Okaloosa County BOCC — August 5, 2014 — RFP #44-14 - LTD Insurance - Standard Insurance Proposal - Exhibit A — reading text

Exhibit A , y TheStandard Benefit and Cost Summary Proposal An Employee Benefits Proposal for: Okaloosa County BOCC Presented By: Corporate Benefits of the Emerald Coast Inc Standard Insurance Company May 20, 2014 A Positively Different Way of Doing Business Over the course of a century, Standard Insurance Company has earned a reputation for personal service, financial strength, and the quality of its insurance products. From the home office to the local office, we're dedicated to helping you find productive solutions and explore ways to address your changing needs. Simple — making it easy for you Whether you have two eligible employees or thousands, we put all our strengths to work to help you create a cost-effective benefits package — for you and for them. Find the benefits you want and need. We offer understandable, comprehensive products configured to meet your needs. You'll find a full range of disability, life and dental insurance, retirement plans, and individual and voluntary insurance products. No financial surprises. Comprehensive contract pricing. We strive to offer the best value, going beyond the formulas, using a long-term pricing philosophy. Dedicated contacts. No outsourced call centers. Our experienced employees deliver strong, empathetic and personalized service. You'll have expert claim handling, accurate, fair and prompt payments, and a clear, accessible appeals process. Account support tailored for you. Enjoy customized administration, implementation and enrollment services. Benefit from insightful reporting, industry benchmarking and program recommendations. Local — supporting you where you do business We have over 40 offices across the nation to serve our customers. Our representatives are committed to their communities and have an insider's understanding of local needs. Dependable — a track record you can trust e 100 years of history and five decades of employee benefits experience e More than 29,000 group insurance policies in force, covering over 7 million employees; over $1.7 billion in force premium* e Recognized as one of the top 4 companies in the nation for in force group Long Term Disability and Short Term Disability insurance** e Close to 90% of our business is employee benefits, letting us focus on what our customers really need e Our first group insurance customer is still with us — after 55 years * Figures are as of 12/31/05 and are based on internal data developed by Standard Insurance Company and apply to the Employee Benefits Division; reinsurance assumed is excluded. Certain statistics are unaudited. ** 2005 U.S Group Disability Market Survey, JHA Okaloosa County BOCC LTD Plan 1 Covered Members A regular employee of the Employer working 30 hours per week Plan Base Plan Enhanced Plan LTD Monthly Benefit 50% 60% Insured Predisability Earnings $7,000 $8,333 Maximum Monthly Benefit $3,500 $5,000 Minimum Monthly Benefit $100 $100 Benefit Waiting Period 180 Days 180 days Maximum Benefit Period 5 years SSNRA Own Occupation Period 24 Months 24 Months Guarantee Issue (benefit) Full Benefit Full Benefit Employer Contribution 100% 0% Minimum Participation 100% The greater of 25 lives or 25% Cost Composite rates . - Monthly Members Volume X Rate: PerMember = Premium Base Plan (Employer Cost) 700 $2,388,893 $3.50 $2,450 Enhanced Plan 195 $702,343 $2.99 $583 (Employee Cost) Total Monthly $3,033 Premium Standard Insurance Company Benefit and Cost Summary Proposal 1381309 3 Okaloosa County BOCC e LTD rates for the Enhanced Plan apply to the total monthly Predisability Earnings (including the monthly Predisability Earnings covered under the Base Plan). The premium and volume figures shown above for the Base Plan reflect the volume, rate and the Employer's portion of the total premium for both plans. e The policy will describe the Base and Enhanced LTD plans as separate and distinct plans; identified as Plan 1 and Plan 2. Members will be insured either under Plan 1 or Plan 2, but not both. The total cost for Plan 2 will be the sum of the Base Plan (Plan 1) and Enhanced Plan (Plan 2) premiums for each member as determined by the rates shown above. e Renewal rates will be communicated to the policyholder 31 days prior to the renewal effective date. e The rate will be guaranteed for 3 years. Standard Insurance Company Benefit and Cost Summary Proposal 1381309 Okaloosa County BOCC Features The Standard pays the employers’ matching FICA and Medicare and prepares W-2s. AdminEASE service is included, offering online resources for day-to-day administration of employee benefit plans. Partial Disability is always covered. The Standard consolidates the filing and management of LTD and Life Waiver of Premium claims. A Survivors’ Benefit is included that pays a lump sum equal to 3 times the non-integrated LTD benefit. Profit sharing, thrift or savings plans, 401(k), 408(k), 408(p), 457 plans, IRA’s, TSA's, stock ownership, Keogh, or deferred compensation plans do not offset LTD. Primary and Dependents Social Security benefits are offset as Deductible Income. The plan includes a 24 month lifetime combined duration for Mental Disorder, Substance Abuse and Other Limited Conditions. The plan includes a 3/12 Preexisting Condition Exclusion. Sick leave pay is not offset as Deductible Income unless the LTD benefit plus the sick leave pay exceed 100% of Indexed Predisability Earnings. Only the excess will be used to offset benefits. Product and enrollment materials are available for all buy-up plans. Enrollment materials will be personalized for all eligible employees, upon request. Continuity of coverage is included. Enhanced LTD Plan For coverage to become effective, the greater of 25% of eligible employees or 25 employees must enroll in the Enhanced Plan. Rates assume 28% of eligible employees are participating in the Enhanced LTD Plan. Proof of good health is required for employees who enroll in the Enhanced Plan more than 31 days after eligibility. Proof of good health is required for members who are eligible for coverage under the current LTD plan but not enrolled. Enhancements A Transitional Duty Package is included. This package contains resource materials to help policyholders design and/or manage their own transitional duty programs. A Reasonable Accommodation Expense Benefit is included. This benefit reimburses employers up to $25,000 for approved modifications made to a disabled employee's work place that result in a return to work. Standard Insurance Company Benefit and Cost Summary Proposal 1381309 5 Okaloosa County BOC’ Conditions e This proposal assumes that the group participates in Social Security and State Disability Income (CA, HI, NJ, NY, RI). e The plan assumes that all benefits in the Base Plan are 100% taxable. e This proposal assumes employee premium contributions in the Enhanced Plan are made with post- tax dollars. e Employer must participate in a Workers Compensation Plan. Standard Insurance Company Benefit and Cost Summary Proposal 1381309 6 Okaloosa County BOCC We appreciate the opportunity to provide you with this benefit and cost summary proposal from The Standard. This document outlines certain important features of the group insurance coverages available. This is not a contract or an offer to contract for such coverages. Detailed information about other important features of the coverage proposed is available on request. Just ask your broker/consultant or Standard representative. A completed application must be submitted before a group can be considered for coverage. Insurance will be effective after the application is accepted by The Standard. If approved, we will issue a contract containing our customary language. It will not duplicate existing policy language, if any. The group contract will contain provisions and defined terms not described in this Benefit and cost summary proposal. The group contract will control if there are discrepancies between it and this proposal. The proposed premium rate and plan design for each coverage are based on the underwriting data received by The Standard. Final premium rates and plan provisions will be determined by The Standard on the basis of: applicable state laws, policyholder contributions, confirmation of occupations, the actual composition of the group of persons who will become insured, and our current underwriting rules and practices. This benefit and cost summary proposal expires on, August 9, 2014unless replaced or withdrawn by The Standard. Standard Insurance Company Benefit and Cost Summary Proposal 1381309 7 Okaloosa County BOC! Producer Compensation Disclosure We recognize the valuable role of Insurance advisors, consultants and brokers ("producers") in helping their clients design an employee benefits program, and we support reasonable and fair compensation for these services. Producers may be eligible to receive compensation from The Standard. Any questions regarding the compensation connected with this proposal should be directed to the producer. Please visit our website at http://www.standard.com/producer/comm_scales.html to view our normal commission scales. If this proposal is quoted with a non-standard scale or override it is noted below. An override if noted is compensation paid in addition to or in lieu of commissions. Please consult with your producer for details. Non-standard commission scale: N/A Override: N/A Unless participation is declined by the producer or client, contingent compensation is additional compensation that may also be paid and is contingent on the satisfaction of one or more minimum requirements, such as a specified amount of new premium volume or persistency in connection with the producer’s block of business. For information about our customary producer rewards program visit http://www.standard.com/producer/bonus.html. Some producers may have a contingent compensation arrangement that differs from our customary program. Please consult with your producer for additional details. Additionally, fees for administrative, marketing or consulting services may apply. If applicable, fees are noted below. Fees: N/A Standard Insurance Company Template Version 01/01/2008 Benefit and Cost Summary Proposal 1381309 8 Required Information: Proposals must include answers to the following questions. 1. Give the location of the nearest company group sales and claims offices that will handle this contract. Group Office: 4350 West Cypress Suite 920 Tampa, FL 33607 Life & Disability Claims Office: Employee Benefits Department 900 SW Fifth Avenue Portland, OR 97204 Dental Claims Office: Dental claims are processed and customer service is provided from our office in Lincoln, Nebraska or the satellite claims offices in Wayne, Nebraska and San Antonio, Texas. Give the name and location of the company group representative who will service this contract. Your Account Manager, Alison Brogan, is located in our Tampa Florida office located at: 4350 West Cypress Suite 920 Tampa, FL 33607 Toll free: 800.325.5757 Direct number: 813.878.0286 Will one or more claims handlers be assigned this contract in your claims office? Life/LTD: Yes. Okaloosa County Board of County Commissioners’ account will be assigned to a specific LTD and Life claim team. Our claim teams are designated not dedicated. This allows your organization to have team members who are intimately familiar with your program, but also allows for ample coverage. Dental: The claims customer service team is trained to handle the specific contract provisions of the account. The customer doesn’t have to wait for an assigned team member to handle their questions because all members of the team have been trained to assist. Will toll free service be available from the entire county to your claims office or servicing agent? Yes, Customer Service Representatives will be available to the employees of Okaloosa County Board of County