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HomeMy WebLinkAbout~Master - Renewal of Group Life and Long-Term Disability policies RESOLUTION NO. 14-222 RESOLUTION APPROVING RENEWAL OF GROUP LIFE AND LONG-TERM DISABILITY INSURANCE COVERAGES FOR THE CITY OF AMES,IOWA WHEREAS,National Insurance Services(NIS)has provided two important benefits for City employees since 2003, and these are Group Life insurance (including Accidental Death & Dismemberment, or AD&D), and Long-Term Disability(LTD) insurance; and, WHEREAS, NIS is the administrator for a group program which covers numerous government and school system accounts, and the Life and LTD insurance policies are provided through Madison National Life Insurance Company; and, WHEREAS,these two policy renewals(Life/AD&D and LTD Insurance)were last approved by the City Council for three-year terms beginning July 1, 2012, through June 30, 2015; and, WHEREAS,on February 21,2014,the City received an"early"three-year proposal from NIS for our consideration for the period from July 1, 2014, through June 30, 2017; and, WHEREAS,this proposal is based on the City's overall favorable claims experience for both the Life and LTD coverages, and the insurer is offering a reduction of our LTD insurance rate by 15.1%, to maintain our current Life Insurance rate; and, WHEREAS, both rates are guaranteed from July 1, 2014, through June 30, 2017; and, WHEREAS, the incumbent insurance company, Madison National Life, has provided outstanding claims service,and NIS,in its capacity as group administrator,has continued to provide excellent billing and administrative support services; and, WHEREAS,the NIS/Madison National proposal is to maintain the existing coverages,with the new three-year rate guarantees,through June 30, 2017, and is summarized as follows: maintain the existing rate for Basic Life insurance (with Accidental Death& Dismemberment) of$0.20 per $1,000 of coverage per month; reduce the rate for Long-Term Disability (LTD) from $0.595 per $100 of covered payroll to $0.505; the overall effect for the two Madison National coverages amounts to a 10.7% decrease in total annual premiums, from $201,899 to $180,248; and, WHEREAS, under the current group administrator, the City has had an excellent service history and track record of rate reductions and guarantees given in response to favorable claims experience, and the rates for these coverages continue to be competitive. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the proposal from National Insurance Services to continue the current benefits for group life, accidental death, and long-term disability insurance for a new three year term with the guaranteed rates specified above for the period July 1, 2014, through June 30, 2017, is hereby accepted. ADOPTED THIS 13th day of May, 2014. CAI� 0 cf• C000, Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Goodman Seconded by: Corrieri Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 131h day of May, 2014.