVIDER in the amount approved. c. Final payment of any balance due the PROVIDER of the total contract price earned will be made promptly upon its ascertainment and verification by the City after the completion of the work under this Agreement and its acceptance by the City. d. Payment as provided in this section by the City shall be full compensation for work performed, services rendered and for all materials, supplies, equipment and incidentals necessary to complete the work. e. 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 Firm specifically and exclusively 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 Firm's endeavors. Additionally, PROVIDER shall be allowed to keep copies of any records, information, or data for purposes of defending its work product, as may be required by law, or pursuant to PROVIDERS's corporate record retention policy(ies). This right shall survive the termination of this Agreement and/or the plan. Notwithstanding anything to the contrary, PROVIDER and its affiliates ("Securian Enterprise") may disclose and use the City's documents and information obtained or created in the performance of this Agreement and/or combine it with Securian Enterprise data for the following purposes: (a) Acts allowed by the terms of the Securian Financial Group Consumer Privacy Notice (located at https://www.securian.com/sites/securian/privacy- notices); (b) Acts that are required by law, contract, or regulation, including, but not limited to (i) Providing information to reinsurers; and (ii) Responding to subpoenas, or as otherwise required by any law or any applicable legal or regulatory authority; (c) Acts taken for Securian Enterprise business and risk management, including, but not limited to (i) Macro-pricing studies; (ii) Performing actuarial research; (iii) Benchmarking; and (iv) Publishing analytical research; (d) Acts taken for managing group insurance products issued to the City or at the request of the City or a data subject, including, but not limited to(i) Performing its obligations under any agreement with the City, including insurance contracts; and (ii) As requested and authorized by an individual who is the subject of such information. To the extent possible, Securian Enterprise will use deidentified data for all of the uses identified in Section 5.1 above. 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. 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 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. PROVIDER's obligation to hold harmless and indemnify the City shall not apply to the extent that an allegation or claim arises out of the City's negligence, willful misconduct, breach of this Agreement, or violation of law. 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$2,000,000 aggregate with defense costs in addition to limits; workers' compensation insurance, and vehicular liability insurance. Said general liability policy shall include the City of Boynton Beach as an "additional 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. Professional Liability (Errors & Omissions) Insurance - Professional Liability Insurance with the limits of liability provided by such policy for each claim and on a claim made basis or on an occurrence basis to be no less than one million Dollars ($1,000,000) per occurrence with a limit of no less than two million dollars ($2,000,000) aggregate with a deductible per claim not to exceed ten percent(10%) of the limit of liability. Consultant shall notify the City in writing within thirty (30) days of any claim filed or made against its Professional Liability Insurance Policy. Consultant acknowledges that the City is relying on the competence of the Consultant to design the project to meet its functional intent. If it is determined during construction of the project that changes must be made due to Consultant's negligent errors and omissions, Consultant shall promptly rectify them at no cost to City and shall be responsible for additional costs, if any, of the project to the proportional extent caused by such negligent errors or omissions 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. 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 ten (10) days written notice to the PROVIDER. b. In the event of the death of a member, partner or officer of the PROVIDER, or any of its supervisory personnel assigned to the project, the surviving members of the PROVIDER hereby agree to complete the work under the terms of this Agreement, if requested to do so by the City. This section shall not be a bar to renegotiations of this Agreement between surviving members of the PROVIDER and the City, if the City so chooses. c. This Agreement shall terminate upon the termination of the group insurance policies issued by PROVIDER to the City. 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: Lori LaVerriere, City Manager City of Boynton Beach P.O. Box 310 Boynton Beach, FL 33425-0310 Notices to PROVIDER shall be sent to the following address: MINNESOTA LIFE INSURANCE COMPANY 400 Robert Street North St. Paul, MN 55101-2098 18. 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. 19. PUBLIC RECORDS. Sealed documents received by the City in response to an invitation are exempt from public records disclosure until thirty (30) days after the opening of the Bid unless the City announces intent to award sooner, in accordance with Florida Statutes 119.07. The City is public agency subject to Chapter 119, Florida Statutes. The Contractor shall comply with Florida's Public Records Law. Specifically, the Contractor shall: A. Keep and maintain public records required by the CITY to perform the service; B. 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 chapter 119, Fla. Stat. or as otherwise provided by law; C. Ensure that public records that are exempt or that are confidential and exempt from public record disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and, following completion of the contract, Contractor shall destroy all copies of such confidential and exempt records remaining in its possession once the Contractor transfers the records in its possession to the CITY; and D. Upon completion of the contract, Contractor shall transfer to the CITY, at no cost to the CITY, all public records in Contractor's possession All records stored electronically by Contractor 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. E. IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS: JUDY PYLE, CITY CLERK PO BOX 310 BOYNTON BEACH, FLORIDA 33425-0310 561-742-6061 PYLEJ@BBFL.US 20. SCRUTINIZED COMPANIES -- 287.135 AND 215.473 By execution of this Agreement, Contractor certifies that Contractor is not participating in a boycott of Israel. Contractor further certifies that Contractor is not on the Scrutinized Companies that Boycott Israel list, not on the Scrutinized Companies with Activities in Sudan List, and not on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List, or has Contractor been engaged in business operations in Syria. Subject to limited exceptions provided in state law, the City will not contract for the provision of goods or services with any scrutinized company referred to above. Submitting a false certification shall be deemed a material breach of contract. The City shall provide notice, in writing, to Contractor of the City's determination concerning the false certification. Contractor shall have five (5) days from receipt of notice to refute the false certification allegation. If such false certification is discovered during the active contract term, Contractor shall have ninety (90) days following receipt of the notice to respond in writing and demonstrate that the determination of false certification was made in error. If Contractor does not demonstrate that the City's determination of false certification was made in error then the City shall have the right to terminate the contract and seek civil remedies pursuant to Section 287.135, Florida Statutes, as amended from time to time. THE REMAINDER OF THE PAGE IS INTENTIONALLY LEFT BLANK. DATED this_5th_day of_October , 2018 CITY OF BOYNTON BEACH MINNESOTA LIFE INSURANCE COMPANY YO%Aot 44)444°I'A'‘' .-1/0-014A ' I .111%---- LC Lori LaVerriere, City Manager Signature of Authorized Official Attest/Authenticated: Susan Munson-Regala, 2"dVice President Title �- (Corporate Seal) Judy II P le, �y rk Approved as to Form: Attest/Authenticated: _.—aidIIIIIm•p---_—...—_--..._ 41'--- 4---------- James A. Cherof P y Attorney ;5j, Secretary EXHIBIT A SCOPE OF SERVICES ocS est. 1943 City of Boynton Beach Group Term Life and AD&D Insurance PLAN DESIGN ©2018 Ochs,Inc.All rights reserved. Page 2 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company DATE: August 13, 2018 PRESENTED BY: OCHS, INC.,A SECURIAN COMPANY UNDERWRITTEN BY: Minnesota LIFE INSURANCE COMPANY ©2018 Ochs,Inc.All rights reserved. Page 3 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach TABLE OF CONTENTS PLAN DETAILS 53 BASIC TERM LIFE 75 SUPPLEMENTAL TERM LIFE 97 DEPENDENT TERM LIFE 119 DEFINITIONS AND GUARANTEED ISSUE (GI) LIMITS 1344 PROPOSAL TERMS AND CONDITIONS 1442 ©2018 Ochs,Inc.All rights reserved. Page 4 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach PLAN DETAILS Group Term Life and AD&D Insurance Effective and Rate Coverage Dates Coverage October 1, 2018 to September 30, 2021 • Basic Term Life and AD&D • Supplemental Term Life and AD&D • Spouse Term Life and AD&D • Child Term Life Definitions Class Eligibility Class 1: All Full-Time Active Police 36 hours per week Lieutenants and Police Sergeants Class 2: All Full-Time Active Exempt 36 hours per week Employees Class 3: All Full-Time Active Sworn Police 36 hours per week Officers, Detectives and Firefighters Class 4: All Full-Time Active Employees 36 hours per week excluding Police Lieutenants, Police Sergeants, Police Officers, Detectives, Firefighters, and Exempt Employees Class 5: All Retirees N/A Employee Eligibility Class Coverage Classes 1 —4: • Basic Term Life and AD&D • Supplemental Term Life and AD&D • Spouse Term Life and AD&D • Child Term Life Class 5: • Basic Term Life ©2018 Ochs,Inc.All rights reserved. Page 5 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach Funding Class Non-Contributory / Contributory Classes 1 —4: Employer Paid • Basic Term Life and AD&D Employee Paid • Supplemental Term Life and AD&D • Spouse Term Life and AD&D • Child Term Life Class 5: Employer Paid • Basic Term Life ©2018 Ochs,Inc.All rights reserved. Page 6 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach BASIC TERM LIFE Plan Design Description Benefit Summary Class Amount Class 1: $60,000 — — I Class 2: $50,000 Class 3: $35,000 Class 4: $10,000 Class 5: $3,000 Basic Life Age Reduction Schedule Class Age Reduces to Classes 1 -4 70 67% Guaranteed Issue (GI) and EOI Requirements Summary Amount Current Insureds All coverage is grandfathered and guaranteed New Employees ! Al ovrag sisaleligibilityguaranteed for new employees if elected within days31 Accidental Death and Dismemberment (AD&D) Summary Amount Benefit Matches life amount for death with benefit schedule for dismemberment; includes the following additional benefits: • Airbag - Lesser of 10% or $10,000 • Seatbelt - Lesser of 20% or$20,000 • Repatriation - Lesser of actual cost or$5,000 • Line of Duty - Principal sum increases by 100% up to $100,000 AD&D Dismemberment Loss Benefit Schedule of Benefits Life 100% - - - ---- - -_ _ _ --- (member is is defined as hand, Two or more members 100% foot, or eye) ----- - ------ -- - - ---- Quadriplegia 100% Speech and hearing 100% ©2018 Ochs,Inc.All rights reserved. Page 7 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach ,Paraplegia 75% One member 50% Speech 50% Hearing 50% Hemiplegia 50% Thumb & index finger of same 25% hand Additional Plan Benefits Benefit Definition Waiver of Premium j Premiums waived for active employees disabled prior to age 70 and continues until the earlier of retirement, recovery, or age 70; provision includes a six(6) month elimination period and is not available with ported coverage. Accelerated Death Benefit Allows terminally ill insureds with a life expectancy of 12 months or less to accelerate up to 100% of the face amount up to $1,000,000 (Basic and Supplemental combined). Portability Allows insureds to continue coverage if they terminate employment or retire. Conversion Allows insureds to convert terminated coverage to an individual life insurance policy. ©2018 Ochs,Inc.All rights reserved. Page 8 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach SUPPLEMENTAL TERM LIFE Supplemental Employee Life Benefit Summary Summary Amount Benefit $10,000 increments to a maximum of$500,000 Age Reductions None - - -- - --- -- Guaranteed Issue (GI) and EOI Requirements Summary Requirement Current Insureds All coverage is grandfathered and guaranteed New Employees $250,000 is guaranteed for new employees if elected within 31 days of initial eligibility Future Annual Enrollment Electing or Increasing coverage requires EOI Qualified Status Change Electing or increasing coverage requires EOI Outside of GI opportunities Electing or increasing coverage requires EOI Accidental Death and Dismemberment (AD&D) Summary Amount Benefit Matches life amount for death with benefit schedule for dismemberment; includes the following additional benefits: • Airbag - Lesser of 10% or $10,000 • Seatbelt - Lesser of 20% or $20,000 • Repatriation - Lesser of actual cost or $5,000 • Line of Duty - Principal sum increases by 100% up to $100,000 Dismemberment Schedule of Loss Benefit Benefits Life I 100% (member is defined as hand, -_-.- ---_ -- -- ---- - -- -- --- -__-- Two or more members j 100% foot, or eye) Quadriplegia 100%Q 0% Speech and hearing ! 100% Paraplegia 75% One member 50% Speech 50% Hearing 50% Hemiplegia 50% Thumb & index finger of same hand 25% ©2018 Ochs,Inc.All rights reserved. Page 9 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach Additional Plan Benefits Benefit Definition Waiver of Premium Available for employees disabled prior to age 70 and continues until retirement, recovery, or age 70; provision includes six (6) month elimination period and is not available with ported coverage. Accelerated Death Benefit Allows terminally ill insureds with a life expectancy of 12 months or less to accelerate up to 100% of the face amount up to $1,000,000 (Basic and Supplemental combined). Portability Allows insureds to continue coverage if they terminate employment or retire. Conversion Allows insureds to convert terminated coverage to an individual life insurance policy. 02018 Ochs,Inc.All rights reserved. Page 10 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach DEPENDENT TERM LIFE Dependent Eligibility Class Definition Spouse • A spouse is not eligible if they are also eligible for employee coverage Children • Live birth to 26 years;or physically or mentally disabled and incapable of self-support prior to attaining age 26 • A child may only be covered by one parent • If an employee's first eligible newborn child dies within 31 days of birth but prior to the employee enrolling for child life coverage, a benefit will be paid Supplemental Spouse Life Benefit Summary Summary Amount Benefit $5,000 increments to a maximum of $250,000, dependent coverage limited to 100% of employee's total amount. Age Reductions None ADHD Matches life amount for death with benefit schedule for dismemberment; includes the following additional benefits: • Airbag - Lesser of 10% or $10,000 • Seatbelt - Lesser of 20% or $20,000 • Repatriation - Lesser of actual cost or$5,000 • Line of Duty - Principal sum increases by 100% up to $100,000 Guaranteed Issue (GI) and EOI Requirements Summary Requirement Current Insureds All coverage is grandfathered and guaranteed New Employees $50,000 is guaranteed for new employees if elected within 31 days of initial eligibility Future Annual Enrollment Electing or increasing coverage requires EOI Qualified Status Change $50,000 is guaranteed if elected within 31 days of Qualified Status Change Outside of GI opportunities Electing or increasing coverage requires EOI ©2018 Ochs,Inc.All rights reserved. Page 11 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach Supplemental Child Life Benefit Summary Summary Amount Benefit $2,000, $5,000, $10,000 or $15,000, dependent coverage limited to 100% of employee's total amount. Guaranteed Issue (GI) and EOI Requirements Summary Requirement Current Insureds I1 All coverage is grandfathered and guaranteed One-time Open Enrollment All coverage is guaranteed if elected within 31 days of initial eligibility New Employees All coverage is guaranteed for new employees if elected within 31 days of initial eligibility Future Annual Enrollment All coverage is guaranteed at each annual enrollment Qualified Status Change All coverage is guaranteed if elected within 31 days of Qualified Status Change Outside of GI opportunities Electing or increasing coverage requires EOI Additional Plan Benefits Benefit Definition Waiver of Premium If an employee's premium is being waived under the Waiver of Premium provision, premiums for dependent coverage(s) the !, employee had as an active insured will be continued and waived as well. Accelerated Death Benefit Allows terminally ill insureds with a life expectancy of 12 months or less to accelerate up to 100% of the face amount up to $1,000,000 (Basic and Supplemental combined). Portability Allows spouse and children to continue coverage if employee terminates employment or retires. Conversion % Allows insureds to convert terminated coverage to an individual life insurance policy. ©2018 Ochs,Inc.All rights reserved. Page 12 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach DEFINITIONS AND GUARANTEED ISSUE (GI) LIMITS Category Guaranteed Issue Limits* Current Insureds All current Basic coverage amounts are guaranteed and All employees in a benefit eligible carried over without providing evidence of insurability (EOI) class on the effective date of this • Employee: Supplemental amount in force prior to policy and their dependents policy effective date • Spouse: amount in force prior to policy effective date • Child: amount in force prior to policy effective date Future Annual Enrollment • Employee: Electing or increasing coverage requires Benefit eligible employees and their EOI dependents • Spouse: Electing or increasing coverage requires EOI • Child: All coverage is guaranteed at each annual enrollment New Employees Coverage is guaranteed up to the GI limits if elected within All employees who first become the 31-day new employee enrollment period benefit eligible after the effective • Employee: $250,000 is guaranteed date of this policy and their • Spouse: $50,000 is guaranteed dependents • Child: All coverage is guaranteed Qualified Status Change (QSC) Coverage is guaranteed up to the GI limits if elected within Dependents who become benefit 31 days of a qualifying status change eligible after the effective date of this • Employee: Not applicable policy(i.e. marriage, birth, adoption). • Spouse: $50,000 is guaranteed QSC are determined by the • Child: All coverage is guaranteed employer Outside of GI opportunities: Electing or increasing coverage requires Evidence of Insurability *GI limits include coverage currently in force. ©2018 Ochs,Inc.All rights reserved. Page 13 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach PROPOSAL TERMS AND CONDITIONS • Quote is valid for 120 days and is based on census data submitted. If actual enrollment or plan design differs materially, we reserve the right to review and modify the rates as necessary. • Individuals may be covered only once under the group policy. Employees cannot also be insured as a spouse or child, a child can only be insured by one parent, and an individual cannot be insured as both an ex-employee and a current employee. • All increases are subject to the actively at work provision in the policy. • Non-participating (Fully pooled): The policyholder remits premiums at the stated rate. The policyholder will not receive any experience refunds. • Our proposal assumes that all lives will be transferred according to the chart below and that coverage will be provided on a no loss/no gain basis. Because the current plan has a waiver of premium provision, those eligible under that provision will continue to be insured by the prior carrier. Others will be insured by Minnesota Life. Status of Employee on Effective Date Responsible Party Disabled and on approved waiver of premium Incumbent Carrier Disabled and not yet approved waiver of premium Incumbent Carrier/Minnesota Life* Disabled and satisfying elimination period i Incumbent Carrier/Minnesota Life* Absent due to disabling ailment Incumbent Carrier/Minnesota Life* Absent due to non-disabling ailment Minnesota Life On vacation Minnesota Life On non-medical leave of absence Minnesota Life On excused absence(funeral, etc.) Minnesota Life At work i Minnesota Life *Our proposal assumes that employees on approved waiver of premium on the effective date will stay with the incumbent carrier under the current waiver of premium provision. If an employee is absent due to disability but not yet eligible or approved for waiver of premium,we recommend that premiums be paid to Minnesota Life. If the employee returns to work or otherwise does not satisfy the requirements for approved waiver of premium, Minnesota Life will be responsible for the ongoing life insurance coverage. If the employee remains disabled and satisfies the requirements for a waiver of premium claim,the claim should be filed with the incumbent carrier. Similarly,if the employee dies while totally disabled but before satisfying the waiting period for a waiver of premium claim,the death claim should be filed with the incumbent carrier. In any event,either Minnesota Life or the incumbent carrier will provide coverage for every insured employee. • We relied on information provided with the initial RFP and subsequent information after the RFP release to develop our proposal. If any information was incorrect or incomplete we reserve the right j to review and adjust rates. ©2018 Ochs,Inc.All rights reserved. Page 14 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach • We reserve the right to review the appropriateness of the rates at any in the event of plan design changes, modifications to the definition of eligible employees, or significant demographic changes in the group. We define significant changes to mean a change in the volume within a coverage or across coverages of more than 15%. Actives and retirees are considered independent coverages. The baseline for calculating the total change in volume will be the volume provided in the RFP • Issued policies will comply with applicable state insurance laws and coverage restrictions or limits may apply. • Securian Financial Group is licensed to do business in the United States and our proposal covers employees working in the U.S. and U.S. citizens working abroad as expatriates. We're happy to discuss solutions for your non-U.S. citizens working outside the U.S. to meet the changing benefits needs of a global workforce. • If selected as a finalist, Securian Financial Group's legal counsel will review the specifics of any sample contract, service agreement, or terms &conditions language and provide a list of items to discuss with client's legal counsel. We have found that this process can be completed efficiently and result in a mutually agreeable contract. • It is the employer's obligation to determine the applicability of and compliance with any ERISA or DOL rules. Under Department of Labor rules, certain employee-pay-all group plans may not be subject to ERISA rules. However, the employer should consult counsel to determine if this plan falls within the exemption. Termination Term Life Terminates at earlier of retirement(unless eligible for retiree benefits), loss of eligibility, or termination of employment Life Exclusions Basic T No exclusions __......---- ------........................................................_ _ _..................................--------.._._..._...................................._........-- ----__-.................._..._.....................� _...........__----- Supplemental Suicide exclusion applies. This exclusion limits our liability to an amount equal to the premiums paid for an insured if the insured, whether sane or insane, dies by suicide within two years of the effective date of his or her insurance. For existing amounts transferred to our policy, the time insurance was in force under the prior policy(ies)will count toward this two year limitation. Ridered AD&D Exclusions (subject to situs state exclusions) In no event will we pay the accidental death or dismemberment benefit where the insured's death or dismemberment is caused directly or indirectly by, results from, or where there is a contribution from, any of the following: • Self-inflicted injury or self-destruction, whether sane or insane; or • Suicide or attempted suicide, whether sane or insane; or ©2018 Ochs,Inc.All rights reserved. Page 15 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company City of Boynton Beach • The insured's participation in or attempt to commit a crime, assault, felony, or any illegal activity, regardless of any legal proceedings, or the absence of any legal proceedings, thereto; or • Bodily or mental infirmity, illness or disease; or • The use of alcohol, drugs, medications, poisons, gases, fumes or other substances taken, absorbed, inhaled, ingested or injected, unless taken upon the advice of a licensed physician in the verifiable prescribed manner and dosage; or • Motor vehicle collision or accident where the insured is the operator of the motor vehicle and this insured's blood alcohol level meets or exceeds the level at which intoxication is defined in the state where the collision or accident occurred, regardless of any legal proceedings, or the absence of any legal proceedings, thereto; or • Infection, other than infection occurring simultaneously with, and as a direct result of, the accidental injury; or • Medical or surgical treatment or diagnostic procedures or any resulting complications; or • Travel in or descent from any aircraft, except as a fare-paying passenger on a regularly scheduled commercial flight on a licensed passenger aircraft carrier; or • War or any act of war, whether declared or undeclared; or • • Service in the military of any nation. ©2018 Ochs,Inc.All rights reserved. Page 16 Ochs,Inc.,A Securian Company Version 1.4 Underwritten by Minnesota Life Insurance Company EXHIBIT B FEES AND PAYMENTS City of Boynton Beach LIFE PROPOSED RATES -COMPOSITE ACTIVE/RETIREE RATE BASIC AND SUPPLEMENTAL LIFE Number of Rate per$1,000 Proposed Coverage Lives Volume per month Annual Premium Basic Active Life 698 $ 19,153,700 $ 0.085 $ 19,536.77 Basic Retiree Life 87 $ 261,000 $ 0.085 $ 266.22 Basic Active AD&D 698 $ 19,153,700 $ 0.020 $ 4,596.89 Employee and Spouse Supplemental Life 515 $ 45,630,000 Age Rate $ 142,345.20 Under 25 0.050 25-29 0.060 30-34 0.080 35-39 0.090 40-44 0.120 45-49 0.210 50-54 0.370 55-59 0.610 60-64 0.750 65-69 1.310 70-74 2.060 75* 2.380 Employee and Spouse Supplemental AD&D 385 $ 34,390,000 $ 0.020 $ 8,253.60 Child Life 141 $ 1,380,000 $ 0.130 $ 2,152.80 Rate Guarantee:36 months Total Annual Premium $ 177,151.48 *Rates increase beyond age 75 and will be provided upon request. We offer the flexibility to select both the Life and Disability proposals together, or to choose one proposal independently with no impact to the quoted rates. Please note,we have quoted our standard policy exclusions, rider definitions and portability provisions. 17