HomeMy WebLinkAboutRFP 20 21 A9 Benefits Administrative Services Contract Fully Executed
The Contractor shall provide services and accessories listed in Exhibit ‘A,’ which is attached
hereto and incorporated herein.
SECTION 3. OBLIGATIONS OF THE CONTRACTOR.
Obligations of the CONTRACTOR shall include, but not be limited to, the following:
CONTRACT BETWEEN
CLAY COUNTY UTILITY AUTHORITY
AND
RISK MANAGEMENT ASSOCIATES, INC. DBA
PUBLIC RISK INSURANCE ADVISORS
THIS AGREEMENT for BENEFITS ADMINISTRATIVE SERVICES is
made and entered between Clay County Utility Authority, an independent special district
established and created pursuant to Chapter 94-491, Laws of Florida, by Special Act of 1994, 3176
Old Jennings Road, Middleburg, Florida 32068 (hereinafter referred to as the “AUTHORITY” or
“CCUA”) and Risk Management Associates, Inc. dba Public Risk Insurance Advisors, 300 North
Beach Street, Daytona Beach, Florida 32114 (hereinafter referred to as the “CONTRACTOR”).
W I T N E S S E T H:
WHEREAS, the AUTHORITY has competitively solicited Benefits Administrative Services
pursuant to RFP-2020/2021-A9; and
WHEREAS, the CONTRACTOR has exhibited by its response to the solicitation that it can
provide the required services; and
WHEREAS, the parties hereto have agreed to the terms and conditions cited herein based on said
solicitation;
NOW, THEREFORE, in consideration of the mutual covenants, terms, and provisions contained
herein, the parties agree as follows:
SECTION 1. TERM.
The term of this Agreement shall become effective on July 6, 2021 and continue through
July 5, 2024. The contract may be renewed, subject to written notice of agreement, for one (1)
additional two (2) year periods.
SECTION 2. SCOPE OF SERVICES.
A. It is understood that the CONTRACTOR shall provide and pay for all labor, tools,
materials, permits, equipment, transportation, supervision, and any and all other items or
services, of any type whatsoever, which are necessary to fully complete and deliver the
services requested by the AUTHORITY, and shall not have the authority to create, or cause
to be filed, any liens for labor and/or materials on, or against, the AUTHORITY, or any
property owned by the AUTHORITY. Such lien, attachment, or encumbrance, until it is
removed, shall preclude all claims, or demands for any payment expected by virtue of this
Agreement.
B. The CONTRACTOR will ensure that all its employees, agents, sub-contractors,
representatives, volunteers, and the like, fully comply with all the terms and conditions set
herein, when providing services for the AUTHORITY in accordance herewith.
C. The CONTRACTOR shall be solely responsible for the means, methods, techniques,
sequences, safety programs, and procedures necessary to properly and fully complete the
work set forth in the Scope of Services.
D. The CONTRACTOR shall maintain an adequate and competent staff and remain
authorized to do business within the State of Florida. The CONTRACTOR may
subcontract the services requested by the AUTHORITY, with prior written approval from
AUTHORITY; however, the CONTRACTOR is fully responsible for the satisfactory
completion of all subcontracted work.
SECTION 4. STANDARD OF CARE.
A. The CONTRACTOR has represented to the AUTHORITY that it possesses a level
of knowledge, experience, and expertise that is commensurate with firms in the
areas of practice required for the services to be provided. By executing this
Agreement, the CONTRACTOR agrees that the CONTRACTOR will exercise that
degree of care, knowledge, skill, and ability as any other similarly situated
contractor possessing the degree of skill, knowledge, experience, and expertise
within the local area, working on similar activities. The CONTRACTOR shall
perform the services requested in an efficient manner, consistent with the
AUTHORITY’s stated scope of services and industry standards.
B. The CONTRACTOR covenants and agrees that it and its employees, agents, sub-
contractors, representatives, volunteers, and the like, shall be bound by the same
standards of conduct as stated above.
SECTION 5. COMPENSATION.
A. The amount to be paid under this Agreement for acceptable performance of
Benefits Administrative Services described in Exhibit ‘A’ shall not exceed Forty-
five thousand dollars ($45,000), based on the rates specified in Exhibit ‘B.’
B. Compensation for services completed by the CONTRACTOR shall be paid in
accordance with section 218.70, Florida Statutes, Florida’s Prompt Payment Act.
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CLAY COUNTY UTILITY AUTHORITY
C. Services to be performed in accordance with this Agreement are subject to the
annual appropriation of funds by the AUTHORITY. In its sole discretion, the
AUTHORITY reserves the right to forego use of the CONTRACTOR for any
project which may fall within the Scope of Services listed herein. In the event the
AUTHORITY is not satisfied with the services provided by the CONTRACTOR,
the AUTHORITY will hold any amounts due until such time as the
CONTRACTOR has appropriately addressed the problem.
SECTION 6. TERMINATION.
The AUTHORITY may terminate this Agreement, with or without cause, given thirty (30) days
written notice to CONTRACTOR prior to the effective date of such cancellation.
SECTION 7. TERMINATION FOR CAUSE.
The AUTHORITY may terminate this Agreement, without further obligation, upon written notice
to the CONTRACTOR if the CONTRACTOR breaches any material term of the Agreement and
such breach remains uncured for forty-five (45) days after receipt of said notice.
SECTION 8. PAYMENT WHEN SERVICES ARE TERMINATED.
A. In the event of termination of this Agreement by the AUTHORITY, and not due to
the fault of the CONTRACTOR, the AUTHORITY shall compensate the
CONTRACTOR for all authorized services performed prior to the effective date of
termination.
C. In the event of termination of this Agreement due to the fault of the
CONTRACTOR, or at the written request of the CONTRACTOR, the
AUTHORITY shall compensate the CONTRACTOR for all authorized services
completed, prior to the effective date of termination, which have resulted in a usable
product or otherwise tangible benefit to the AUTHORITY. All such payments shall
be subject to an off set for any damages incurred by the AUTHORITY resulting
from any delay occasioned by early termination. This provision shall in no way be
construed as the sole remedy available to the AUTHORITY in the event of breach
by the CONTRACTOR.
SECTION 9. INSURANCE.
Worker’s Compensation: The Successful Offeror will provide Worker’s Compensation
coverage for all employees at the site location and in case any work is subcontracted, will
require the sub successful Offeror to provide Worker’s Compensation for all his employees.
The limits will be statutory for Worker’s Compensation and $1,000,000.00 for Employer’s
Liability.
Comprehensive General Liability: The Successful Offeror will provide for all operations
including, but not limited to Contractual and Products Completed Operations. The limits
will not be less than $1,000,000.00.
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Umbrella Liability: The Successful Offeror will provide an umbrella in excess to the
coverage in paragraphs B and C of not less than $1,000,000.00.
The Authority shall retain the right to review, at any time, coverage from, and amount of
insurance. The procuring of required policies of insurance shall not be construed to limit
the Contractor liability or to fulfill the indemnification provisions and requirement s of this
Contract. The Contractor shall be solely responsible for payment of all premiums for
insurance contributing to the satisfaction of this Contract and shall be solely responsible for
the payment of all deductibles and retentions to which such policies are subject, whether or
not the Authority is an insured under this policy.
Contract award will be subject to compliance with the insurance requirements. Certificates
of insurance evidencing coverage and compliance with the conditions to this Contract, and
showing the Authority’s proposal number, if any, and description of work, and copies of all
endorsements are to be furnished to the Authority’s Procurement Department prior to
commencement of work, and a minimum of ten (10) calendar days after the expiration of
the insurance contract when applicable. All insurance certificates shall be received by the
Authority’s Procurement Department before the Contractor shall commence or continue to
work.
All policies required by this Contract, except for Professional Liability and Workers’
Compensation, or unless specific approval is given by the Authority, are to be written on an
occurrence basis, shall name the Authority as additional insured as their interest may appear
under this Contract.
The CONTRACTOR shall name “Clay County Utility Authority” as a certificate holder and
as additional insured, to the extent of the services to be provided hereunder, on all
required insurance policies, and provide the AUTHORITY with proof of same.
B.The CONTRACTOR, and any authorized sub-contractor(s), shall provide the
AUTHORITY’s Procurement Department with a Certificate of Insurance evidencing
such coverage for the duration of this Agreement. Said Certificate of Insurance shall be
dated and show:
1.The name of the insured CONTRACTOR;
2.The specified job by name and job number;
3.The name of the insurer;
4.The number of the policy;
5.The effective date;
6.The termination date.
C.Receipt of certificates or other documentation of insurance by the AUTHORITY,
or by any of its representatives, which indicates less
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coverage than is required, does not constitute a waiver of the CONTRACTOR’s
obligation to fulfill the insurance requirements specified herein.
D. The CONTRACTOR shall ensure that any sub-contractor(s), hired to perform any of the
duties contained in the Scope of Services of this Agreement, maintain the same insurance
requirements set forth herein. In addition, the CONTRACTOR shall maintain proof of
same on file and made readily available upon request by the AUTHORITY.
SECTION 10. AUTHORITY OBLIGATIONS.
At the CONTRACTOR’s request, the AUTHORITY agrees to provide, at no cost, all
pertinent information known to be available to the AUTHORITY to assist the CONTRACTOR in
providing and performing the required services.
SECTION 11. DOCUMENTS CONSTITUTING ENTIRE AGREEMENT.
The following documents are hereby incorporated and made part of this Agreement:
1. Exhibit A – Solicitation document RFP-2020/2021-A9
2. Exhibit B – Original proposal submitted by Contractor
In the event of a conflict between the covenants, terms, and/or provisions of this Agreement
and Exhibit “A,” the provisions of the Agreement shall take precedence.
SECTION 12. APPLICABLE LAW, VENUE, JURY TRIAL.
The laws of the State of Florida shall govern all aspects of this Agreement. In the event it
is necessary for either party to initiate legal action regarding this Agreement, venue shall lie in
Clay County, Florida. The parties hereby waive their right to trial by jury in any action, proceeding
or claim, arising out of this Agreement, which may be brought by either of the parties hereto.
In all respects, this Agreement is governed by and construed in accordance with the laws of the
State of Florida without giving effect to any choice of law rules thereof that may direct the
application of the laws of another jurisdiction.
SECTION 13. PUBLIC RECORDS COMPLIANCE.
A. If the Contractor has questions regarding the application of Chapter 119, Florida
Statutes, to the Contractor’s duty to provide public records relating to this
Agreement, contact the custodian of public records at the following:
Public Records
3176 Old Jennings Road
Middleburg, Florida 32068
(904) 272-5999
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Recordsrequest@clayutility.org
B. The CONTRACTOR understands that by virtue of this Agreement all its
documents, records, and materials of any kind, relating to the relationship created
hereby, shall be open to the public for inspection in accordance with Florida law.
If CONTRACTOR shall act on behalf of the AUTHORITY, as provided under
section 119.011(2), Florida Statutes, as amended, the CONTRACTOR, shall:
1) Keep and maintain public records that ordinarily and necessarily would be
required by the AUTHORITY to perform the service; and
2) Provide the public with access to public records on the same terms and
conditions that the AUTHORITY would provide the records and at a cost
that does not exceed the cost provided by Florida law; and
3) Ensure that public records that are exempt or confidential and exempt from
public records disclosure requirements are not disclosed except as
authorized by law; and
4) Meet all requirements for retaining public records and transfer, at no cost,
to the AUTHORITY 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 from public
records disclosure requirement. All records stored electronically must be
provided to the AUTHORITY in a format that is compatible with the
information technology systems of the AUTHORITY; and
5) If the CONTRACTOR does not comply with a public records request, the
AUTHORITY shall enforce the contract provisions in accordance with the
Agreement.
SECTION 14. INDEPENDENT CONTRACTOR.
This Agreement does not create an employee/employer relationship between the parties. It
is the parties’ intention that the CONTRACTOR, its employees, sub-contractors, representatives,
volunteers, and the like, will be an independent contractor and not an employee of the
AUTHORITY for all purposes, including, but not limited to, the application of the following, as
amended: the Fair Labor Standards Act minimum wage and overtime payments, the Federal
Insurance Contribution Act, the Social Security Act, the Federal Unemployment Tax Act, the
provisions of the Internal Revenue Code, the State of Florida revenue and taxation laws, the State
of Florida workers’ compensation laws, the State of Florida unemployment insurance laws, and
the Florida Retirement System benefits. The CONTRACTOR will retain sole and absolute
discretion in the judgment of the manner and means of carrying out the CONTRACTOR’s
activities and responsibilities hereunder.
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SECTION 15. APPLICABLE LICENSING.
The CONTRACTOR, at its sole expense, shall obtain all required federal, state, and local
licenses, occupational and otherwise, required to successfully providing the services set forth
herein.
SECTION 16. COMPLIANCE WITH ALL LAWS.
The CONTRACTOR, at its sole expense, shall comply with all laws, ordinances, judicial
decisions, orders, and regulations of federal, state, AUTHORITY, and municipal governments, as
well as their respective departments, commissions, boards, and officers, which are in effect at the
time of execution of this Agreement or are adopted at any time following the execution of this
Agreement.
SECTION 17. INDEMNIFICATION.
The CONTRACTOR agrees to be liable for any and all damages, losses, and expenses
incurred, by the AUTHORITY, caused by the acts and/or omissions of the CONTRACTOR, or
any of its employees, agents, sub-contractors, representatives, volunteers, or the like. The
CONTRACTOR agrees to indemnify, defend and hold the AUTHORITY harmless for any and all
claims, suits, judgments or damages, losses and expenses, including but not limited to, court costs,
expert witnesses, consultation services and attorney’s fees, arising from any and all acts and/or
omissions of the CONTRACTOR, or any of its employees, agents, sub-contractors,
representatives, volunteers, or the like.
SECTION 18. SOVEREIGN IMMUNITY.
The AUTHORITY expressly retains all rights, benefits and immunities of sovereign
immunity in accordance with Section 768.28, Florida Statutes. Notwithstanding anything set forth
in any section, article or paragraph of this Agreement to the contrary, nothing in this Agreement
shall be deemed as a waiver of sovereign immunity or limits of liability which may have been
adopted by the Florida Legislature or may be adopted by the Florida Legislature, and the cap on
the amount and liability of AUTHORITY for damages, attorney fees and costs, regardless of the
number or nature of claims in tort, equity or contract, shall not exceed the dollar amount set by the
Florida Legislature for tort. Nothing in this Agreement shall inure to the benefit of any third party
for the purpose of allowing any claim against the AUTHORITY which would otherwise be barred
under the Doctrine of Sovereign Immunity or operation of law.
SECTION 19. BANKRUPTCY OR INSOLVENCY.
If the CONTRACTOR shall file a Petition in Bankruptcy, or if the same shall be adjudged
bankrupt or insolvent by any Court, or if a receiver of the property of the CONTRACTOR shall
be appointed in any proceeding brought by or against the CONTRACTOR, or if the
CONTRACTOR shall make an assignment for the benefit of creditors, or proceedings shall be
commenced on or against the CONTRACTOR’s operations of the premises, the AUTHORITY
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may terminate this Agreement immediately notwithstanding the notice requirements of Section 6
hereof.
SECTION 20. BINDING EFFECT.
This Agreement shall be binding upon and inure to the benefit of the parties hereto, their
heirs, personal representatives, successors, and/or assigns.
SECTION 21. ASSIGNMENT.
This Agreement shall only be assignable by the CONTRACTOR upon the express written
consent of the AUTHORITY.
SECTION 22. SEVERABILITY.
All clauses found herein shall act independently of each other. If a clause is found to be
illegal or unenforceable, it shall have no effect on any other provision of this Agreement. It is
understood by the parties hereto that if any part, term, or provision of this Agreement is by the
courts held to be illegal or in conflict with any law of the State of Florida or the United States, the
validity of the remaining portions or provisions shall not be affected, and the rights and obligations
of the parties shall be construed and enforced as if the Agreement did not contain the particular
part, term, or provision held to be invalid.
SECTION 23. WAIVER.
Failure of the parties to insist upon strict performance of any of the covenants, terms,
provisions, or conditions of this Agreement, or to exercise any right or option herein contained,
shall not be construed as a waiver or a relinquishment for the future of any such covenant, term,
provision, condition, or right of election, but same shall remain in full force and effect.
SECTION 24. NOTICE.
The parties hereto agree and understand that written notice, mailed or delivered to the last
known mailing address, shall constitute sufficient notice to the AUTHORITY and the
CONTRACTOR. All notices required and/or made pursuant to this Agreement to be given to the
AUTHORITY and the CONTRACTOR shall be in writing and given by way of the United States
Postal Service, first class mail, postage prepaid, addressed to the following addresses of record:
AUTHORITY: Clay County Utility Authority
Attention: Procurement Department
3176 Old Jennings Road
Middleburg, Florida 32068
CONTRACTOR: Risk Management Associates, Inc. dba
Public Risk Insurance Advisors
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300 North Beach Street
Daytona Beach, Florida 32114
SECTION 25. MODIFICATION
The covenants, terms, and provisions of this Agreement may be modified by way of a
written instrument, mutually accepted by the parties hereto. In the event of a conflict between the
covenants, terms, and/or provisions of this Agreement and any written Amendment(s) hereto, the
provisions of the latest executed instrument shall take precedence.
SECTION 26. HEADINGS.
All headings of the sections, exhibits, and attachments contained in this Agreement are for
the purpose of convenience only and shall not be deemed to expand, limit or change the provisions
contained in such sections, exhibits, and attachments.
SECTION 27. ADMINISTRATIVE PROVISIONS.
In the event the AUTHORITY issues a purchase order, memorandum, letter, or any other
instrument addressing the services, work, and materials to be provided and performed pursuant to
this Agreement, it is hereby specifically agreed and understood that any such purchase order,
memorandum, letter, or other instrument is for the AUTHORITY's internal purposes only, and any
and all terms, provisions, and conditions contained therein, whether printed or written, shall in no
way modify the covenants, terms, and provisions of this Agreement and shall have no force or
effect thereon.
SECTION 28. CONFLICT OF INTEREST.
The CONTRACTOR warrants that the CONTRACTOR has not employed or retained any
company or person, other than a bona fide employee working solely for the CONTRACTOR, to
solicit or secure this Agreement, and that the CONTRACTOR has not paid or agreed to pay any
person, company, corporation, individual, or firm any fee, commission, percentage, gift, or any
other consideration, contingent upon or resulting from the award or making of this Agreement.
For the breach or violation of this Paragraph, the AUTHORITY shall have the right to terminate
this Agreement immediately, without liability and without regard to the notice requirements of
Section 6 hereof.
SECTION 29. PUBLIC ENTITY CRIMES.
As required by section 287.133, Florida Statutes, the CONTRACTOR warrants that it is
not on the convicted contractor list for a public entity crime committed within the past thirty six
(36) months. The CONTRACTOR further warrants that it will neither utilize the services of, nor
contract with, any supplier, sub-contractor, or consultant in connection with this Agreement for a
period of thirty six (36) months from the date of being placed on the convicted contractor list.
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SECTION 30. EMPLOYMENT ELIGIBILITY VERIFICATION (E-VERIFY)
In accordance with State of Florida, Office of the Governor, Executive Order 11-116
(superseding Executive Order 11-02; Verification of Employment Status), in the event
performance of this Agreement is or will be funded using state or federal funds, the
CONTRACTOR must comply with the Employment Eligibility Verification Program (“E-Verify
Program”) developed by the federal government to verify the eligibility of individuals to work in
the United States and 48 CFR 52.222-54 (as amended) is incorporated herein by reference. If
applicable, in accordance with Subpart 22.18 of the Federal Acquisition Register, the
CONTRACTOR must (1) enroll in the E-Verify Program, (2) use E-Verify to verify the
employment eligibility of all new hires working in the United States, except if the CONTRACTOR
is a state or local government, the CONTRACTOR may choose to verify only new hires assigned
to the Agreement; (3) use E-Verify to verify the employment eligibility of all employees assigned
to the Agreement; and (4) include these requirement in certain subcontract, such as construction.
Information on registration for and use of the E-Verify Program can be obtained via the internet at
the Department of Homeland Security Web site: http://www.dhs.gov/E-Verify.
SECTION 31. JOINT AUTHORSHIP
This Agreement shall be construed as resulting from joint negotiation and authorship. No
part of this Agreement shall be construed as the product of any one of the parties hereto.
SECTION 32. EQUAL OPPORTUNITY EMPLOYER
The CONTRACTOR is an Equal Opportunity Employer and will comply with all equal
opportunity employment laws. The CONTRACTOR will further ensure that all sub-contractors it
utilizes in providing the services required hereunder will comply with all equal opportunity
employment laws.
SECTION 33. AUDITING, RECORDS, AND INSPECTION
In the performance of this Agreement, the CONTRACTOR shall keep books, records, and
accounts of all activities, related to the Agreement, in compliance with generally accepted
accounting procedures. Throughout the term of this Agreement, books, records, and accounts
related to the performance of this Agreement shall be open to inspection during regular business
hours by an authorized representative of the AUTHORITY and shall be retained by the
CONTRACTOR for a period of three years after termination or completion of the Agreement, or
until the full Authority audit is complete, whichever comes first. The AUTHORITY shall retain
the right to audit the books during the three-year retention period. All books, records, and accounts
related to the performance of this Agreement shall be subject to the applicable provisions of the
Florida Public Records Act, chapter 119, Florida Statutes. The AUTHORITY also has the right
to conduct an audit within sixty (60) days from the effective date of this Agreement to determine
whether the CONTRACTOR has the ability to fulfill its contractual obligations to the satisfaction
of the AUTHORITY. The AUTHORITY has the right to terminate this Agreement based upon its
findings in this audit without regard to the termination provision set forth herein.
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SECTION 34. PROJECT MANAGERS
The AUTHORITY and the CONTRACTOR have identified individuals as Project
Managers, listed below, who shall have the responsibility for managing the work performed under
this Agreement. The person or individual identified by the CONTRACTOR to serve as its Project
Manager for this Agreement, or any replacement thereof, is subject to prior written approval and
acceptance by the AUTHORITY. If the AUTHORITY or CONTRACTOR replace their current
Project Manager with another individual, an amendment to this agreement shall not be required.
The AUTHORITY will notify the CONTRACTOR, in writing, if the current AUTHORITY
Project Manager is replaced by another individual.
A. The AUTHORITY Project Manager’s contact information is as follows:
Kimberly I. Richardson, Chief Human Resources Officer
Human Resources
Clay County Utility Authority
3176 Old Jennings Road
Middleburg, Florida 32068
904-213-2437
krichardson@clayutility.org
B. The CONTRACTOR Project Manager’s contact information is as follows:
Melanie Stegall, GBDS, VBS – Employee Benefits Advisor
Risk Management Associates, Inc. dba Public Risk Insurance Advisors
300 North Beach Street
Daytona Beach, Florida 32114
386-239-5779
MStegall@bbpria.com
SECTION 35. COUNTERPARTS, ELECTRONIC TRANSACTION, AND
ELECTRONIC SIGNATURES.
This Agreement may be electronically executed by the Parties in counterparts up to but not
exceeding the number of parties, each of which shall be deemed an original and all of which, taken
together, shall constitute one agreement. Each Party may deliver its executed signature page by
email transmission to the other Parties at the email addresses set forth herein. Delivery shall be
effective and complete upon completion of such email transmission. The Parties agree that
electronic signatures may be use in the execution of this Agreement in accordance with Parts I and
II of Chapter 668, Florida Statutes.
SECTION 36. SIGNATORY.
Each signatory below represents and warrants that he or she has the full power and is duly
authorized, by their respective Party, to enter into and perform under this Agreement. Such
signatory further represents that he or she has fully reviewed and understands the terms and
Request for Proposals
For Benefits Administrative Services
RFP# 2020/2021-A9
Clay County Utility Authority
3176 Old Jennings Road, Middleburg, Florida, 32068
Prepared by:
Angelia Wilson
Procurement Manager
904-213-2447
awilson@clayutility.org
Submission Due Date: Thursday, April 29, 2021 by 2:00 EST
Table of Contents
Introduction and Executive Summary ................................................................................................................3
Purpose.........................................................................................................................................................4
Summary of Key Dates.....................................................................................................................................4
Submission Details ..........................................................................................................................................4
INSTRUCTIONS FOR SUBMITTING PROPOSALS .................................................................................................4
SUBMISSION QUESTIONS AND CLARIFICATIONS ..................................................................................5
CONE OF SILENCE ........................................................................................................................................5
ADDENDA TO THE SOLICITATION ...................................................................................................................6
RECEIPT OF ADDENDA..................................................................................................................................6
DIVERSITY ACHIEVEMENT .............................................................................................................................6
EXAMINATION OF PROPOSAL DOCUMENTS ....................................................................................................6
SHAM OR COLLUSIVE PROPOSALS..................................................................................................................6
LATE PROPOSALS ........................................................................................................................................7
PROPOSAL OPENING....................................................................................................................................7
SPECIAL ACCOMODATIONS ...........................................................................................................................7
PROPOSAL PRICING .....................................................................................................................................7
NOTICE OF AWARD......................................................................................................................................7
CONTRACTUAL AGREEMENT .........................................................................................................................7
INITIAL CONTRACT PERIOD AND OPTION OF RENEWAL .....................................................................................7
EXERCISE OF OPTION TO EXTEND TERM OF CONTRACT .....................................................................................8
ASSIGNMENT..............................................................................................................................................8
METHOD OF PAYMENT ................................................................................................................................8
DISCLOSURE OF PROPOSAL CONTENT ............................................................................................................8
CONFLICT OF INTEREST ................................................................................................................................8
General Terms and Conditions ..........................................................................................................................9
Scope of Services and Related Requirements .................................................................................................... 21
Proposal Preparation and Submission Instructions............................................................................................. 23
Selection Criteria .......................................................................................................................................... 25
Insurance Requirements ................................................................................................................................ 27
Required Documentation ............................................................................................................................... 28
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Introduction and Executive Summary
Since 1970, this Utility has provided the citizens of Clay County water and wastewater service. In December
1992, the Clay County Board of County Commissioners acquired the assets of Kingsley Service Company.
This acquisition opened a new chapter in the history of the Clay County Utility Authority (CCUA).
CCUA operates and maintains water, wastewater, and reclaimed facilities in Clay County, Florida, and
adjacent counties. There are 18 commercial customers in Duval County served by CCUA.
CCUA was created as an independent special district by Chapter 94-491, Laws of Florida, Special Acts of
1994 and governed by a seven-member Board known as the Board of Supervisors. CCUA currently serves
more than 50,000 customers in Clay County, Florida. The forecasted population in Clay County will double
in growth through 2030.
Mission
Develop an environmentally and economically sustainable utility that is focused on protecting the public
health, safety, and general welfare by providing clean and safe potable water, wastewater, and reclaimed water
services through conservation of natural resources, diversification of the water supply portfolio, and
recruitment and development of a highly trained professional staff prepared for tomorrow’s challenges.
Vision
Provide long term sustainable value to our current and future customers by conserving and protecting natural
resources while providing clean, safe, and economical water, wastewater, and reclaimed water services.
RFP#2020/2021-A9 Benefits Administrative Services Page 2 of 40
Purpose
Clay County Utility Authority “CCUA” is requesting proposals from qualified firms to secure a contract for
Benefits Administrative Services. CCUA seeks an experienced firm to provide integrated benefits
administration solutions including an employee online enrollment system for approximately 172 benefit eligible
CCUA employees.
CCUA’s current benefit providers are listed below:
BENEFIT TYPE CURRENT PROVIDER
Fully-Insured Health Plan Florida Blue
Dental Plan Florida Combined Life
Vision Plan Humana
Life Insurance and Short & Long Term Disability UsAble
Flexible Spending & Health Savings Accounts Health Equity
Supplemental Allstate
Summary of Key Dates
Pre-Proposal Meeting Thursday, April 8, 2021 at 3:00 PM EST Deadline for Written Questions Thursday, April 15, 2021 at 12:00 PM EST Response to Questions Tuesday, April 20, 2021 at 4:00 PM EST Deadline for Submittal Thursday, April 29, 2021 at 2:00PM EST
Presentations/ Interviews Wednesday, May 7, 2021 (tentative)
Issue Notice of Intent to Award Wednesday, May 19, 2021
Submission Details
INSTRUCTIONS FOR SUBMITTING PROPOSALS
The complete Solicitation package will be available Wednesday, March 24, 2021, and can be obtained by
visiting https://clayutility.bonfirehub.com/portal/?tab=openOpportunities. Submissions must be uploaded to the
CCUA Bonfire Procurement Portal by:
Thursday, April 29, 2021
No later than 2:00pm EST
Submissions must be posted to the Clay County Utility Authority Bonfire Procurement Portal (hardcopies will
not be accepted).
https://clayutility.bonfirehub.com
RFP#2020/2021-A9 Benefits Administrative Services Page 3 of 40
Submissions must be posted to the above web address no later than 2:00PM Eastern Standard Time on
Thursday, April 29, 2021. Clay County Utility Authority assumes no responsibility for submittals received
after the state time and date, or at any office or location oth er than the web address specified above. Late
responses will not be accepted.
The right is reserved by CCUA at its discretion to reject any or all proposals or parts thereof. Proposals may be
rejected if they show any omission, alteration of form, additio ns or deductions not called for, conditional or
uninvited alternate proposals, or irregularities of any kind; however, the Authority also reserves the right to
waive any informality on proposals.
SUBMISSION QUESTIONS AND CLARIFICATIONS
All questions or concerns regarding this Solicitation must be submitted on the CCUA Bonfire Procurement
portal https://clayutility.bonfirehub.com prior to 12:00 (EST) on the date listed in the Summary of Key Dates
table. Late questions may be answered at the discretion of CCUA. All responses to questions will be uploaded
to the Portal and issued in an Addendum on Tuesday, April 20, 2021. The addendum is provided to all Bidders
who have obtained the Solicitation package.
A Pre-Proposal meeting will be held virtually on Thursday, April 8, 2021 at 3:00 PM, EST at the following
location:
RFP#2020/2021-A9 Benefits Administrative ServicesThu, Apr 8, 2021 3:00 PM - 3:30 PM (EST)
Please join my meeting from your computer, tablet or smartphone.
https://global.gotomeeting.com/join/405205549
You can also dial in using your phone.
United States: +1 (312) 757-3121
Access Code: 405-205-549
Join from a video-conferencing room or system.
Dial in or type: 67.217.95.2 or inroomlink.goto.com
Meeting ID: 405 205 549
Or dial directly: 405205549@67.217.95.2 or 67.217.95.2##405205549
New to GoToMeeting? Get the app now and be ready when your first meeting starts:
https://global.gotomeeting.com/install/405205549
Attendance at the meeting is strongly encouraged. The meeting will be a primary opportunity for Respondent
to ask questions, express any concerns that they may have about the project, and become familiar with the
project site and existing conditions.
CONE OF SILENCE
From the date of the initial publication of this Solicitation until the contract is awarded and the protest period
has expired, all communication relating to this Solicitation shall be sent to procurement@clayutility.org.
All other communication to the CCUA or any CCUA employee, Supplier, Evaluation Committee Member, or
Board Member concerning this Solicitation is prohibited. CCUA will disqualify any Bidder who makes or
causes to be made, directly or indirectly, any improper communication. Nothing contained in this paragraph
RFP#2020/2021-A9 Benefits Administrative Services Page 4 of 40
prohibits CCUA personnel from initiating contact with a Bidder and subsequent communication related
thereto for the purpose of obtaining additional information that is related to the Solicitation.
CCUA is subject to the Florida Public Records Law and the Government in the Sunshine Act, as set forth in
Florida Statutes Chapters 119 and 286; as such, most communications to the CCUA are subject to public
disclosure, and the selection meeting(s), if any, will be open to the public.
ADDENDA TO THE SOLICITATION
A. CCUA reserves the right to amend this solicitation at any time prior to the deadline for submitting
Proposals. If it becomes necessary to revise any part of this RFP, notice of the revision will be posted
on Bonfire at https://clayutility.bonfirehub.com. If, in the opinion of the Procurement Manager, the
deadline for the submission of proposals does not provide sufficient time for consideration of any
Addendum, then such deadline may be extended at the discretion of the CCUA.
B. It shall be the responsibility of each Offeror to check Bonfire (https://clayutility.bonfirehub.com) prior
to submission of a proposal hereunder to determine whether any Addenda have been issued in
connection with this procurement. Notwithstanding any provision to the contrary, the failure of any
Offeror to receive any Addenda shall neither constitute grounds for withdrawal of its proposal nor
relieve such Offeror from any responsibility for incorporating the provisions of any Addenda in its
proposal.
RECEIPT OF ADDENDA
Receipt of any addenda issued must be acknowledged on the addenda and returned with proposal. Failure to
acknowledge your receipt of any addenda may result in your proposal being considered non-responsive.
DIVERSITY ACHIEVEMENT
CCUA will affirmatively ensure that, in any agreement entered pursuant to this advertisement, minority and
disadvantaged business enterprise will be afforded the full opportunity to submit in response to this invitation.
CCUA will not discriminate based on race, color, national origin, or sex in consideration for an award.
CCUA encourages the recruitment and utilization of small, minority, women, and service-disabled veteran
businesses. The Authority, its Suppliers and Sub-Contractors should take all necessary and reasonable steps to
ensure that small, minority, and service-disabled veteran businesses can compete for and perform work for
CCUA in a nondiscriminatory environment.
EXAMINATION OF PROPOSAL DOCUMENTS
It is the responsibility of each Offeror before submitting a proposal:
• To examine thoroughly the proposal Documents
• To study and carefully correlate the Offeror’s knowledge and observations of the proposal
Documents and such other related data
• To promptly notify CCUA of all conflicts, errors, ambiguities, or discrepancies which the Offeror
has discovered in or between the proposal Documents and such other related documents or
conditions.
SHAM OR COLLUSIVE PROPOSALS
The proposal of any Offeror or Offerors who engage in collusive bidding shall be rejected. Any Offeror who
submits more than one proposal in such a manner as to make it appear that the proposals submitted are on a
competitive basis from different parties shall be considered a collusive Offeror.
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LATE PROPOSALS
Submissions or unsolicited amendments to proposals arriving after the closing date and time will not be
considered. The Procurement Portal will not accept any submissions or questions after the scheduled time and
date of closing.
PROPOSAL OPENING
At the time fixed for the opening of responses to a Bid or Proposal, all Bid, or Proposals will be opened, and
the names of the Bidders or Offerors and the amount shall be read aloud and made readily available to the
public. If a public opening of a Request for Proposal is held, only the names of the Bidders or Offerors will be
read publicly.
SPECIAL ACCOMODATIONS
CCUA encourages any person with a qualified disability requiring special accommodations at a Pre-Proposal
Meeting, public meetings, and/or Bid opening to notify the Procurement Department at
procurement@clayutility.org or 904-213-2447 at least five (5) business days prior to the event.
PROPOSAL PRICING
In the event there is a discrepancy between the unit prices and the extended totals, the unit prices shall govern.
In the event there is a discrepancy between the prices written in words and written in figures, the prices written
in words shall govern. In case of error in the Offeror’s extended summation, the computed total of CCUA shall
govern.
NOTICE OF AWARD
Public notice of award will be posted in the CCUA lobby. Notice of award will also be posted on Bonfire at
https://clayutility.bonfirehub.com.
CONTRACTUAL AGREEMENT
A. An Agreement will be required for this service and must be signed by the Offeror prior to execution
by CCUA, whereupon the Offeror becomes the Contractor upon approval. The agreement shall
consist of the agreement contract, the RFP, and the successful Offeror’s proposal, together with
any negotiated terms and pricing. The Offeror shall inform himself in full of the conditions relating
to the performance of the Agreement. Failure to do so shall not relieve the successful Offeror of
his obligations to furnish services, materials, and other services necessary to carry out the
provisions of this solicitation and resulting Agreement.
B. The Offeror expressly understands and acknowledges that all documents related to the services
provided herein may be considered records that are subject to examination in accordance with
Florida’s Public Record Law. The Offeror expressly agrees to comply with all requirements related
to said law and to hold CCUA harmless for any such disclosure related to Florida’s Public Records
Law.
C. The Agreements must be properly executed by all parties to be considered binding.
D. In conjunction with the Agreement, a Purchase Order(s) shall be issued by CCUA prior to the start
of any project, service, or work by the Offeror.
INITIAL CONTRACT PERIOD AND OPTION OF RENEWAL
The successful Offeror shall be awarded a contract to supply the goods/services for a three (3) year period with
the option to renew the contract for one (1) additional two (2) year period. The option to renew will only be
exercised upon mutual written agreement and with all original terms, conditions, and unit prices adhered to.
Any renewal will be subject to appropriation of funds by CCUA.
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EXERCISE OF OPTION TO EXTEND TERM OF CONTRACT
If CCUA wishes to enter an option period, CCUA shall request a written statement of desire to enter an
extension of the performance period from the Offeror.
ASSIGNMENT
The successful Offeror will not be permitted to assign its contract with CCUA, or to subcontract any of the work
requirements to be performed, without obtaining prior written approval from CCUA.
METHOD OF PAYMENT
The Contractor shall be paid monthly for work previously performed. Invoices shall contain the RFP Number,
Title, and the Purchase Order Number under which the purchase was awarded and provide sufficient detail to
demonstrate compliance with the terms of the contract. Invoices shall be emailed to
accountspayable@clayutility.org.
DISCLOSURE OF PROPOSAL CONTENT
All material submitted becomes the property of CCUA and may be returned only at CCUA’s option. CCUA has
the right to use any or all ideas presented in any reply to this proposal. Selection or rejection of any proposal
does not affect this right.
CCUA is governed by the Public Record Law, Chapter 119, Florida Statutes. Only trade secrets as defined in
Section 812.081 (1)(c), Florida Statutes or financial statements required by the Authority as defined in
119.071(1)(C), Florida Statutes (hereinafter “Confidential Materials”), may be exempt from disclosure. If an
Offeror submits Confidential Materials, the information must be segregated, accompanied by an executed Non-
Disclosure Agreement for Confidential Materials (located within Required Information on the Bonfire
Portal) and each pertinent page must be clearly labeled “confidential” or “trade secret.” The Authority will not
disclose such Confidential Materials, subject to the conditions detailed within the Agreement, which is attached
to this solicitation. When such segregated and labeled materials are received with an executed Agreement, the
Authority shall execute the Agreement and send the Offeror a “Receipt for Trade Secret Information”.
CONFLICT OF INTEREST
The Firm represents that to the best of their knowledge and belief they presently have no interest and shall
acquire no interest, either direct or indirect, which would conflict in any manner with he performance of services
required hereunder. The Firm further agrees that no person having such interest shall be emp loyed or engaged
by the Firm for said performance. If the Firm, for themselves and on behalf of their sub-vendors, are about to
engage in representing another client, which they in good faith believe could result in a conflict of interest with
the work being performed by the Firm or sub-vendor under this Agreement, then they will promptly bring such
conflict of interest to the Authority’s attention, in writing. The Authority will advise the Firm, in writing, within
ten (10) business days if such a conflict of interest exists. If the Authority determines that there is a conflict of
interest, Firm or sub-contractor shall decline the representation upon written notice by CCUA. If CCUA,
determines that there is no such conflict of interest, then CCUA shall give written consent to such representation.
If the Firm or sub-contractor accepts such representation, without obtaining the Authority’s prior written
consent, and if CCUA subsequently determines that there is a conflict of interest between such representation
and the work being performed by the Firm or sub-contractor under this Agreement, then the Firm and sub-
contractor agrees to promptly terminate such representation. The Firm shall require each of such sub-contractor
to comply with the provisions of this Section. Should the Firm fail to advise or notify CCUA as provided herein
above of representation which could, or does, result in a conflict of interest, or should the Firm fail to discontinue
such representation, CCUA may consider such failure as justifiable cause to terminate the Agreement.
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General Terms and Conditions
BIDDER OR OFFEROR: THESE CONDITIONS AND INSTRUCTIONS TO BIDDERS shall be binding on
all Bidders or Offerors and, except to the extent otherwise provided, are incorporated by reference in all contracts
resulting from any written Request for Quotation (RFQ), Invitation for Bid (IFB) or Request for Proposal (RFP)
issued, collectively the ("Request"), to which they are attached and response thereto (Bid) or (Proposal). Use
of the term "bid" in these General Terms and Conditions and Instructions to Bidders or Offeror is not intended
to be restricted to an IFB and shall also affect written RFQ’s or RFP’s.
These instructions are standard for all contracts for commodities or services issued through the Clay County
Utility Authority (the "Authority") Procurement Department. The Authority may delete, supersede, or modify
any of these standard instructions for a particular contract by indicating such change in the IFB Special
Conditions, Technical Specifications, Instructions, Proposal Pages, Addenda, and Legal Advertisement.
PART I - CONDITIONS OF BIDDING
1.1 CLARIFICATION OF TERMS: If any Bidder or Offeror has questions about the specifications or
other solicitation documents in connection with an RFQ, RFP or IFB, the prospective Bidder or Offeror
must contact the Procurement Department no later than five (5) business days prior to the date set for
the opening of Bid or Proposals or receipt of Proposals. Any revisions to the solicitation will be made
only by addendum issued by the Procurement Representative. Notifications regarding specifications
may not be considered if received in less than five (5) business days of the date set for opening of Bid
or Proposals or receipt of Bids or Proposals.
1.2 USE OF AUTHORITY FORM AND TERMS AND CONDITIONS: Failure to submit a solicitation
on the official Authority form provided for that purpose or unauthorized modification of or additions to
any portion of the solicitation documents may be a cause for rejection of the Bid or Proposal. The
Authority reserves the right to decide, on a case-by-case basis, in its sole discretion, whether to reject
any Bid or Proposal which has been modified. The Authority shall not be responsible for any errors or
omissions of the Bidder or Offeror.
The solicitation shall be signed by a representative authorized to legally bind the firm submitting the Bid or
Proposal. By signing the solicitation, the Bidder or Offeror agrees to the terms and conditions of the solicitation
and certifies that it has inspected the job site(s) and shall be deemed to be aware of the conditions under which
the work must be accomplished. Claims, because of failure to inspect the job site, shall not be considered by
the Authority.
1.3 EXCEPTIONS: For purposed of Bid or Proposal evaluation, Bidder or Offeror must indicate any
exceptions, no matter how slight, from the General Terms and Conditions, Special Conditions,
Specifications or Addenda in the space provided on the Bid or Proposal form. No exceptions by a Bidder
or Offeror will be considered or deemed a part of the Bid or Proposal submitted unless such exceptions
are listed in the Bid or Proposal and referenced in the space provided on the Bidder or Offeror proposal
form. If exceptions are not stated or referenced as required, it will be assumed that the product or service
fully complies with the Authority’s terms, conditions, and specifications.
By receiving a Bid or Proposal, the Authority does not necessarily accept any exceptions contained in the Bid
or Proposal. All exceptions submitted are subject to review and approval by the Authority. If any Bid or
Proposal contains material exceptions that, in the Authority’s sole opinion, make that Bid or Proposal
conditional in nature, the Authority reserves the right to reject the Bid or Proposal in its entirety or that part of
the Bid or Proposal which contains material exceptions.
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1.4 NO BID RESPONSE: Offerors electing not to submit a Bid or Proposal in response to this solicitation
should select “No Bid” within the Bonfire Portal https://clayutility.bonfirehub.com. Failure to return the form
may result in your omission from future Bid lists.
1.5 BID OR PROPOSALS FIRM FOR ACCEPTANCE: Bidder or Offeror warrants, by virtue of bidding,
that its Bid or Proposal and the prices quoted in its Bid or Proposal will be firm for acceptance by the
Authority for a period of ninety (90) days from the date of Bid or Proposal opening unless otherwise stated
in the solicitation.
1.6 LATE BID OR PROPOSAL & MODIFICATION OF BID OR PROPOSAL: Any Bid or Proposal
modification received at the office designated in the solicitation after the exact time specified for receipt of
the Bid or Proposal or the modification is considered a late Bid or Proposal modification and may not be
considered.
The Authority is not responsible for delays in delivery of Bid or Proposal. It is the sole responsibility of the
Bidder or Offeror to ensure its Bid or Proposal reaches the CCUA Procurement Department by the designated
date and hour.
a. The official time used in the receipt of Bid or Proposals is that time stamped by the automatic time
stamp within the Bonfire Platform. No submission will be accepted after the designated submission
date.
b. If the Authority closed its office due to inclement weather or for safety reasons, the time for Bid or
Proposals opening or receipt of Bid or Proposals will be extended to the nex t business day, same
time.
c. Offerors may modify their Bid or Proposals prior to the date and time specified for the bid opening.
Facsimile and hard copy modification of Bid or Proposals shall not be accepted unless the solicitation
allowed submittal by facsimile.
1.7 WITHDRAWAL OF BID OR PROPOSALS: A Bidder or Offeror for a contract may request withdrawal
of his or her Bid/Proposal under the following circumstances:
a. Bid or Proposals may be withdrawn on written requests from the Bidders or Offerors received at the
address shown in the solicitation prior to the time of acceptance.
b. Requests for withdrawal of Bid or Proposals after opening of such Bid or Proposals but prior to
award shall be transmitted to the Authority’s Procurement Department, in writing, accompan ied by
full documentation supporting the request. If the request is based on a claim of error, documentation
must show the basis of error. Such documentation may take the form of supplier quotations, Offeror
work sheets, etc. If bid bonds were tendered with the Bid/Proposal the Authority may exercise its
right of collection.
c. Bid or Proposals shall not be withdrawn after award of a contract or issuance of a purchase order.
No plea or claim of mistake in the solicitation or resulting contract or purchase order shall be
available as a defense in any legal proceeding brought upon a contract or purchase order awarded to
a Bidder/Offeror because of the breach or nonperformance of such contract or purchase order.
1.8 ERROR IN BID OR PROPOSALS: When an error is made in extending total prices, the unit bid price
will govern. Erasures in Bid or Proposals must be initialed by the Bidder or Offeror. Carelessness in quoting
prices or in preparation of bid or otherwise, will not relive the Bidder or Offeror of its respon sibilities to
provide the good or service. Bidders or Offerors are cautioned to recheck their Bid or Proposal for possible
RFP#2020/2021-A9 Benefits Administrative Services Page 9 of 40
errors. Errors discovered after public opening cannot be corrected and the Bidder or Offeror will be required
to perform if his or her Bid or Proposal is accepted.
1.9 IDENTIFICATION OF PROPOSAL ENVELOPE: The signed Bid must be uploaded to the Bonfire
website by the due date and time. Sealed proposal envelope is not required. The sealed proposal will be
submitted electronically.
1.10 PRICING
a. Bidder or Offeror warrants by virtue of bidding that prices, terms, and conditions quoted in its Bid
or Proposal will be firm for acceptance for a period of ninety (90) days from the date of Bid or
Proposal opening unless otherwise stated by the Authority or Bidder or Offeror.
b. Prices should be stated in units of quantity as specified in the Bid/Proposal form.
c. Life cycle cost analysis may be considered when determining the lowest responsive and responsible
Bid or Proposal. This analysis may consider, in addition to purchase price, any proposed upward or
downward escalator clauses proposed for the initial contract term and any potential renewal terms;
operating and related costs over the life of the item including maintenance, down time, energy costs,
salvage value, etc.
d. Bid or Proposal prices shall be fore complete installation ready for the Authority’s use and shall
include all applicable freight and installation charges; extra charges not allowed.
e. When an annual contract is not requested by the Authority and the Bid or Proposal is for products or
services to be delivered on a one-time only or staggered basis, only firm pricing shall be given
consideration. General terms such as "price in effect at time of delivery" shall not be considered.
1.11 TIE BID OR PROPOSALS: A Drug Free Workplace Statement must be completed, signed, and
returned prior to award of Bid or Proposal. This form will be used whenever two or more Bid or Proposals that
are identical with respect to price, quality, delivery, and service are received; a Bid or Proposal received from a
business that certifies that it has implemented a drug-free workplace program shall be given preference in the
award process.
1.12 TAX EXEMPTION: The Authority is exempt from Federal excise and State sales taxes. Tax exemption
number is 85-8012536416C-5 and is also stipulated on our Purchase Orders.
1.13 LICENSES, PERMITS, AND FEES: All Bid or Proposals submitted shall have included a list of any
business and professional licenses, permits, or fees required by the Authority.
PART II - DEFINITIONS/ORDER OF PRECEDENCE
2.1 BIDDING DEFINITIONS: The Authority will use the following definitions in its these CONDITIONS
AND INSTRUCTIONS TO BIDDERS OR OFFERORS and in its general conditions, special
conditions, technical specifications, instructions to Bidders or Offerors, addenda, and any other
document used in the bidding process:
a. INVITATION FOR BID – (IFB) when the Authority is requesting Bids from qualified Bidders.
b. REQUEST FOR PROPOSAL – (RFP) when the Authority is requesting proposals from qualified
Offerors.
c. REQUEST FOR QUOTATION – (RFQ) when the Authority is requesting quotes from qualified
Bidders or Offerors.
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d. BID – a price and terms quote received in response to an IFB.
e. PROPOSAL – a proposal received in response to an RFP or RFQ.
f. BIDDER – person or firm submitting a Bid.
g. OFFEROR – person or firm submitting a Proposal.
h. RESPONSIVE BIDDER – a person whose bid conforms in all material respects to the terms and
conditions included in the IFB.
i. RESPONSIBLE BIDDER – a person who has the capability in all respects to perform in full the
contract requirements, as stated in the IFB, and the integrity and reliability that will assure good faith
performance.
j. SUCCESSFUL OFFEROR – a successful bidder or offeror who is awarded a purchase order, award
contract, blanket purchase order agreement, or term contract to provide goods or services to the
Authority.
k. CONTRACT – a written agreement for the procurement or disposal of equipment, materials,
supplies, or services but not for public construction.
l. PUBLIC ENTITY CRIME and CONVICTED OFFEROR LIST have the meanings set out in Section
287.133, Florida Statutes.
2.2 SPECIAL CONDITIONS: All Special Conditions contained in this IFB that may be in variance or
conflict with these General Conditions shall have precedence over these General Conditions, except as
otherwise provided. If no changes or deletions to the General Conditions are made in the Special
Conditions, then the General Conditions shall prevail in their entirety.
PART III - SPECIFICATIONS
3.1 BRAND NAME OR EQUAL: When the technical specifications call for a brand name, manufacturer,
make, model, or offeror catalog number with acceptance of APPROVE EQUAL, it shall be for the
purpose of establishing a level of quality and features desired and acceptable to the Authority. In such
cases, the Authority will be receptive to any unit that would be considered by qualified Authority
personnel as an approved equal. In that the specified make and model represent a level of quality and
features desired by the Authority; the Bidder or Offeror must state clearly in its bid any exceptions from
those specifications. It is the Bidder’s or Offeror's responsibility to provide adequate information in its
Bid or Proposal, to enable the Authority to ensure that the Bid or Proposal meets the required criteria. If
adequate information is not submitted with the Bid or Proposal, it may be rejected. The Authority will
be the sole judge in determining if the item Bid or Proposal qualifies as an approved equal.
3.2 FORMAL SPECIFICATIONS: When a solicitation contains a specification which states no
substitutes, no deviation there from will be permitted and the Bidder or Offeror will be required to furnish
articles in conformity with that specification.
3.3 EQUIPMENT STANDARDS: Any equipment delivered shall be standard new equipment, latest
model, the best quality, and the highest-grade work, except as otherwise specifically stated in the Bid or
Proposal. Any part of nominal appurtenances which are usually provided in the manufacturer’s stock
model shall be furnished.
3.4 ANNUAL CONTRACT USAGE REQUIREMENTS: Whenever a Bid or Proposal is sought seeking
a source of supply for an annual contract for products or services, the quantities or usage shown are
estimates only. No guarantee or warranty is given or implied by the Authority as to the total amount that
may not be purchased from any resulting contract. These quantities are for Bidder or Offerors
information only and will be used for tabulation and presentation of Bid or Proposals
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PART IV - BIDDING AND AWARD PROCEDURES
4.1 AWARD OR REJECTION OF BID OR PROPOSALS: The Authority reserves the right to accept or
reject any or all Bid or Proposals and to waive minor irregularities or variations to specifications
contained in Bid or Proposals, and minor irregularities in the bidding process. The Authority reserves
the right to award the contract on a split order basis; lump sum basis, individual item basis, or such
combination as shall best serve the interest of the Authority. The Authority reserves the right to make
an award to the responsive and responsible bidder whose product or service meet the terms, conditions,
and specifications of the IFB and whose Bid or Proposal is considered to best the Authority’s interest.
In determining the responsiveness of the offer and the responsibility of the Bidder or Offeror, the
following shall be considered:
a. the ability, capacity and skill of the Bidder or Offeror to perform as required
b. whether the Bidder or Offeror can perform promptly, or within the time specified, without delay or
interference
c. the character, integrity, reputation, judgment, experience and efficiency of the bidder
d. the quality of past performance by the Bidder or Offeror
e. the previous and existing compliance by the Bidder or Offeror with related laws, ordinances,
administrative rules and orders and resolutions and requirements of the Authority.
f. the sufficiency of the Bidder’s or Offeror's financial resources
g. the availability, quality and adaptability of the Bidder’s or Offeror's supplies or services to the
required use
h. the ability of the Bidder or Offeror to provide future maintenance, service or parts
i. the number and scope of conditions attached to the Bid or Proposal.
If the IFB or RFQ provides for a contract trial period, the Authority reserves the right, in the event the selected
Bidder or Offerors does not perform satisfactorily, to award for a trial period to the next ranked Bidder or Offeror
or to award a contract to the next ranked Bidder or Offeror, if that Bidder or Offeror has successfully provided
services to the Authority in the past. This procedure to continue until a Bidder or Offeror is selected or the
contract is re-bid, at the sole option of the Authority.
4.2 QUALIFICATIONS OF BIDDERS OR OFFERORS: The Authority may make such reasonable
investigations as it deems proper and necessary to determine the ability of the Bidder or Offeror to
perform the work/furnish the item(s) and the Bidder or Offeror or shall furnish to the Authority all such
information and data for this purpose as may be requested. The Authority reserves the right to inspect
Bidder’s or Offeror's physical facilities prior to award to satisfy questions regarding the Bidder’s or
Offeror capabilities. The Authority further reserves the right to reject any Bid or Proposal if the evidence
submitted by or investigations of such Bidder or Offeror is properly qualified to carry out the obligations
of the contract and to complete the work/furnish the item(s) contemplated herein.
4.3 USE OF OTHER GOVERNMENTAL CONTRACTS: The Authority reserves the right to reject any
part of all any Bid or Proposal received and utilize other available governmental contracts, is such action
is in its best interest.
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4.4 PUBLIC ENTITY CRIMES: "A person or affiliate who has been placed on the convicted Offeror list
following a conviction for a public entity crime may not submit a Bid or Proposal on a contract to provide
any goods or services to a public entity, may not submit a Bid or Proposal on a contract with a public
entity for the construction or repair of a public building or public work, may not submit Bid or Proposals
on leases of real property to a public entity, may not be awarded or perform works as a successful Offeror,
supplier, sub successful Offeror, or consultant under a contract with any public entity, and may not
transact business with any public entity in excess of the threshold amount provided in Section 287.017,
for CATEGORY TWO for a period of 36 months from the date of being placed on the convicted Offeror
list."
4.5 PUBLIC RECORDS: Florida law provides that municipal records shall at all times is open for personal
inspection by any person. Section 119.01, F.S., the Public Records Law. Sealed Bid or Proposals
received by the Authority in connection with an IFB, RFP or RFQ shall be deemed to be public records
subject to public inspection upon award, recommendation for award, or 10 days after bid opening,
whichever occurs first. However, certain exemptions to the public records law are statutorily provided
for in Section 119.07, F.S. If the Bidder or Offeror believes any of the information contained in its
response is exempt from the Public Records Law, and then the Bidder or Offeror must in his or her
response specifically identify the material which is deemed to be exempt and cite the legal authority for
the exemption, otherwise, the Authority will treat all materials received as non-exempt. The Authority’s
determination of whether an exemption applies shall be final, and the Bidder or Offeror agrees to defend,
indemnify, and hold harmless the Authority and the Authority’s officers, employees and agents, against
any loss or damages, including but not limited to attorneys’ fees, incurred by any person or entity as a
result of the Authority’s treatment of records as public records.
4.6 PROHIBITION OF INTEREST: No member, officer, agent, or employee of the Authority, either for
himself or as agent for anyone else or as a stockholder or owner in any other legal entity, shall participate
in or benefit directly or indirectly from any sale, purchase, lease, contract or other transaction entered
into by the Authority. No contract will be awarded to a bidding firm in violation of the foregoing
provision or in violation of Part III of Chapter 112, Florida Statutes. Any firm in which any member of
the Board of Supervisors of the Authority or any officer or employee of the Authority or such individual’s
spouse or child is an officer, partner, director or proprietor or in which any such individual or any
combination of them has a material interest as defined in Part III of Chapter 112, Florida Statutes, must
disclose such interest and must fully comply with state law, including the Authority’s governing act and
Part III of Chapter 163, Florida Statutes and may be precluded from obtaining an award.. Bidders or
Offerors must disclose any such affiliation or material interest. Failure to disclose any such affiliation
or material interest will result in disqualification of the Bidder or Offeror and removal of the Bidder or
Offeror from the Authority’s Bidder’s or Offeror's list and prohibition from engaging in any business
with the Authority.
PART V - BONDS AND INSURANCE
5.1 PERFORMANCE BOND/IRRECOVABLE LETTER OF CREDIT: If a performance bond or
irrevocable letter of credit is required in the Special Conditions, the Successful Offeror shall within
fifteen (15) working days after notification of award, furnish to the Authority a performance bond or an
unconditional irrevocable letter of credit payable to the Clay County Utility Authority, in the face amount
specified in the Special Conditions as surety for faithful performance under the terms and conditions of
the contract. If the bond is on an annual coverage basis, renewal for each succeeding year shall be
submitted to the Authority thirty (30) days prior to the termination date of the existing performance bond.
The performance bond must be executed by a surety company of recognized standing, authorized to do
business in the State of Florida and having a resident agent. If a letter of credit is chosen, it must be in
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a form acceptable to the Authority, drawn on a local bank acceptable to the Authority and issued in favor
of the Authority. If the Bidder or Offeror wishes to use a non-local bank, he must have prior Authority
approval of the requirements to draw against the letter of credit.
5.2 BID SURETY: If Special Conditions require a bid security, it shall be submitted in the amount stated.
A bid security can be in the form of a bid bond, postal money order, cashier’s check, or irrevocable letter
of credit. Bid security will be returned to the unsuccessful Bidders or Offerors as soon as practicable
after opening of Bid or Proposals. Bid security will be returned to the successful Bidder or Offeror after
acceptance of the performance bond or irrevocable letter of credit, if required; acceptance of insurance
coverage, if required; and full execution of contract documents, if required; or conditions as stated in the
Special Conditions.
5.3 LETTERS OF CREDIT: Generally, the Authority will require that the bank be rated A or better by a
major rating agency. If the rating of the bank is downgraded below investment grade or if due to other
circumstances, the Authority has concerns about the credit worthiness of an issuing bank, the Bidder or
Offeror may be required to replace the letter of credit with a letter of credit issued by a different bank
acceptable to the Authority or with a performance bond or, in the case of Bid Security with a letter of
credit issued by a different bank acceptable to the Authority or with a bid bond, postal money order,
cashier's check.
5.4 INSURANCE: If the Successful Offeror is required to go on the Authority property to perform work or
services because of contract award, the Successful Offeror shall assume full responsibility and expense
to obtain all necessary insurance as required by the Authority or specified in the Special Conditions. The
Successful Offeror shall provide to the Authority original certificates and coverage and receive
notification of approval of those certificates by the Authority’s Risk and Safety Manager prior to
engaging in any activities under this contract. The Successful Offeror’s insurance is subject to the
approval of the Authority’s Risk and Safety Manager. The certificates must list the Authority as
ADDITIONAL INSURED and shall have no less than thirty (30) days written notice of cancellation or
material change. Further modification of the insurance requirements may be made at the sole discretion
the Authority’s Risk and Safety Manager if circumstances change or adequate protection of the Authority
is not presented.
PART VI - PURCHASE ORDER AND CONTRACT TERMS
6.1 CONFIDENTIALITY AND OWNERSHIP OF DATA: Any reports, information, intellectual
property, data, drawings, specifications estimate, and summaries given to or prepared or assembled by
the Successful Offeror under the Scope of Work of the contract, shall not be made available to any
individual or organization by the Successful Offeror without prior written approval of the Authority. All
of these items shall become the property of the Authority upon payment of fees as required by the
contract.
6.2 OBLIGATIONS OF THE AUTHORITY AND SUCCESSFUL OFFEROR: Authority: The
Authority shall furnish to the Successful Offeror all available information as listed in the solicitation that
may be useful for the contract work. The Authority shall assist the Successful Offeror in obtaining
access to enter upon public and private property as required to perform the contract work. The Authority
shall designate a representative who shall serve as the principal contact and give direction to the
Successful Offeror throughout the duration of the contract. Successful Offeror: The Successful Offeror
represents that he has, or shall secure at his expense, all personnel, including sub successful Offerors
required to perform and complete the Scope of Work.
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6.3 PAYMENT TERMS: Unless otherwise provided in the solicitation payment will be made thirty (30)
days after receipt of a proper invoice with complete supporting documentation, or thirty (30) days after
receipt of all goods or acceptance of work, whichever is the latter.
6.4 SAFETY STANDARDS: All manufactured items and fabricated assemblies shall comply with
applicable requirements of the Occupational Safety and Health Act of 1970 as amended, and be in
compliance with Chapter 442, Florida Statutes. Any toxic substance listed in Section 38F-41.03 of the
Florida Administrative Code delivered as a result of this order must be accompanied by a completed
Material Safety Data Sheet (MSDS).
6.5 OTHER GOVERNMENTAL ENTITIES: If the Bidder or Offeror is awarded a contract as a result of
this RFP, IFB or RFQ he or she will, if has sufficient capacity or quantities available, provide to other
governmental agencies so requesting, the products or services awarded in accordance with the terms and
conditions of the RFP, IFB or RFQ and resulting contract. Prices shall be F.O.B. delivered to the
requesting agency.
6.6 VERBAL INSTRUCTIONS PROCEDURE: No negotiations, decisions, or actions shall be initiated
or executed by the Successful Offeror as a result of any discussions with any Authority employee. Only
those communications which are in writing from an authorized Authority representative may be
considered. Only written communications from Successful Offerors, which are assigned by a person
designated as authorized to bind the Successful Offeror, will be recognized by the Authority as duly
authorized expressions on behalf of Successful Offerors.
6.7 INDEPENDENT SUCCESSFUL OFFEROR: The Successful Offeror is an independent successful
Offeror under this Agreement. Personal services provided by the Bidder or Offeror shall be employees
of the Successful Offeror and subject to supervision by the Successful Offeror, and not as officers,
employees, or agents of the Authority. Personal policies, tax responsibilities, social security, health
insurance, employee benefits, purchasing policies unless otherwise stated in this solicitation and other
similar administrative procedures applicable to services rendered under this contract shall be those of
the Successful Offeror.
6.8 INDEMNITY/HOLD HARMLESS AGREEMENT: The Successful Offeror agrees to protect,
defend, indemnify, and hold harmless the Authority and its officers, employees and agents from a nd
against any and all losses, penalties, damages, settlements, claims, costs, charges for other expenses,
litigation, whether in court or before an administrative body, or liabilities of every and any kind including
attorney fees, in connection with or arising directly or indirectly out of the work agreed to or performed
by Successful Offeror under the terms of any agreement that may arise due to the bidding process.
Without limiting the foregoing, any and all such claims, suits, or other actions relating to personal injury,
death, damage to property, defects in materials or workmanship, actual or alleged violations of any
applicable Statute, ordinance, administrative order, rule or regulation, or decree of any court shall be
included in the indemnity hereunder.
6.9 TERMINATION FOR CAUSE: If, through any cause, the Successful Offeror shall fail to fulfill in a
timely and proper manner its obligations under this Agreement, or if the Successful Offeror shall violate
any of the provisions of this Agreement, the Authority may upon written notice to the Successful Offeror
terminate the right of the Successful Offeror to proceed under this Agreement, or with such part or parts
of the Agreement as to which there has been default, and may hold the Successful Offeror liable for any
damages caused to the Authority by reason of such default and termination. In the event of such
termination, any completed services performed by the Successful Offeror under this Agreement shall at
the option of the Authority become the Authority’s property and the Successful Offeror shall be entitled
to receive equitable compensation for any work completed to the satisfaction of the Authority, not to
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exceed an amount equal to percentage of the contract price representing the percentage of the work
completed satisfactorily. The Successful Offeror, however, shall not be relieved of liability to the
Authority for damages sustained by the Authority by reason of any breach of the Agreement by the
Successful Offeror and the Authority may withhold any payments to the Successful Offeror for the
purpose of setoff until such time as the amount of damages due to the Authority from the Successful
Offeror can be determined.
6.10 TERMINATION FOR CONVENIENCE: The Authority reserves the right, in its best interest as
determined by the Authority, to cancel contract by giving written notice to the Successful Offeror thirty
(30) days prior to the effective date of such cancellation.
6.11 CANCELLATION FOR UNAPPROPRIATED FUNDS: The obligation of the Authority for payment
to a Successful Offeror is limited to the availability of funds appropriated in a current fiscal period and
continuation of the contract into subsequent fiscal period is subject to appropriation of funds, unless
otherwise authorized by law.
6.12 RECORDS/AUDIT: The Successful Offeror shall maintain during the term of the contract all books of
account, reports and records in accordance with generally accepted accounting practices and standards
for records directly related to this contract. The form of all records and reports shall be subject to the
approval of the Authority’s Auditors. The Successful Offeror agrees to make available to the Authority’s
Auditors during normal business hours all books of account, reports, and records relating to this contract
for the duration of the contract and retain them for a minimum period of three (3) years beyond the last
day of the contract term.
6.13 LAWS/ORDINANCES: The Successful Offeror shall observe and comply with all Federal, state, local
and municipal laws, ordinances rules and regulations as well as all resolutions or directives of the
Authority that would apply to this contract.
6.14 NON-DISCRIMINATION: There shall be no discrimination as to race, sex, color, creed, age or
national origin in the operations conducted under this contract.
6.15 ELIGIBILITY: If applicable, the Successful Offeror must first register with the Department of State of
the State of Florida in accordance with Florida Statutes, prior to entering into a contract with the
Authority.
6.16 COPYRIGHTS OR PATENT RIGHTS: The Bidder or Offeror certifies by submission of
Bid/Proposal that there has been no violation of copyrights or patent rights in manufacturing, producing,
or selling the product or services shipped or ordered as a result of this Bid or Proposal. The successful
Bidder or Offeror shall, at its own expense defend any and all actions or suits charging such infringement
and will save the Authority, its officers, employees, and agents harmless from any and all liability, loss,
or expense occasioned by any such violation.
6.17 INVOICES: Invoices for items ordered, delivered and accepted shall be submitted by the Successful
Offeror directly to the email address shown on the purchase order/contract. All invoices shall show the
IFB/RFP number and or purchase order number.
6.18 DEFAULT: In case of failure to deliver goods or services in accordance with the contract terms and
conditions, the Authority after due oral and written notice, may procure them from other sources and
hold the Successful Offeror responsible for any resulting additional purchase and administrative costs.
6.19 DELIVERY: In the appropriate space, the Bidder or Offeror shall state the time of proposed delivery
or project completion in number of calendar days. Unless otherwise specified, calendar days shall be
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presumed. Unless otherwise specified, quote the earliest delivery possible as this may be considered a
factor in making award. Delivery expressed in calendar days may be given preference over such general
terms as "stock immediately" and "as soon as possible". As time will be of the essence for any orders
placed as a result of this proposal, the Authority reserves the right to cancel such orders or any part
thereof, without obligation if delivery is not made at the time(s) specified on the bid form.
PART VII - DELIVERY PROVISION
7.1 SHIPPING INSTRUCTIONS-CONSIGNMENT: Unless otherwise specified in the solicitation of
each case, crate, barrel, package, etc., delivered under the contract must be plainly stenciled or securely
tagged, stating the Successful Offeror’s name, purchase order number, and delivery address as indicated
in the order. Where shipping containers are to be used, each container must be marked with the purchase
order number, name of Successful Offeror, the name of the item, the item number, and the qu antity
contained therein. Deliveries must be made within the hours of 8:00 a.m. – 3:00 p.m. Deliveries at any
other time will not be accepted unless specific arrangements have been previously made with designated
individual at the delivery point. No deliveries will be accepted on Saturdays, Sundays, and holidays
unless previous arrangements have been made. It shall be the responsibility of the Successful Offeror to
ensure compliance with these instructions for items that are drop shipped.
7.2 RESPONSIBILITY FOR SUPPLIES TENDERED: The Successful Offeror shall be responsible for
loss or damage to materials or supplies covered by the contract until they are delivered at the designated
point, a physical inspection is made by the Authority and the material or sup plies are accepted by the
Authority. The Successful Offeror shall bear all risk of loss or damage to rejected materials or supplies
and for all materials and supplies prior to acceptance by the Authority. Rejected materials or supplies
must be removed by and at the expense of the Successful Offeror promptly after notification of rejection
unless public health and safety require immediate destruction or other disposal of rejected delivery. If
rejected materials are not removed by the Successful Offeror within ten (10) days after date of
notification, the Authority may return the rejected materials or supplies to the Successful Offeror at his
or her risk and expense or dispose of them as its own property.
7.3 TESTING AND INSPECTION: The Authority reserves the right to conduct any test/inspection it may
deem advisable to assure that of supplies and services conform to the specifications. Inspection and
acceptance of materials or supplies will be made after delivery at destinations herein specified unless
otherwise stated. If inspection is made after delivery at destination herein specified, the Authority will
bear the expense of inspection except for the value of samples used in case of rejection. Final inspection
shall be conclusive except regarding latent defects, fraud, or such gross mistakes as to amount to fraud.
Final inspection and acceptance or rejection of the materials or supplies will be made as promptly as
practicable, but failure to inspect and accept or reject materials or supplies shall not impose liability on
the Authority for such materials or supplies as are not in accordance with the specifications.
7.4 COMPLIANCE: Delivery must be made as ordered and in accordance with the solicitation or as
directed by the Procurement Department when not in conflict with the bid/contract. The decision the
Authority as to reasonable compliance with delivery terms shall be final. Burden of proof of delay in
receipt of goods by the purchaser shall rest with the Successful Offeror. Any request for extension of
time of delivery from that specified must be approved by the Procurement Department, such extension
applying only to the particular item or shipment affected. Should the Successful Offeror be delayed by
the Authority, there shall be added to the time of completion a time equal to the period of such delay
caused by the Authority. However, the Successful Offeror shall not be entitled to claim damages of
extra compensation for such delay or suspension.
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7.5 POINT OF DESTINATION: All materials shipped to the Authority must be shipped F.O.B.
DESTINATION unless otherwise stated in the contract. The materials must be delivered to the "Ship
To" address indicated on the purchase order.
7.6 REPLACEMENT: Materials or components that have been rejected by the Procurement Department,
in accordance with the terms of the contract, shall be replaced by the Successful Offeror at no cost to the
Authority.
7.7 PACKAGING SLIPS OR DELIVERY TICKETS: All shipments shall be accompanied by packing
slips or delivery tickets and shall contain the following information for each item delivered:
a. purchase order number/contract number
b. name of article and stock number
c. quantity ordered
d. quantity shipped
e. quantity back ordered
f. the name of the Successful Offeror
Successful Offerors are cautioned that failure to comply with these conditions shall be considered sufficient
reason for refusal to accept the goods.
7.8 SAMPLES: Evidence in the form of samples may be requested if brand being quoted upon is other than
as specified. The Authority reserves the right to request that such samples be furnished at the time of
bid opening. The Authority also reserves the right to request samples after the date of bid opening.
Requested samples must be furnished free of expense to the Authority and if not used in testin g or
destroyed, will, upon request, be returned at the Bidder’s or Offeror's expense.
PART VIII – BIDDER / OFFEROR / SUCCESSFUL OFFEROR REMEDIES
8.1 PROTEST OF AWARD OR DECISION TO AWARD/EXHAUSTION OF ADMINISTRATIVE
PROCEEDING: A written notice of protest must be made within seventy-two (72) hours following posting of
the recommendation for award. Protest procedures stated in Resolution Number 2020/2021-04 are available
from the Authority’s Procurement Department. The Bidder or Offeror must exhaust the administrative protest
procedures before bringing suit. Failure to file a protest within the time prescribed herein and to exhaust the
remedy provided by the Authority for such bid protest shall constitute a waiver of the right to bring suit.
8.2 DISPUTES: In the case of any doubt or differences of opinion as to the items to be furnished hereunder,
the directions of the Board of Supervisors for the Authority’s Executive Director shall be final and binding
on both parties.
8.2.1.1 NO CONSEQUENTIAL DAMAGES: Consequential damages shall not be available to a Successful
Offeror for breach of contract by the Authority.
8.3 NO DAMAGES REMEDY TO OFFEROR OR BIDDER: An Offeror or Bidder who is unsuccessful
shall not have a damages remedy as a result of the rejection of the Bid or Offer but shall be limited to the
administrative remedies provided by the Authority and, after exhausting such remedies, the further remedy
of declaratory relief or, in a proper case, injunction. Venue shall in all cases be in Clay County, Florida.
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8.4 PERSONAL PRONOUNS AND TERMINOLOGY. The personal pronouns are used interchangeably
regardless of sex and regardless of the legal status or identity of the entity or person to which the terms
apply.
8.5 PRECEDENCE IN TERMS
In the event of a conflict, the Special Terms and Conditions shall take precedence.
8.6 INCURRED EXPENSES
This RFP does not commit the Authority to award a contract, nor shall the Authority be responsible for
any cost or expense which may be incurred by the bidder in preparing and submitting the Submittal called
for in this solicitation, or any cost or expense incurred by the bidder prior to the execution of a contract
agreement.
8.7 BANKRUPTCY/INSOLVENCY
At the time of bid submittal, the bidder shall not be in the process of or engaged in any type of
proceedings in insolvency or bankruptcy, either voluntary or involuntary, or receivership proceedings.
If the bidder is awarded a contract for six (6) months or longer, and files for bankruptcy, insolvency or
receivership, the Authority may, at its option, terminate and cancel said contract, in which event all
rights hereunder shall immediately cease and terminate.
8.8 INDEPENDENT SUCCESSFUL OFFEROR STATUS AND COMPLIANCE WITH THE
IMMIGRATION REFORM AND CONTROL ACT OF 1986
The Successful Offeror is and shall remain an independent Successful Offeror and is neither agent,
employee, partner, nor joint venture of Authority. Successful Of feror acknowledges that he/she is
responsible for complying with the provisions of the Immigration Reform and Control Act of 1986 located
at 8 U.S.C. 1324 et. Seq., and regulations relating thereto, as either may be amended from time to time.
Failure to comply with the above provisions shall be considered a material breach and shall be grounds
for immediate termination of the contract, at the discretion of the Authority.
8.9 INDEMNIFICATION
The Authority shall not be responsible for property damage, personal injury, or death to persons, which
occurs without fault on the part of the Authority, as a result of or incident to the performance of the
awarded firm. To the fullest extent permitted by laws and regulations, the awarded firm shall indemnify
and hold harmless the Authority, its officers, employees, agents and other consultants of each and any of
them from and against all claims, costs, losses and damages caused by, arising out of, or resulting from
the performance of the work, provided that any such claim, cost, loss or damage is (1) attributable to
bodily injury, sickness, disease or death resulting therefrom and (2) is caused in whole or in part by
negligent act or omission of awarded firm, any subcontractor, any supplier, any person or organization
directly or indirectly employed by any of them to perform or furnish any of the work or anyone for whose
acts any of them may be liable, regardless of whether or not caused in part by any negligence or omission
of a person or entity indemnified hereunder or whether liability is imposed upon such indemnified party
by laws and regulations regardless of the negligence of any such person or entity.
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Scope of Services and Related Requirements
CCUA seeks a solution with the following features and benefits.
A. Consulting Services
1. Evaluation of plan design, strategic recommendations, and implementation
2. Collection and analysis of benchmark data, performance of peer group comparisons, and related
strategic recommendations
3. Review competitive “best” practices and benefit plan options.
4. Performance of healthcare reform calculations, provision of guidance and recommendations
5. Comprehensive employee communications support, development of consumer-focused
guidance tools and education related to healthcare and cost savings opportunities.
6. Provide guidance on the annual budgets, allocations of payroll deductions
7. Section 125 Plan
a. Provide Section 125 Plan document updates.
b. Review plan documents for accuracy and compliance with appropriate laws and
regulations, and appropriateness of items to be included in the plan.
8. Health & Wellbeing Program
a. Assist with the management of the Employee Health and Wellbeing Program to advance
and recognize the healthy lifestyles of CCUA’s health plan participants.
b. Assist with the development of programs, in conjunction with the health care plan to
improve the health of plan participants, including the use of health screenings and health
fairs.
B. Contract Administration
1. Responsible for biding/quoting/negotiating health plan, dental plan, vision plan, life insurance,
prescription plan, supplemental insurance, and other plans as directed by the CCUA Senior
Leadership Team and approved by CCUA on an annual basis.
2. Provide Claims Assistance for all lines of coverage
C. Financial & Data Analysis
1. Performance of analysis of impact of healthcare reform on CCUA’s group medical plan
2. Performance of financial analysis and funding recommendations related to benefit programs
3. Evaluation of employee contribution strategy and development of related recommendations
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4. Data collection, organization, and interpretation related to claims experience
5. Ongoing performance of financial analysis and cost projections
6. Analysis of benefit utilization and cost trends
7. Evaluation of the impact of potential benefit changes
D. Plan Placement, Vendor Management, and Renewals
1. Conduct thorough competitive vendor/market analysis, including cost and plan comparisons
2. Performance of benchmark analysis of peers/market
3. Preparation of Requests for Proposal for new insurance carriers and vendors, in year one of
engagement, including reviews, managing timeline, and communications strategy
4. Performance of network evaluations, including discounts, access, and service disruption
recovery
5. Negotiation of provider and insurer agreements and renewals, including costs, terms, conditions
and service level agreements and performance guarantees
6. Implementation of new benefit programs
7. Preparation of bid specifications and soliciting proposals from insurance markets which
specialize in group insurance plans as needed. Evaluate bids and bid ders, including administration,
claim payment procedures, customer service, network, reserve establishment policies, financial
soundness, and identifying the most cost-beneficial package from among the various bidders.
8. Ongoing vendor evaluation and performance management
9. Service as liaison for resolution of administrative and claim issues
D. Informational Services
1. Monitoring the legislative environment and providing regular updates and guidance
2. Proactive assistance with federal and state compliance matters, including healthcare statutes and
regulations
3. Provision of expertise related to healthcare refo rm, Internal Revenue Code, HIPAA and COBRA
matters
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Proposal Preparation and Submission Instructions
Proposals shall contain the following information in the order listed below.
A. TITLE PAGE – Shall show the RFP’s subject, title and proposal number; the firm’s name;
the name, address, and telephone number of a contact person; and the date of the Proposal.
B. TABLE OF CONTENTS – Shall provide listing of all major topics, their associated
section number, and starting page.
C. MANDATORY REQUIREMENTS
Proposals shall specifically address and include the following information:
A. Company Information
1. Year organized;
2. Number of clients and type of clientele (defined by industry and size of portfolio);
3. Number of offices located in the State of Florida;
4. Location of corporate headquarters;
5. Related organizations; and
6. List of any current litigation or regulatory actions against the firm.
B. Qualifications
1. Resumes of principals and professional staff responsible for the account;
2. Number of years of experience in benefit administrative services;
3. Describe business philosophy;
4. Describe customer service philosophy;
5. Include a list of your governmental clients, specifically Utility Companies or government
entities; and
6. Include three (3) specific references that we may contact (clients most similar to Clay
County Utility Authority in type and size and similar services requested.
C. Reporting, Portfolio Evaluation and Review of Accounts
1. Frequency of reporting to clients;
2. Format of reports (include sample reports in proposal submission);
D. Compensation
1. Compensation shall be quoted as commission based for each line of insurance or service
provided. Full disclosure of all compensation earned, either directly or indire ctly is required.
All fees and/or commission must be disclosed.
E. Insurance
1. Provide a list of applicable insurance coverage and include relevant coverage limits;
F. Provide the name of the primary insurance carrier and related AM Best Rating.
G. Research and Decision Making
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1. Provide internal and external research methods and resources; and
2. Include processes for decision making process.
H. Other:
• Subcontractor – List any subcontractors that may be used to accomplish this
service and provide a minimum of 3 references.
• Litigation – List any past and/or pending litigation or disputes relating to the work
described herein that your firm has been involved in within the last five (5) years.
This list shall include each project name and the nature of the litigation.
• Financial Information – The Authority is interested in awarding this RFP only to
an organization that is financially sound; to demonstrate financial capacity, the firm
may be required, only if requested by CCUA, to submit a financial statement prior
to final award. This financial information will be kept as confidential, since Section
119.07, Florida Statutes, exempts financial statements from the public record
requirement. The financial statement, preferably audited, shall be f or the firm
which is submitting the proposal and shall include the following items: current and
net fixed assets and any other assets; current liabilities, long term liabilities, and
other liabilities; and name and address of firm preparing the financial statement and
the date of preparation. The financial information provided by the awarded firm
goes to the issue of bidder responsibility, as determined in CCUA’s sole discretion.
• Insurance Certifications – Provide a copy of Certificates of Insurance evidencing
coverage as stated in the Insurance Requirements listed in this solicitation. Note:
Policies other than Worker’s Compensation shall be issued only by companies
authorized to conduct business in the State of Florida, with active certificates of
authority issued by the State of Florida, Department of Insurance.
It is the Offeror’s responsibility to clearly identify and to describe the project approach in response
to this RFP. Offerors are cautioned that organization of their response, as well as thoroughness is
critical to the Authority’s evaluation process.
Proposals should be in 8 ½” x 11” format and should be prepared simply and economically,
providing a straightforward, organized, and concise description of the Offeror’s ability to meet the
requirements of the RFP. The number of pages should be kept to a minimum. Emphasis should
be on completeness and clarity of content.
Any information thought to be relevant, but not applicable to the enumerated categories should be
provided as an appendix to the proposal. If publications are supplied by an Offeror to respond to
a requirement, the response should include reference to the document number and page number.
This will provide a quick reference for the evaluators. Proposals not providing this reference will
be considered to have no reference material included in the additional documents.
The proposal shall be signed by a representative who is authorized to contractually bind the
Successful Offeror.
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Selection Criteria
DETERMINING RESPONSIBILITY
In Conjunction with the weighted criteria being used to determine the capability of the proposal,
CCUA may also consider the Offeror’s ability to meet or exceed the following criteria:
1. The Offeror’s ability, capacity, and skill to perform the contract or provide the service
within the time specified;
2. The quality of performance of previous contracts or services including previous
performance with the Authority;
3. Previous and existing compliance by the Offeror with laws and ordinances relating to the
contract or service;
4. Financial resources of the Offeror’s to perform the contract or provide the service .
INITIAL EVALUATION OF PROPOSALS
The Procurement Representative shall perform the initial review of all proposals submitted for
qualifications certification. This process includes, but not limited to the following:
The proposal was submitted by the deadline
All required documents have been submitted and fully completed
All documents requiring a signature have been signed and submitted; and
Proof of proper professional license or credentials as required by law.
EVALUATION COMMITTEE
The Evaluation Committee is comprised of qualified and recommended CCUA staff members
who are appointed by the Executive Director or Designee in coordination with the requesting
department. The Evaluation Committee shall consist of members who have experience,
knowledge and/or expertise in the program area and service requirements of the solicitation. The
Procurement Department Representative shall be the non-voting chair of the Committee.
EVALUATION CRITERIA
The Evaluation Committee will select a firm based on evaluation of proposals in accordance with
the responses received to the criteria outlined below.
1. Meet all specifications within the RFP or clearly indicate where your proposal deviates.
2. Show experience advising and reporting to similar sized non‐profit organizations on the
prudent management and oversight of portfolio funds.
3. The firm and all engaged personnel shall have all authorizations, permits, licenses, and
certifications as may be required under federal, state, or local law to perform the services
specified in this RFP.
The tabulation of the Evaluation Committee will be posted on Bonfire at
https://clayutility.bonfire.com. Interested proposers may also call the Procurement Department
for the results at 904-213-2447.
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CCUA will make Contract Award, if any, using the following evaluation template using the
information provided in the submittal and will rank the Responders based on their scores. If
interviews are conducted, CCUA may re-score certain sections and re-rank the Respondents. The
scores will be assigned on a comparative basis, meaning that the scores will be based upon how
well the Respondent fulfils the criteria as compared to the other Respondents.
EVALUATION TEMPLATE
Category Weight
Qualifications and
experience of Consulting
Firm
25%
Fee Structure Proposed 25%
Qualifications of Staff 20%
Approach and Methodology 15%
Additional Services 10%
References 5%
CCUA reserves the right to be the sole judge as to the overall acceptability of any proposal, or
to judge the individual merits of specific provisions within competing offers; and its decision
will be final.
CCUA Board of Directors will have the final authority to approve the selection of an investment
management firm. The contract will be awarded to the firm based on, but not limited to, the
evaluation criteria listed above and other factors that may be presented in the proposal and/or
interviews.
CCUA reserves the right to award a Contract to multiple Firms.
PRESENTATIONS OR INTERVIEWS
CCUA may request that the Offeror provide presentations to the Evaluation Committee,
Executive Director or Board of Supervisors and/or conduct interviews with the selected
proposers regarding the qualifications, ability to furnish the required services and all criteria set
forth herein. The Procurement Department will notify all proposers of CCUA’s decision to
request presentations and/or interviews, as applicable. Pursuant of Florida Statute Chapter 286,
any portions of a meeting, at which a vendor makes an oral presentation, or answers questions as
part of a competitive solicitation, are exempt from Florida Statute 286.0113 (2).
BEST AND FINAL OFFER NEGOTIATIONS
CCUA may request that the respondents provide a Best and Final Offer submittal before final
determination for recommendation of contract award. The contract negotiation will include, at a
minimum, a member from the Procurement Department and a member from the end user
department. CCUA reserves the right to negotiate all elements of a contract resulting from this
solicitation. Pursuant to Florida Statute Chapter 286, any portion of a meeting, at which
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negotiation strategies are discussed, or negotiations with a vendor is conducted, are exempt from
Florida Statute 286.0113(2).
The Authority reserves the right, before awarding the contract, to require an Offeror to submit any
evidence of its qualifications as the Authority may deem necessary and to consider an y evidence
available of financial, technical, and other qualifications and capabilities including performance
experience with past and present users.
The Authority reserves the right to request additional clarifying information and request an oral
presentation from all Offerors prior to determination of award.
The Authority reserves the right to award the contract to the Offeror or Offerors who will best
serve the interest of the Authority based upon its deliberations and in its opinion, to accept or reject
any or all proposals. The Authority also reserves the right to waive minor irregularities or
variations to the specifications and in the evaluation process.
Insurance Requirements
The Awarded Firm shall submit Certificate of Insurance to CCUA within (15) fifteen business
days after Notice of Intent to Award for the following minimum requirements.
A. Worker’s Compensation: The Successful Offeror will provide Worker’s Compensation
coverage for all employees at the site location and in case any work is subcontracted, will
require the sub successful Offeror to provide Worker’s Compensation for all his employees.
The limits will be statutory for Worker’s Compensation and $1,000,000.00 for Employer’s
Liability.
B. Comprehensive General Liability: The Successful Offeror will provide for all
operations including, but not limited to Contractual and Products Completed Operations.
The limits will not be less than $1,000,000.00.
C. Umbrella Liability: The Successful Offeror will provide an umbrella in excess to the
coverage in paragraphs B and C of not less than $1,000,000.00.
The Authority shall retain the right to review, at any time, coverage from, and amount of
insurance. The procuring of required policies of insurance shall not be construed to limit
the Contractor liability or to fulfill the indemnification provisions and requirement s of this
Contract. The Contractor shall be solely responsible for payment of all premiums for
insurance contributing to the satisfaction of this Contract and shall be solely responsible for
the payment of all deductibles and retentions to which such policies are subject, whether or
not the Authority is an insured under this policy.
Contract award will be subject to compliance with the insurance requirements. Certificates
of insurance evidencing coverage and compliance with the conditions to this Contract, and
showing the Authority’s proposal number, if any, and description of work, and copies of all
endorsements are to be furnished to the Authority’s Procurement Department prior to
commencement of work, and a minimum of ten (10) calendar days after the expiration of
the insurance contract when applicable. All insurance certificates shall be received by the
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Authority’s Procurement Department before the Contractor shall commence or continue to
work.
All policies required by this Contract, except for Professional Liability and Workers’
Compensation, or unless specific approval is given by the Authority, are to be written on an
occurrence basis, shall name the Authority as additional insured as their interest may appear
under this Contract.
Required Documentation
Attachment A – Acknowledgement of Addenda
Attachment B – Conflict of Interest
Attachment C – Drug Free Workplace Compliance Form
Attachment D - Non-Collusion Affidavit
Attachment E - Non-Disclosure Agreement for Confidential Materials
Attachment F – Public Entities Crime Statement
Attachment G – Public Records Compliance
Attachment H – References
Attachment I – Sample Contract
(The attachments are located within Bonfire under Required Information)
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ATTACHMENT I
RFP-XX-XXX
DRAFT AGREEMENT TEMPLATE
TITLE OF CONTRACT
THIS AGREEMENT for ________ is made and entered between Clay County
Utility Authority, an independent special district established and created pursuant to Chapter 94-
491, Laws of Florida, by Special Act of 1994, 3176 Old Jennings Road, Middleburg, Florida 32068
(hereinafter referred to as the “AUTHORITY” or “CCUA”) and name of contractor as listed on
Sunbiz, street address, city, state, zip code (hereinafter referred to as the “CONTRACTOR”).
W I T N E S S E T H:
WHEREAS, the AUTHORITY has competitively solicited [commodity or service] pursuant to
RFP-XX-XXX; and
WHEREAS, the CONTRACTOR has exhibited by its response to the solicitation that it can
provide the required services; and
WHEREAS, the parties hereto have agreed to the terms and conditions cited herein based on said
solicitation;
NOW, THEREFORE, in consideration of the mutual covenants, terms, and provisions contained
herein, the parties agree as follows:
SECTION 1. TERM.
The term of this Agreement shall become effective on [INSERT DATE], 20___ and
continue through [INSERT DATE], 201X. The contract may be renewed, subject to written notice
of agreement, for one (1) additional two (2) year periods.
SECTION 2. SCOPE OF SERVICES.
The Contractor shall provide services and accessories listed in Exhibit ‘A,’ which is attached
hereto and incorporated herein.
SECTION 3. OBLIGATIONS OF THE CONTRACTOR.
Obligations of the CONTRACTOR shall include, but not be limited to, the following:
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SAMPLE
A. It is understood that the CONTRACTOR shall provide and pay for all labor, tools,
materials, permits, equipment, transportation, supervision, and any and all other items or
services, of any type whatsoever, which are necessary to fully complete and deliver the
services requested by the AUTHORITY, and shall not have the authority to create, or cause
to be filed, any liens for labor and/or materials on, or against, the AUTHORITY, or any
property owned by the AUTHORITY. Such lien, attachment, or encumbrance, un til it is
removed, shall preclude all claims, or demands for any payment expected by virtue of this
Agreement.
B. The CONTRACTOR will ensure that all its employees, agents, sub-contractors,
representatives, volunteers, and the like, fully comply with all the terms and conditions set
herein, when providing services for the AUTHORITY in accordance herewith.
C. The CONTRACTOR shall be solely responsible for the means, methods, techniques,
sequences, safety programs, and procedures necessary to properly and fully complete the
work set forth in the Scope of Services.
D. The CONTRACTOR shall maintain an adequate and competent staff and remain
authorized to do business within the State of Florida. The CONTRACTOR may
subcontract the services requested by the AUTHORITY, with prior written approval from
AUTHORITY; however, the CONTRACTOR is fully responsible for the satis factory
completion of all subcontracted work.
SECTION 4. STANDARD OF CARE.
A. The CONTRACTOR has represented to the AUTHORITY that it possesses a level
of knowledge, experience, and expertise that is commensurate with firms in the
areas of practice required for the services to be provided. By executing this
Agreement, the CONTRACTOR agrees that the CONTRACTOR will exercise that
degree of care, knowledge, skill, and ability as any other similarly situated
contractor possessing the degree of skill, knowledge, experience, and expertise
within the local area, working on similar activities. The CONTRACTOR shall
perform the services requested in an efficient manner, consistent with the
AUTHORITY’s stated scope of services and industry standards.
B. The CONTRACTOR covenants and agrees that it and its employees, agents, sub-
contractors, representatives, volunteers, and the like, shall be bound by the same
standards of conduct as stated above.
SECTION 5. COMPENSATION.
A. The amount to be paid under this Agreement for acceptable performance of [type
of service] described in Exhibit ‘A’ shall not exceed [Written Amount plus Dollars
followed by ($ numerical amount)], based on the rates specified in Exhibit ‘B.’
Or
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SAMPLE
CLAY COUNTY UTILITY AUTHORITY
The amount to be paid under this Agreement shall be in accordance with the unit
prices listed in Exhibit ‘B’ attached herein.
B. Compensation for services completed by the CONTRACTOR shall be paid in
accordance with section 218.70, Florida Statutes, Florida’s Prompt Payment Act.
C. Services to be performed in accordance with this Agreement are subject to the
annual appropriation of funds by the AUTHORITY. In its sole discretion, the
AUTHORITY reserves the right to forego use of the CONTRACTOR for any
project which may fall within the Scope of Services listed herein. In the event the
AUTHORITY is not satisfied with the services provided by the CONTRACTOR,
the AUTHORITY will hold any amounts due until such time as the
CONTRACTOR has appropriately addressed the problem.
SECTION 6. TERMINATION.
The AUTHORITY may terminate this Agreement, with or without cause, given thirty (30) days
written notice to CONTRACTOR prior to the effective date of such cancellation.
SECTION 7. TERMINATION FOR CAUSE.
The AUTHORITY may terminate this Agreement, without further obligation, upon written notice
to the CONTRACTOR if the CONTRACTOR breaches any material term of the Agreement and
such breach remains uncured for ________ (#) days after receipt of said notice.
SECTION 8. PAYMENT WHEN SERVICES ARE TERMINATED.
A. In the event of termination of this Agreement by the AUTHORITY, and not due to
the fault of the CONTRACTOR, the AUTHORITY shall compensate the
CONTRACTOR for all authorized services performed prior to the effective date of
termination.
C. In the event of termination of this Agreement due to the fault of the
CONTRACTOR, or at the written request of the CONTRACTOR, the
AUTHORITY shall compensate the CONTRACTOR for all authorized services
completed, prior to the effective date of termination, which have resulted in a usable
product or otherwise tangible benefit to the AUTHORITY. All such payments shall
be subject to an off set for any damages incurred by the AUTHORITY resulting
from any delay occasioned by early termination. This provision shall in no way be
construed as the sole remedy available to the AUTHORITY in the event of breach
by the CONTRACTOR.
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SAMPLE
Request for Proposal
RFP# 2020/2021 A9 BENEFITS ADMINISTRATIVE SERVICES
CLAY COUNTY UTILITY AUTHORITY
SECTION 9. INSURANCE.
Worker’s Compensation: The Successful Offeror will provide Worker’s Compensation
coverage for all employees at the site location and in case any work is subcontracted, will
require the sub successful Offeror to provide Worker’s Compensation for all his employees.
The limits will be statutory for Worker’s Compensation and $1,000,000.00 for Employer’s
Liability.
Comprehensive General Liability: The Successful Offeror will provide for all operations
including, but not limited to Contractual and Products Completed Operations. The limits
will not be less than $1,000,000.00.
Umbrella Liability: The Successful Offeror will provide an umbrella in excess to the
coverage in paragraphs B and C of not less than $1,000,000.00.
The Authority shall retain the right to review, at any time, coverage from, and amount of
insurance. The procuring of required policies of insurance shall not be construed to limit
the Contractor liability or to fulfill the indemnification provisions and requirement s of this
Contract. The Contractor shall be solely responsible for payment of all premiums for
insurance contributing to the satisfaction of this Contract and shall be solely responsible for
the payment of all deductibles and retentions to which such policies are subject, whether or
not the Authority is an insured under this policy.
Contract award will be subject to compliance with the insurance requirements. Certificates
of insurance evidencing coverage and compliance with the conditions to this Contract, and
showing the Authority’s proposal number, if any, and description of work, and copies of all
endorsements are to be furnished to the Authority’s Procurement Department prior to
commencement of work, and a minimum of ten (10) calendar days after the expiration of
the insurance contract when applicable. All insurance certificates shall be received by the
Authority’s Procurement Department before the Contractor shall commence or continue to
work.
All policies required by this Contract, except for Professional Liability and Workers’
Compensation, or unless specific approval is given by the Authority, are to be written on an
occurrence basis, shall name the Authority as additional insured as their interest may appear
under this Contract.
The CONTRACTOR shall name “Clay County Utility Authority” as a certificate holder and
as additional insured, to the extent of the services to be provided hereunder, on all
required insurance policies, and provide the AUTHORITY with proof of same.
B. The CONTRACTOR, and any authorized sub-contractor(s), shall provide the
AUTHORITY’s Procurement Department with a Certificate of Insurance evidencing
such coverage for the duration of this Agreement. Said Certificate of Insurance shall be
dated and show:
1. The name of the insured CONTRACTOR;
2. The specified job by name and job number;
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SAMPLE
Request for Proposal
RFP# 2020/2021 A9 BENEFITS ADMINISTRATIVE SERVICES
CLAY COUNTY UTILITY AUTHORITY
3. The name of the insurer;
4. The number of the policy;
5. The effective date;
6. The termination date; and
7. A statement that the insurer will mail notice to the AUTHORITY at least thirty (30)
days prior to any material changes in the provisions or cancellation of the policy.
C. Receipt of certificates or other documentation of insurance or policies or copies of
policies by the AUTHORITY, or by any of its representatives, which indicates less
coverage than is required, does not constitute a waiver of the CONTRACTOR’s
obligation to fulfill the insurance requirements specified herein.
D. The CONTRACTOR shall ensure that any sub-contractor(s), hired to perform any of the
duties contained in the Scope of Services of this Agreement, maintain the same insurance
requirements set forth herein. In addition, the CONTRACTOR shall maintain proof of
same on file and made readily available upon request by the AUTHORITY.
SECTION 10. AUTHORITY OBLIGATIONS.
At the CONTRACTOR’s request, the AUTHORITY agrees to provide, at no cost, all
pertinent information known to be available to the AUTHORITY to assist the CONTRACTOR in
providing and performing the required services.
SECTION 11. DOCUMENTS CONSTITUTING ENTIRE AGREEMENT.
The following documents are hereby incorporated and made part of this Agreement:
1. Exhibit A – Solicitation document RFP-XX-XXX
2. Exhibit B – Original proposal submitted by Contractor
3. Exhibit C – Other exhibits, aerial photos, or plans
In the event of a conflict between the covenants, terms, and/or provisions of this Agreement
and Exhibit “A,” the provisions of the Agreement shall take precedence.
SECTION 12. APPLICABLE LAW, VENUE, JURY TRIAL.
The laws of the State of Florida shall govern all aspects of this Agreement. In the event it
is necessary for either party to initiate legal action regarding this Agreement, venue shall lie in
Clay County, Florida. The parties hereby waive their right to trial by jury in any action, proceeding
or claim, arising out of this Agreement, which may be brought by either of the parties hereto.
In all respects, this Agreement is governed by and construed in accordance with the laws of the
State of Florida without giving effect to any choice of law rules thereof that may direct the
application of the laws of another jurisdiction.
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SAMPLE
Request for Proposal
RFP# 2020/2021 A9 BENEFITS ADMINISTRATIVE SERVICES
CLAY COUNTY UTILITY AUTHORITY
SECTION 13. PUBLIC RECORDS COMPLIANCE.
A. If the Contractor has questions regarding the application of Chapter 119, Florida
Statutes, to the Contractor’s duty to provide public records relating to this
Agreement, contact the custodian of public records at the following:
Public Records
3176 Old Jennings Road
Middleburg, Florida 32068
(904) 272-5999
Recordsrequest@clayutility.org
B. The CONTRACTOR understands that by virtue of this Agreement all its
documents, records, and materials of any kind, relating to the relationship created
hereby, shall be open to the public for inspection in accordance with Florida law.
If CONTRACTOR shall act on behalf of the AUTHORITY, as provided under
section 119.011(2), Florida Statutes, as amended, the CONTRACTOR, shall:
1) Keep and maintain public records that ordinarily and necessarily would be
required by the AUTHORITY to perform the service; and
2) Provide the public with access to public records on the same terms and
conditions that the AUTHORITY would provide the records and at a cost
that does not exceed the cost provided by Florida law; and
3) Ensure that public records that are exempt or confidential and exempt from
public records disclosure requirements are not disclosed exce pt as
authorized by law; and
4) Meet all requirements for retaining public records and transfer, at no cost,
to the AUTHORITY 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 from public
records disclosure requirement. All records stored electronically must be
provided to the AUTHORITY in a format that is compatible with the
information technology systems of the AUTHORITY; and
5) If the CONTRACTOR does not comply with a public records request, the
AUTHORITY shall enforce the contract provisions in accordance with the
Agreement.
SECTION 14. INDEPENDENT CONTRACTOR.
This Agreement does not create an employee/employer relationship between the parties. It
is the parties’ intention that the CONTRACTOR, its employees, sub-contractors, representatives,
volunteers, and the like, will be an independent contractor and not an employee of the
AUTHORITY for all purposes, including, but not limited to, the application of the following, as
amended: the Fair Labor Standards Act minimum wage and overtime payments, the Federal
Insurance Contribution Act, the Social Security Act, the Federal Unemployment Tax Act, the
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SAMPLE
Request for Proposal
RFP# 2020/2021 A9 BENEFITS ADMINISTRATIVE SERVICES
CLAY COUNTY UTILITY AUTHORITY
provisions of the Internal Revenue Code, the State of Florida revenue and taxation laws, the State
of Florida workers’ compensation laws, the State of Florida unemployment insurance laws, and
the Florida Retirement System benefits. The CONTRACTOR will retain sole and absolute
discretion in the judgment of the manner and means of carrying out the CONTRACTOR’s
activities and responsibilities hereunder.
SECTION 15. APPLICABLE LICENSING.
The CONTRACTOR, at its sole expense, shall obtain all required federal, state, and local
licenses, occupational and otherwise, required to successfully providing the services set forth
herein.
SECTION 16. COMPLIANCE WITH ALL LAWS.
The CONTRACTOR, at its sole expense, shall comply with all laws, ordinances, judicial
decisions, orders, and regulations of federal, state, AUTHORITY, and municipal governments, as
well as their respective departments, commissions, boards, and officers, which are in effect at the
time of execution of this Agreement or are adopted at any time following the execution of this
Agreement.
SECTION 17. INDEMNIFICATION.
The CONTRACTOR agrees to be liable for any and all damages, losses, and expenses
incurred, by the AUTHORITY, caused by the acts and/or omissions of the CONTRACTOR, or
any of its employees, agents, sub-contractors, representatives, volunteers, or the like. The
CONTRACTOR agrees to indemnify, defend and hold the AUTHORITY harmless for any and all
claims, suits, judgments or damages, losses and expenses, including but not limited to, court costs,
expert witnesses, consultation services and attorney’s fees, arising from any and all acts and/or
omissions of the CONTRACTOR, or any of its employees, agents, sub -contractors,
representatives, volunteers, or the like. Said indemnification, defense, and hold harmless actions
shall not be limited by any insurance amounts required hereunder.
SECTION 18. SOVEREIGN IMMUNITY.
The AUTHORITY expressly retains all rights, benefits and immunities of sovereign
immunity in accordance with Section 768.28, Florida Statutes. Notwithstanding anything set forth
in any section, article or paragraph of this Agreement to the contrary, nothing in this Agreement
shall be deemed as a waiver of sovereign immunity or limits of liability which may have been
adopted by the Florida Legislature or may be adopted by the Florida Legislature, and the cap on
the amount and liability of AUTHORITY for damages, attorney fees and costs, regardless of the
number or nature of claims in tort, equity or contract, shall not exceed the dollar amount set by the
Florida Legislature for tort. Nothing in this Agreement shall inure to the benefit of any third party
for the purpose of allowing any claim against the AUTHORITY which would otherwise be barred
under the Doctrine of Sovereign Immunity or operation of law.
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SAMPLE
Request for Proposal
RFP# 2020/2021 A9 BENEFITS ADMINISTRATIVE SERVICES
Request for Proposal P a g e | 36
RFP# 2020/2021 A6 AUDITING SERVICES
CLAY COUNTY UTILITY AUTHORITY
SECTION 19. BANKRUPTCY OR INSOLVENCY.
If the CONTRACTOR shall file a Petition in Bankruptcy, or if the same shall be adjudged
bankrupt or insolvent by any Court, or if a receiver of the property of the CONTRACTOR shall
be appointed in any proceeding brought by or against the CONTRACTOR, or if the
CONTRACTOR shall make an assignment for the benefit of creditors, or proceedings shall be
commenced on or against the CONTRACTOR’s operations of the premises, the AUTHORITY
may terminate this Agreement immediately notwithstanding the notice requirements of Section 6
hereof.
SECTION 20. BINDING EFFECT.
This Agreement shall be binding upon and inure to the benefit of the parties hereto, their
heirs, personal representatives, successors, and/or assigns.
SECTION 21. ASSIGNMENT.
This Agreement shall only be assignable by the CONTRACTOR upon the express written
consent of the AUTHORITY.
SECTION 22. SEVERABILITY.
All clauses found herein shall act independently of each other. If a clause is found to be
illegal or unenforceable, it shall have no effect on any other provision of this Agreement. It is
understood by the parties hereto that if any part, term, or provision of this Agreement is by the
courts held to be illegal or in conflict with any law of the State of Florida or the United States, the
validity of the remaining portions or provisions shall not be affected, and the rights and obligations
of the parties shall be construed and enforced as if the Agreement did not contain the particular
part, term, or provision held to be invalid.
SECTION 23. WAIVER.
Failure of the parties to insist upon strict performance of any of the covenants, terms,
provisions, or conditions of this Agreement, or to exercise any right or option herein contained,
shall not be construed as a waiver or a relinquishment for the future of any such covenant, term,
provision, condition, or right of election, but same shall remain in full force and effect.
SECTION 24. NOTICE.
The parties hereto agree and understand that written notice, mailed or delivered to the last
known mailing address, shall constitute sufficient notice to the AUTHORITY and the
CONTRACTOR. All notices required and/or made pursuant to this Agreement to be given to the
AUTHORITY and the CONTRACTOR shall be in writing and given by way of the United States
Postal Service, first class mail, postage prepaid, addressed to the following addresses of record:
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SAMPLE
Request for Proposal P a g e | 37
RFP# 2020/2021 A6 AUDITING SERVICES
CLAY COUNTY UTILITY AUTHORITY
AUTHORITY: Clay County Utility Authority
Attention: Procurement Department
3176 Old Jennings Road
Middleburg, Florida 32068
CONTRACTOR: Contractor’s Name as listed on Sunbiz
Contractor’s Mailing Address as listed on Sunbiz
Contractor’s City, State, Zip
SECTION 25. MODIFICATION
The covenants, terms, and provisions of this Agreement may be modified by way of a
written instrument, mutually accepted by the parties hereto. In the event of a conflict between the
covenants, terms, and/or provisions of this Agreement and any written Amendment(s) hereto, the
provisions of the latest executed instrument shall take precedence.
SECTION 26. HEADINGS.
All headings of the sections, exhibits, and attachments contained in this Agreement are for
the purpose of convenience only and shall not be deemed to expand, limit or change the provisions
contained in such sections, exhibits, and attachments.
SECTION 27. ADMINISTRATIVE PROVISIONS.
In the event the AUTHORITY issues a purchase order, memorandum, letter, or any other
instrument addressing the services, work, and materials to be provided and performed pursuant to
this Agreement, it is hereby specifically agreed and understood that any such purchase order,
memorandum, letter, or other instrument is for the AUTHORITY's internal purposes only, and any
and all terms, provisions, and conditions contained therein, whether printed or written, shall in no
way modify the covenants, terms, and provisions of this Agreement and shall have no force or
effect thereon.
SECTION 28. CONFLICT OF INTEREST.
The CONTRACTOR warrants that the CONTRACTOR has not employed or retained any
company or person, other than a bona fide employee working solely for the CONTRACTOR, to
solicit or secure this Agreement, and that the CONTRACTOR has not paid or agreed to pay any
person, company, corporation, individual, or firm any fee, commission, percentage, gift, or any
other consideration, contingent upon or resulting from the award or making of this Agreement.
For the breach or violation of this Paragraph, the AUTHORITY shall have the right to terminate
this Agreement immediately, without liability and without regard to the notice requirements of
Section 6 hereof.
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SAMPLE
Request for Proposal P a g e | 38
RFP# 2020/2021 A6 AUDITING SERVICES
CLAY COUNTY UTILITY AUTHORITY
SECTION 29. PUBLIC ENTITY CRIMES.
As required by section 287.133, Florida Statutes, the CONTRACTOR warrants that it is
not on the convicted contractor list for a public entity crime committed within the past thirty six
(36) months. The CONTRACTOR further warrants that it will neither utilize the services of, nor
contract with, any supplier, sub-contractor, or consultant in connection with this Agreement for a
period of thirty six (36) months from the date of being placed on the convicted contractor list.
SECTION 30. EMPLOYMENT ELIGIBILITY VERIFICATION (E-VERIFY)
In accordance with State of Florida, Office of the Governor, Executive Order 11-116
(superseding Executive Order 11-02; Verification of Employment Status), in the event
performance of this Agreement is or will be funded using state or federal funds, the
CONTRACTOR must comply with the Employment Eligibility Verification Program (“E-Verify
Program”) developed by the federal government to verify the eligibility of individuals to work in
the United States and 48 CFR 52.222-54 (as amended) is incorporated herein by reference. If
applicable, in accordance with Subpart 22.18 of the Federal Acquisition Register, the
CONTRACTOR must (1) enroll in the E-Verify Program, (2) use E-Verify to verify the
employment eligibility of all new hires working in the United States, except if the CONTRACTOR
is a state or local government, the CONTRACTOR may choose to verify only new hires assigned
to the Agreement; (3) use E-Verify to verify the employment eligibility of all employees assigned
to the Agreement; and (4) include these requirement in certain subcontract, such as construction.
Information on registration for and use of the E-Verify Program can be obtained via the internet at
the Department of Homeland Security Web site: http://www.dhs.gov/E-Verify.
SECTION 31. JOINT AUTHORSHIP
This Agreement shall be construed as resulting from joint negotiation and authorship. No
part of this Agreement shall be construed as the product of any one of the parties hereto.
SECTION 32. EQUAL OPPORTUNITY EMPLOYER
The CONTRACTOR is an Equal Opportunity Employer and will comply with all equal
opportunity employment laws. The CONTRACTOR will further ensure that all sub-contractors it
utilizes in providing the services required hereunder will comply with all equal opportunity
employment laws.
SECTION 33. AUDITING, RECORDS, AND INSPECTION
In the performance of this Agreement, the CONTRACTOR shall keep books, records, and
accounts of all activities, related to the Agreement, in compliance with generally accepted
accounting procedures. Throughout the term of this Agreement, books, records, and accounts
related to the performance of this Agreement shall be open to inspection during regular business
hours by an authorized representative of the AUTHORITY and shall be retained by the
CONTRACTOR for a period of three years after termination or completion of the Agreement, or
until the full Authority audit is complete, whichever comes first. The AUTHORITY shall retain
the right to audit the books during the three-year retention period. All books, records, and accounts
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SAMPLE
Request for Proposal P a g e | 39
RFP# 2020/2021 A6 AUDITING SERVICES
CLAY COUNTY UTILITY AUTHORITY
related to the performance of this Agreement shall be subject to the applicable provisions of the
Florida Public Records Act, chapter 119, Florida Statutes. The AUTHORITY also has the right
to conduct an audit within sixty (60) days from the effective date of this Agreement to determine
whether the CONTRACTOR has the ability to fulfill its contractual obligations to the satisfaction
of the AUTHORITY. The AUTHORITY has the right to terminate this Agreement based upon its
findings in this audit without regard to the termination provision set forth herein.
SECTION 34. PROJECT MANAGERS
The AUTHORITY and the CONTRACTOR have identified individuals as Project
Managers, listed below, who shall have the responsibility for managing the work performed under
this Agreement. The person or individual identified by the CONTRACTOR to serve as its Project
Manager for this Agreement, or any replacement thereof, is subject to prior written approval and
acceptance by the AUTHORITY. If the AUTHORITY or CONTRACTOR replace their current
Project Manager with another individual, an amendment to this agreement shall not be required.
The AUTHORITY will notify the CONTRACTOR, in writing, if the current AUTHORITY
Project Manager is replaced by another individual.
A. The AUTHORITY Project Manager’s contact information is as follows:
Full Name, Title
Department
Clay County Utility Authority
3176 Old Jennings Road
Middleburg, Florida 32068
Phone
Email
B. The CONTRACTOR Project Manager’s contact information is as follows:
Full Name, Title
Department
Company Name
Street Address
City, State, Zip
Phone
Email
SECTION 35. COUNTERPARTS, ELECTRONIC TRANSACTION, AND
ELECTRONIC SIGNATURES.
This Agreement may be electronically executed by the Parties in counterparts up to but not
exceeding the number of parties, each of which shall be deemed an original and all of which, taken
together, shall constitute one agreement. Each Party may deliver its executed signature page by
email transmission to the other Parties at the email addresses set forth herein. Delivery shall be
effective and complete upon completion of such email transmission. The Parties agree that
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SAMPLE
Request for Proposal P a g e | 40
RFP# 2020/2021 A6 AUDITING SERVICES
CLAY COUNTY UTILITY AUTHORITY
electronic signatures may be use in the execution of this Agreement in accordance with Parts I and
II of Chapter 668, Florida Statutes.
SECTION 36. SIGNATORY.
Each signatory below represents and warrants that he or she has the full power and is duly
authorized, by their respective Party, to enter into and perform under this Agreement. Such
signatory further represents that he or she has fully reviewed and understands the terms and
conditions set forth in this Agreement, including exhibits, and fully intends to abide by and comply
with all of the terms and conditions set forth herein.
IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives,
have executed this Agreement effective the____ day of _____________________, 20___.
[CONTRACTOR’S NAME] CLAY COUNTY UTILITY
AUTHORITY
By: ____________________________ By: ________________________
Print Name: _____________________ Print Name: Jeremy Johnston
Title: ___________________________ Title: Executive Director
Attest: __________________________ Attest: ______________________
Print Name: ______________________ Print Name: Janice Loudermilk
Title: ___________________________ Title: Board of Supervisors Secretary
Address: ________________________ Address: 3176 Old Jennings Road
_______________________________ Middleburg, Florida 32068
STATE OF __________________
AUTHORITY OF __________________
The foregoing instrument was executed before me this ____ day of _______________, 20___ by
__________________________ as ________________________ of [Contractor’s name as listed
on Sunbiz], who personally swore or affirmed that he/she is authorized to execute this Agreement
and thereby bind the Corporation, and who is personally known to me OR has produced
___________________ as identification.
Signature:
__________________________________
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SAMPLE
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RFP# 2020/2021 A6 AUDITING SERVICES
CLAY COUNTY UTILITY AUTHORITY
Print Name:
__________________________________
NOTARY PUBLIC, State of __________________
My Commission Expires: __________________________________
(Stamp)
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SAMPLE
RFP 2020/2021-A9 Benefits Administrative Services
Response Prepared By:
Risk Management Associates, Inc. dba
Public Risk Insurance Advisors
A wholly owned subsidiary of Brown & Brown, Inc. Melanie Stegall, GBDS, VBS – Employee Benefits Advisor 220 S. Ridgewood Avenue, Suite 210 Daytona Beach, FL 32114 (386) 239-5779 Submitted: April 29, 20201 at 2:00 PM
ELECTRONIC COPY
Clay County Utility Authority
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Clay County Utility Authority Request for Proposal #2020/2021-A9 Benefits Administrative Services Section
Company Information A Qualifications B
Reporting, Portfolio Evaluation and Review of Accounts C
Compensation D
Insurance E
Primary Insurance Carrier F
Research & Decision Making G
Other H
Required Forms I
Attachments J
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Section A Company Information
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Attn.: Angelia Wilson, Procurement Manager Clay County Utility Authority 3176 Old Jennings Road Middleburg, Florida 32068 Re: RFP 2020/2021-A9 – Benefits Administrative Services Dear Ms. Wilson, On behalf of Public Risk Insurance Advisors (PRIA), I am pleased to submit our response to RFP 2020/2021-A9 – Benefits Administrative Services. We trust that you will find the response contained herein to be concise in demonstrating our understanding of Clay County Utility Authority’s solicitation for a qualified professional insurance and consulting firm. Throughout this response, our approach revolves around three main objectives: 1. Enhance the Quality and utilization of CCUA’s Employee Benefits Program 2. Lower CCUA’s Total Cost of the Employee Benefits Program 3. Provide Concierge-Level Service to CCUA’s HR Staff, Employees, Dependents and
Retirees
Brown & Brown/PRIA is uniquely qualified to provide the services outlined in this RFP. We currently manage the employee benefit programs for 70 public entities in Florida. Our experience in managing employee benefit programs in the public sector is extensive and unmatched by other brokers. Our knowledge base, service commitment, regional expertise, and local presence make our firm exceptionally prepared to begin this exciting partnership. Our firm has served the risk management and employee benefits needs of Florida’s public entities for more than 29 years. That experience includes managing both fully insured and self-funded health insurance programs for numerous Florida public entity clients. For each of these past 29 years, we have grown our client base because we have consistently improved our services and bolstered our reputation. It is our intent to demonstrate that service commitment as well as our firm’s willingness and ability to provide CCUA’s requested services as outlined in this RFP response. Most importantly, we ask you to take special note of the references included in this response. Our written response to the RFP does not speak as loud as those for whom we have delivered exceptional year-over-year results. We encourage you to call those references, ask probing questions, and determine for yourself the real-world impact of our expertise, proactive service commitment, and dedication to the continuous improvement of our client’s employee benefits and risk management programs.
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The person authorized to make representations for PRIA is Mr. Matthew Montgomery. Contact information for Mr. Montgomery is as follows: Matthew Montgomery, Executive Vice President 300 North Beach Street Daytona Beach, FL 32114 Email: mmontgomery@bbpria.com Voice: (386) 239-7245 Fax: (386) 239-4049 Enclosed are all required documents and information. Every effort was made to concisely provide all requested information, all required completed forms, and succinctly illustrate our understanding of the required scope of services as well as other services provided by or recommended by PRIA. We are available at the request of CCUA to participate in any oral interviews. Please feel free to contact me should you need further clarification of our proposal. Please consider this signed document as evidence that this proposal is in all respects fair and in good faith without collusion or fraud. There are no conflicts of interest arising out of any other clients, contracts, or interests associated with this project. The signer has the authority to bind the principal proponent. Sincerely,
Matthew Montgomery Executive Vice President
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1. Year organized Our parent company, Brown & Brown, Inc., was founded in 1939. PRIA was founded in 1992 and became a part of the Brown & Brown family in 2000. 2. Number of clients and type of clientele (defined by industry and size of portfolio) PRIA is 100% dedicated to the insurance needs of Florida’s public entities. We are the broker/consultant for the employee benefits programs for more than 70 of these entities. We place more than $170,000,000 in annual premium for public entity clients in Florida. 3. Number of offices located in the State of Florida In Florida, our more than 50 offices, are comprised of 2,500 teammates responsible for the design, placement, and servicing of insurance and related services. 4. Location of corporate headquarters Our Corporate Headquarters as well as the PRIA office is located at: 300 North Beach Street Daytona Beach, FL 32114
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5. Related organizations Brown & Brown, Inc. is a family of highly specialized units performing insurance brokerage and advisement services for clients worldwide. Below is an example of some of our business units relevant to this RFP which provide philosophical and resource support to the PRIA team. 6. List of any current litigation or regulatory actions against the firm. Risk Management Associates, Inc. dba Public Risk Insurance Advisors has no current litigation or regulatory actions against the firm.
Employee Benefits, Property, Casualty, Liability, Risk
Management
Life, Accident, Disability, Leave Management, Voluntary, Enrollment Technology
Solutions to help health plans, employers, and providers take control of their medical costs
Managing prescription benefits by focusing on member prescription drug care to gain the most optimal cost
Medical, Pharmacy, Dental, Vision, ACA Compliance, Wellness, Exchange Evaluation
Absence Management Actuarial, Benefit Plan Administration, Investment Consulting
With a long-standing history of proven success, Brown
& Brown is one of the insurance industry’s most powerful and influential leaders.
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Section B Qualifications
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Section B: Qualifications Why PRIA?
Public Entity Specialists Public Risk Insurance Advisors (PRIA) has serviced the Employee Benefits and Property & Casualty Insurance needs of Florida’s public entities for more than 29 years. We represent more than 250 governmental entities in the state of Florida, including:
State of Florida
70+ Cities
20+ Counties
6 School Districts
100+ Special Districts
Proprietary Programs
Florida Government Healthcare Solutions (FGHS) In 2014, PRIA partnered with United Healthcare and Benecon to create a self-funded health insurance program exclusively for Florida Local Governments, designed to leverage the power of group purchasing to lower health insurance costs. Over the last 5 years, one member has received more than $1.5 Million in surplus returns.
FGHS Program Features:
Owned and Controlled by Members – FGHS is public consortium bound by the “Government in the Sunshine” rules. Each of the 13 members has a seat on the Board of Directors and a vote in all matters governing the consortium’s operation and by laws.
Full Transparency – Each member sees the actual administrative and reinsurance costs of each plan.
Proven actuarial pricing model – Priced by Benecon’s independent actuaries.
Flexibility – Design the plan that works best for your employees.
Surplus & Savings – Any surplus after year end reconciliation is returned to the group. There is NO pooling of losses in the consortium. Members with loss ratios under 110% will receive return surplus regardless of the performance of the other members’ claim performance.
Compliance Resources – Access to the FGHS team of healthcare compliance experts.
Health Care Navigation – ConnectCare3 provides Nurse Navigation and Wellness Coaching to guide employees through complex diagnoses such as cancers, diabetes, etc.
Lower administrative costs – FGHS members only pay about 10% of their premium towards administrative costs, which is lower than all other pools and fully insured programs (average 15-20%). FGHS is the most cost-efficient health insurance program in the state of Florida.
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Benefits to CCUA: With 175 lives, CCUA is similar in size to current members, Washington County BOCC and City of Haines City. They have experienced the following premium returns:
City of Haines City – In 2019, the City received over $449,000 in return premiums. Their loss ratio in 2019 was 75%. This represented about a 30% return of the City’s annual premium. In 2020 the City’s loss ratio was 87% and they received $307,00 of return premium or about 20% of their annual premium.
Washington County - In 2019 the County received over $255,000 in return premiums. Their loss ratio in 2019 was 89%. This represented about a 17% return of the County’s annual premium. In 2020 the County’s loss ratio was 86% and they received $260,000 of return premium or about 19% of their annual premium. CCUA’s experience is estimated to be similar based on the last several years of medical loss ratios. For example, a 75% loss ratio on a $2,000,000 premium would generate approximately $600,000 in return premium. Please note that PRIA is not stating, at this time, that FGHS is the best solution for the Authority. Our plan would be to analyze and evaluate all insurance options, including traditional carriers, as well as innovative options and alternative funding mechanisms. Please see more detail of our approach
and methodology in Section G. The ability to bring highly efficient solutions separates us from other brokers and gives CCUA a unique opportunity to explore the short and long-term benefits of FGHS. PRIA is the only broker that can access all traditional markets and FGHS.
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EBTech EBTech is Brown & Brown’s team of benefit technology experts that implements and provides ongoing support for multiple benefits administration platforms. Our goal is to provide our clients the toolset needed to administer your benefit programs and give your employees a positive enrollment experience. This unique resource harnesses the highest level of experts and expertise in the industry to evaluate, review and recommend the benefit technology platform best suited for your needs among all available platforms available in the market today. Our EBTech team has:
Vetted more than 60 vendors and conducted phone interviews
Invited 14 vendors to participate in an RFP that included 324 questions
Invited 8 vendors to present to an internal panel of benefit and technology specialists
Selected 4 vendors that we actively utilize today
Multiple Solutions
•bswift
•PlanSource
•Employee Navigator•Ease
Client
Impact
•Better employee experience (self-service, mobile experience)
•Cost savings through efficiency gains (accuracy, timliness)
•Enhanced benefit offerings
•Payroll integration
Market Influence
•$1B in premium
•$360M in available carrier subsidies
•More than a dozen national partnerships•189,000+ employee lives
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Additional Partnerships & Resources
In-House Experts
Behavioral Health Specialist – Dr. Joel Axler – Mental Health expert that assists employers in development of innovative solutions to improve behavioral health access and quality of care.
Clinical Health Specialist – Dr. Louise Short – Works with employers to develop innovative strategies that engage and support employees and their families in making effective choices to avoid the cost and consequences of poor health.
Clinical Consultant – Becky Kujawski, R.N., B.S. – specializes in design, evaluation and assessment of clinical management programs from wellness to absence management.
Population Health & Wellness Specialist – Rich Babcock – specializes in aligning employer health and wellbeing solutions with employers’ culture and goals.
Research and Compliance Team
Population Health Consulting Team – Specialists to help improve health outcomes, reduce costs and increase workforce productivity.
Population Health Advisory Committee – Provides strategic guidance to build and scale population health and well-being capabilities.
Voluntary Benefit Consulting
Data Analytics/Intelligent Health Plan Consulting
Additional Resources
Miller Johnson, P.A. – ACA/ERISA Attorneys
HR Workplace Services – Human Resource/Compliance guidance and services
Zywave – Human Resources/Compliance communications
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1. Resumes of principals and professional staff responsible for the account. Public Risk Insurance Advisors (PRIA) Team PRIA is staffed in anticipation of acquiring new clients and any increase in workload to ensure we sustain the highest level of service. A dedicated Employee Benefits Advisor and Employee Benefits Specialist will be assigned to be day-to-day contacts for CCUA. We will provide CCUA with direct office numbers, email addresses and the Employee Benefits Advisor’s cell phone number to ensure accessibility of the team assigned. We provide back-up personnel in the event of a team member being absent or unavailable. The PRIA team is committed and extremely well equipped to meet and exceed CCUA’s expectations of service requirements and deadlines, whether planned or unplanned. Melanie Stegall, GBDS/VBS—Employee Benefits Advisor Ms. Stegall will serve as the day-to-day broker and consultant contact for CCUA. She will serve as the project manager on all strategy, review, program design, analysis, marketing, compliance and negotiations related to CCUA’s employee benefit program. She will be responsible for continuous management of your project beyond the services provided at renewal to ensure a strong partnership with CCUA, including insurance committees and elected officials. She has more than 5 year of experience in public entity brokerage and consulting expertise. Melanie is a graduate of Kansas State University where she earned her Bachelor of Science degree in Business Management. She has earned her Group Benefits Disability Specialist (GBDS) designation, Voluntary Benefits Specialist (VBS) and is a candidate for Group Benefits Associate (GBA) and holds her State of Florida 2-15 License for Life, Health and Variable Annuities. Cyndi Hansen, GBDS/VBS – Employee Benefits Specialist Ms. Hansen will serve as CCUA’s dedicated Employee Benefits Specialist. Her duties include being the day-to-day contact for all service-related inquiries or issues including, but not limited to billing issues, claims resolution, eligibility and current benefit questions. Cyndi corresponds directly with CCUA’s HR team, as well as employees directly. Additionally, Ms. Hansen will assist CCUA in facilitating any open enrollment or new hire meetings, health and wellness fairs and wellness programs, at CCUA’s direction. Cyndi has 18 years of Human Resources and Employee Benefits experience. Her expertise in this area has made her an invaluable asset to our team and our clients. Cyndi earned her bachelor’s degree from the University of California, Santa Barbara. She holds such designations as Group Benefits Disability Specialist (GBDS), Voluntary Benefits Specialist (VBS) and Society for Human Resources Management (SHRM). Ms. Hansen also holds her State of Florida 2-15 License for Life, Health and Variable Annuities.
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Morgan Johnson, GBDS/VBS – Marketing Specialist
Ms. Johnson has advanced knowledge of health insurance markets, products and identifying qualified products and appropriate carrier opportunities to improve benefits programs and manage costs. She is responsible for initiating all marketing services and approaching all markets, as appropriate, on behalf of all clients and prospects. She consistently conducts a full market search for all lines of insurance currently in place for a client, as well as any new lines of coverage requested or required due to risk exposures. She regularly tracks carrier financial status and communicates to Ms. Stegall and Ms. Hansen, ensuring clients are notified in advance of any negative change in status. Additionally, Ms. Johnson conducts benchmarking studies for our clients to provide a comparison of competitor programs. These studies are extremely beneficial in assisting our clients in identifying any opportunities to enhance their benefits to provide their employees the most competitive program possible. Please see Section 10: Proposal Attachments for a Sample Benchmarking
Report. Morgan earned her Group Benefits Disability Specialist (GBDS) and Voluntary Benefits Specialist (VBS) designations. She holds her State of Florida 2-15 Life, Health and Variable Annuities license. Francene Marra, CEBS/GBA/GBDS – Employee Benefits Team Leader Ms. Marra is PRIA’s Employee Benefits Team Leader. She is responsible for leading the team of employee benefits account representatives to ensure that all clients have a high-quality customer service experience. She assists in analysis of carrier reports, benefit plan structures, plan design and industry trends and makes appropriate benefit plan recommendations. She acts as a liaison between clients and the Insurance Carriers to resolve escalated complex service issues that require policy interpretation. Ms. Marra also ensures all Quality Control requirements are met. Ms. Marra has earned her Certified Employee Benefits Specialist (CEBS), Group Benefit Associate (GBA) and Group Benefits Disability Specialist (GBDS) designations. She holds her 2-15 Life, Health and Variable Annuities License in the State of Florida.
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Morgan Hathaway, MBA/GBDS – Employee Benefits Specialist Ms. Hathaway will serve as additional backup personnel in the absence of the assigned benefit specialist. This includes the day to day servicing of benefits accounts, settling and tracking claims, settling any billing disputes, corresponding with human resources and directly with employees, marketing to obtain the best product and pricing for the clients. Ms. Hathaway will back up Ms. Hansen in facilitating open enrollment meetings and wellness programs /health fairs for our clients, when necessary. She will also provide backup technical support to Ms. Stegall. Ms. Hathaway earned her MBA in Risk Management & Insurance from Florida State University. She holds a Group Benefits Disability Specialist (GBDS) and Voluntary Benefits Specialist (VBS) designations, as well as the 2-15 Life, Health and Variable Annuities license in the state of Florida.
Paul Dawson, ARM-P – Vice President/Public Risk Advisor Mr. Dawson has served as the Public Risk Advisor for CCUA since 2001. Paul will serve as an additional relationship manager for the Authority’s project. He has served the Property & Casualty insurance needs of Florida’s public entities for more than 25 years.
Matthew Montgomery – Executive Vice President Mr. Montgomery leads PRIA with nearly 20 years of experience within the governmental sector. His expertise is particularly valuable in developing complex communications, delivering dynamic presentations to executive staff, Boards and Commissions, navigating regulatory environments, and strengthening carrier relationships. Matt oversees PRIA and is committed to serving our clients while enhancing our world-class team of professionals. Mr. Montgomery earned his bachelor’s degree in Philosophy from Florida State University. He holds his Florida 2-15 Life, Health and Variable Annuities as well as 2-20 General Lines Agents license.
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Robin Russell, ARM-P/CISR/CSRM – Director of Operations Ms. Russell oversee all day-to-day operations for support staff and operational issues. She is the direct supervisor of the Specialist Teams and provides support for AMS procedures and training. Ms. Russell consistently monitors processing procedures and maintains quality control standards for the office. Ms. Russell earned her bachelor’s degree in Risk Management/Insurance and Finance from Florida State University. She also earned multiple designations including the Associate in Risk Management for Public Entities (ARM-P), Certified Insurance Service Representative (CISR), Certified School Risk Management (CSRM). The licenses held by Ms. Russell include Florida 2-15 Life, Health and Variable Annuities, 2-20 General Lines Agents and 1-20 Surplus Lines licenses.
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Melanie Stegall, GBDS, VBS Employee Benefits Advisor
EXPERIENCE Public Risk Insurance Advisors (a wholly owned subsidiary of Brown & Brown, Inc.) November 2015 to present. Employee Benefits Advisor Responsibilities include direct consulting with clients to identify, analyze, develop and design employee benefit programs for Municipalities and Special Districts. Professional client services include claim reports, benchmarking, compliance updates, Affordable Care Act employer compliance and employee education, marketing benefits, insurance carrier negotiations and contract review. Effective and efficient communication methods for elected board presentations, committee meeting participation, and union negotiations. PNC Bank June 2006 – November 2015 Branch Manager Responsibilities include small business development including, but not limited to, consulting with clients on their business’s financial standing, analyzing current accounts and financial programs currently being used and recommending enhancements or opportunities to save on cost and increase cash flow. Managed a team of 7 to work as a team to work efficiently and effectively meet and exceed branch goals as well as client expectations. EDUCATION Kansas State University, BS Degree, Business Administration
Group Benefits Disability Specialist (GBDS) Voluntary Benefits Specialist (VBS)
LICENSES 2-15 Life, Health & Variable Annuity License, State of Florida PROFESSIONAL VLOC-Volusia League of Cities
AFFILIATIONS RLOC-Ridge League of Cities FASD-Florida Association of Special District
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Cynthia Hansen, GBDS, VBS Employee Benefits Specialist EXPERIENCE Public Risk Insurance Advisors
(a wholly owned subsidiary of Brown & Brown, Inc.) March 2017 – Present. Employee Benefits Specialist Responsibilities include working with public entity benefit clients. This includes the day to day servicing of benefits accounts, settling and tracking claims, settling any billing disputes, corresponding with human resources and directly with employees, marketing to obtain the best product and pricing for the clients. Facilitate open enrollment meetings and wellness programs / health fairs for our clients. Provide technical support to the Account Executives. Raydon Corporation July 2002 – March 2017. Benefits Manager Responsible for all aspects of the benefits department for the organization including, but not limited to: open enrollment, new hire orientation, monthly billing reconciliation, qualifying event changes, ACA reporting, 5500 reporting, 401k administration, tuition reimbursement, claims/billing disputes, annual benefit renewal, benefit vendor selection and relations, employee education and coordination of service award presentations. EDUCATION University of California Santa Barbara, B.A. Biological Sciences Group Benefits Disability Specialist (GBDS) Voluntary Benefits Specialist (VBS)
LICENSES 2-15 Life, Health & Variable Annuity License, State of Florida PROFESSIONAL SHRM – Society for Human Resource Management
AFFILIATIONS
VOLUNTEER WORK Marine Science Center, Ponce Inlet
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Morgan Johnson, GBDS Marketing Specialist EXPERIENCE Public Risk Insurance Advisors
(a wholly owned subsidiary of Brown & Brown, Inc.) December 2018 to Present. Marketing Specialist Advanced knowledge of health insurance markets, products and identifying qualified products and appropriate carrier opportunities to improve benefits programs and manage costs. Responsible for initiating all marketing services and approach all markets as appropriate on behalf of all clients and prospects. A full market search is conducted for all lines of insurance currently in place for a client as well as any new lines of coverage requested or required due to risk exposures. Track carrier financial status and communicate to the Department so that clients are notified in advance of any negative change in status. January 2017 – December 2018. Account Representative Responsibilities include working with public entity benefit clients. This includes the day to day servicing of benefits accounts, settling and tracking claims, settling any billing disputes, corresponding with human resources and directly with employees, marketing to obtain the best product and pricing for the clients. Facilitate open enrollment meetings and wellness programs / health fairs for our clients. Provide technical support to the Account Executives. Publix Super Markets, Inc. February 2011 – October 2016. Customer Service Staff Responsibilities included, but not limited to, training new Customer Service Staff, Front Service Clerks, and Cashiers. This includes training new Customer Service Staff on all cash office operations including opening tasks, closing tasks, deposits, etc. Successfully handling customer complaints and resolving issues accordingly. Being an active member of Safety/Accident Prevention Team. Daily supervision of Cashiers and Front Service Clerks. Required strong problem solving skills and associate relations, as well as expert knowledge in providing answers for complicated operational questions.
EDUCATION Daytona State College Group Benefit Disability Specialist (GBDS) LICENSES 2-15 Life, Health & Variable Annuity License, State of Florida
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Francene Marra, CEBS, GBA, RPA, GBDS, VBS Employee Benefits Team Leader EXPERIENCE Public Risk Insurance Advisors (a wholly owned subsidiary of Brown & Brown, Inc.)
August 2017 – Present. Employee Benefits Team Leader Responsible for leading the team of employee benefits account representatives to ensure that all clients have a high-quality customer service experience. Responsibilities include serving as a primary point of contact for all service requirements, working closely with clients to form effective business relationships through proactive client service and manage renewals efforts. Analyze carrier reports, benefit plan structures, plan design and industry trends and makes appropriate benefit plan recommendations. Act as liaison between clients and the Insurance Carriers to resolve escalated complex service issues that require policy interpretation. Ensure all Quality Control requirements are met. January 2013 – July 2017. Account Representative Responsibilities included working with public entity benefit clients. This includes the day to day servicing of benefits accounts, settling and tracking claims, settling any billing disputes, corresponding with human resources and directly with employees, marketing to obtain the best product and pricing for the clients. Facilitate open enrollment meetings and wellness programs / health fairs for our clients. Provide technical support to the Account Executives. Duvasawko ED Billing and Management Solutions May 2008 – January 2013. Medical Billing Representative Electronic billing for emergency room doctors and hyperbaric wound care doctors. Post payments. Research and resolve account disputes. Insurance appeals. Work aging report. Retrieve and create Electronic Remittance Advice (ERA). Data entry, including deposits, patient and insurance demographics, denials, and memos regarding claim follow up. Process incoming and outgoing phone calls. Customer support. Utilize the following: Microsoft Word, Excel, and Outlook. Anselena Enterprises October 2006 – Present. Bookkeeper Filed and maintained company deposits, checks, and expenses. Worked proficiently with QuickBooks accounting database. Reconciled business account for entire company. Additional miscellaneous bookkeeping duties. EDUCATION Daytona State College, Associates of Arts Degree Certified Employee Benefit Specialist (CEBS) Group Benefits Associate (GBA) Group Benefit Disability Specialist (GBDS) Voluntary Benefits Specialist (VBS) LICENSES 2-15 Life, Health & Variable Annuity License, State of Florida
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Morgan Hathaway, GBDS, VBS Employee Benefits Specialist
EXPERIENCE Public Risk Insurance Advisors (a wholly owned subsidiary of Brown & Brown, Inc.) December 2014 – Present. Account Representative Responsibilities include working with public entity benefit clients. This includes the day to day servicing of benefits accounts, settling and tracking claims, settling any billing disputes, corresponding with human resources and directly with employees, marketing to obtain the best product and pricing for the clients. Facilitate open enrollment meetings and wellness programs / health fairs for our clients. Provide technical support to the Account Executives. Daytona State College, School of Applied Business June 2011 – July 2014. Coordinator Academic assistance and support. Monitor student progress and refer to student support services as needed for early intervention to ensure retention. Assist in development and implementation of individualized employability plans. Data entry, including graduation application check-downs and approvals. Process incoming and outgoing phone calls and emails. Utilize the following: Microsoft Word, Excel, and Outlook. Daytona State College, Office of Admissions September 2006 – June 2011. Sr. Staff Assistant Office support and multi-line phone system. Planning and support services for recruitment events and college tours. Prepare and maintain master recruitment travel schedule. Prepare departmental forms, procedure manuals, meeting notes and flow charts utilizing Microsoft Word and Excel. Departmental leave designee.
EDUCATION Florida State University, MBA degree, Risk Management & Insurance Specialization Daytona State College, Daytona Beach, FL Group Benefit Disability Specialist (GBDS)
LICENSES 2-15 Life, Health & Variable Annuity License, State of Florida
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Paul Dawson, ARM-P Senior Vice President / Public Risk Advisor
EXPERIENCE Public Risk Insurance Advisors (a wholly owned subsidiary of Brown & Brown, Inc.) 1995 to Present. Senior Vice President / Public Risk Advisor Responsibilities include direct consulting with clients to identify and analyze risk exposures and coverage needs, and develop and design individualized insurance programs. Professional client services include oversight of insurance and risk management programs, including claims advocacy, internal policy and procedures development, and contract review. Effective and efficient communication methods for elected board presentations, committee meeting participation, and coordination of daily staff service objectives. E.I. DuPont 1987 to 1995 Safety Manager, Southeast District Large Account Representative. Responsibilities including implementation of ISO 9000 programs, new product marketing plans, fleet safety and new employee training. EDUCATION Associates in Risk Management (ARM) Risk Management for Public Entities (RMPE) Valencia Community College
LICENSES 2-20 General Lines Agents License, State of Florida
PROFESSIONAL FAC – Florida Association of Counties
AFFILIATIONS FLOC – Florida League of Cities FERMA – Florida Educational Risk Management Association FSBA – Florida School Board Association PRIMA - Public Risk Insurance Management Association, Associate Member & Speaker
AREAS OF SPECIAL Florida Public Entity Large Property Insurance Programs
EXPERTISE Alternative Risk Financing and Implementation FEMA Regulations Contractual Indemnification and Risk Transfer Catastrophic Modeling (AIR & RMS) Florida Public Entity Law
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Matthew Montgomery Executive Vice President EXPERIENCE Public Risk Insurance Advisors (a wholly owned subsidiary of Brown & Brown, Inc.) 2015 to Present. Executive Vice President Responsible for the executive oversight of Public Risk Insurance Advisors. Additional duties include production, marketing and service of public entity insurance programs and accounts. September 2013 –2015. Account Executive Responsibilities include direct consulting with clients to identify and analyze risk exposures and coverage needs, and develop and design individualized insurance programs. Professional client services include oversight of insurance and risk management programs, including claims advocacy, internal policy and procedures development, and contract review. Florida Department of Highway Safety and Motor Vehicles May 2012 – September 2013. Legislative Affairs Director Served as the lead on all departmental advocacy before the legislature, including all lobbying on behalf of the Florida Highway Patrol. Responsibility for all budget and legislation and responsible for securing the funding to run one of the largest state agencies in Florida. Southern Strategy Group December 2007 – May 2012. Partner Lobbyist Advocated on behalf of clients such as Disney, Apple, NASCAR, BCBS, and CVS. Partner in the largest state-level lobbying firm in the country. Experience lobbying the Executive and Legislative branches at all levels. Florida Department of Agriculture and Consumer Services January 2007 – December 2007. Deputy Director, Office of Legislative Affairs Legislative advocacy for Cabinet Level agency Charles H. Bronson Campaign January 2006 – January 2007. Deputy Campaign Manager Responsibilities included all internal organization of contributions, volunteers, scheduling, and communications. United States Senate, Office of Senator Bill Nelson (FL) December 2002 – June 2006. Assistant to the Chief of Staff Responsible for incoming communications which included over 300 calls a day and over 100 pieces of written communication.
EDUCATION Florida State University, BS Degree, Philosophy
LICENSES 2-20 General Lines Agents License, State of Florida 2-15 Life, Health, and Variable Annuities License, State of Florida
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Robin L. Russell, ARM-P, CISR, CSRM Director of Operations
EXPERIENCE Public Risk Insurance Advisors (a wholly owned subsidiary of Brown & Brown, Inc.) April 2010 to Present. Director of Operations Oversee day-to-day operations for support staff and operational issues. Supervisor of the Specialist Teams, provide support for AMS procedures and training. Monitor processing procedures and maintain quality control standards for the office. Direct and support agency operational needs. Service of select accounts. July 2004 to April 2010. Customer Service Representative Responsibilities include working with mid-sized to large public entity clients. Handle requests for certificates of insurance, policy changes and endorsements, claims issues, and other daily servicing duties. Manage initial notices of claims. Track claims activity until adjustors close files. Help address conflicts that may arise from claimants, insureds, and carriers. Provide technical and clerical support for public entity service representatives.
State Farm Insurance August 1998 to June 2004. Insurance Account Representative Performed a range of insurance and financial sales and customer service functions. Handled the receiving, filing, and tracking the status of claims to facilitate appropriate resolutions, build customer satisfaction, expand account relationships. Clarified complex insurance terminology and procedures to educate customers. Responsible for incoming money and processed daily deposits. Trained and assisted all team members with day-to-day activities. EDUCATION Florida State University, BS Degree, Risk Management/Insurance and Finance Associate in Risk Management for Public Entities (ARM-P) Certified Insurance Service Representative (CISR) Certified School Risk Management (CSRM) Risk Management for Public Entities (RMPE) FEMA Public Assistance Program
LICENSES 2-20 General Lines Agents License, State of Florida 2-15 Life, Health, and Variable Annuities License, State of Florida 1-20 Surplus Lines License, State of Florida
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Additional Support
Joel L. Axler, MD
National Behavior Health Leader Dr. Axler is a board-certified Child, Adolescent and Adult Psychiatrist. He has a wealth of experience addressing mental health and substance abuse issues that face employer groups and has a passion for helping employers develop innovative solutions to improve behavioral health access and quality of care. Dr. Axler has experience building effective integrated physical-mental health care solutions and developing and deploying innovative strategies to enhance member engagement and motivation to improve adherence with treatment, leading to better quality of life for employees and their families. With more than 30 years of experience in healthcare, Dr. Axler has held leadership positions directing the psychiatric care of children, adolescents and adults in academic, private practice and insurance settings. Prior to joining Brown & Brown, Dr. Axler served as the Behavioral Health Managing Medical Director for Anthem Inc. for the Government Business sectors, including Medicaid and Medicare. At Anthem he was responsible for the administration of mental health and substance use disorder services for the health plans, overseeing the impact on healthcare quality, cost, and outcomes including managing the psychiatric health needs of members in the Georgia Medicaid program and the Georgia Foster Care program. Prior he served as chief medical director at Peachford Behavioral Hospital in Atlanta, one of the largest residential psychiatric facilities in the Southeast. Previously he was a Regional Medical Director for the commercial business for United Behavioral Health (UBH) for 15 years. Louise J. Short, MD, MSC National Clinical Leader Dr. Short is the National Clinical Leader Brown & Brown. Her passion and her focus is working with employers to develop innovative strategies and solutions that engage and support employees and their families in making good choices to avoid the cost and consequences of poor health. She is a seasoned, results-driven physician with a background in internal medicine, occupational and preventive medicine, and 25 years of experience providing clinical leadership in designing, implementing and measuring population health programs and strategies. Previously Dr. Short was a partner at Mercer where she built the population health practice for the South and spent six years consulting to national and global employers on approaches to improve health outcomes and control cost. She has worked with many jumbo employers including Lowe’s, Bank of New York Mellon, Dollar General, and PepsiCo. Her expertise also includes analytics, epidemiology, managed care plan administration and medical management, clinical and behavioral health strategy and program management, and outcomes measurement strategy and execution. Dr. Short has a focus on making the healthcare system work better, and has relationships as well as in depth knowledge of many of the advocacy and navigation vendors and solutions.
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Becky Kujawski, R.N., B.S. Senior Clinical Consultant Becky Kujawski is a principal and Senior Clinical Consultant for Strategic Benefit Advisors. In addition to acute care experience, she has 25 years of experience with a major carrier and 13 years of experience in population health consulting working with a variety of clients including large national and international companies. Areas of expertise for Becky include design, operationalization, evaluation and assessment of clinical management programs from wellness through absence management. She has over 31 years of clinical, disability and consulting experience working with clients to analyze data, formulate strategy, develop and implement health care management programs and evaluate their effectiveness. She has been heavily involved in the clinical evaluation and assessment of medical management, behavioral health, chronic condition management and absence programs delivered both by health plans and specialty vendors. Becky is actively involved in her profession and her community. She has presented at a number of conferences including the Florida Nurses' Association, American Psychiatric Association and American Hospital Association. She is also a certified Guardian Ad Litem in Hillsborough County. Becky earned her nursing degree at Michael Reese Hospital School of Nursing and Bachelor's degree at University of Saint Francis. She holds an active Florida nursing license as well as Life, Health and Annuity license in 21 states.
Rich Babcock
National Population Health & Well-being Rich Babcock is a member of Brown & Brown’s national Population Health & Well-being team. He brings over 25 years of experience in workforce health and productivity and has implemented solutions for over 50 employers in every major industry with workforces ranging from 500 to 250,000 employees. He has earned national recognition for his employer clients including the prestigious C. Everett Koop National Health Award for worksite health. Rich has deep knowledge of the employer health and well-being marketplace and the ability to align solutions with employers’ cultures and goals. His areas of expertise include population health strategy development, vendor relationship management, incentive and communications design, and program evaluation and measurement. He also brings the following skills: • Entrepreneurial spirit and passion for applying technology to improve workforce health and well-being • Strategic and data-driven thinker and creative problem solver • Collegial approach to engaging key stakeholders, building consensus and leading cross functional teams • Excellent analytic skills to build a business case and measure outcomes
Rich earned a B.A. in economics from Hamilton College and an MBA from Cornell’s Johnson School of Management.
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Curt Evans Actuarial Consultant Mr. Evans has 32 years of experience in providing actuarial consulting services to plan sponsors of pension and post-retirement medical plans. Mr. Evans is a Fellow of the Society of Actuaries and an Enrolled Actuary under ERISA. He is responsible for providing our clients with proactive, value-added, timely actuarial consulting that includes delivering actuarial valuation results and preforming plan administrative functions that satisfy government and accounting requirements and providing actuarial cost forecasts and consulting to help our clients achieve their business objectives. He is knowledgeable on all aspects of pension administrative, funding and accounting rules. He consults with clients on plan funding and investment strategies, financial forecast projections, setting valuation assumptions and methods, plan design alternatives and participant communication. Some specific relevant assignments that he has recently provided to clients include:
Provided actuarial and administrative service for defined benefit clients that have recently terminated their pension plans, including clients with cash balance and traditional pension plans.
Analyzed and implemented deferred vested lump sum settlement windows to help clients de-risk their plans and reduce PBGC premiums.
Performed pension plan asset/liability investment mix analysis to help clients gauge what asset mix would most likely meet their risk-return objectives.
Merged client pension plans to reduce administrative costs and complexities.
Designed alternative defined contribution plan to replace the defined benefit plan benefit accruals that were frozen and tested the defined contribution replacement plan to ensure that the plan would satisfy the IRS coverage and nondiscrimination rules.
Conducted financial cash and expense forecasts for corporate financial budgeting and planning purposes.
Provided acquisition and divestiture actuarial cost analyses with respect to pension and retiree medical benefit obligations for clients that bought and sold business entities. Mr. Evans also consults on active and retiree health and welfare benefit plans for the public and private sector. Retiree services include actuarial valuations for purposes of determining financial statement expense and year-end balance sheet adjustments and footnote disclosure items under FASB and GASB, and analyzing the cost effect of alternative assumptions and plan designs, and cash flow (pay as you go) and financial statement expense and liability forecasting. Active services include developing cost savings strategies, plan design costing, life and health insurance premium negotiations, premium equivalence and reserve determinations and actuarial equivalency testing for the Medicare Part D Retiree Drug Subsidy. Mr. Evans graduated with a bachelor degree in Mathematics from Penn State University in 1988, became an Enrolled Actuary in 1993 and a Fellow of the Society of Actuaries in 2001.
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2. Number of years of experience in benefit administrative services. The executive management team, assembled on behalf of CCUA, has over 300 years of collective benefits experience. Members of our team have rich backgrounds in a range of insurance professions including underwriting, risk management, claims processing, third party claims administration, pharmacy consulting, medical billing, HR management, wellness plans, provider contracting, marketing, employee benefits technology as well as account management, problem resolution and health and welfare plan implementation. 3. Describe business philosophy. We are highly focused on delivering optimal results for our clients on a continuous basis. Our strategy is to exceed our clients’ expectations and earn their trust and confidence every day, every month and every year, ad infinitum. We will never rest on our laurels. PRIA is “Built to Last” and its decentralized structure allows its offices to be proactive and to quickly react to changes according to local environments without waiting for bureaucratic approval. An important by-product of PRIA’s decentralized structure is that it serves to improve the quality of customer service. Each office is able to tailor its operations to fit the needs of its clients. However, we have national alignment as well. We have senior leadership dedicated solely to employee benefits, as well as a National Benefits Committee to share ideas and shape our employee benefits priorities and policies. The senior leaders and Benefits Committee sit on advisory boards of the insurance carriers and routinely meet with the insurance carriers’ senior leadership teams, perform RFPs for all benefits related products and services, and are held responsible for the successful implementation of new initiatives and products. Our drive to be the best has made PRIA one of the largest and most respected independent insurance intermediaries in the nation, with over 80 years of continuous service. We believe that maintaining client loyalty requires hiring people of the highest quality. This commitment remains strong as we continually increase our budget to bring in new quality people and invest heavily in each teammate’s training. This training begins at hire and continues throughout teammates careers, many of which last over 30 years with the company. Each person is encouraged to further their education and all job-related designations are paid for by PRIA. We understand that by investing in our most valuable asset, our people, we are consistently ahead of our competition. PRIA’s Employee Benefits Division has developed into one of the nation’s largest with premiums in excess of $6 billion annually. This also includes aggregate stop loss premium in excess of $430 million. This premium affords us a distinct advantage when it comes time to negotiate CCUA’s renewal. PRIA’s established relationships with carriers, and our reputation, provide us with a proven ability to bring forth the most competitive rates and programs the market has to offer. We have a National Employee Benefits Leadership team comprised of Regional Presidents, a Medical Director, a Mental Health Director, Technology Team, and a Population Health Management team. We also have several consortiums specific to self-funded plans for prescription drug placement and stop loss insurance that leverage our national premium volume for enhanced terms and conditions as well as pricing. PRIA’s success is due largely to our ability to adapt to the demands of the marketplace and to the needs of our clients.
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OUR PLEDGE Honesty and integrity are cornerstones of the Brown & Brown (B&B®) culture. The Company’s reputation depends on the conduct of its representatives. All persons who are associated with the Company are expected to conduct themselves professionally and ethically in the course of their duties, and to comply with all laws applicable to the Company’s operations. At Brown & Brown we know that the price of integrity is eternal vigilance. At the core of PRIA’s business practices is the philosophy: Always do what’s best for our
clients. It is our goal to always exceed clients’ expectations while maintaining the highest professional and ethical standards.
CULTURE: “The People Recruiting & Enhancing Business” Ask anyone at Brown & Brown the secret to the Company’s eight decades of success, and they will give one answer: CULTURE. It is a corporate belief that combines bravado with old-fashioned business sense. Strive to do better than others and hire only those who can surpass you. Be bold but be sure you are willing to deal with the consequences. If something seems easy, it is probably wrong. Our culture was built on two key segments centered on integrity and prideful relationships. One of our foundational business principles, as communicated by Mr. J. Hyatt Brown, Chairman of Brown & Brown illustrates our culture and corporate commitment:
“The best way is almost always the most difficult way. Long term success involves conflict
with those who are not disciplined or committed. Our model is designed to allow those
uncommitted undisciplined people to find other companies whose focus is not forever.” 4. Describe customer service philosophy. PRIA’s customer service philosophy begins with consistently providing our clients with the highest level of proactive customer service each and every day. Our employee benefits team makes every effort to provide same-day responses and expedited resolutions for any issues that arise. However, we guarantee a maximum of 24-hours for a response. The dedicated Employee Benefits Specialist for CCUA’s staff, employees and dependents will be Cynthia (Cyndi) Hansen. Ms. Hansen strives to proactively communicate with everyone involved during the resolution process. Her direct contact information will be provided to CCUA and included in the customized Benefit Guide. Ms. Stegall makes herself available 7 days per week, 24 hours per day, by direct phone, cell phone and email. PRIA provides diligent, ongoing support and communication to executives, staff, employees and dependents. Our goal is to serve as an extension of CCUA’s HR department. We consistently review our team’s workload to ensure we are properly staffed to exceed our clients’ customer service expectations.
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The pillars of our customer service model include, but are not limited to: Accessibility – Our team is available to staff, employees and dependents to ensure understanding of benefit options available.
Education – PRIA coordinates and facilitates employee meetings, seminars, open enrollment and health and wellness fairs. Education is a crucial component for employees to truly understand the value of the benefits available to them and their families. Custom communications and benefits guides are provided as well. Public Entity Expertise – PRIA is 100% public entity focused. We have the knowledge and expertise to design, negotiate, place coverage and service the most comprehensive programs. We also keep our clients in compliance and at the forefront of any new or upcoming legislation that may impact their plans and/or employees.
Innovation – PRIA consistently thinks outside of the box and utilizes our resources to bring new and innovative ideas and programs to our clients that may enhance their current programs, contain costs and/or streamline processes. Advocacy – PRIA is a completely independent insurance intermediary with no vested interest in any insurance carrier or vendors. We work for our clients and always act with the utmost integrity while representing our clients’ wishes and best interest.
Accessibility
Education
ExpertiseInnovation
Advocacy
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5. Include a list of your governmental clients, specifically Utility Companies or government entities. Below is a list of public sector clients our team manages with more than 100 employees:
Florida Public Sector Clients Full Time Employees Volusia County School Board 8,000 County of Volusia 2,939 St. Petersburg College 2,400 Flagler County School Board 1,649
City of Sarasota 1,300 City of Daytona Beach 807 Southwest Florida Water Management District 575
City of St. Cloud 532 St. Johns River Water Management District 500 City of Miami Gardens 473
City of Port Orange 436 City of Palm Coast 400 DeSoto County BOCC 394 Gilchrist County School Board 369 City of DeLand 365 City of Ormond Beach 352 Gadsden County BOCC 309
City of Haines City 308 Washington County BOCC 260 Volusia County Clerk of Courts 257 Levy County BOCC 222 City of New Smyrna Beach 208
City of Edgewater 197 Gilchrist County BOCC 186
Utilities Commission, City of New Smyrna Beach 185
City of Casselberry 180 City of Longwood 150
City of Groveland 135 City of Seminole 120 City of Holly Hill 105 Madison County BOCC 100
**Entities with substantial utilities operations are in bold.
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6. Include three (3) specific references that we may contact (clients most similar to Clay County Utility Authority in type and size and similar services requested).
Client Name: Utilities Commission, City of New Smyrna Beach
Address: 200 Canal Street, New Smyrna Beach, FL 32168 Client Contact: Britney Beck, Director, Central Services
Telephone Number: (386) 424-3056
Email: bpitcher@ucnsb.org Benefit Programs: Fully insured medical, dental, vision, life/vol life, disability programs
Scope of Services:
PRIA serves as agent of record for the Commissions fully insured medical, dental, vision, life and disability program. Services include plan design consultation, claims monitoring, quarterly meetings to strategize regarding long-term cost containment, wellness meetings, health fairs, RFP process management, proposal evaluation, enrollment meetings and employee communication materials. PRIA is also a day-to-day resource for claims and billing assistance, compliance and regulatory guidance and enrollment tracking. Size of Entity: 185 Employees
Client Name: City of Haines City
Address: 620 E. Main Street, Haines City, FL 33844 Client Contact: Tavia Conner, Finance Director, CPA, MBA
Telephone Number: (863) 421-3600
Email: sconner@hainescity.com Benefit Programs: Self-Funded Medical via FGHS Consortium, Dental, Vision, Life
Scope of Services:
PRIA serves as agent of record for the City of Haines City’s self-funded medical program, through our FGHS Consortium, dental, vision and life insurance plans. Services include plan design consultation, claims monitoring, quarterly meetings to strategize regarding long-term cost containment, wellness meetings, health fairs, RFP process management, proposal evaluation, enrollment meetings and employee communication materials. PRIA is also a day-to-day resource for claims and billing assistance, compliance and regulatory guidance and enrollment tracking. The City has been a member of the FGHS consortium since 2014. At the end of their fifth year in the consortium, the City has received a total of $1.5 million dollars in surplus returns. . Size of Entity: 285 Employees, 56 Retirees
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Client Name: Washington County BOCC
Address: 1331 South Boulevard, Chipley, FL 32428
Client Contact / Title: Aaron Dudley, Human Resources
Telephone Number: (850) 415-5151
Email: adudley@washingtonfl.com
Benefits Program: Self-Funded Medical via FGHS Consortium, Dental, Vision, Life
Scope of Services:
PRIA serves as agent of record for the County’s self-funded medical program through our FGHS Consortium, dental, vision and life insurance plans. Services include plan design consultation, claims monitoring, quarterly meetings to strategize regarding long term cost containment, wellness meetings and health fairs, RFP process management, proposal evaluation, enrollment meetings and employee communication materials. PRIA is also a day-to-day resource for claims and billing assistance, compliance and regulatory guidance and enrollment tracking. The County was previously in a fully insured arrangement with Florida Blue, they chose to join the FGHS consortium on October 1st, 2018. The consortium was the same price against the fully insured arrangement, but they had the potential to receive a surplus return year-over-year in the consortium and have access to 100% transparency. After the County’s first year in the consortium they received $260,000 in return surplus. Size of Entity: 260 Employees, 20 Retirees
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Scope of Services PRIA confirms our ability to provide all services listed in the Scope of Services.
Scope of Services and Related Requirements
Service Able to Provide Unable to Provide
A. Consulting Services 1. Evaluation of plan design, strategic recommendations, and implementation 2. Collection and analysis of benchmark data, performance of peer group comparisons, and related strategic recommendations 3. Review competitive “best” practices and benefit plan options 4. Performance of healthcare reform calculations, provision of guidance and recommendations 5. Comprehensive employee communications support, development of consumer-focused guidance tools and education related to healthcare and cost savings opportunities 6. Provide guidance on the annual budgets, allocations of payroll deductions 7. Section 125 Plan a. Provide Section 125 Plan document updates b. Review plan documents for accuracy and compliance with appropriate laws and regulations, and appropriateness of items to be included in the plan
8. Health & Wellbeing Program a. Assist with the management of the Employee Health and Wellbeing Program to advance and recognize the healthy lifestyles of CCUA’s health plan participants. b. Assist with the development of programs, in conjunction with the health care plan to improve the health of plan participants, including the use of health screenings and health fairs.
B. Contract Administration 1. Responsible for bidding/quoting/negotiating health plan, dental plan, vision plan, life insurance, prescription plan, supplemental insurance, and other plans as directed by the CCUA Senior Leadership Team and approved by CCUA on an annual basis.
2. Provide Claims Assistance for all lines of coverage
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Scope of Services and Related Requirements
Service Able to
Provide
Unable to
Provide
C. Financial & Data Analysis 1. Performance of analysis of impact of healthcare reform on CCUA’s group medical plan 2. Performance of financial analysis and funding recommendations related to benefit programs 3. Evaluation of employee contribution strategy and development of related recommendations 4. Data collection, organization, and interpretation related to claims experience 5. Ongoing performance of financial analysis and cost projections 6. Analysis of benefit utilization and cost trends 7. Evaluation of the impact of potential benefit changes
D. Plan Placement, Vendor Management and Renewals 1. Conduct thorough competitive vendor/market analysis, including cost and plan comparisons 2. Performance of benchmark analysis of peers/market 3. Preparation of Requests for Proposal for new insurance carriers and vendors, in year one of engagement, including reviews, managing timeline and communications strategy. 4. Performance of network evaluations, including discounts, access and service disruption recovery 5. Negotiation of provider and insurer agreements and renewals, including costs, terms, conditions and service level agreements and performance guarantees 6. Implementation of new benefit programs 7. Preparation of bid specifications and soliciting proposals from insurance markets which specialize in group insurance plans, as needed. Evaluate bids and bidders, including administration, claim payment procedures, customer service, network, reserve establishment policies, financial
8. Ongoing vendor evaluation and performance management 9. Service as liaison for resolution of administrative and claim issues
D. Informational Services 1. Monitoring the legislative environment and providing regular updates and guidance 2. Proactive assistance with federal and state compliance matters, including healthcare statutes and regulations 3. Provision of expertise related to healthcare reform, Internal Revenue Code, HIPAA and COBRA matters
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Section C Reporting, Portfolio Evaluation and Review of Accounts
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Section C: Reporting, Portfolio Evaluation and Review of Accounts 1. Frequency of reporting to clients. PRIA schedules claims reporting, at a minimum, on a quarterly basis. We believe our clients should not be surprised at renewal time. As your trusted consultant and advisor, we will strategize for both the short and long-term objectives. A small piece of these strategies is keeping our clients apprised of claims utilization, ongoing high-cost claims, pharmacy spend, COVID claims and any measures that can be taken to contain costs and mitigate risk. In addition to quarterly claim reporting, PRIA agrees to provide any requested ad hoc reports, provided the requested information is available. 2. Format of reports (include sample reports in proposal submission). Sample provided directly following this page.
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Section D Compensation
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Section D: Compensation 1. Compensation shall be quoted as commission based for each line of insurance or service provided. Full disclosure of all compensation earned, either directly or indirectly is required. All fees and/or commission must be disclosed. PRIA is providing CCUA a commission option, as well as an option for a flat fee. Included in both of these are the services outlined in this proposal, including CCUA’s current benefits administration platform, PlanSource. PRIA commits to full disclosure of all compensation earned, whether directly or indirectly.
Commission Option Medical 2.5% Dental 5% Vision 10% Life / Voluntary Life 10% Disability 10% Flat Fee Option $45,000
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Section E Insurance
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Section E: Insurance 1. Provide a list of applicable insurance coverage and include relevant coverage limits.
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Section F PRIA’s Certificate of Insurance
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Section F: PRIA’s Certificate of Insurance Provide the name of the primary insurance carrier and related AM Best Rating. The AM Best ratings for Brown & Brown’s insurance carriers are as follows:
Carrier AM Best Travelers Property Casualty Company of America A++ XV XL Specialty Insurance Company A+ XV Continental Insurance Company A XV The Charter Oak Fire Insurance Company A++ XV
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Section G Research and Decision Making
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Section G: Research and Decision Making Approach and Methodology Mrs. Melanie Stegall and her team will work with CCUA to develop an optimal benefits strategy that aligns with the Authority’s current and future planning objectives. Our approach is to deliver accurate, timely and innovative solutions while developing future strategies. The methods outlined in this section illustrate how we customize the marketing approach and long-term strategy for each client. Each client has different goals, which can change over time. We believe it is important to provide continuous education about claims performance, plan utilization, create benchmarking reports, and funding options available in the marketplace for both medical and ancillary. Some clients are happy with their current program and wish to have longevity within that program, while staying at or under budget. Therefore, there are years, where marketing to other carriers to leverage the incumbent may not yield optimal results and instead, we achieve a favorable renewal by negotiating directly with the current carrier and leveraging the partnership that we have. However, if that cannot be achieved, then our strategy is to solicit competitive quotes and review the benefits of changing carriers. The marketing and education process is started early in every renewal cycle to ensure there is time to shift strategies if necessary. Our clients always have plenty of time understand and evaluate all of the options available in the marketplace. Detailed analysis is provided during this process so clients can fully understand not only the financial impact of change, but the administrative and employee impacts. Any possible disruption is disclosed and analyzed to establish a plan to mitigate and minimize hiccups in the process.
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1. Provide internal and external research methods and resources. PRIA utilizes multiple internal and external resources to assist our clients with additional research or clarification, whether compliance related or otherwise, to ensure they have the ability to make educated decisions on behalf of CCUA and your employees. These internal resources include, but are not limited to:
Research & Compliance Team – comprised of attorneys specializing in regulatory and legislative strategies and impacts on our clients’ health and welfare benefit plans
Internal & External Benchmarking Reports
Clinical Health Specialist – Dr. Louise Short
Clinical Consultants – Becky Kujawski, RN, BS
Behavioral Health Consultant – Joel Axler, MD
Health & Wellbeing Consultant – Rich Babcock
Population Health Consulting Team
Population Health Advisory Committee
Analytics Team
Actuarial Team
COVID-19 Task Force
Internal Legal Counsel
Absence and Leave Services The external resources PRIA utilizes for compliance, HR and/or plan issues are:
Miller Johnson, PA – ACA/ERISA/Compliance Attorneys
HR Workplace Services – HR Consulting
Zywave / Spot On Resources – HR, compliance and employee benefit resources/portal
Carrier/Vendor Partners
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2. Include processes for decision making process. Regardless of the kind of decision needing to be made, PRIA will, first and foremost, discuss any questions or concerns that CCUA may have. We always want to be sure that our recommendations support CCUA’s short and long-term strategies, while remaining compliant. We will then utilize all available resources to provide CCUA with data, benchmarking, regulatory and resources to provide additional information that will accompany our recommendations. Once all of the pertinent information is provided, we will facilitate a discussion to ensure understanding of all options available to CCUA. Data/Information Collection
Data Analysis/Research
Complete Proposal and Recommendations
Provide Proposal to CCUA and Discuss
Further Research (if necessary)
Decision
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Renewal Strategy and Decisions When the time comes for renewal strategy and decisions, PRIA conducts a pre-renewal meeting with CCUA’s staff and designated committees or task forces. During the pre-renewal meeting we will discuss current coverages, advantages and strengths of the current program as well as any potential improvements and options for the upcoming renewal. Our team will consult with CCUA through all phases of the marketing and insurance placement process. There are many factors to be considered when evaluating a proposal, including, but not limited to, overall cost, network of providers, compliance with RFP, plan design, and recommendations in regard to the needs and objectives of the Authority. Preparation and education are key components that will conclude with a successful outcome – this is where our strategic benefit plan comes into play. We will then approach the appropriate markets to obtain competitive proposals which is then consolidated into a formal report to the Authority including recommendations. Below is a sample RFP process and timeline:
Example Date Action Expected
Time May 15 Meet with CCUA to Discuss Specifications 1 Day May 16 Develop Carrier RFPs 1 Day May 23 Submit RFP to CCUA for review / feedback 14 Days *June 1-15 Submit RFP to carriers and post on DemandStar 14 Days August 21 Proposals returned to PRIA, Review, Analysis 3 Days August 28 Present Proposals to CCUA 1 Day September 8 CCUA to Review-Request BAFO, Finalists or Award 4 Days September 15 PRIA to assist with Interviews (if necessary) 1 Day September 16 PRIA to notify all carriers of Award 1 Day
*Early renewal typically released by current carrier second or third week in May for a 10/1 renewal. PRIA will then review and analyze submittals and present results with our recommendations to staff and the Board. The analysis will include:
o Ratings of carriers
o Market summary
o Fully insured plan spreadsheet with details of all competitive quotes
o Alternative funding options
o Wellness funds, implementation and/or technology credits offered
o Performance guarantees o Network analysis and disruption report to illustrate the strength of each carrier’s network in the Authority’s area PRIA will then discuss all recommendations, pros and cons of carrier proposals, and answer any questions to assist CCUA in making an educated decision in the best interest of the Authority and the employees.
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Implementation and Education Implementation and education are critical when considering changing any component of the employee benefits program. It is extremely important that we create and implement a strategy that ensures the employees understand the offerings that are available to them, the value of those benefits and the best way to utilize the benefits to contain their out-of-pocket costs. Some of the ways we conduct these meetings are outlined below:
In-Person & Virtual Meetings
o We will meet with your employees every year during open enrollment to present and explain the benefits and address questions. We are also available at any point during the year to meet with your employees to educate them on a variety of topics like health/wellness, cost savings tools and methods, and how best to use the plan and other free resources.
Employee Videos o We can produce an employee video explaining the benefits so that all new hires can have the benefit of an open enrollment meeting when they begin employment and also for active employees during the open enrollment time period.
Employee Webinars/Seminars
o We routinely offer webinars/seminars for employees on a variety of topics including how to use the benefits, EAP services and other requested topics of interest. PRIA has several methods of educating employees at open enrollment and throughout the year with various tools:
PowerPoint presentations
On-site group or one on one meetings
Open enrollment announcements
Customized Flyers
Customized educational videos, which can be posted on our clients’ internet
Webinars
Electronic enrollment including videos and wellness education
Employee enrollment hotline managed by dedicated Brown & Brown staff
Employee enrollment email at Brown & Brown
Employee compensation statements
Online enrollment systems
Customized employee communications on specific topics In addition to managing the enrollment presentations, the PRIA team will take on the responsibility of preparing the Benefit Administration and Online Enrollment platform with the updated benefit information prior to open enrollment. They will set up and test the EDI feeds between the system and carriers. We are available for direct discussions with employees who need assistance with medications, choosing plans, who need continuity of care or authorizations for certain services and can assist employees who need to find new physicians (if moving from one network to another).
Clay County Utility Authority
RFP# 2020/2021-A9 – Benefits Administrative Services
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Compliance Compliance with Federal Laws Employee Benefits compliance has become one of the most complex challenges facing employers and is where PRIA can add tremendous value. Since the implementation of the Affordable Care Act, employers are turning to us more than ever to keep them informed and to assist them in complying with all DOL requirements We haves recognized this challenge facing our employer clients, and in turn, has devoted substantial resources into developing solutions for addressing the ACA requirements. We have hired Miller Johnson, a highly regarded ERISA/Employee Benefits Compliance firm, to be on retainer specifically to provide guidance as it is released and to answer questions that arise. Our Team will strive to keep CCUA leadership and employees informed. We distribute several employee communications during open enrollment and throughout the year regarding wellness, compliance, benefit offerings and various newsletters that will be reviewed and approved by the Authority prior to printing and distributing to employees. In addition to ACA Compliance, any time a client has a benefit related legal question, we email our attorneys at Miller Johnson and forward their legal opinion on the matter to the client. These responses are generally within the same day and add significant value. Should changes in regulation impact your employee benefits program, we will work with Miller Johnson to ensure you are educated on the matter as early as possible and a plan is established for compliance moving forward. For some of the less complex HR / compliance questions, we have additional resources such as HR Workplace Services and Zywave, which also provide guidance for our clients. In addition to having the above resources available for specific questions and issues, we frequently advise our clients to attend the webinars that are hosted to proactively ensure compliance. We periodically send out newsletters and communications to keep our clients at the forefront of any legislative and/or industry updates. PRIA also utilizes:
HIPAA HiTech Compliance
Cloud Computing and Server Systems
Encrypted Emails
IT Infrastructure Compliant with SOX
Clay County Utility Authority
RFP# 2020/2021-A9 – Benefits Administrative Services
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See below for Compliance Resources Communications Examples.
Clay County Utility Authority
RFP# 2020/2021-A9 – Benefits Administrative Services
Section H Other
Clay County Utility Authority
RFP# 2020/2021-A9 – Benefits Administrative Services
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Section H: Other 1. Subcontractor – List any subcontractors that may be used to accomplish this service and provide a minimum of 3 references. Not applicable. 2. Litigation – List any past and/or pending litigation or disputes relating to the work described herein that your firm has been involved in within the last five (5) years. This list shall include each project name and the nature of the litigation. Risk Management Associates, Inc. dba Public Risk Insurance Advisors has no past and/or pending litigation or disputes within the last five (5) years. 3. Financial Information – The authority is interested in awarding this RFP only to an organization that is financially sound; to demonstrate financial capacity, the firm may be required, only if requested by CCUA, to submit a financial statement prior to final award. This financial information will be kept as confidential, since Section 119.07, Florida Statutes, exempts financial statements from the public record requirement. The financial statement, preferably audited, shall be the firm which is submitting the proposal and shall include the following items: current and net fixed assets and any other assets; current liabilities, long term liabilities, and other liabilities; and name and address of firm preparing the financial statement and the date of preparation. The financial information provided by the awarded firm goes to the issue of bidder responsibility, as determined in CCUA’s sole discretion. As Brown & Brown is publicly traded and public financial reports are provided to the SEC regularly, we have included the Brown & Brown Annual Report for fiscal year ending December 31, 2020 provides 2 years of financial data and is provided in this section of the response. In addition, the following path will provide additional information and Annual Reports dating back to 1999: https://investor.bbinsurance.com.
With over $2.6 billion of annual revenues, Brown & Brown is a publicly held corporation listed on the NYSE, symbol “BRO”. As such, our financial practices are subject to strict controls. Our company is audited by Deloitte & Touche, LLP, an independent registered public accounting firm. Our financial metrics prove our conservative financial strategy of low leverage and strong cash generation. Additionally, Brown & Brown has a Quality Control division which includes multiple teams of internal auditors. These auditors perform not only financial audits, but also file and Information Technology audits of each office to assure funds, records and client service are performed in accordance with the company’s policies and procedures. The results of these audits are made directly to Brown & Brown’s Board of Directors.
Clay County Utility Authority
RFP# 2020/2021-A9 – Benefits Administrative Services
Page | 46
Because of Brown & Brown’s financial stability, it is one of the selected companies that comprise the Standard & Poor’s Mid-Cap 400 Index. Additional information concerning our secure financial position can be found at www.bbinsurance.com or by request. 4. Insurance Certifications – Provide a copy of Certificates of Insurance evidencing coverage as stated in the Insurance Requirements listed in this solicitation. Note: Policies other than Workers’ Compensation shall be issued only by companies authorized to conduct business in the State of Florida, with active certificates of authority issued by the State of Florida, Department of Insurance. Please see Section E for a copy of our Certificate of Insurance.
2020 Annual Report
A Forever Company
The Path to $4 Billion
and Beyond
Brown & Brown is one of the largest and most respected
insurance brokerages in the world. We provide risk management
solutions to help protect and preserve what our customers value
most. Our four business segments offer a wide range of insurance
solutions and services for businesses, government institutions,
professional organizations, trade associations, families, and
individuals.
We have a strong, deeply rooted cultural foundation, built on
integrity, innovation, superior capabilities, and discipline.
We understand that the only constant is change, which served
us well in 2020 when faced with unprecedented challenges for
our business, teammates, customers, and communities. Like the
cheetah, a cultural symbol for Brown & Brown since the 1980s, we
reacted swiftly to meet the ever-changing needs of our customers
with strength and agility, demonstrating our resiliency and our
position as A Forever Company.
Key Facts
• Built to Last: Headquartered in Daytona Beach, Florida
• Dogged Discipline: Founded in 1939 81 Years of Dedication
• Teammate-Driven Success: 11,000+
Teammates
• Local People, Powerful Solutions: 300+
Locations
• Ownership Mindset: 60+% of Teammates
Are Shareholders
Key Differentiators
Decentralized Sales and Service
Model
• Local teams empowered to make
decisions that best support their
customers, backed by the powerful
solutions, capabilities, and carrier
relationships of a top five brokerage.
Financial Performance
• Consistent, industry-leading financial
metrics and corresponding performance.
Culture
• Strong, performance-based culture
grounded in integrity.
• Entrepreneurial meritocracy: long-term
opportunity for talented leaders
and teammates.
Community Service
• Long-standing history of service to the
communities in which our teams live
and work.
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Our Guiding Principles
We believe in doing what is best for our customers, communities, teammates, carrier partners, and
shareholders—always. The cornerstones of our organization’s guiding principles are Performance,
Service, Innovation, and People.
Performance Service
Innovation People
We are proud to feature Brown & Brown teammates throughout this Annual Report, and photos included were either
taken before the COVID-19 pandemic or with teammate health and safety top of mind.
(1) Organic Revenue growth and EBITDAC Margin are non-GAAP financial measures and are referenced to provide an additional meaningful method of
evaluating our operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis. For other information
concerning Organic Revenue growth and EBITDAC Margin and to reconciliations to the most closely comparable GAAP measures, refer to pages 19 and
71 of this Annual Report, respectively.
(2) Peers are Aon, Arthur J. Gallagher, Marsh & McLennan, and Willis Towers Watson.
2
A Message from Our CEO
A Story of Resiliency—Progress During an Unprecedented Year
DEAR SHAREHOLDERS,
2020 was a year unlike any other. While the globe was engulfed by
the pandemic, we were fortunate to
continue delivering for our customers
while working remotely, virtually, and
diligently. Some of our customers were
crushed by the economic impacts of
the COVID-19 pandemic, while others
thrived. We were able to grow, prosper,
and persevere through unimaginable challenges due to the incredible dedication of our teammates and our
diverse businesses.
Our customers are an incredibly
important part of our stakeholder base, which also includes teammates, carrier partners, and shareholders.
Therefore, our goal is to be the
best business partner delivering
risk management solutions to our
customers so they can focus on
their businesses. As a result, we
are defined by our capabilities
and teammates. We are proud to
be a unique and differentiated public company, nearly a quarter of which is owned by our teammates.
Consequently, we are more focused
on the long term rather than quarter-
to-quarter results. There are a number
of firms backed by temporary, capital
in our industry, and they continue
to be significant competitors in the
acquisition space. Unlike these
competitors that are encumbered by
mountains of debt, our business has long-lasting and durable profits.
Internally, we talk about the most
important things in our teammates’
lives—health and family. Without our
health, we cannot spend time with our families, engage with our customers, or be great teammates. We talk about
health in terms of physical, mental,
spiritual, and financial well-being. At
Brown & Brown, we are committed
to providing tools for our teammates
to succeed in all of these areas.
Healthy teammates can provide for
their families and energetically devote
their skills and talents to the benefit of our customers.
We are very pleased with our financial
performance during a volatile and
dynamic 2020. We delivered over
$2.6 billion of revenues for the
year, growing in total by 9.2% over
2020 and by 3.8% organically.(1) We
improved our EBITDAC Margin(1) by
110 basis points to 31.1% and increased
our earnings per share by 20%. We generated over $720 million of cash flow from operating activities for the
year and issued $700 million of 10.5-
year bonds at 2.375%, putting us in
great shape to continue to invest in
our business. As the economy and the
markets moved materially during the
year, so did our share price. Even with
the turbulence, we ended the year with
a share price of $47.41 and increased our dividends for the 27th consecutive year. We are proud to deliver another
good year of financial performance—
our total shareholder returns for 2020
were 21%, and our three- and five-year
total shareholder returns were 88%
and 205%, respectively, well ahead
of our peer group(2) and the S&P 500.
As we head into 2021, we believe we
are well positioned operationally and
In a year unlike any other,
we were able to grow,
prosper, and persevere
through unimaginable
challenges due to the
incredible dedication of
our teammates and
our diverse businesses.
J. POWELL BROWN
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financially to further invest in and grow
our business, based on our strong
balance sheet and conservative debt
leverage profile.
Over the past several years, insurance
rates have been rising as a result of
numerous factors, including increased natural disasters and tort liability issues in the United States. We believe
there will be continued rate pressure
in 2021 but could see rates moderate
later in the year in certain areas. There is also an influx of “alternative capital” looking to be put to work in many
difficult areas like coastal property,
liability, and professional liability over
certain classes of risk.
Last year, we closed 25 acquisitions
that represent approximately
$197 million of annual revenues. We started 2020 by closing an acquisition
in Vancouver, British Columbia, and
ended the year by announcing a
transaction in Ireland. The vast majority
of our acquisitions were based here in the United States, but last year was
book-ended by these international
acquisitions. When competing in the
acquisition space, we run into several
other “strategics” (those firms with long-term track records in our industry)
and many temporary, capital-backed
firms. These temporary, capital-backed
firms usually “roll-up” businesses and
then sell the amalgamated product a short time later. Our acquisition
strategy has been consistent in
building A Forever Company, playing
the long game, and discerning those
enterprises that fit culturally and make sense financially. Our acquisitions in
Canada and Ireland fit that strategy.
Not only do we have an ownership culture, where our teammates own
nearly a quarter of our company,
we are also consistent across our
meritocracy. We believe when we put our customers first, things will always work out for our team.
Part of our success is a long-term
disciplined approach to our business
accomplished through diversity of thought, expertise, and background. We took a long, hard look at
ourselves in 2020 and focused our
attention on meaningful progress in
diversity, inclusion, and belonging. In 2021, we plan to introduce four
teammate resource groups—Women,
African Americans, LGBTQ, and
Mental Health Awareness—so our
workforce continues to evolve like
the communities in which we live and work.
During the pandemic, and seemingly overnight, we transitioned to a remote work environment in the
face of quarantines and the rapid
spread of COVID-19. This move
challenged our concepts of the office workplace and customer interaction. Going forward, we will be a “work
anywhere” company that always puts
teammate safety first but encourages
collaboration, personal interaction, and engagement. We look forward to being back in our offices with our
teammates—when we can do so
practically and safely.
Technology will play a more significant
role in every company in the next
five years—Brown & Brown is no
exception. We continue to explore and adopt innovative technologies
to deliver creative solutions for
our customers. We are continually
exploring the best ways to protect
our data and systems as well as use technology as a business asset and
differentiator. We are excited about
our progress and even more excited
about the future.
We had a good year in 2020. I am
proud to work with and for our 11,000+
teammates. We believe 2021 will be another turbulent year but will remain on an upward trajectory. Even
as acquisitions get more expensive,
we remain disciplined to invest at or
above our cost of capital. With this in mind, we will continue to expand our capabilities to better serve our
customers and work more closely with
our carrier partners to our customers’
benefit. The best is yet to come.
Cheers!
J. Powell Brown, CPCU
President & Chief Executive Officer
Performance for Our
Investors and Shareholders
$5,782
in 2020
$100
in 1993
$100 invested in Brown
& Brown stock in 1993
when we began our
journey as a public
company would be
worth $5,782 as of
December 31, 2020.
Source: FactSet
Grew Revenues
3.8% Organically(1) to
$2.6 BILLION
Total Shareholder Returns
for 2020
21%
Increased Dividends for
27th
Consecutive Year
Our Performance
Total Revenues
(Dollars in millions)1,767 1,881 2,014
2,392 2,613
20202019201820172016
2020 Revenue by Segment
(Dollars in millions)
174 353 611
1,473
RetailNational
Programs
Wholesale
Brokerage
Services
EBITDAC(1)
(Dollars in millions)580 605 615 717 813
20202019201820172016
EBITDAC Margin(1)
(Percentage)
32.8 32.2 30.6 30.0 31.1
20202019201820172016
Dividends Per Share
(Dollars)0.25 0.28 0.31 0.33 0.35
20202019201820172016
(1) EBITDAC and EBITDAC Margin are non-GAAP financial measures and are referenced to provide additional meaningful methods of evaluating our operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis. For other information concerning EBITDAC and EBITDAC Margin and reconciliations to the most closely comparable GAAP measures, refer to pages 19, 27, and 71 of this Annual Report.
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25 Strategic Acquisitions
Growing the Brown & Brown Team
2020 ACQUISITION HIGHLIGHTS
• Amity Insurance Agency
• Berry Insurance Group
• Bright & Associates
• Brookstone Insurance Group
• Buiten & Associates
• Coverhound, Inc. & CyberPolicy, Inc.
• Frank E. Neal & Co.
• J.E. Brown & Associates
• Loan Protector Insurance Services
• MAJ Companies
• RLA Insurance Intermediaries
• South & Western General Agency
• Special Risk Insurance Managers
• Texas All Risk General Agency
• The Colonial Group
• The Sterling Group
• Vehicle Administrative Services
Uses of Capital
Our capital management strategy is based on the philosophy of investing to optimize returns and minimize debt. We
strategically deploy capital to invest internally, acquire firms, and return capital to shareholders while maintaining a
conservative debt profile.
2020 Uses of Cash
Acquisitions 76%
7%
11%
6%
Capital Expenditures
Dividends
Share Repurchases
Acquisitions
We are focused on forever, and our clearly defined growth strategy is characterized by a disciplined focus on acquiring
businesses that fit culturally. We remain prepared to deploy our capital when terms make sense financially. In 2020, we
acquired businesses with approximately $197 million in annual revenue and added 796 talented teammates through
acquisitions.
$197 Million
2020 ACQUIRED ANNUAL REVENUE
Retail 51%
23%
26%
Wholesale Brokerage
National Programs
Enhancing Our Capabilities
We are always in pursuit of strategic acquisitions to enhance our innovation and expand our capabilities. As an example, in
2020, we acquired Special Risk Insurance Managers, a managing general agent in British Columbia—our first acquisition
in Canada. We also acquired CoverHound, a leading digital insurance marketplace for individuals and small businesses, as
well as one of the original InsurTechs to emerge and scale over the past decade. CoverHound focuses on being a provider
for curated quotes and meeting the complex demands of our customers, all while simplifying the insurance comparison
and purchasing process. These additions allow us to better meet ever-evolving customer expectations and will help us
accelerate the delivery of our digital agenda.5
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Hawaii
Canada
Retail offices National Programs offices Wholesale Brokerage offices Services offices
Our Footprint
6
England
Ireland
Grand Cayman
Bermuda
Retail
57%
of total annual
revenues
National
Programs
23%
of total annual
revenues
Wholesale
Brokerage
13%
of total annual
revenues
Services
7%
of total annual
revenues
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Performance by Segment
Retail National Programs
In 2020, our Retail Segment delivered Organic Revenue(1) growth of 2.4%.In 2020, our National Programs Segment delivered Organic Revenue(1) growth of 12.3%.
Segment Total Revenues
(Dollars in millions)
917 943 1,043
1,367
20202019201820172016
1,473
Contribution to
Total Revenue
57%
Contribution to
Total Revenue
23%
Segment Total Revenues
(Dollars in millions)
449 480 494 518
20202019201820172016
611
Contribution to
Total EBITDAC(1)
53%
Contribution to
Total EBITDAC(1)
28%
Wholesale Brokerage Services
In 2020, our Wholesale Brokerage Segment delivered Organic Revenue(1) growth of 5.5%.In 2020, Organic Revenue(1) for our Services Segment declined by 10.9%.
Segment Total Revenues
(Dollars in millions)
243 272 287 310
20202019201820172016
353
Contribution to
Total Revenue
13%
Contribution to
Total Revenue
7%
Segment Total Revenues
(Dollars in millions)
156 165
189 194
20202019201820172016
174
Contribution to
Total EBITDAC(1)
14%
Contribution to
Total EBITDAC(1)
4%
(1) Organic Revenue growth and EBITDAC are non-GAAP financial measures and are referenced to provide additional meaningful methods of evaluating
our operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis. For other information concerning
Organic Revenue growth and EBITDAC and reconciliations to the most closely comparable GAAP measures, refer to pages 19, 26-27, and 71 of this
Annual Report.8
Performance by Segment
Retail National Programs
In 2020, our Retail Segment delivered Organic Revenue(1) growth of 2.4%.In 2020, our National Programs Segment delivered Organic Revenue(1) growth of 12.3%.
Segment Total Revenues
(Dollars in millions)
9179431,043
1,367
20202019201820172016
1,473
Contribution to
Total Revenue
57%
Contribution to
Total Revenue
23%
Segment Total Revenues
(Dollars in millions)
449 480 494 518
20202019201820172016
611
Contribution to
Total EBITDAC(1)
53%
Contribution to
Total EBITDAC(1)
28%
Wholesale Brokerage Services
In 2020, our Wholesale Brokerage Segment delivered Organic Revenue(1) growth of 5.5%.In 2020, Organic Revenue(1) for our Services Segment declined by 10.9%.
Segment Total Revenues
(Dollars in millions)
243272287310
20202019201820172016
353
Contribution to
Total Revenue
13%
Contribution to
Total Revenue
7%
Segment Total Revenues
(Dollars in millions)
156 165
189 194
20202019201820172016
174
Contribution to
Total EBITDAC(1)
14%
Contribution to
Total EBITDAC(1)
4%
(1) Organic Revenue growth and EBITDAC are non-GAAP financial measures and are referenced to provide additional meaningful methods of evaluating
our operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis. For other information concerning
Organic Revenue growth and EBITDAC and reconciliations to the most closely comparable GAAP measures, refer to pages 19, 26-27, and 71 of this
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Our Response to COVID-19
The COVID-19 pandemic tested how all companies interact with the world around them. Our response has been grounded
in fact and was carried out in a calm, thoughtful, and rational way. By carefully executing our business continuity plan
and prioritizing the health and well-being of our teammates and the welfare of our customers, carrier partners, and
shareholders, we navigated this uncharted territory with minimal interruption to our business. The Brown & Brown team
demonstrated resiliency in a time of uncertainty.
People-First Approach—Teammates
• Initiated a weekly teammate video engagement series with Chief Executive Officer, Powell Brown, to reinforce
our commitment to health, family, and business.
• Expanded medical benefit plan offerings for plan participants, including zero cost-share for all telehealth and
provider visits for COVID-19 testing.*
• Provided additional funding for online virtual visits through Doctor on Demand for eligible teammates not
enrolled in a medical plan offered by Brown & Brown.*
• Launched the Brown & Brown Relief Center, providing teammates access to discounts on products, services,
and other important resources to help them navigate the pandemic landscape.
• Created Operation Remote Work to provide resources for teammates to effectively balance working at home,
including tools for coping with stress, health and well-being apps, remote work tech tools, Employee Assistance
Program webinars, group chat sessions with our National Behavioral Health Leader, and more.
Culture of Caring—Customers and Communities
• Launched a COVID-19 resource portal at bbinsurance.com/covid19 to provide timely, fact-based updates and
information, including clinical insights, common-sense protocol for health and safety, health and well-being
resources, and guidance for navigating risk in an unprecedented environment.
• Initiated a weekly COVID-19 live stream series where subject matter experts addressed critical topics, including
pandemic-related clinical updates, regulatory updates, and management challenges.
• Contracted with a national law firm to create an employment law helpline, which provided access to high-quality
labor and employment law advice and legal services for our commercial customers.
• Expanded the scope of the Brown & Brown Relief Center to provide access to anyone in need.
• Encouraged helping behaviors and engaging in acts of service by our teammates.
Agility and Resiliency—Continuity of Service
• Created a cross-disciplined COVID-19 Task Force composed of key stakeholders and subject matter experts to
guide our strategic response.
• Successfully transitioned 11,000 teammates to remote work within two weeks of the pandemic onset.
• Finalized workflows with all carrier and vendor partners within two weeks of the pandemic onset.
• Leveraged technology to ensure customer service teams remain connected to customers during the transition
to remote work and in a virtual environment to eliminate service disruption.
• Created tracking tools to ensure awareness of federal, state, and local level changes.
Technology Deployment
• Leveraged previous technology investments to aid in our remote work transition, including laptop distribution,
training and support for virtual collaboration tools, and fostering social connectedness.
• Utilized live streaming platforms to host virtual meetings, including virtual Board of Directors meetings,
leadership meetings, and operational strategy review sessions.
• Utilized live streaming platforms to virtually host important cultural teammate recognition events.
* Subject to federal guidelines of pandemic duration.
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Our Culture of Caring
Brown & Brown has a long-standing history of public and community service, demonstrated by our team’s dedication to the
people and communities we serve. With over 11,000 teammates in more than 300 locations, we actively support numerous
charitable organizations in the many local communities in which we live, work, and play.
Servant leadership helps to build a better organization, and our team is passionate about giving back.
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B E GRITTY B E A F UTURIST
B E S MARTBE CLEAR
BE T R U S TWORT
H
Y
B E A WINNERBE A WINNER
BE CU S T O M ER FO
C
U
S
E
D
B E A MENTO
R
BE A T A L E NT MA
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B E T HE LINK
What is the Power of WE?
The Power of WE ignites our performance. While diverse and varied in
abilities and experience, we are all connected through our core values,
a commitment to our local communities, and a shared mission—always
doing what is best for our customers. We are a team with grit, focus,
and drive.
Our Legacy of Meritocracy
Brown & Brown operates as a meritocracy—meaning our people rise
according to their merits. We are focused on recruiting and developing
teammates who demonstrate a proactive and entrepreneurial spirit,
enabling them to succeed in our organization.
A Company for All Teammates
We believe that diversity of talent, thought, character, work ethic, and
experience results in better outcomes and empowers our teammates to
make more meaningful contributions to our customers, our organization,
and the communities in which we live. Our continued success depends
on the full and effective recruitment and enhancement of the most
qualified teammates. We are proud that 94% of our teammates say that
Brown & Brown is a Great Place to Work®.
The Power of BE
Our BEs are a set of ten super powerful behaviors, skills, and characteristics that create a link between what we do and
how we do it. It’s our cultural DNA.
Our Leadership Team
J. POWELL BROWN, CPCU
President & Chief Executive Officer
R. ANDREW WATTS
Executive Vice President,
Chief Financial Officer & Treasurer
STEVE M. BOYD
Executive Vice President & President –
Wholesale Brokerage Segment
P. BARRETT BROWN
Executive Vice President &
President of Retail Segment
ROBERT W. LLOYD, ESQ., CPCU, CIC
Executive Vice President,
General Counsel & Secretary
J. SCOTT PENNY, CIC
Executive Vice President &
Chief Acquisitions Officer
ANTHONY T. STRIANESE
Executive Vice President & Chairman –
Wholesale Brokerage Segment
JULIE TURPIN
Senior Vice President &
Chief People Officer
CHRIS L. WALKER
Executive Vice President & President –
National Programs Segment
J. NEAL ABERNATHY
Senior Vice President
JOHN R. BERNER
Senior Vice President
SAM R. BOONE, JR.
Senior Vice President
KATHY H. COLANGELO,
CIC, ASLI
Senior Vice President
MIKE EGAN
Senior Vice President &
Regional President –
Retail Segment
JOHN M. ESPOSITO, CIC
Senior Vice President &
Regional President –
Retail Segment
JOSEPH S. FAILLA
Senior Vice President
JAMES C. HAYS
Vice Chairman
THOMAS K. HUVAL, CIC
Senior Vice President &
Regional President –
Retail Segment
MICHAEL L. KEEBY
Senior Vice President
& Regional President –
Retail Segment
RICHARD A. KNUDSON,
CIC
Senior Vice President
& Regional President –
Retail Segment
DONALD M.
MCGOWAN, JR.
Senior Vice President
& Regional President –
Retail Segment
GRAY NESTER
Chief Information Officer
H. VAUGHN STOLL
Senior Vice President & Director
of Acquisitions
PAUL F. ROGERS
Senior Vice President & Regional
President – Retail Segment
14
Our Board of Directors
Left to Right:
SAMUEL P. BELL, III, ESQ.*
Former Of Counsel to the law
firm of Buchanan Ingersoll &
Rooney PC
COMMITTEES: Audit,
Nominating/Corporate
Governance
JAMES S. HUNT
Former Executive Vice
President & Chief Financial
Officer, Walt Disney Parks and
Resorts Worldwide
COMMITTEES: Acquisition,
Audit (Chair)
THEODORE J. HOEPNER
Former Vice Chairman,
SunTrust Bank Holding
Company
COMMITTEES: Audit,
Nominating/Corporate
Governance
BRADLEY CURREY, JR.
Director Emeritus
CHILTON D. VARNER, ESQ.
Senior Counsel, King &
Spalding LLP
COMMITTEES: Compensation,
Nominating/Corporate
Governance
WENDELL S. REILLY
Managing Partner, Grapevine
Partners, LLC
COMMITTEES: Compensation
(Chair), Nominating/Corporate
Governance
J. HYATT BROWN,
CPCU, CLU
Chairman, Brown & Brown, Inc.
J. POWELL BROWN, CPCU
President & Chief Executive
Officer, Brown & Brown, Inc.
TONI JENNINGS
Chairman, Jack Jennings
& Sons; Former Lieutenant
Governor, State of Florida
COMMITTEES: Compensation,
Nominating/Corporate
Governance
H. PALMER PROCTOR, JR.
Chief Executive Officer/
Director, Ameris Bancorp
and Chief Executive Officer,
Ameris Bank
COMMITTEES: Nominating/
Corporate Governance (Chair)
HUGH M. BROWN
Founder and former President
& Chief Executive Officer,
BAMSI, Inc.
COMMITTEES: Acquisition, Compensation
TIMOTHY R. M. MAIN
Global Head of Financial
Institutions Group, Barclays Plc
COMMITTEES: Acquisition
(Chair)
JAMES C. HAYS
Vice Chairman, Brown &
Brown, Inc.
COMMITTEES: Acquisition
LAWRENCE L. GELLERSTEDT III
Former Chairman of the Board
and CEO, Cousins Properties
Incorporated
COMMITTEES: Acquisition,
Audit
* Mr. Bell is not standing for re-election and has been designated as a director emeritus of the Company, effective immediately
following the 2021 Annual Meeting of Shareholders.15
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Disclosure Regarding Forward-Looking Statements
Brown & Brown, Inc., together with its subsidiaries (collectively, “we,” “Brown & Brown” or the “Company”), makes “forward-looking statements” within the
“safe harbor” provision of the Private Securities Litigation Reform Act of 1995, as amended, throughout this report and in the documents we incorporate by
reference into this report, including those relating to the potential effects of the COVID-19 pandemic (“COVID-19”) on the Company’s business, operations,
financial performance and prospects. You can identify these statements by forward-looking words such as “may,” “will,” “should,” “expect,” “anticipate,”
“believe,” “intend,” “estimate,” “plan” and “continue” or similar words. We have based these statements on our current expectations about potential
future events. Although we believe the expectations expressed in the forward-looking statements included in this Form 10-K and the reports, statements,
information and announcements incorporated by reference into this report are based upon reasonable assumptions within the bounds of our knowledge
of our business, a number of factors could cause actual results to differ materially from those expressed in any forward-looking statements, whether oral or
written, made by us or on our behalf. Further, statements about the effects of COVID-19 on our business, operations, financial performance and prospects
may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those
forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including
the scope and duration of COVID-19, actions taken by governmental authorities in response to COVID-19, and the direct and indirect impact of COVID-19
on our customers, insurance carriers, third parties and us. Many of these factors have previously been identified in filings or statements made by us or
on our behalf. Important factors which could cause our actual results to differ materially from the forward-looking statements in this report include but are
not limited to the following items, in addition to those matters described in Part I, Item 1A “Risk Factors” and Part II, Item 7 “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”:
•COVID-19 and the resulting governmental and societal responses, the severity and duration of the pandemic, and the resulting impact on the U.S.
economy, the global economy, and the Company’s business, liquidity, customers, insurance carriers and third parties; •The inability to retain or hire qualified employees, as well as the loss of any of our executive officers or other key employees; •Acquisition-related risks that could negatively affect the success of our growth strategy, including the possibility that we may not be able to successfully
identify suitable acquisition candidates, complete acquisitions, integrate acquired businesses into our operations, and expand into new markets; •A cybersecurity attack or any other interruption in information technology and/or data security and/or outsourcing relationships; •The requirement for additional resources and time to adequately respond to dynamics resulting from rapid technological change; •The loss of or significant change to any of our insurance company relationships, which could result in additional expense, loss of market share or
material decrease in our profit-sharing contingent commissions, guaranteed supplemental commissions or incentive commissions; •Adverse economic conditions, natural disasters, or regulatory changes in states where we have a concentration of our business; •The inability to maintain our culture or a change in management, management philosophy or our business strategy; •Risks facing us in our Services Segment, including our third-party claims administration operations, that are distinct from those we face in our insurance
intermediary operations; •The limitations of our system of disclosure and internal controls and procedures in preventing errors or fraud, or in informing management of all material
information in a timely manner; •The significant control certain existing shareholders have over the Company; •Risks related to our international operations, which may require more time and expense than our domestic operations to achieve or maintain profitability; •Changes in data privacy and protection laws and regulations or any failure to comply with such laws and regulations; •Improper disclosure of confidential information; •The potential adverse effect of certain actual or potential claims, regulatory actions or proceedings on our businesses, results of operations, financial
condition or liquidity; •Uncertainty in our business practices and compensation arrangements due to potential changes in regulations; •Regulatory changes that could reduce our profitability or growth by increasing compliance costs, technology compliance, restricting the products or
services we may sell, the markets we may enter, the methods by which we may sell our products and services, or the prices we may charge for our
services and the form of compensation we may accept from our customers, carriers and third-parties; •A decrease in demand for liability insurance as a result of tort reform litigation; •Our failure to comply with any covenants contained in our debt agreements; •The possibility that covenants in our debt agreements could prevent us from engaging in certain potentially beneficial activities; •Changes in the U.S.-based credit markets that might adversely affect our business, results of operations and financial condition; •Risks associated with the current interest rate environment and to the extent we use debt to finance our investments, changes in interest rates will
affect our cost of capital and net investment income; •Disintermediation within the insurance industry, including increased competition from insurance companies, technology companies and the financial
services industry, as well as the shift away from traditional insurance markets; •Changes in current U.S. or global economic conditions; •Effects related to pandemics, epidemics, or outbreaks of infectious diseases; •Conditions that result in reduced insurer capacity; •Quarterly and annual variations in our commissions that result from the timing of policy renewals and the net effect of new and lost business production; •Intangible asset risk, including the possibility that our goodwill may become impaired in the future; and• Other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission (“SEC”) filings.
Assumptions as to any of the foregoing and all statements are not based upon historical fact, but rather reflect our current expectations concerning future
results and events. Forward-looking statements that we make or that are made by others on our behalf are based upon a knowledge of our business and
the environment in which we operate, but because of the factors listed above, among others, actual results may differ from those in the forward-looking
statements. Consequently, these cautionary statements qualify all of the forward-looking statements we make herein. We cannot assure you that the
results or developments anticipated by us will be realized or, even if substantially realized, that those results or developments will result in the expected
consequences for us or affect us, our business or our operations in the way we expect. We caution readers not to place undue reliance on these forward-
looking statements, which speak only as of their dates. We assume no obligation to update any of the forward-looking statements.
16
2020
Financial Review
18 Management’s Discussion and
Analysis of Financial Condition and
Results of Operations
37 Consolidated Statements of Income
38 Consolidated Balance Sheets
39 Consolidated Statements of
Shareholders’ Equity
40 Consolidated Statements of
Cash Flows
41 Notes to Consolidated
Financial Statements
71 GAAP Reconciliation—Income
Before Income Taxes to EBITDAC
and Income Before Income Taxes
Margin to EBITDAC Margin
72 Report of Independent Registered
Public Accounting Firm
75 Management’s Report on Internal
Control Over Financial Reporting
76 Performance Graph
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18
Management’s Discussion and Analysis
of Financial Condition and Results
of Operations
General
Impact of COVID-19
The coronavirus pandemic (“COVID-19”) and the resulting economic disruption are impacting and will likely continue to impact
business activity across many industries worldwide.
COVID-19 remains dynamic, with uncertainty around its duration and broader impact. We are monitoring and assessing the situation
and will continue to adapt our business practices over the coming quarters to serve our customers and protect our employees.
The pandemic has reduced, and is expected to continue to negatively impact, the volume of business from new customers and
insurable exposure units for existing customers.
Company Overview
The following discussion should be read in conjunction with our Consolidated Financial Statements and the related Notes to
those Financial Statements included elsewhere in this Annual Report on Form 10-K. In addition, please see “Information Regarding
Non-GAAP Measures” below, regarding important information on non-GAAP financial measures contained in our discussion and
analysis.
We are a diversified insurance agency, wholesale brokerage, insurance programs, and services organization headquartered
in Daytona Beach, Florida. As an insurance intermediary, our principal sources of revenue are commissions paid by insurance
companies and, to a lesser extent, fees paid directly by customers. Commission revenues generally represent a percentage of the
premium paid by an insured and are affected by fluctuations in both premium rate levels charged by insurance companies and the
insureds’ underlying “insurable exposure units,” which are units that insurance companies use to measure or express insurance
exposed to risk (such as property values, or sales and payroll levels) to determine what premium to charge the insured. Insurance
companies establish these premium rates based upon many factors, including loss experience, risk profile and reinsurance rates
paid by such insurance companies, none of which we control.
We have increased revenues every year from 1993 to 2020, with the exception of 2009, when our revenues declined 1.0%. Our
revenues grew from $95.6 million in 1993 to $2.6 billion in 2020, reflecting a compound annual growth rate of 13.0%. In the same
27-year period, we increased net income from $8.1 million to $480.5 million in 2020, a compound annual growth rate of 16.3%.
The volume of business from new and existing customers, fluctuations in insurable exposure units, changes in premium rate levels,
changes in general economic and competitive conditions, a health pandemic, and the occurrence of catastrophic weather events
all affect our revenues. For example, level rates of inflation or a general decline in economic activity could limit increases in the
values of insurable exposure units. Conversely, increasing costs of litigation settlements and awards could cause some customers
to seek higher levels of insurance coverage. Historically, our revenues have typically grown as a result of our focus on net new
business growth and acquisitions. We foster a strong, decentralized sales and service culture with the goal of consistent, sustained
growth over the long-term.
The term “Organic Revenue,” a non-GAAP measure, is our core commissions and fees less: (i) the core commissions and fees
earned for the first 12 months by newly-acquired operations; and (ii) divested business (core commissions and fees generated
from offices, books of business or niches sold or terminated during the comparable period). The term “core commissions and
fees” excludes profit-sharing contingent commissions and guaranteed supplemental commissions, and therefore represents the
revenues earned directly from specific insurance policies sold, and specific fee-based services rendered. “Organic Revenue” is
reported in this manner in order to express the current year’s core commissions and fees on a comparable basis with the prior
year’s core commissions and fees. The resulting net change reflects the aggregate changes attributable to: (i) net new and lost
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accounts; (ii) net changes in our customers’ exposure units; (iii) net changes in insurance premium rates or the commission rate
paid to us by our carrier partners; and (iv) the net change in fees paid to us by our customers. Organic Revenue is reported in
“Results of Operations” and in “Results of Operations – Segment Information” of this Annual Report on Form 10-K.
We also earn “profit-sharing contingent commissions,” which are commissions based primarily on underwriting results, but which
may also reflect considerations for volume, growth and/or retention. These commissions, which are included in our commissions
and fees in the Consolidated Statement of Income, are accrued throughout the year based on actual premiums written and are
primarily received in the first and second quarters of each subsequent year, based upon the aforementioned considerations for the
prior year(s). Over the last three years, profit-sharing contingent commissions have averaged approximately 3.0% of commissions
and fees revenue.
Certain insurance companies offer guaranteed fixed-base agreements, referred to as “Guaranteed Supplemental Commissions”
(“GSCs”) in lieu of profit-sharing contingent commissions. GSCs are accrued throughout the year based upon actual premiums
written. For the year ended December 31, 2020, we had earned $16.2 million of GSCs, of which $11.9 million remained accrued at
December 31, 2020 and most of this will be collected over the first and second quarters of 2021. For the years ended December
31, 2020 and 2019, we earned $16.2 million and $23.1 million, respectively, from GSCs.
Combined, our profit-sharing contingent commissions and GSCs for the year ended December 31, 2020 increased by $4.9 million
over 2019. The net increase of $4.9 million was mainly driven by: (i) cash received for profit-sharing contingent commissions in the
first and second quarters of 2020 being somewhat higher than the amount accrued as of December 31, 2019 for the estimate of
contingents earned in 2019; (ii) growth associated with acquisitions completed over the last twelve months; and (iii) partially offset
by a GSC of approximately $9 million recorded in the second quarter of 2019 for the National Programs Segment that will not recur
in the future as the associated multi-year contract has ended.
Fee revenues primarily relate to services other than securing coverage for our customers, as well as fees negotiated in lieu
of commissions, and are recognized as performance obligations are satisfied. Fee revenues have historically been generated
primarily by: (1) our Services Segment, which provides insurance-related services, including third-party claims administration and
comprehensive medical utilization management services in both the workers’ compensation and all-lines liability arenas, as well as
Medicare Set-aside services, Social Security disability and Medicare benefits advocacy services, and claims adjusting services; (2) our
National Programs and Wholesale Brokerage Segments, which earn fees primarily for the issuance of insurance policies on behalf of
insurance companies; and to a lesser extent (3) our Retail Segment in our large-account customer base, where we primarily earn fees
for securing insurance for our customers, and in our automobile dealer services (“F&I”) businesses where we primarily earn fees for
assisting our customers with creating and selling warranty and service risk management programs. Fee revenues as a percentage of
our total commissions and fees, represented 26.1% in 2020 and 27.1% in 2019.
For the years ended December 31, 2020 and 2019, our commissions and fees growth rate was 9.3% and 18.7%, respectively, and
our consolidated Organic Revenue growth rate was 3.8% and 3.6%, respectively.
Historically, investment income has consisted primarily of interest earnings on operating cash, and where permitted, on premiums and
advance premiums collected and held in a fiduciary capacity before being remitted to insurance companies. Our policy is to invest
available funds in high-quality, short-term fixed-income investment securities. Investment income also includes gains and losses realized
from the sale of investments. Other income primarily reflects legal settlements and other miscellaneous income.
Income before income taxes for the year ended December 31, 2020 increased over 2019 by $98.2 million, primarily as a result of
net new business, acquisitions we completed since 2019, and management of our expense base.
Information Regarding Non-GAAP Measures
In the discussion and analysis of our results of operations, in addition to reporting financial results in accordance with generally accepted
accounting principles (“GAAP”), we provide references to the following non-GAAP financial measures as defined in Regulation G of SEC
rules: Organic Revenue, Organic Revenue growth, EBITDAC and EBITDAC Margin. We view these non-GAAP financial measures as
important indicators when assessing and evaluating our performance on a consolidated basis and for each of our segments because
they allow us to determine a more comparable, but non-GAAP, measurement of revenue growth and operating performance that is
associated with the revenue sources that were a part of our business in both the current and prior year. We believe that Organic Revenue
provides a meaningful representation of our operating performance and view Organic Revenue growth as an important indicator when
assessing and evaluating the performance of our four segments. Organic Revenue can be expressed as a dollar amount or a percentage
rate when describing Organic Revenue growth. We also use Organic Revenue growth and EBITDAC Margin for incentive compensation
determinations for executive officers and other key employees. We view EBITDAC and EBITDAC Margin as important indicators of
operating performance, because they allow us to determine more comparable, but non-GAAP, measurements of our operating margins
in a meaningful and consistent manner by removing the significant non-cash items of depreciation, amortization and the change in
estimated acquisition earn-out payables, and also interest expense and taxes, which are reflective of investment and financing activities,
not operating performance.
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
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These measures are not in accordance with, or an alternative to the GAAP information provided in this Annual Report on Form
10-K. We present such non-GAAP supplemental financial information because we believe such information is of interest to the
investment community and because we believe they provide additional meaningful methods of evaluating certain aspects of our
operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis. We believe these
non-GAAP financial measures improve the comparability of results between periods by eliminating the impact of certain items
that have a high degree of variability. Our industry peers may provide similar supplemental non-GAAP information with respect
to one or more of these measures, although they may not use the same or comparable terminology and may not make identical
adjustments. This supplemental financial information should be considered in addition to, not in lieu of, our Consolidated Financial
Statements.
Tabular reconciliations of this supplemental non-GAAP financial information to our most comparable GAAP information are
contained in this Annual Report on Form 10-K under “Results of Operation - Segment Information.”
Acquisitions
Part of our business strategy is to attract high-quality insurance intermediaries and service organizations to join our operations.
From 1993 through the fourth quarter of 2020, we acquired 561 insurance intermediary operations.
Critical Accounting Policies
Our Consolidated Financial Statements are prepared in accordance with U.S. GAAP. The preparation of these financial statements
requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses.
We continually evaluate our estimates, which are based upon historical experience and on assumptions that we believe to be
reasonable under the circumstances. These estimates form the basis for our judgments about the recognition of revenues,
expenses, carrying values of our assets and liabilities, of which values are not readily apparent from other sources. Actual results
may differ from these estimates.
We believe that of our significant accounting and reporting policies, the more critical policies include our accounting for revenue
recognition, business combinations and purchase price allocations, intangible asset impairments, non-cash stock-based
compensation and reserves for litigation. In particular, the accounting for these areas requires significant use of judgment to
be made by management. Different assumptions in the application of these policies could result in material changes in our
consolidated financial position or consolidated results of operations.
Revenue Recognition
The majority of our revenue is commissions derived from our performance as agents and brokers, acting on behalf of insurance
carriers to sell products to customers that are seeking to transfer risk, and conversely, acting on behalf of those customers in
negotiating with insurance carriers seeking to acquire risk in exchange for premiums. In the majority of these arrangements, our
performance obligation is complete upon the effective date of the bound policy, as such, that is when the associated revenue is
recognized. In some arrangements, where we are compensated through commissions, we also perform other services for our
customer beyond the binding of coverage. In those arrangements, we apportion the commission between the binding of coverage
and other services based on their relative fair value and recognize the associated revenue as those performance obligations are
satisfied. Where the Company’s performance obligations have been completed, but the final amount of compensation is unknown
due to variable factors, we estimate the amount of such compensation. We refine those estimates upon our receipt of additional
information or final settlement, whichever occurs first.
To a lesser extent, the Company earns revenues in the form of fees. Like commissions, fees paid to us in lieu of commission, are
recognized upon the effective date of the bound policy. When we are paid a fee for service, however, the associated revenue is
recognized over a period of time that coincides with when the customer simultaneously receives and consumes the benefit of
our work, which characterizes most of our claims processing arrangements and various services performed in our property and
casualty, and employee benefits practices. Other fees are typically recognized upon the completion of the delivery of the agreed-
upon services to the customer.
Management determines a policy cancellation reserve based upon historical cancellation experience adjusted in accordance with
known circumstances.
Please see Note 2 “Revenues” in the “Notes to Consolidated Financial Statements” for additional information regarding the nature
and timing of our revenues.
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
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Business Combinations and Purchase Price Allocations
We have acquired significant intangible assets through acquisitions of businesses. These assets generally consist of purchased
customer accounts, non-compete agreements, and the excess of purchase prices over the fair value of identifiable net assets
acquired (goodwill). The determination of estimated useful lives and the allocation of purchase price to intangible assets requires
significant judgment and affects the amount of future amortization and possible impairment charges.
Our business combinations are accounted for using the acquisition method. In connection with these acquisitions, we record the
estimated value of the net tangible assets purchased and the value of the identifiable intangible assets purchased, which typically
consist of purchased customer accounts and non-compete agreements. Purchased customer accounts include the physical
records and files obtained from acquired businesses that contain information about insurance policies, customers, and other
matters essential to policy renewals of delivery of services. However, they primarily represent the present value of the underlying
cash flows expected to be received over the estimated future renewal periods of the insurance policies comprising those
purchased customer accounts. The valuation of purchased customer accounts involves significant estimates and assumptions
concerning matters such as cancellation frequency, expenses, and discount rates. Any change in these assumptions could affect
the carrying value of purchased customer accounts. Non-compete agreements are valued based upon their duration and any
unique features of the particular agreements. Purchased customer accounts and non-compete agreements are amortized on
a straight-line basis over the related estimated lives and contract periods, which range from 3 to 15 years. The excess of the
purchase price of an acquisition over the fair value of the identifiable tangible and intangible assets is assigned to goodwill and is
not amortized.
Acquisition purchase prices are typically based upon a multiple of average EBITDA, annual operating profit and/or core revenue
earned over a one to three-year period within a minimum and maximum price range. The recorded purchase prices for all
acquisitions include an estimation of the fair value of liabilities associated with any potential earn-out provisions, where an earn-out
is part of the negotiated transaction. Subsequent changes in the fair value of earn-out obligations are recorded in the Consolidated
Statement of Income when changes to the expected performance of the associated business are realized.
The fair value of earn-out obligations is based upon the present value of the expected future payments to be made to the sellers
of the acquired businesses in accordance with the provisions contained in the respective purchase agreements. In determining fair
value, the acquired business’s future performance is estimated using financial projections developed by management for the acquired
business, and this estimate reflects market participant assumptions regarding revenue growth and/or profitability. The expected future
payments are estimated based on the earn-out formula and performance targets specified in each purchase agreement compared to
the associated financial projections. These estimates are then discounted to a present value using a risk-adjusted rate that takes into
consideration the likelihood that the forecasted earn-out payments will be made.
Intangible Assets Impairment
Goodwill is subject to at least an annual assessment for impairment measured by a fair-value-based test. Amortizable intangible assets
are amortized over their useful lives and are subject to an impairment review based upon an estimate of the undiscounted future cash
flows resulting from the use of the assets. To determine if there is potential impairment of goodwill, we compare the fair value of each
reporting unit with its carrying value. If the fair value of the reporting unit is less than its carrying value, an impairment loss would be
recorded to the extent that the fair value of the goodwill within the reporting unit is less than its carrying value. Fair value is estimated
based upon multiples of earnings before interest, income taxes, depreciation, amortization and change in estimated acquisition earn-
out payables (“EBITDAC”), or on a discounted cash flow basis.
Management assesses the recoverability of our goodwill and our amortizable intangibles and other long-lived assets annually
and whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Any
of the following factors, if present, may trigger an impairment review: (i) a significant underperformance relative to historical or
projected future operating results, (ii) a significant negative industry or economic trend, and (iii) a significant decline in our market
capitalization. If the recoverability of these assets is unlikely because of the existence of one or more of the above-referenced
factors, an impairment analysis is performed. Management must make assumptions regarding estimated future cash flows and
other factors to determine the fair value of these assets. If these estimates or related assumptions change in the future, we may
be required to revise the assessment and, if appropriate, record an impairment charge. We completed our most recent evaluation
of impairment for goodwill as of November 30, 2020, and determined that the fair value of goodwill exceeded the carrying value
of such assets. Additionally, there have been no impairments recorded for amortizable intangible assets for the years ended
December 31, 2020, and 2019.
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
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Non-Cash Stock-Based Compensation
We grant non-vested stock awards to our employees, with the related compensation expense recognized in the financial
statements over the associated service period based upon the grant-date fair value of those awards. During the performance
measurement period, we review the probable outcome of the performance conditions associated with our performance awards
and align the expense accruals with the expected performance outcome.
During the first quarter of 2020, the performance conditions for 1,880,512 shares of the Company’s common stock granted under
the Company’s 2010 SIP were determined by the Compensation Committee to have been satisfied relative to performance-based
grants issued in 2015 and 2017. These grants had a performance measurement period that concluded on December 31, 2019. The
vesting condition for these grants requires continuous employment for a period of up to seven years from the 2015 grant date
and five years from the 2017 grant date in order for the awarded shares to become fully vested and nonforfeitable. As a result of
the awarding of these shares, the grantees will be eligible to receive payments of dividends and exercise voting privileges after
the awarding date, and the awarded shares will be included as issued and outstanding common stock shares and included in the
calculation of basic and diluted net income per share.
During the first quarter of 2021, the performance conditions for approximately 1.2 million shares of the Company’s common stock
granted under the Company’s 2010 SIP and approximately 22,000 shares of the Company’s common stock granted under the
Company’s 2019 SIP were determined by the Compensation Committee to have been satisfied relative to performance-based
grants issued in 2018 and 2020. These grants had a performance measurement period that concluded on December 31, 2020.
The vesting condition for these grants requires continuous employment for a period of up to five years from the 2018 grant date
and four years from the 2020 grant date in order for the awarded shares to become fully vested and nonforfeitable. As a result of
the awarding of these shares, the grantees will be eligible to receive payments of dividends and exercise voting privileges after
the awarding date, and the awarded shares will be included as issued and outstanding common stock shares and included in the
calculation of basic and diluted net income per share.
Litigation and Claims
We are subject to numerous litigation claims that arise in the ordinary course of business. If it is probable that a liability has been
incurred at the date of the financial statements and the amount of the loss is estimable, an accrual for the costs to resolve these
claims is recorded in accrued expenses in the accompanying Consolidated Financial Statements. Professional fees related to
these claims are included in other operating expenses in the accompanying Consolidated Statement of Income as incurred.
Management, with the assistance of in-house and outside counsel, determines whether it is probable that a liability has been
incurred and estimates the amount of loss based upon analysis of individual issues. New developments or changes in settlement
strategy in dealing with these matters may significantly affect the required reserves and affect our net income.
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
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Results of Operations for the Years Ended
December 31, 2020 and 2019
The following discussion and analysis regarding results of operations and liquidity and capital resources should be considered
in conjunction with the accompanying Consolidated Financial Statements and related Notes. For a comparison of our results of
operations and liquidity and capital resources for the years ended December 31, 2019, and 2018, please see Part II, Item 7 of our
Annual Report on Form 10-K filed with the SEC on February 24, 2020.
Financial information relating to our Consolidated Financial Results is as follows:
(in thousands, except percentages) 2020 % Change 2019
REVENUES
Core commissions and fees $ 2,518,980 9.4% $ 2,302,506
Profit-sharing contingent commissions 70,934 19.9% 59,166
Guaranteed supplemental commissions 16,194 (29.8)% 23,065
Total commissions and fees 2,606,108 9.3% 2,384,737
Investment income 2,811 (51.4)% 5,780
Other income, net 4,456 169.4% 1,654
Total revenues 2,613,375 9.2% 2,392,171
EXPENSES
Employee compensation and benefits 1,436,377 9.8% 1,308,165
Other operating expenses 365,973 (2.9)% 377,089
(Gain)/loss on disposal (2,388) (76.2)% (10,021)
Amortization 108,523 3.1% 105,298
Depreciation 26,276 12.2% 23,417
Interest 58,973 (7.4)% 63,660
Change in estimated acquisition earn-out payables (4,458) NMF (1,366)
Total expenses 1,989,276 6.6% 1,866,242
Income before income taxes 624,099 18.7% 525,929
Income taxes 143,616 12.7% 127,415
NET INCOME $ 480,483 20.6% $ 398,514
Income Before Income Taxes Margin(1)23.9%22.0%
EBITDAC(2)$ 813,413 13.5% $ 716,938
EBITDAC Margin(2)31.1%30.0%
Organic Revenue growth rate(2)3.8%3.6%
Employee compensation and benefits relative to total revenues 55.0%54.7%
Other operating expenses relative to total revenues 14.0%15.8%
Capital expenditures $ 70,700 (3.3)% $ 73,108
Total assets at December 31 $8,966,492 17.6% $7,622,821
(1) “Income Before Income Taxes Margin” is defined as income before income taxes divided by total revenues
(2) A non-GAAP measure
NMF = Not a meaningful figure
Commissions and Fees
Commissions and fees, including profit-sharing contingent commissions and GSCs for 2020, increased $221.4 million to
$2,606.1 million, or 9.3% over 2019. Core commissions and fees in 2020 increased $216.5 million, composed of (i) $141.1 million
from acquisitions that had no comparable revenues in the same period of 2019; (ii) an offsetting decrease of $12.1 million related
to commissions and fees revenue from business divested in the preceding twelve months; and (iii) approximately $87.5 million of
net new and renewal business, which reflects an Organic Revenue growth rate of 3.8%. Profit-sharing contingent commissions
and GSCs for 2020 increased by $4.9 million, or 6.0%, compared to the same period in 2019. The net increase of $4.9 million
was mainly driven by: (i) cash received for profit-sharing contingent commissions in the first and second quarters of 2020 being
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
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somewhat higher than the amount accrued as of December 31, 2019 for the estimate of contingents earned in 2019; (ii) growth
associated with acquisitions completed over the last twelve months; and (iii) partially offset by a GSC of approximately $9 million
recorded in the second quarter of 2019 for the National Programs Segment that will not recur in the future as the associated
multi-year contract ended in 2019.
Investment Income
Investment income decreased to $2.8 million in 2020, compared with $5.8 million in 2019. The decrease was primarily due to
lower interest rates as compared to the prior year.
Other Income, Net
Other income for 2020 was $4.5 million, compared with $1.7 million in 2019. Other income consists primarily of legal settlements
and other miscellaneous income.
Employee Compensation and Benefits
Employee compensation and benefits expense increased 9.8%, or $128.2 million, in 2020 compared to 2019. This increase
included $48.0 million of compensation costs related to stand-alone acquisitions that had no comparable costs in the same period
of 2019. Therefore, employee compensation and benefits expense attributable to those offices that existed in the same time
periods of 2020 and 2019 increased by $80.2 million or 6.2%. This underlying employee compensation and benefits expense
increase was primarily related to (i) an increase in staff salaries attributable to salary inflation; (ii) an increase in non-cash stock-
based compensation expense; (iii) increased producer compensation due to higher revenue; and (iv) higher accrued performance
bonuses. Employee compensation and benefits expense as a percentage of total revenues was 55.0% for 2020 as compared to
54.7% for the year ended December 31, 2019.
Other Operating Expenses
Other operating expenses represented 14.0% of total revenues for 2020 as compared to 15.8% for the year ended December
31, 2019. Other operating expenses for 2020 decreased $11.1 million, or 2.9%, from the same period of 2019. The net decrease
included: (i) lower variable operating expenses, including such items as travel & entertainment, meetings and professional fees,
resulting from responses to COVID-19; partially offset by (ii) $22.6 million of other operating expenses related to stand-alone
acquisitions that had no comparable costs in the same period of 2019; and (iii) the write-off recorded in 2020 of certain receivables
in one of our programs where it was determined the collectability was in doubt.
Gain or Loss on Disposal
The Company recognized gains on disposal of $2.4 million in 2020 and $10.0 million in 2019. The change in the gain on disposal
was due to activity associated with book of business sales. Although we are not in the business of selling customer accounts, we
periodically sell an office or a book of business (one or more customer accounts) that we believe does not produce reasonable
margins or demonstrate a potential for growth, or because doing so is in the Company’s best interest.
Amortization
Amortization expense for 2020 increased $3.2 million to $108.5 million, or 3.1% over 2019. The increase reflects the amortization of
new intangible assets from recently acquired businesses, partially offset by certain intangible assets becoming fully amortized.
Depreciation
Depreciation expense for 2020 increased $2.9 million to $26.3 million, or 12.2% over 2019. Changes in depreciation expense
reflect the addition of fixed assets resulting from capital projects related to our multi-year technology investment program and
other business initiatives, net additions of fixed assets resulting from businesses acquired in the past 12 months, partially offset by
fixed assets which became fully depreciated.
Interest Expense
Interest expense for 2020 decreased $4.7 million to $59.0 million, or 7.4%, from 2019. The decrease is due to the decrease in
interest rates associated with our floating rate debt balances, partially offset by higher average debt balances from increased
borrowings in 2020.
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Change in Estimated Acquisition Earn-Out Payables
Accounting Standards Codification (“ASC”) Topic 805-Business Combinations is the authoritative guidance requiring an acquirer
to recognize 100% of the fair value of acquired assets, including goodwill, and assumed liabilities (with only limited exceptions)
upon initially obtaining control of an acquired entity. Additionally, the fair value of contingent consideration arrangements (such
as earn-out purchase price arrangements) at the acquisition date must be included in the purchase price consideration. The
recorded purchase price for acquisitions includes an estimation of the fair value of liabilities associated with any potential earn-
out provisions. Subsequent changes in these earn-out obligations are required to be recorded in the Consolidated Statement
of Income when incurred or reasonably estimated. Estimations of potential earn-out obligations are typically based upon future
earnings of the acquired operations or entities, usually for periods ranging from one to three years.
The net charge or credit to the Consolidated Statement of Income for the period is the combination of the net change in the
estimated acquisition earn-out payables balance, and the interest expense imputed on the outstanding balance of the estimated
acquisition earn-out payables.
As of December 31, 2020, the fair values of the estimated acquisition earn-out payables were re-evaluated and measured at fair
value on a recurring basis using unobservable inputs (Level 3) as defined in ASC 820-Fair Value Measurement. The resulting net
changes, as well as the interest expense accretion on the estimated acquisition earn-out payables, for the years ended December
31, 2020, and 2019 were as follows:
(in thousands)2020 2019
Change in fair value of estimated acquisition earn-out payables $(11,814) $ (7,298)
Interest expense accretion 7,356 5,932
Net change in earnings from estimated acquisition earn-out payables $ (4,458) $ (1,366)
For the years ended December 31, 2020 and 2019, the fair value of estimated earn-out payables was re-evaluated and decreased
by $11.8 million for 2020 and decreased by $7.3 million for 2019, which resulted in a credit, net of interest expense accretion, to the
Consolidated Statement of Income for 2020 and 2019.
As of December 31, 2020, the estimated acquisition earn-out payables equaled $258.9 million, of which $79.2 million was recorded
as accounts payable and $179.7 million was recorded as other non-current liabilities. As of December 31, 2019, the estimated
acquisition earn-out payables equaled $161.5 million, of which $17.9 million was recorded as accounts payable and $143.6 million
was recorded as other non-current liabilities.
Income Taxes
The effective tax rate on income from operations was 23.0% in 2020 and 24.2% in 2019. The reduction in the effective tax rate
in 2020 as compared to 2019 was primarily driven the tax benefit associated with additional vesting of stock awards in 2020 as
compared to 2019.
Results of Operations — Segment Information
As discussed in Note 17 “Segment Information” of the Notes to Consolidated Financial Statements, we operate four reportable
segments: Retail, National Programs, Wholesale Brokerage and Services. On a segmented basis, changes in amortization,
depreciation and interest expenses generally result from activity associated with acquisitions. Likewise, other income in each
segment reflects net gains primarily from legal settlements and miscellaneous income. As such, in evaluating the operational
efficiency of a segment, management focuses on the Organic Revenue growth rate of core commissions and fees, the ratio of total
employee compensation and benefits to total revenues, and the ratio of other operating expenses to total revenues.
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The reconciliation of total commissions and fees included in the Consolidated Statements of Income to Organic Revenue, a non-
GAAP financial measure, including by Segment, and the growth rates for Organic Revenue for the year ended December 31, 2020
are as follows:
2020 Retail(1)National Programs Wholesale Brokerage Services Total
(in thousands,
except percentages) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Commissions
and fees $1,470,093 $1,364,755 $609,842 $516,915 $352,161 $309,426 $174,012 $193,641 $2,606,108 $2,384,737
Total change $ 105,338 $ 92,927 $ 42,735 $ (19,629)$ 221,371
Total growth %7.7%18.0%13.8%(10.1)%9.3%
Profit-sharing
contingent
commissions (35,785) (34,150) (27,278) (17,517) (7,871) (7,499) —— (70,934) (59,166)
GSCs (15,128) (11,056) 238 (10,566) (1,304) (1,443) —— (16,194) (23,065)
Core commissions
and fees $1,419,180 $1,319,549 $582,802 $488,832 $342,986 $300,484 $174,012 $193,641 $2,518,980 $2,302,506
Acquisitions (79,580)— (34,173)— (25,861)— (1,484)— (141,098)—
Dispositions — (11,772) — (377) ————— (12,149)
Organic Revenue(2)$1,339,600 $1,307,777 $548,629 $488,455 $317,125 $300,484 $172,528 $193,641 $2,377,882 $2,290,357
Organic
Revenue growth(2)$ 31,823 $ 60,174 $ 16,641 $ (21,113)$ 87,525
Organic Revenue
growth %(2)2.4%12.3%5.5%(10.9)%3.8%
(1) The Retail Segment includes commissions and fees reported in the “Other” column of the Segment Information in Note 17 of the Notes to the Consolidated Financial
Statements, which includes corporate and consolidation items.
(2) A non-GAAP financial measure.
The reconciliation of total commissions and fees included in the Consolidated Statements of Income to Organic Revenue, a non-
GAAP financial measure, including by Segment, and the growth rates for Organic Revenue for the year ended December 31, 2019,
by Segment, are as follows:
2019 Retail(1)National Programs Wholesale Brokerage Services Total
(in thousands,
except percentages) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Commissions
and fees $1,364,755 $1,040,574 $516,915 $493,878 $ 309,426 $ 286,364 $193,641 $189,041 $2,384,737 $2,009,857
Total change $ 324,181 $ 23,037 $ 23,062 $ 4,600 $ 374,880
Total growth %31.2%4.7 %8.1%2.4 %18.7%
Profit-sharing
contingent
commissions (34,150) (24,517) (17,517) (23,896) (7,499) (7,462) —— (59,166) (55,875)
GSCs (11,056) (8,535) (10,566) (76) (1,443) (1,350) —— (23,065) (9,961)
Core commissions
and fees $1,319,549 $1,007,522 $488,832 $469,906 $ 300,484 $ 277,552 $193,641 $189,041 $2,302,506 $1,944,021
Acquisitions (272,383)— (5,721)— (3,628)— (16,541)— (298,273)—
Dispositions — (7,743) — (790)— (1,268) ——— (9,801)
Organic Revenue(2)$1,047,166 $ 999,779 $483,111 $469,116 $ 296,856 $ 276,284 $177,100 $189,041 $2,004,233 $1,934,220
Organic
Revenue growth(2)$ 47,387 $ 13,995 $ 20,572 $ (11,941)$ 70,013
Organic Revenue
growth %(2)4.7%3.0 %7.4%(6.3)%3.6%
(1) The Retail Segment includes commissions and fees reported in the “Other” column of the Segment Information in Note 17 of the Notes to the Consolidated Financial
Statements, which includes corporate and consolidation items.
(2) A non-GAAP financial measure.
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The reconciliation of income before incomes taxes, included in the Consolidated Statement of Income, to EBITDAC, a non-GAAP
measure, and Income Before Income Taxes Margin to EBITDAC Margin, a non-GAAP measure, for the year ended December 31,
2020, is as follows:
(in thousands)Retail
National
Programs
Wholesale
Brokerage Services Other Total
Income before income taxes $262,245 $ 182,892 $ 93,593 $ 27,994 $ 57,375 $624,099
Income Before Income Taxes Margin 17.8% 30.0% 26.5% 16.1% NMF 23.9%
Amortization 67,315 27,166 8,481 5,561 — 108,523
Depreciation 9,071 8,658 1,948 1,424 5,175 26,276
Interest 85,968 20,597 10,281 4,142 (62,015) 58,973
Change in estimated acquisition earn-out payables 8,689 (10,484)422 (3,085) — (4,458)
EBITDAC $433,288 $ 228,829 $ 114,725 $ 36,036 $ 535 $813,413
EBITDAC Margin 29.4% 37.5% 32.5% 20.7% NMF 31.1%
NMF = Not a meaningful figure
The reconciliation of income before incomes taxes, included in the Consolidated Statement of Income, to EBITDAC, a non-GAAP
measure, and Income Before Income Taxes Margin to EBITDAC Margin, a non-GAAP measure, for the year ended December 31,
2019, is as follows:
(in thousands)Retail
National
Programs
Wholesale
Brokerage Services Other Total
Income before income taxes $222,875 $ 143,737 $ 82,739 $ 40,337 $ 36,241 $525,929
Income Before Income Taxes Margin 16.3% 27.7% 26.7% 20.8% NMF 22.0%
Amortization 63,146 25,482 11,191 5,479 — 105,298
Depreciation 7,390 6,791 1,674 1,229 6,333 23,417
Interest 87,295 16,690 4,756 4,404 (49,485) 63,660
Change in estimated acquisition earn-out payables 8,004 (751)(4) (8,615) — (1,366)
EBITDAC $388,710 $ 191,949 $ 100,356 $ 42,834 $ (6,911) $716,938
EBITDAC Margin 28.4% 37.0% 32.4% 22.1% NMF 30.0%
NMF = Not a meaningful figure
Retail Segment
The Retail Segment provides a broad range of insurance products and services to commercial, public and quasi-public,
professional and individual insured customers, and non-insurance risk-mitigating products through our automobile dealer services
(“F&I”) businesses. Approximately 80.8% of the Retail Segment’s commissions and fees revenue is commission-based.
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Financial information relating to our Retail Segment for the twelve months ended December 31, 2020 and 2019 is as follows:
(in thousands, except percentages)2020 % Change 2019
REVENUES
Core commissions and fees $ 1,420,439 7.5% $ 1,320,810
Profit-sharing contingent commissions 35,785 4.8% 34,150
Guaranteed supplemental commissions 15,128 36.8% 11,056
Total commissions and fees 1,471,352 7.7% 1,366,016
Investment income 163 9.4% 149
Other income, net 1,251 14.1% 1,096
Total revenues 1,472,766 7.7% 1,367,261
EXPENSES
Employee compensation and benefits 820,368 7.9% 760,208
Other operating expenses 221,496 (3.0)% 228,256
(Gain)/loss on disposal (2,386) (75.9)% (9,913)
Amortization 67,315 6.6% 63,146
Depreciation 9,071 22.7% 7,390
Interest 85,968 (1.5)% 87,295
Change in estimated acquisition earn-out payables 8,689 8.6% 8,004
Total expenses 1,210,521 5.8% 1,144,386
Income before income taxes $ 262,245 17.7% $ 222,875
Income Before Income Taxes Margin(1)17.8%16.3%
EBITDAC(2)433,288 11.5% 388,710
EBITDAC Margin(2)29.4%28.4%
Organic Revenue growth rate(2)2.4%4.7%
Employee compensation and benefits relative to total revenues 55.7%55.6%
Other operating expenses relative to total revenues 15.0%16.7%
Capital expenditures $ 13,175 5.4% $ 12,497
Total assets at December 31 $7,093,627 10.6% $6,413,459
(1) “Income Before Income Taxes Margin” is defined as income before income taxes divided by total revenues
(2) A non-GAAP measure
NMF = Not a meaningful figure
The Retail Segment’s total revenues in 2020 increased 7.7%, or $105.5 million, over the same period in 2019, to $1,472.8 million.
The $99.6 million increase in core commissions and fees was driven by the following: (i) approximately $79.6 million related to
the core commissions and fees from acquisitions that had no comparable revenues in the same period of 2019; (ii) $31.8 million
related to net new and renewal business; offset by (iii) a decrease of $11.8 million related to commissions and fees from businesses
or books of business divested in 2019 and 2020. Profit-sharing contingent commissions and GSCs in 2020 increased 12.6%, or
$5.7 million, over 2019, to $50.9 million primarily from acquisitions completed in 2019 and 2020. The Retail Segment’s growth rate
for total commissions and fees was 7.7% and the Organic Revenue growth rate was 2.4% for 2020. The Organic Revenue growth
rate was driven by new business, higher customer retention and increasing premium rates across most lines of business over the
preceding 12 months.
Income before income taxes for 2020 increased 17.7%, or $39.4 million, over the same period in 2019, to $262.2 million. The
primary factors driving this increase were: (i) the net increase in revenue as described above, (ii) other operating expenses which
decreased by $6.8 million, or 3.0%, due primarily to COVID-19 related expense savings, partially offset by the impact of our multi-
year technology investment program and increased professional services to support our customers and acquisitions over the past
12 months; (iii) offset by a 7.9%, or $60.2 million, increase in employee compensation and benefits, due primarily to the year-on-
year impact of acquisitions, salary inflation and additional teammates to support revenue growth and incremental non-cash stock
compensation costs, (iv) a decrease in the gain on disposal associated with the sale of certain books of business compared to prior
year; and (v) a combined increase in amortization, depreciation and intercompany interest expense of $4.5 million resulting from
our acquisition activity in 2020 and 2019.
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EBITDAC for 2020 increased 11.5%, or $44.6 million, from the same period in 2019, to $433.3 million. EBITDAC Margin for 2020
increased to 29.4% from 28.4% in the same period in 2019. EBITDAC Margin was impacted by (i) the net increase in revenue
and COVID-19 related expense savings, as described above, (ii) higher profit-sharing contingent commissions and guaranteed
supplemental commissions; partially offset by, (iii) increased non- stock cash compensation costs and intercompany IT charges.
National Programs Segment
The National Programs Segment manages over 40 programs supported by approximately 100 well-capitalized carrier partners. In
most cases, the insurance carriers that support the programs have delegated underwriting and, in many instances, claims-handling
authority to our programs operations. These programs are generally distributed through a nationwide network of independent
agents and Brown & Brown retail agents, and offer targeted products and services designed for specific industries, trade groups,
professions, public entities, and market niches. The National Programs Segment operations can be grouped into five broad
categories: Professional Programs, Personal Lines Programs, Commercial Programs, Public Entity-Related Programs and the National
Flood Program. The National Programs Segment’s revenue is primarily commission-based.
Financial information relating to our National Programs Segment for the twelve months ended December 31, 2020 and 2019 is as
follows:
(in thousands, except percentages) 2020 % Change 2019
REVENUES
Core commissions and fees $ 582,802 19.2% $ 488,832
Profit-sharing contingent commissions 27,278 55.7% 17,517
Guaranteed supplemental commissions (238) (102.3)% 10,566
Total commissions and fees 609,842 18.0% 516,915
Investment income 756 -45.9% 1,397
Other income, net 42 (41.7)%72
Total revenues 610,640 17.8% 518,384
EXPENSES
Employee compensation and benefits 260,141 17.5% 221,425
Other operating expenses 121,670 15.7% 105,118
(Gain)/loss on disposal — (100.0)% (108)
Amortization 27,166 6.6% 25,482
Depreciation 8,658 27.5% 6,791
Interest 20,597 23.4% 16,690
Change in estimated acquisition earn-out payables (10,484) NMF (751)
Total expenses 427,748 14.2% 374,647
Income before income taxes $ 182,892 27.2% $ 143,737
Income Before Income Taxes Margin(1)30.0%27.7%
EBITDAC(2)228,829 19.2% 191,949
EBITDAC Margin(2)37.5%37.0%
Organic Revenue growth rate(2)12.3%3.0%
Employee compensation and benefits relative to total revenues 42.6%42.7%
Other operating expenses relative to total revenues 19.9%20.3%
Capital expenditures $ 7,208 (30.5)% $ 10,365
Total assets at December 31 $3,510,983 12.9% $3,110,368
(1) “Income Before Income Taxes Margin” is defined as income before income taxes divided by total revenues
(2) A non-GAAP measure
NMF = Not a meaningful figure
The National Programs Segment’s total revenues in 2020 increased 17.8%, or $92.3 million, over 2019, to a total $610.6 million.
The $94.0 million increase in core commissions and fees was driven by the following: (i) $60.2 million related to net new and
renewal business; (ii) an increase of approximately $34.2 million related to core commissions and fees from acquisitions that had
no comparable revenues in 2019; offset by (iii) a decrease of $0.4 million related to commissions and fees recorded in 2019 from
businesses since divested. Profit-sharing contingent commissions and GSCs were $27.0 million in 2020, which was a decrease of
$1.0 million from 2019, as a result of a non-recurring GSC received from one of our partners in the second quarter of 2019.
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The National Programs Segment’s growth rate for total commissions and fees was 18.0% and the Organic Revenue growth rate
was 12.3% for 2020. The total commissions and fees growth was mainly due to new acquisitions, strong growth in our earthquake
programs, lender placement program, personal property program and wind programs. The Organic Revenue growth rate increase
was driven by net new business, growth in renewals and higher premium rates in a number of our programs compared to the prior
year.
Income before income taxes for 2020 increased 27.2%, or $39.2 million, from the same period in 2019, to $182.9 million. The increase
was the result of strong total revenue growth and a decrease in estimated acquisition earn-out payables of $9.7 million.
EBITDAC for 2020 increased 19.2%, or $36.9 million, from the same period in 2019, to $228.8 million. EBITDAC Margin for 2020
increased to 37.5% due to (i) leveraging revenue growth and scaling of a number of our programs; (ii) new acquisitions in 2020, and
(iii) lower variable costs in response to COVID-19.
Wholesale Brokerage Segment
The Wholesale Brokerage Segment markets and sells excess and surplus commercial and personal lines insurance, primarily
through independent agents and brokers, including Brown & Brown retail agents. Like the Retail and National Programs Segments,
the Wholesale Brokerage Segment’s revenues are primarily commission-based.
Financial information relating to our Wholesale Brokerage Segment for the twelve months ended December 31, 2020 and 2019 is
as follows:
(in thousands, except percentages)2020 % Change 2019
REVENUES
Core commissions and fees $ 342,986 14.1% $ 300,484
Profit-sharing contingent commissions 7,871 5.0% 7,499
Guaranteed supplemental commissions 1,304 -9.6% 1,443
Total commissions and fees 352,161 13.8% 309,426
Investment income 184 3.4%178
Other income, net 452 (6.4)% 483
Total revenues 352,797 13.8% 310,087
EXPENSES
Employee compensation and benefits 184,429 16.8% 157,924
Other operating expenses 53,643 3.5% 51,807
(Gain)/loss on disposal ———
Amortization 8,481 (24.2)% 11,191
Depreciation 1,948 16.4% 1,674
Interest 10,281 116.2% 4,756
Change in estimated acquisition earn-out payables 422 NMF (4)
Total expenses 259,204 14.0% 227,348
Income before income taxes $ 93,593 13.1% $ 82,739
Income Before Income Taxes Margin(1)26.5%26.7%
EBITDAC(2)114,725 14.3% 100,356
EBITDAC Margin(2)32.5%32.4%
Organic Revenue growth rate(2)5.5%7.4%
Employee compensation and benefits relative to total revenues 52.3%50.9%
Other operating expenses relative to total revenues 15.2%16.7%
Capital expenditures $ 3,324 -46.1% $ 6,171
Total assets at December 31 $1,791,717 28.9% $1,390,250
(1) “Income Before Income Taxes Margin” is defined as income before income taxes divided by total revenues
(2) A non-GAAP measure
NMF = Not a meaningful figure
The Wholesale Brokerage Segment’s total revenues for 2020 increased 13.8%, or $42.7 million, over 2019, to $352.8 million. The
$42.5 million increase in core commissions and fees was driven by the following: (i) $25.9 million related to the core commissions
and fees from acquisitions that had no comparable revenues in 2019 and (ii) $16.6 million related to net new and renewal business.
Profit-sharing contingent commissions and GSCs for 2020 increased $0.2 million over 2019, to $9.2 million. The Wholesale Brokerage
Segment’s growth rate for total commissions and fees was 13.8%, and the Organic Revenue growth rate was 5.5% for 2020. The
Organic Revenue growth rate was driven by net new business, as well as increased rates seen across most lines of business, which
was partially offset by shrinking capacity in the catastrophe exposed personal lines market.
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Income before income taxes for 2020 increased 13.1%, or $10.9 million, over 2019, to $93.6 million, primarily due to the following:
(i) the net increase in total revenues as described above, and (ii) a decrease in amortization expense; offset by (iii) an increase in
intercompany interest expense, (iv) an increase in employee compensation and benefits of $26.5 million, related to additional
teammates from acquisitions completed in the past 12 months and growth to support increased transaction volumes, compensation
increases for existing teammates, and additional non-cash stock-based compensation expense, and (v) a net $1.3 million increase
in other operating expenses, primarily acquisition related.
EBITDAC for 2020 increased 14.3%, or $14.4 million, from the same period in 2019, to $114.7 million. EBITDAC Margin for 2020
increased to 32.5% from 32.4% in the same period in 2019. The increase in EBITDAC Margin was primarily driven by leveraging
revenue growth as described above and lower variable costs in response to COVID-19, which were partially offset by increased
employee compensation and non-cash stock-based compensation costs.
Services Segment
The Services Segment provides insurance-related services, including third-party claims administration and comprehensive medical
utilization management services in both the workers’ compensation and all-lines liability arenas. The Services Segment also
provides Medicare Set-aside account services, Social Security disability and Medicare benefits advocacy services, and claims
adjusting services.
Unlike the other segments, nearly all of the Services Segment’s revenue is generated from fees, which are not significantly affected
by fluctuations in general insurance premiums.
Financial information relating to our Services Segment for the twelve months ended December 31, 2020 and 2019 is as follows:
(in thousands, except percentages) 2020 % Change 2019
REVENUES
Core commissions and fees $174,012 (10.1)% $193,641
Profit-sharing contingent commissions ———
Guaranteed supplemental commissions ———
Total commissions and fees 174,012 (10.1)% 193,641
Investment income — (100.0)% 139
Other income, net — (100.0)% 1
Total revenues 174,012 (10.2)% 193,781
EXPENSES
Employee compensation and benefits 88,787 (3.0)% 91,514
Other operating expenses 49,191 (17.2)% 59,433
(Gain)/loss on disposal (2)——
Amortization 5,561 1.5% 5,479
Depreciation 1,424 15.9% 1,229
Interest 4,142 (5.9)% 4,404
Change in estimated acquisition earn-out payables (3,085)(64.2)% (8,615)
Total expenses 146,018 (4.8)% 153,444
Income before income taxes $ 27,994 (30.6)% $ 40,337
Income Before Income Taxes Margin(1)16.1%20.8%
EBITDAC(2)36,036 (15.9)% 42,834
EBITDAC Margin(2)20.7%22.1%
Organic Revenue growth rate(2)(10.9)%(6.3)%
Employee compensation and benefits relative to total revenues 51.0%47.2%
Other operating expenses relative to total revenues 28.3%30.7%
Capital expenditures $ 1,424 77.1% $ 804
Total assets at December 31 $480,440 (0.2)% $481,336
(1) “Income Before Income Taxes Margin” is defined as income before income taxes divided by total revenues
(2) A non-GAAP measure
NMF = Not a meaningful figure
The Services Segment’s total revenues for 2020 decreased 10.2%, or $19.8 million, from 2019, to $174.0 million. The $19.6 million
decrease in core commissions and fees was driven primarily by a decrease of $21.1 million related to net new and renewal business
that was driven by lower claims volume in our Social Security advocacy businesses; (i) the effect a prior year terminated customer
contract in one of our claims processing businesses; and (ii) lower weather-driven claims; partially offset by (iii) $1.5 million
related to the core commissions and fees from acquisitions that had no comparable revenues in the same period of 2019. Total
commissions and fees decreased 10.1%, and Organic Revenue decreased 10.9% in 2020, both as compared to 2019.
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
32
Income before income taxes for 2020 decreased 30.6%, or $12.3 million, from 2019, to $28.0 million due to a combination of: (i)
lower revenue as described above; (ii) a $5.5 million decrease in the change in estimated acquisition earn-out payables; partially
offset by (iii) a decline in other operating expenses driven by management of our costs in response to COVID-19.
EBITDAC for 2020 decreased 15.9%, or $6.8 million, from the same period in 2019, to $36.0 million. EBITDAC Margin for 2020
decreased to 20.7% from 22.1% in the same period in 2019. The decrease in EBITDAC Margin was due to: (i) lower revenue as
described above; offset by (ii) a decline in other operating expenses driven by management of our costs in response to COVID-19.
Other
As discussed in Note 17 of the Notes to Consolidated Financial Statements, the “Other” column in the Segment Information table
includes any income and expenses not allocated to reportable segments, and corporate-related items, including the intercompany
interest expense charges to reporting segments.
Liquidity and Capital Resources
The Company seeks to maintain a conservative balance sheet and liquidity profile. Our capital requirements to operate as an
insurance intermediary are low and we have been able to grow and invest in our business principally through cash that has been
generated from operations. We have the ability to utilize our revolving credit facility, which as of December 31, 2020, provided
access to up to $800.0 million in available cash. We believe that we have access to additional funds, if needed, through the capital
markets or private placements to obtain further debt financing under the current market conditions. The Company believes that
its existing cash, cash equivalents, short-term investment portfolio, and funds generated from operations, together with the funds
available under the revolving credit facility, will be sufficient to satisfy our normal liquidity needs, including principal payments on
our long-term debt, for at least the next 12 months.
The revolving credit facility contains an expansion for up to an additional $500.0 million of borrowing capacity, subject to the
approval of participating lenders. In addition, under the term loan credit agreement, the unsecured term loan in the initial amount of
$300.0 million may be increased by up to $150.0 million, subject to the approval of participating lenders. Including the expansion
options under all existing credit agreements, the Company has access to up to $1.5 billion of incremental borrowing capacity as of
December 31, 2020.
Our cash and cash equivalents of $817.4 million at December 31, 2020, reflected an increase of $275.2 million from the
$542.2 million balance at December 31, 2019. During 2020, $721.6 million of cash was generated from operating activities,
representing an increase of 6.4%. During this period, $694.8 million of cash was used for new acquisitions, $29.5 million was used
for acquisition earn-out payments, $70.7 million was used to purchase additional fixed assets, $100.6 million was used for payment
of dividends, $55.1 million was used for share repurchases, and $55.0 million was used to pay outstanding principal balances owed
on long-term debt.
We hold approximately $34.3 million in cash outside of the U.S., which we currently have no plans to repatriate in the near future.
Our cash and cash equivalents of $542.2 million at December 31, 2019, reflected an increase of $103.2 million from the
$439.0 million balance at December 31, 2018. During 2019, $678.2 million of cash was generated from operating activities,
representing an increase of 19.5%. During this period, $353.0 million of cash was used for new acquisitions, $9.9 million was used
for acquisition earn-out payments, $73.1 million was used to purchase additional fixed assets, $91.3 million was used for payment of
dividends, $38.7 million was used for share repurchases, and $50.0 million was used to pay outstanding principal balances owed
on long-term debt.
Our ratio of current assets to current liabilities (the “current ratio”) was 1.26 and 1.22 for December 31, 2020 and December 31,
2019, respectively.
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
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Contractual Cash Obligations
As of December 31, 2020, our contractual cash obligations were as follows:
Payments Due by Period
(in thousands)Total Less than 1 year
(4)1-3 Years(4)4-5 Years After 5 years
Long-term debt $2,110,000 $ 70,000 $ 490,000 $ 500,000 $1,050,000
Other liabilities(1)110,109 4,456 14,575 7,204 83,874
Operating leases(2)244,289 50,443 87,255 55,589 51,002
Interest obligations 394,710 62,571 115,394 79,625 137,120
Unrecognized tax benefits 1,267 — 1,267 ——
Maximum future acquisition contingency payments(3)544,723 139,465 405,258 ——
Total contractual cash obligations $3,405,098 $ 326,935 $ 1,113,749 $ 642,418 $1,321,996
(1) Includes the current portion of other long-term liabilities.
(2) Includes $5.0 million of future lease commitments expected to commence in 2021.
(3) Includes $258.9 million of current and non-current estimated earn-out payables. $25.0 million of this balance is not subject to any further contingency as a result of
the Amendment dated as of July 27, 2020 by and among the Company, The Hays Group, Inc., and certain of their affiliates, to the Asset Purchase Agreement, dated
as of October 22, 2018.
(4) Does not include approximately $31.1 million of deferred employer-only payroll tax payments related to the CARES Act which are expected to be paid in equal
installments in each of December 2021 and December 2022.
Debt
Total debt at December 31, 2020, was $2,095.9 million net of unamortized discount and debt issuance costs, which was an
increase of $540.6 million compared to December 31, 2019. The increase includes: (i) incremental borrowings of $700.0 million
related to the Company’s 2.375% Senior Notes due 2031 issued on September 24, 2020; (ii) net of the amortization of discounted
debt related to our various unsecured Senior Notes, and debt issuance cost amortization of $2.3 million; offset by (iii) the
repayment of the principal balance of $55.0 million for scheduled principal amortization balances related to our various existing
floating rate debt term notes; (iv) the net repayment of $100.0 million under the revolving credit facility; and (v) an additional $6.7
million including debt issuance costs and the portion of discount applied to the proceeds issued under the incremental borrowings
related to the Company’s 2.375% Senior Notes due 2031 issued on September 24, 2020.
On September 24, 2020, the Company completed the issuance of $700.0 million aggregate principal amount of the Company’s
2.375% Senior Notes due 2031. The Senior Notes were given investment grade ratings of BBB- stable outlook and Baa3 positive
outlook. The notes are subject to certain covenant restrictions, which are customary for credit-rated obligations. At the time of
funding, the proceeds were offered at a discount of the original note amount, which also excluded an underwriting fee discount.
The net proceeds received from the issuance were used to repay a portion of the outstanding balance of $200.0 million on the
revolving credit facility, to pay a portion of the purchase price in connection with the acquisitions of LP Insurance Services, LLP and
CKP Insurance, LLC and for other general corporate purposes. As of December 31, 2020, there was an outstanding debt balance of
$700.0 million exclusive of the associated discount balance.
During the twelve months ended December 31, 2020, the Company has repaid $40.0 million of principal related to the amended
and restated credit agreement term loan through quarterly scheduled amortized principal payments, each equaling $10.0 million on
March 31, 2020, June 30, 2020, September 30, 2020 and December 31, 2020. The amended and restated credit agreement term
loan had an outstanding balance of $290.0 million as of December 31, 2020. The Company’s next scheduled amortized principal
payment is due March 31, 2021, and is equal to $10.0 million.
During the twelve months ended December 31, 2020, the Company has repaid $15.0 million of principal related to the term loan
credit agreement through quarterly scheduled amortized principal payments, each equaling $3.8 million on March 31, 2020, June
30, 2020, September 30, 2020, and December 31, 2020. The term loan credit agreement had an outstanding balance of $270.0
million as of December 31, 2020. The Company’s next scheduled amortized principal payment is due March 31, 2021, and is equal
to $7.5 million.
On April 30, 2020, the Company borrowed $250.0 million under the revolving credit facility. The proceeds were used in
conjunction with the payment of the purchase price for the previously announced acquisition of LP Insurance Services LLC and
for additional liquidity to further strengthen the Company’s financial position and balance sheet in the event cash receipts from
customers or carrier partners are delayed due to the COVID-19 pandemic. On June 30, 2020, the Company repaid $150.0 million
on the revolving credit facility. On September 24, 2020, the Company repaid the total outstanding borrowings under the revolving
credit facility of $200.0 million using the proceeds received from the borrowings under the Company’s 2.375% Senior Notes due
2031.
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
34
Total debt at December 31, 2019, was $1,555.3 million net of unamortized discount and debt issuance costs, which was an increase
of $48.4 million compared to December 31, 2018. The increase includes (i) a drawdown on the revolving credit facility of $100.0
million on August 9, 2019, in connection with the acquisition of CKP Insurance, LLC and various other acquisitions closed in the
third quarter of 2019, (ii) the repayment of principal of $50.0 million for scheduled principal amortization balances related to our
various existing floating-rate debt term notes, (iii) amortization of discounted debt related to our various unsecured Senior Notes,
and debt issuance cost amortization of $2.1 million, offset by (iv) additional discount to par and aggregate debt issuance costs of
$3.7 million related to the issuance of the Company’s 4.500% Senior Notes due 2029 as of December 31, 2019.
On March 11, 2019, the Company completed the issuance of $350.0 million aggregate principal amount of the Company’s 4.500%
Senior Notes due 2029. The Senior Notes were given investment-grade ratings of BBB-/Baa3 with a stable outlook. The notes are
subject to certain covenant restrictions which are customary for credit-rated obligations. At the time of funding, the proceeds were
offered at a discount to the notional amount, which also excluded an underwriting fee discount. The net proceeds received from
the issuance were used to repay a portion of the outstanding balance of $350.0 million on the revolving credit facility, utilized in
connection with financing related to our acquisition of Hays, and for other general corporate purposes. As of December 31, 2019,
there was an outstanding debt balance of $350.0 million exclusive of the associated discount balance.
Off-Balance Sheet Arrangements
Neither we nor our subsidiaries have ever incurred off-balance sheet obligations through the use of, or investment in, off-balance
sheet derivative financial instruments or structured finance or special purpose entities organized as corporations, partnerships or
limited liability companies or trusts.
For further discussion of our cash management and risk management policies, see “Quantitative and Qualitative Disclosures About
Market Risk.”
Quantitative and Qualitative Disclosures About Market Risk
Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest rates, foreign exchange
rates, and equity prices. We are exposed to market risk through our investments, revolving credit line, term loan agreements, and
international operations.
Our invested assets are held primarily as cash and cash equivalents, restricted cash, available-for-sale marketable debt securities,
non-marketable debt securities, certificates of deposit, U.S. treasury securities, and professionally managed short-duration fixed
income funds. These investments are subject to interest rate risk. The fair values of our invested assets at December 31, 2020, and
December 31, 2019, approximated their respective carrying values due to their short-term duration, and therefore, such market risk
is not considered to be material.
We do not actively invest or trade in equity securities. In addition, we generally dispose of any significant equity securities received
in conjunction with an acquisition shortly after the acquisition date.
As of December 31, 2020, we had $560.0 million of borrowings outstanding under our various credit agreements, all of which
bear interest on a floating basis tied to London Interbank Overnight Rate (“LIBOR”) and is therefore subject to changes in the
associated interest expense. The effect of an immediate hypothetical 10% change in interest rates would not have a material
effect on our Consolidated Financial Statements. As of July 2017, the UK Financial Conduct Authority (“FCA”) has urged banks
and institutions to discontinue their use of the LIBOR benchmark rate for floating-rate debt, and other financial instruments tied to
the rate after 2021. However, on November 30, 2020, the ICE Benchmark Administration Limited (“IBA”), announced that it would
consult in early December 2020 on its intention to cease the publication of the one-week and two-month U.S. dollar LIBOR settings
immediately following the LIBOR publication on December 31, 2021, and the remaining U.S. dollar LIBOR settings (overnight and
one, three, six and 12 months) immediately following the LIBOR publication on June 30, 2023. The consultation was open for
feedback until January 25, 2021, and IBA “intends to share the results of the consultation with the FCA and to publish a feedback
statement summarizing responses from the consultation shortly thereafter.” In connection to the released statement from the IBA,
on December 4, 2020, the FCA released a similar statement in support of the continuation of the LIBOR rate beyond 2021. The
Alternative Reference Rates Committee (“ARRC”) has recommended the Secured Overnight Financing Rate (“SOFR”) as the best
alternative rate to LIBOR post discontinuance and has proposed a transition plan and timeline designed to encourage the adoption
of SOFR from LIBOR.
The Company is currently evaluating the transition from LIBOR as an interest rate benchmark to other potential alternative
reference rates, including but not limited to the SOFR interest rate. Management will continue to actively assess the related
opportunities and risks associated with the transition and monitor related proposals and guidance published by ARRC and other
alternative-rate initiatives, with an expectation that we will be prepared to ask for a termination of LIBOR benchmarks after 2021.
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
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We are subject to exchange rate risk primarily in our U.K.-based wholesale brokerage business that has a cost base principally
denominated in British pounds and a revenue base in several other currencies, but principally in U.S. dollars, and in our Canadian
MGA business that has substantially all of its revenues and cost base denominated in Canadian Dollars. As of January 14, 2021, the
Company announced the completion of the acquisition of O’Leary Insurances, an Ireland based retail brokerage business which
has substantially all of its revenue and cost base in Euro Dollars.
Based upon our foreign currency rate exposure as of December 31, 2020, an immediate 10% hypothetical changes of foreign
currency exchange rates would not have a material effect on our Consolidated Financial Statements.
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
36
Financial Statements and Supplementary Data
Index to Consolidated Financial Statements
Page No.
Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018 37
Consolidated Balance Sheets as of December 31, 2020 and 2019 38
Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2020, 2019 and 2018 39
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 40
Notes to Consolidated Financial Statements for the years ended December 31, 2020, 2019 and 2018 41
Note 1: Summary of Significant Accounting Policies 41
Note 2: Revenues 46
Note 3: Business Combinations 47
Note 4: Goodwill 55
Note 5: Amortizable Intangible Assets 55
Note 6: Investments 55
Note 7: Fixed Assets 57
Note 8: Accrued Expenses and Other Liabilities 58
Note 9: Long-Term Debt 58
Note 10: Income Taxes 60
Note 11: Employee Savings Plan 62
Note 12: Stock-Based Compensation 62
Note 13: Supplemental Disclosures of Cash Flow Information 65
Note 14: Commitments and Contingencies 65
Note 15: Leases 66
Note 16: Quarterly Operating Results (Unaudited)68
Note 17: Segment Information 68
Note 18: Insurance Company WNFIC 69
Note 19: Shareholders’ Equity 70
Report of Independent Registered Public Accounting Firm 72
ManageMent’s Discussion anD analysis of financial conDition anD Results of opeRations
Brown & Brown, Inc.
Consolidated Statements of Income
For the Year Ended December 31,
(in thousands, except per share data)2020 2019 2018
REVENUES
Commissions and fees $ 2,606,108 $ 2,384,737 $ 2,009,857
Investment income 2,811 5,780 2,746
Other income, net 4,456 1,654 1,643
Total revenues 2,613,375 2,392,171 2,014,246
EXPENSES
Employee compensation and benefits 1,436,377 1,308,165 1,068,914
Other operating expenses 365,973 377,089 332,118
(Gain)/loss on disposal (2,388) (10,021) (2,175)
Amortization 108,523 105,298 86,544
Depreciation 26,276 23,417 22,834
Interest 58,973 63,660 40,580
Change in estimated acquisition earn-out payables (4,458) (1,366) 2,969
Total expenses 1,989,276 1,866,242 1,551,784
Income before income taxes 624,099 525,929 462,462
Income taxes 143,616 127,415 118,207
Net income $ 480,483 $ 398,514 $ 344,255
Net income per share:
Basic $ 1.70 $ 1.42 $ 1.24
Diluted $ 1.69 $ 1.40 $ 1.22
Dividends declared per share $ 0.35 $ 0.33 $ 0.31
See accompanying notes to Consolidated Financial Statements.
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Brown & Brown, Inc.
Consolidated Balance Sheets
(in thousands, except per share data)December 31, 2020 December 31, 2019
ASSETS
Current Assets:
Cash and cash equivalents $817,398 $ 542,174
Restricted cash and investments 454,517 420,801
Short-term investments 18,332 12,325
Premiums, commissions and fees receivable 1,099,248 942,834
Reinsurance recoverable 43,469 58,505
Prepaid reinsurance premiums 377,615 366,021
Other current assets 147,670 152,142
Total current assets 2,958,249 2,494,802
Fixed assets, net 201,115 148,627
Operating lease assets 186,998 184,288
Goodwill 4,395,918 3,746,094
Amortizable intangible assets, net 1,049,660 916,768
Investments 24,971 27,378
Other assets 149,581 104,864
Total assets $8,966,492 $7,622,821
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Premiums payable to insurance companies $1,198,529 $ 1,014,317
Losses and loss adjustment reserve 43,469 58,505
Unearned premiums 377,615 366,021
Premium deposits and credits due customers 102,505 113,841
Accounts payable 190,497 99,960
Accrued expenses and other liabilities 371,737 337,717
Current portion of long-term debt 70,000 55,000
Total current liabilities 2,354,352 2,045,361
Long-term debt less unamortized discount and debt issuance costs 2,025,906 1,500,343
Operating lease liabilities 172,935 167,855
Deferred income taxes, net 344,222 328,277
Other liabilities 314,854 230,706
Shareholders’ Equity:
Common stock, par value $0.10 per share; authorized 560,000 shares;
issued 299,689 shares and outstanding 283,004 at 2020, issued
297,106 shares and outstanding 281,655 shares at 2019 - in thousands.29,969 29,711
Additional paid-in capital 794,909 716,049
Treasury stock, at cost at 16,685 at 2020 and 15,451 shares at 2019,
respectively - in thousands (591,338)(536,243)
Retained earnings 3,520,683 3,140,762
Total shareholders’ equity 3,754,223 3,350,279
Total liabilities and shareholders’ equity $8,966,492 $7,622,821
See accompanying notes to Consolidated Financial Statements.
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Brown & Brown, Inc.
Consolidated Statements of
Shareholders’ Equity
(in thousands, except per share data)
Common Stock Additional Paid-In Capital Treasury Stock Retained Earnings TotalShares Par Value
Balance at January 1, 2018 286,895 $ 28,689 $ 483,733 $ (386,322) $2,456,599 $2,582,699
Adoption of Topic 606 at January 1, 2018 117,515 117,515
Beginning balance after adoption of Topic 606 286,895 28,689 483,733 (386,322) 2,574,114 2,700,214
Net income 344,255 344,255
Net unrealized holding (loss) gain on
available-for-sale securities (21)(57) (78)
Common stock issued for employee stock
benefit plans 3,096 310 39,857 40,167
Common stock issued for agency acquisitions 3,376 338 99,662 100,000
Purchase of treasury stock (8,750) (91,250)(100,000)
Common stock issued to directors 13 1 699 700
Cash dividends paid ($0.31 per share)(84,690) (84,690)
Balance at December 31, 2018 293,380 29,338 615,180 (477,572) 2,833,622 3,000,568
Net Income 398,514 398,514
Net unrealized holding (loss) gain on
available-for-sale securities 182 (30) 152
Common stock issued for employee stock
benefit plans 3,129 313 59,867 60,180
Common stock issued for agency acquisitions 569 57 19,943 20,000
Purchase of treasury stock 20,000 (58,671)(38,671)
Common stock issued to directors 28 3 877 880
Cash dividends paid ($0.33 per share)(91,344) (91,344)
Balance at December 31, 2019 297,106 29,711 716,049 (536,243) 3,140,762 3,350,279
Net Income 480,483 480,483
Net unrealized holding (loss) gain on
available-for-sale securities 466 30 496
Common stock issued for employee stock
benefit plans 1,844 184 47,761 47,945
Common stock issued for agency acquisitions 723 72 30,048 30,120
Purchase of treasury stock (55,095)(55,095)
Common stock issued to directors 16 2 585 587
Cash dividends paid ($0.35 per share)(100,592) (100,592)
Balance at December 31, 2020 299,689 $ 29,969 $ 794,909 $ (591,338) $3,520,683 $3,754,223
See accompanying notes to Consolidated Financial Statements.
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Brown & Brown, Inc.
Consolidated Statements of Cash Flows
Year Ended December 31,
(in thousands)2020 2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 480,483 $ 398,514 $ 344,255
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization 108,523 105,298 86,544
Depreciation 26,276 23,417 22,834
Non-cash stock-based compensation 59,749 46,994 33,519
Change in estimated acquisition earn-out payables (4,458) (1,366) 2,969
Deferred income taxes 15,943 12,383 15,008
Amortization of debt discount and disposal of deferred financing costs 2,319 2,054 1,627
Accretion of discounts and premiums, investments 48 (5) (10)
(Gain)/loss on sales of investments, fixed assets and customer accounts (831) (9,550) (1,934)
Payments on acquisition earn-outs in excess of original estimated payables (4,532) (351) (12,538)
Changes in operating assets and liabilities, net of effect from acquisitions and divestitures:
Premiums, commissions and fees receivable (increase) decrease (135,367) (86,778) (93,630)
Reinsurance recoverables (increase) decrease 15,036 6,891 412,424
Prepaid reinsurance premiums (increase) decrease (11,594) (28,101) (16,903)
Other assets (increase) decrease (42,731) (46,520) (22,440)
Premiums payable to insurance companies (increase) decrease 158,775 148,658 141,169
Premium deposits and credits due customers increase (decrease)(12,886) 7,820 13,792
Losses and loss adjustment reserve increase (decrease)(15,036) (6,707) (411,509)
Unearned premiums increase (decrease)11,594 28,101 16,903
Accounts payable increase (decrease)107,754 17,800 21,880
Accrued expenses and other liabilities increase (decrease)34,716 43,330 22,801
Other liabilities increase (decrease)(72,134) 16,298 (9,232)
Net cash provided by operating activities 721,647 678,180 567,529
Cash flows from investing activities:
Additions to fixed assets (70,700) (73,108) (41,520)
Payments for businesses acquired, net of cash acquired (694,842) (353,043) (923,874)
Proceeds from sales of fixed assets and customer accounts 9,615 21,592 4,984
Purchases of investments (14,168) (17,520) (9,284)
Proceeds from sales of investments 11,025 8,494 17,923
Net cash used in investing activities (759,070)(413,585)(951,771)
Cash flows from financing activities:
Payments on acquisition earn-outs (24,977) (9,566) (14,059)
Proceeds from long-term debt 700,000 350,000 300,000
Payments on long-term debt (55,000) (50,000) (120,000)
Deferred debt issuance costs (6,756) (3,701) (778)
Borrowings on revolving credit facilities 250,000 100,000 600,000
Payments on revolving credit facilities (350,000) (350,000) (250,000)
Issuances of common stock for employee stock benefit plans 30,104 24,999 19,432
Repurchase of stock benefit plan shares for employees to fund tax withholdings (41,321) (10,933) (12,155)
Purchase of treasury stock (55,095) (58,671) (91,250)
Settlement (prepayment) of accelerated share repurchase program — 20,000 (8,750)
Cash dividends paid (100,592) (91,344) (84,690)
Net cash provided by (used in) financing activities 346,363 (79,216) 337,750
Net increase (decrease) in cash and cash equivalents inclusive of restricted cash 308,940 185,379 (46,492)
Cash and cash equivalents inclusive of restricted cash at beginning of period 962,975 777,596 824,088
Cash and cash equivalents inclusive of restricted cash at end of period $1,271,915 $ 962,975 $ 777,596
See accompanying notes to Consolidated Financial Statements. Refer to Note 13 for reconciliation of cash and cash equivalents
inclusive of restricted cash.
40
Notes to Consolidated Financial Statements
NOTE 1. Summary of Significant Accounting Policies
Nature of Operations
Brown & Brown, Inc., a Florida corporation, and its subsidiaries (collectively, “Brown & Brown” or the “Company”) is a diversified
insurance agency, wholesale brokerage, insurance programs and service organization that markets and sells insurance products
and services, primarily in the property, casualty and employee benefits areas. Brown & Brown’s business is divided into four
reportable segments. The Retail Segment provides a broad range of insurance products and services to commercial, public and
quasi-public, professional and individual insured customers, and non-insurance risk-mitigating products through our automobile
dealer services (“F&I”) businesses. The National Programs Segment, which acts as a managing general agent (“MGA”), provides
professional liability and related package products for certain professionals, a range of insurance products for individuals, flood
coverage, and targeted products and services designated for specific industries, trade groups, governmental entities and market
niches, all of which are delivered through a nationwide network of independent agents, including Brown & Brown retail agents. The
Wholesale Brokerage Segment markets and sells excess and surplus commercial and personal lines insurance, primarily through
independent agents and brokers, as well as Brown & Brown retail agents. The Services Segment provides insurance-related
services, including third-party claims administration and comprehensive medical utilization management services in both the
workers’ compensation and all-lines liability arenas, as well as Medicare Set-aside services, Social Security disability and Medicare
benefits advocacy services and claims adjusting services.
Recently Issued Accounting Pronouncements
In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848):
Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments provide optional guidance for a
limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients
and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate
reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or
another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately
and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or
before December 31, 2022. We are currently evaluating our contracts and the available expedients provided by the new standard;
however, the Company can assert there is no impact to any carrying value of assets or liabilities aside from our floating-rate debt
instruments that are indexed to LIBOR and are carried at amortized cost. Any further impact of adoption will be in determining
the new periodic floating interest rate indexed to our floating-rate debt instruments with no impact on the balance sheet upon
adoption.
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”.
The standard removes specific exceptions in the current rules and eliminates the need for an organization to analyze whether
the following apply in a given period: (a) exception to the incremental approach for intra-period tax allocation; (b) exceptions to
accounting for basis differences when there are ownership changes in foreign investments and (c) exception in interim period
income tax accounting for year-to-date losses that exceed anticipated losses. The standard also is designed to improve financial
statement preparers’ application of income tax-related guidance and simplify GAAP for (a) franchise taxes that are partially based
on income; (b) transactions with a government that result in a step-up in the tax basis of goodwill; (c) separate financial statements
of legal entities that are not subject to tax and (d) enacted changes in tax laws in interim periods. The standard takes effect for
public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The
Company does not expect that adopting this standard will have a material impact on the Company’s financial position.
Recently Adopted Accounting Standards
In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):
Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which
provides guidance for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the
requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements
that include an internal-use software license). ASU 2018-15 became effective for public companies for fiscal years, and interim
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periods within those fiscal years, beginning after December 15, 2019. The Company adopted ASU 2018-15 effective January 1,
2020. The impact of adoption of this standard on our consolidated financial statements, including accounting policies, processes,
and systems, was not material.
In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill
Impairment.” The new guidance eliminates Step 2 of the goodwill impairment test. The updated guidance requires an entity to
perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit to its carrying value, and
recognizing a non-cash impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value
with the loss not exceeding the total amount of goodwill allocated to that reporting unit. ASU 2017-04 became effective for public
companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and will be applied
prospectively. The Company adopted ASU 2017-04 effective January 1, 2020, with interim or annual goodwill impairment tests now
comparing the fair value of a reporting unit with its carrying value and no longer performing Step 2 of the goodwill impairment test.
There was no impact from adopting ASU 2017-04 as there were no impairments recorded.
In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on
Financial Instruments”. The new guidance adds an impairment model, known as the current expected credit loss (CECL) model
that is based on expected losses rather than incurred losses. These amendments require the measurement of all expected credit
losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable forward-
looking information, which is intended to result in more timely recognition of such losses. All related guidance has been codified
into, and is now known as, ASC 326 – Financial Instruments—Credit Losses. The new standard is effective for public companies
for annual reporting periods beginning after December 15, 2019, and interim periods therein. The Company adopted ASU 2016-
13 effective January 1, 2020 and has determined there is not a material impact on the Company’s Financial Statements given that
historical trend analysis and assessments for forward-looking qualitative analysis are already integrated into financial assessments
for the Company.
Principles of Consolidation
The accompanying Consolidated Financial Statements include the accounts of Brown & Brown, Inc. and its subsidiaries. All
significant intercompany account balances and transactions have been eliminated in the Consolidated Financial Statements.
Segment results for prior periods have been recast, where appropriate, to reflect the current year segmental structure. Certain
reclassifications have been made to the prior year amounts reported in this Annual Report on Form 10-K in order to conform to the
current year presentation.
Revenue Recognition
The Company earns commissions paid by insurance carriers for the binding of insurance coverage. Commissions are earned
at a point in time upon the effective date of bound insurance coverage, as no performance obligation exists after coverage is
bound. If there are other services within the contract, the Company estimates the stand-alone selling price for each separate
performance obligation, and the corresponding apportioned revenue is recognized over a period of time as the performance
obligations are fulfilled. The Company earns fee revenue by receiving negotiated fees in lieu of a commission and from services
other than securing insurance coverage. Fee revenues from certain agreements are recognized depending on when the services
within the contract are satisfied and when we have transferred control of the related services to the customer. In situations where
multiple performance obligations exist within a fee contract, the use of estimates is required to allocate the transaction price on
a relative stand-alone selling price basis to each separate performance obligation. Incentive commissions represent a form of
variable consideration which includes additional commissions over base commissions received from insurance carriers based on
predetermined production levels mutually agreed upon by both parties. Profit-sharing contingent commissions represent a form
of variable consideration associated with the placement of coverage, for which we earn commissions. Profit-sharing contingent
commissions and incentive commissions are estimated with a constraint applied and accrued relative to the recognition of the
corresponding core commissions based on the amount of consideration that will be received in the coming year such that a
significant reversal of revenue is not probable. Guaranteed supplemental commissions, a form of variable consideration, represent
guaranteed fixed-base agreements in lieu of profit-sharing contingent commissions.
Management determines the policy cancellation reserve based upon historical cancellation experience adjusted for any known
circumstances.
Use of Estimates
The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, as well as disclosures of contingent assets and liabilities, at the date of the Consolidated Financial Statements,
and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
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Notes to CoNsolidated FiNaNCial statemeNts
Cash and Cash Equivalents
Cash and cash equivalents principally consist of demand deposits with financial institutions and highly liquid investments
with quoted market prices having maturities of three months or less when purchased. Included in cash and cash equivalents
are unrestricted premium from insureds before it is remitted to the appropriate insurance company or companies, net of any
commissions we are due.
Restricted Cash and Investments, and Premiums, Commissions and
Fees Receivable
In our capacity as an insurance agent or broker, the Company typically collects premiums from insureds and, after deducting the
authorized commissions, remits the net premiums to the appropriate insurance company or companies. Accordingly, premiums
that are receivable from insureds are reported within Premiums, commissions, and fee receivable in the Consolidated Balance
Sheets. Unremitted net insurance premiums are held in a fiduciary capacity until the Company disburses them, and the use of
such funds is restricted by laws in certain states in which our subsidiaries operate, or restricted due to our contracts with a certain
insurance company or companies in which we hold premiums in a fiduciary capacity. Where allowed by law, the Company invests
these unremitted funds only in cash, money market accounts, tax-free variable-rate demand bonds and commercial paper held for
a short-term. In certain states in which the Company operates, the use and investment alternatives for these funds are regulated
and restricted by various state laws and agencies. These restricted funds are reported as restricted cash and investments on the
Consolidated Balance Sheets. The interest income earned on these unremitted funds, where allowed by state law, is reported as
investment income in the Consolidated Statement of Income.
In other circumstances, the insurance companies collect the premiums directly from the insureds and remit the applicable
commissions to the Company. Accordingly, as reported in the Consolidated Balance Sheets, commissions are receivables from
insurance companies. Fees are primarily receivables due from customers.
Investments
Certificates of deposit, and other securities, having maturities of more than three months when purchased are reported at cost
and are adjusted for other-than-temporary market value declines. The Company’s investment holdings include U.S. Government
securities, municipal bonds, domestic corporate and foreign corporate bonds as well as short-duration fixed income funds.
Investments within the portfolio or funds are held as available-for-sale and are carried at their fair value. Any gain/loss applicable
from the fair value change is recorded, net of tax, as other comprehensive income within the equity section of the Consolidated
Balance Sheets. Realized gains and losses are reported on the Consolidated Statement of Income, with the cost of securities sold
determined on a specific identification basis.
Fixed Assets
Fixed assets, including leasehold improvements, are carried at cost, less accumulated depreciation and amortization. Expenditures
for improvements are capitalized, and expenditures for maintenance and repairs are expensed to operations as incurred. Upon
sale or retirement, the cost and related accumulated depreciation and amortization are removed from the accounts and the
resulting gain or loss, if any, is reflected in other income. Depreciation has been determined using the straight-line method over
the estimated useful lives of the related assets, which range from 3 to 39 years. Leasehold improvements are amortized on the
straight-line method over the shorter of the useful life of the improvement or the term of the related lease.
Goodwill and Amortizable Intangible Assets
All of our business combinations are accounted for using the acquisition method. Acquisition purchase prices are typically based
upon a multiple of average annual EBITDA, operating profit and/or core revenue earned over a period of 3 years within a minimum
and maximum price range. The recorded purchase prices for acquisitions include an estimation of the fair value of liabilities
associated with any potential earn-out provisions. Subsequent changes in the fair value of earn-out obligations are recorded in the
Consolidated Statement of Income when incurred.
The fair value of earn-out obligations is based upon the present value of the expected future payments to be made to the sellers
of the acquired businesses in accordance with the provisions contained in the respective purchase agreements. In determining
fair value, the acquired business’ future performance is estimated using financial projections developed by management for the
acquired business and this estimate reflects market participant assumptions regarding revenue growth and/or profitability. The
expected future payments are estimated on the basis of the earn-out formula and performance targets specified in each purchase
agreement compared to the associated financial projections. These estimates are then discounted to present value using a risk-
adjusted rate that takes into consideration the likelihood that the forecasted earn-out payments will be made.
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Notes to CoNsolidated FiNaNCial statemeNts
Amortizable intangible assets are stated at cost, less accumulated amortization, and consist of purchased customer accounts and
non-compete agreements. Purchased customer accounts and non-compete agreements are amortized on a straight-line basis over
the related estimated lives and contract periods, which range from 3 to 15 years. Purchased customer accounts primarily consist
of records and files that contain information about insurance policies and the related insured parties that are essential to policy
renewals.
The excess of the purchase price of an acquisition over the fair value of the identifiable tangible and amortizable intangible assets
is assigned to goodwill. While goodwill is not amortizable, it is subject to assessment at least annually, and more frequently in the
presence of certain circumstances, for impairment by application of a fair value-based test. The Company compares the fair value
of each reporting unit with its carrying amount to determine if there is potential impairment of goodwill. If the fair value of the
reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill within
the reporting unit is less than its carrying value. Fair value is estimated based upon multiples of earnings before interest, income
taxes, depreciation, amortization and change in estimated acquisition earn-out payables (“EBITDAC”), or on a discounted cash flow
basis. The Company completed its most recent annual assessment as of November 30, 2020 and determined that the fair value of
goodwill significantly exceeded the carrying value of such assets. In addition, as of December 31, 2020, there are no accumulated
impairment losses.
The carrying value of amortizable intangible assets attributable to each business or asset group comprising the Company is
periodically reviewed by management to determine if there are events or changes in circumstances that would indicate that
its carrying amount may not be recoverable. Accordingly, if there are any such changes in circumstances during the year, the
Company assesses the carrying value of its amortizable intangible assets by considering the estimated future undiscounted cash
flows generated by the corresponding business or asset group. Any impairment identified through this assessment may require
that the carrying value of related amortizable intangible assets be adjusted. There were no impairments recorded for the years
ended December 31, 2020, 2019 and 2018.
Income Taxes
The Company records income tax expense using the asset-and-liability method of accounting for deferred income taxes. Under
this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences
between the financial statement carrying values and the income tax bases of the Company’s assets and liabilities.
The Company files a consolidated federal income tax return and has elected to file consolidated returns in certain states. Deferred
income taxes are provided for in the Consolidated Financial Statements and relate principally to expenses charged to income for
financial reporting purposes in one period and deducted for income tax purposes in other periods.
Net Income Per Share
Basic net income per share is computed based on the weighted average number of common shares (including participating
securities) issued and outstanding during the period. Diluted net income per share is computed based on the weighted average
number of common shares issued and outstanding plus equivalent shares, assuming the exercise of stock options. The dilutive
effect of stock options is computed by application of the treasury-stock method.
The following is a reconciliation between basic and diluted weighted average shares outstanding for the years ended
December 31:
(in thousands, except per share data)2020 2019 2018
Net income $480,483 $ 398,514 $ 344,255
Net income attributable to unvested awarded performance stock (15,197) (12,873) (8,297)
Net income attributable to common shares $465,286 $ 385,641 $ 335,958
Weighted average number of common shares outstanding – basic 283,294 281,566 277,663
Less unvested awarded performance stock included in weighted average number of common shares
outstanding – basic
(8,960) (9,095) (6,692)
Weighted average number of common shares outstanding for basic earnings
per common share
274,334 272,471 270,971
Dilutive effect of stock options 1,533 2,145 4,550
Weighted average number of shares outstanding – diluted 275,867 274,616 275,521
Net income per share:
Basic $ 1.70 $ 1.42 $ 1.24
Diluted $ 1.69 $ 1.40 $ 1.22
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Notes to CoNsolidated FiNaNCial statemeNts
Fair Value of Financial Instruments
The carrying amounts of the Company’s financial assets and liabilities, including cash and cash equivalents; restricted cash and
short-term investments; investments; premiums, commissions and fees receivable; reinsurance recoverable; prepaid reinsurance
premiums; premiums payable to insurance companies; losses and loss adjustment reserve; unearned premium; premium deposits
and credits due customers and accounts payable, at December 31, 2020 and 2019, approximate fair value because of the short-
term maturity of these instruments. The carrying amount of the Company’s long-term debt approximates fair value at December
31, 2020 and 2019 as our fixed-rate borrowings of $1,548.2 million approximate their values using market quotes of notes with
the similar terms as ours, which we deem a close approximation of current market rates. The estimated fair value of our variable
floating rate debt agreements is $560.0 million currently outstanding approximates the carrying value due to the variable
interest rate based upon adjusted LIBOR. See Note 3 to our Consolidated Financial Statements for the fair values related to the
establishment of intangible assets and the establishment and adjustment of earn-out payables. See Note 6 for information on the
fair value of investments and Note 9 for information on the fair value of long-term debt.
Non-Cash Stock-Based Compensation
The Company grants non-vested stock awards to its employees and officers and fully vested stock awards to directors. The
Company uses the modified-prospective method to account for share-based payments. Under the modified-prospective method,
compensation cost is recognized for all share-based payments granted on or after January 1, 2006 and for all awards granted to
employees prior to January 1, 2006 that remained unvested on that date. The Company uses the alternative-transition method to
account for the income tax effects of payments made related to stock-based compensation.
The Company uses the Black-Scholes valuation model for valuing all stock options and shares purchased under the Employee
Stock Purchase Plan (the “ESPP”). Compensation for non-vested stock awards is measured at fair value on the grant date based
upon the number of shares expected to vest. Compensation cost for all awards is recognized in earnings, net of estimated
forfeitures, on a straight-line basis over the requisite service period.
Reinsurance
The only line of insurance in which the Company acts in a risk-bearing capacity is flood insurance associated with the Wright
National Flood Insurance Company (“WNFIC”), which is part of our National Programs Segment. The Company protects itself
from claims-related losses by reinsuring all claims risk exposure. However, for basic admitted policies conforming to the National
Flood Insurance Program all exposure is reinsured with the Federal Emergency Management Agency (“FEMA”). For excess
flood insurance policies, all exposure is reinsured with a reinsurance carrier with an AM Best Company rating of “A” or better.
Reinsurance does not legally discharge the ceding insurer from the primary liability for the full amount due under the reinsured
policies. Reinsurance premiums, commissions, expense reimbursement and reserves related to ceded business are accounted for
on a basis consistent with the accounting for the original policies issued and the terms of reinsurance contracts. Premiums earned
and losses and loss adjustment expenses incurred are reported net of reinsurance amounts. Other underwriting expenses are
shown net of earned ceding commission income. The liabilities for unpaid losses and loss adjustment expenses and unearned
premiums are reported gross of ceded reinsurance recoverable.
Balances due from reinsurers on unpaid losses and loss adjustment expenses, including an estimate of such recoverables related
to reserves for incurred but not reported (“IBNR”) losses, are reported as assets and are included in reinsurance recoverable even
though amounts due on unpaid loss and loss adjustment expense are not recoverable from the reinsurer until such losses are paid.
The Company does not believe it is exposed to any material credit risk through its reinsurance as the reinsurer is FEMA for basic
admitted flood policies and national reinsurance carriers for private flood policies, which has an AM Best Company rating of “A” or
better. Historically, no amounts due from reinsurance carriers have been written off as uncollectible.
Unpaid Losses and Loss Adjustment Reserve
Unpaid losses and loss adjustment reserve include amounts determined on individual claims and other estimates based upon
the past experience of WNFIC and the policyholders for IBNR claims, less anticipated salvage and subrogation recoverable. The
methods of making such estimates and for establishing the resulting reserves are continually reviewed and updated, and any
adjustments resulting therefrom are reflected in operations currently.
WNFIC engages the services of outside actuarial consulting firms (the “Actuaries”) to assist on an annual basis to render an opinion
on the sufficiency of the Company’s estimates for unpaid losses and related loss adjustment reserve. The Actuaries utilize both
industry experience and the Company’s own experience to develop estimates of those amounts as of year-end. These estimated
liabilities are subject to the impact of future changes in claim severity, frequency and other factors. In spite of the variability inherent
in such estimates, management believes that the liabilities for unpaid losses and related loss adjustment reserve are adequate.
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Premiums from WNFIC are recognized as income over the coverage period of the related policies. Unearned premiums represent
the portion of premiums written that relate to the unexpired terms of the policies in force and are determined on a daily pro rata
basis. The income is recorded to the commissions and fees line of the income statement.
NOTE 2. Revenues
The following tables present the revenues disaggregated by revenue source:
Twelve months ended December 31, 2020
(in thousands)Retail National Programs Wholesale Brokerage Services Other(8) Total
Base commissions(1)$ 1,054,619 $ 422,916 $ 273,878 $ — $ 1 $ 1,751,414
Fees(2)275,900 159,337 66,051 174,012 (1,291) 674,009
Incentive commissions(3)89,920 549 3,057 — 31 93,557
Profit-sharing contingent commissions(4)35,785 27,278 7,871 — — 70,934
Guaranteed supplemental commissions(5)15,128 (238) 1,304 — — 16,194
Investment income(6)163 756 184 — 1,708 2,811
Other income, net(7)1,251 42 452 — 2,711 4,456
Total Revenues $1,472,766 $ 610,640 $ 352,797 $ 174,012 $ 3,160 $2,613,375
Twelve months ended December 31, 2019
(in thousands)Retail National Programs Wholesale Brokerage Services Other(8)Total
Base commissions(1)$ 994,170 $ 338,058 $ 242,380 $ — $ (128) $ 1,574,480
Fees(2)246,135 151,298 56,852 193,641 (1,160) 646,766
Incentive commissions(3)80,505 (524) 1,252 — 27 81,260
Profit-sharing contingent commissions(4)34,150 17,517 7,499 — — 59,166
Guaranteed supplemental commissions(5)11,056 10,566 1,443 — — 23,065
Investment income(6)149 1,397 178 139 3,917 5,780
Other income, net(7)1,096 72 483 1 2 1,654
Total Revenues $1,367,261 $ 518,384 $ 310,087 $ 193,781 $ 2,658 $ 2,392,171
(1) Base commissions generally represent a percentage of the premium paid by an insured and are affected by fluctuations in both premium rate levels charged by
insurance companies and the insureds’ underlying “insurable exposure units,” which are units that insurance companies use to measure or express insurance
exposed to risk (such as property values, or sales and payroll levels) to determine what premium to charge the insured. Insurance companies establish these
premium rates based upon many factors, including loss experience, risk profile and reinsurance rates paid by such insurance companies, none of which we control.
(2) Fee revenues relate to fees for services other than securing coverage for our customers, fees negotiated in lieu of commissions, and F&I products and services.
(3) Incentive commissions include additional commissions over base commissions received from insurance carriers based on predetermined production levels mutually
agreed upon by both parties.
(4) Profit-sharing contingent commissions are based primarily on underwriting results, but may also reflect considerations for volume, growth and/or retention.
(5) Guaranteed supplemental commissions represent guaranteed fixed-base agreements in lieu of profit-sharing contingent commissions.
(6) Investment income consists primarily of interest on cash and investments.
(7) Other income consists primarily of legal settlements and other miscellaneous income.
(8) Fees within other reflects the elimination of intercompany revenues.
Contract Assets and Liabilities
The balances of contract assets and contract liabilities arising from contracts with customers as of December 31, 2020 and 2019
were as follows:
(in thousands)
December 31,
2020
December 31,
2019
Contract assets $ 308,755 $ 289,609
Contract liabilities $ 80,997 $ 58,126
Unbilled receivables (contract assets) arise when the Company recognizes revenue for amounts which have not yet been billed
in our systems. Deferred revenue (contract liabilities) relates to payments received in advance of performance under the contract
before the transfer of a good or service to the customer.46
Notes to CoNsolidated FiNaNCial statemeNts
As of December 31, 2020, deferred revenue consisted of $54.0 million as current portion to be recognized within one year and
$27.0 million in long-term to be recognized beyond one year. As of December 31, 2019, deferred revenue consisted of $41.2 million
as current portion to be recognized within one year and $16.9 million in long-term deferred revenue to be recognized beyond one
year.
Contract assets and contract liabilities arising from acquisitions in 2020 were approximately $11.5 million and $20.0 million,
respectively. Contract assets and contract liabilities arising from acquisitions in 2019 were approximately $6.5 million and
$9.3 million, respectively.
During the twelve months ended December 31, 2020 and 2019, the amount of revenue recognized related to performance
obligations satisfied in a previous period, inclusive of changes due to estimates, was approximately $8.9 million and $17.2 million,
respectively. The $8.9 million for 2020 consists of $18.1 million of additional variable consideration received on our supplemental
commissions, offset by $7.1 million of revised estimates related to variable consideration on policies where the exposure units are
expected to be impacted by the COVID-19 pandemic (“COVID-19”) and $2.1 million of other adjustments.
Other Assets and Deferred Cost
Incremental cost to obtain – The Company defers certain costs to obtain customer contracts primarily as they relate to commission-
based compensation plans in the Retail Segment, in which the Company pays an incremental amount of compensation on new
business. These incremental costs are deferred and amortized over a 15-year period. The cost to obtain balance within the Other
assets caption in the Company’s Condensed Consolidated Balance Sheets was $42.2 million and $26.9 million as of December 31,
2020 and December 31, 2019, respectively. For the 12 months ended December 31, 2020 and December 31, 2019, the Company
deferred $17.8 million and $15.1 million of incremental cost to obtain customer contracts, respectively. The Company expensed
$2.5 million and $1.4 million of the incremental cost to obtain customer contracts for the 12 months ended December 31, 2020 and
December 31, 2019, respectively.
Cost to fulfill - The Company defers certain costs to fulfill contracts and recognizes these costs as the associated performance
obligations are fulfilled. The cost to fulfill balance within the Other current assets caption in the Company’s Condensed Consolidated
Balance Sheets was $77.8 million, which is inclusive of deferrals from businesses acquired in the current year of $1.2 million. The cost
to fulfill balance as of December 31, 2019 was $73.3 million. For the 12 months ended December 31, 2019, the Company had a net
deferral of $3.3 million related to current year deferrals for costs incurred that relate to performance obligations yet to be fulfilled,
net of the expense of previously deferred contract fulfillment costs associated with performance obligations that were satisfied in
the period.
NOTE 3. Business Combinations
During the year ended December 31, 2020, the Company acquired the assets and assumed certain liabilities of 20 insurance
intermediaries, all the stock of one F&I administrative services company and 4 books of businesses (customer accounts).
Additionally, miscellaneous adjustments were recorded to the purchase price allocation of certain prior acquisitions completed
within the last 12 months as permitted by ASC Topic 805 - Business Combinations (“ASC 805”). Such adjustments are presented
in the “Other” category within the following two tables. The recorded purchase price for all acquisitions includes an estimation
of the fair value of liabilities associated with any potential earn-out provisions. Subsequent changes in the fair value of earn-out
obligations will be recorded in the Consolidated Statement of Income when incurred.
The fair value of earn-out obligations is based upon the present value of the expected future payments to be made to the sellers
of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. In determining
fair value, the acquired business’s future performance is estimated using financial projections developed by management for the
acquired business and reflects market participant assumptions regarding revenue growth and/or profitability. The expected future
payments are estimated on the basis of the earn-out formula and performance targets specified in each purchase agreement
compared to the associated financial projections. These payments are then discounted to present value using a risk-adjusted rate
that takes into consideration the likelihood that the forecasted earn-out payments will be made.
Based upon the acquisition date and the complexity of the underlying valuation work, certain amounts included in the Company’s
Consolidated Financial Statements may be provisional and thus subject to further adjustments within the permitted measurement period,
as defined in ASC 805. For the year ended December 31, 2020, adjustments were made within the permitted measurement period that
resulted in a decrease in the aggregate purchase price of the affected acquisitions of $3.5 million relating to the assumption of certain
liabilities on acquisitions completed in 2019. These measurement period adjustments have been reflected as current period adjustments
for the year ended December 31, 2020 in accordance with the guidance in ASU 2015-16 “Business Combinations.” The measurement
period adjustments impacted goodwill, with no effect on earnings or cash in the current period.
Cash paid for acquisitions was $722.5 million and $356.3 million in the years ended December 31, 2020 and 2019, respectively. We
completed 25 acquisitions (including book of business purchases) during the year ended December 31, 2020. We completed 27
acquisitions (including book of business purchases) during the year ended December 31, 2019.47
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The following table summarizes the purchase price allocations made as of the date of each acquisition for current year acquisitions
and adjustments made during the measurement period for prior year acquisitions. During the measurement periods, the Company
will adjust assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date
that, if known, would have resulted in the recognition of those assets and liabilities as of that date. These adjustments are made in
the period in which the amounts are determined and the current period income effect of such adjustments will be calculated as if
the adjustments had been completed as of the acquisition date.
(in thousands)
Effective date
of acquisition Cash paid
Common
stock
issued
Other
payable
Recorded
earn-out
payable
Net assets
acquired
Maximum
potential
earn-out
payableName
Business
segment
Special Risk Insurance
Managers Ltd. (Special Risk)
National
Programs January 1, 2020 $ 70,156 $ — $ — $ 9,859 $ 80,015 $ 14,650
Texas All Risk General
Agency, Inc. et al (Texas Risk)
Wholesale
Brokerage January 1, 2020 10,511 — 159 310 10,980 1,150
The Colonial Group, Inc. et
al (Colonial)
Wholesale
Brokerage March 1, 2020 29,037 — 527 7,577 37,141 10,150
RLA Insurance
Intermediaries, LLC (RLA)
Wholesale
Brokerage March 1, 2020 42,496 — 786 11,687 54,969 22,500
Dealer Financial Services of
N.C., LLC d/b/a The Sterling
Group (Sterling)Retail April 1, 2020 19,341 — 300 4,129 23,770 5,400
LP Insurance Services,
LLC (LP)
National
Programs May 1, 2020 115,948 10,000 318 23,394 149,660 75,850
First Resource, Inc. (First) Retail July 1, 2020 10,700 — 450 3,776 14,926 5,800
Buiten & Associates,
LLC (Buiten)Retail August 1, 2020 38,225 — 1,175 7,448 46,848 14,175
Amity Insurance, Inc. (Amity) Retail August 1, 2020 14,820 2,000 200 1,860 18,880 4,060
Frank E. Neal & Co.,
Inc. (Neal)Retail September 1, 2020 32,589 3,120 345 5,732 41,786 10,325
BrookStone Insurance
Group, LLC (BrookStone) Retail September 1, 2020 12,030 — — 1,058 13,088 1,878
VAS GenPar, LLC (VAS) Retail October 1, 2020 114,249 15,000 — 23,274 152,523 48,000
Bright & Associates,
Inc. (Bright)Retail October 1, 2020 12,528 — 1,257 3,854 17,639 5,775
J.E. Brown & Associates
Insurance Services, Inc.
(J.E. Brown)
Wholesale
Brokerage October 1, 2020 33,331 — 1,030 5,947 40,308 10,425
CoverHound, Inc.
and CyberPolicy,
Inc. (CoverHound)Retail November 1, 2020 27,595 — 600 — 28,195 —
MAJ Companies, Ltd. (MAJ) Retail December 1, 2020 19,072 — 300 2,006 21,378 6,475
South & Western General
Agency, Inc. (South
& Western)
Wholesale
Brokerage December 1, 2020 69,673 — 1,193 7,294 78,160 18,000
Berry Insurance Group,
Inc. (Berry)Retail December 31, 2020 35,326 — — 3,694 39,020 6,500
Other Various Various 14,888 — 490 8,498 23,876 12,337
Total $722,515 $30,120 $ 9,130 $ 131,397 $ 893,162 $273,450
48
Notes to CoNsolidated FiNaNCial statemeNts
The following table summarizes the estimated fair values of the aggregate assets and liabilities acquired as of the date of each
acquisition and adjustments made during the measurement period of the prior year acquisitions.
(in thousands)
Special
Risk
Texas
Risk Colonial RLA Sterling LP First Buiten Amity Neal
Cash $ — $ — $ — $ — $ — $ — $ — $ — $ — $ —
Other current assets 2,477 446 1,344 — 612 3,162 302 2,595 653 2,337
Fixed assets 345 27 59 55 16 1,877 1 43 58 46
Goodwill 63,087 8,940 27,845 53,567 17,339 99,983 9,523 33,641 15,454 28,929
Purchased
customer accounts 14,286 3,222 9,205 12,309 5,962 44,801 5,095 11,323 5,614 13,225
Non-compete
agreements 136 25 43 481 21 31 21 91 21 31
Other assets — — — — —— — — — 274
Total assets acquired 80,331 12,660 38,496 66,412 23,950 149,854 14,942 47,693 21,800 44,842
Other current liabilities (316) (1,680) (1,355)(11,443) (180) (10) (16) (845) (2,920) (3,056)
Other liabilities — — — — — (184) — — — —
Total
liabilities assumed (316) (1,680) (1,355)(11,443) (180) (194) (16) (845) (2,920) (3,056)
Net assets acquired $ 80,015 $ 10,980 $ 37,141 $ 54,969 $ 23,770 $ 149,660 $ 14,926 $ 46,848 $ 18,880 $41,786
(in thousands)
Brook
Stone VAS Bright
J.E.
Brown
Cover
Hound MAJ
South &
western Berry Other Total
Cash $ — $ 27,673 $ — $ — $ — $ — $ — $ — $ — $ 27,673
Other current assets 527 5,486 402 — 375 413 — — 912 22,043
Fixed assets 22 138 23 32 6,441 — 149 30 25 9,387
Goodwill 8,585 100,826 12,218 31,476 19,524 13,003 63,128 29,702 11,325 648,095
Purchased
customer accounts 3,689 48,188 5,055 9,479 3,678 8,034 18,513 9,701 8,582 239,961
Non-compete
agreements 21 101 42 41 — 11 21 11 64 1,213
Other assets 290 — — ——— — — 3,088 3,652
Total assets acquired 13,134 182,412 17,740 41,028 30,018 21,461 81,811 39,444 23,996 952,024
Other current liabilities (46) (3,760) (101)(720) (1,823) (83) (3,651) (424) (120) (32,549)
Other liabilities —(26,129) — ——— — — — (26,313)
Total
liabilities assumed (46)(29,889) (101)(720) (1,823) (83) (3,651) (424) (120) (58,862)
Net assets acquired $ 13,088 $152,523 $ 17,639 $40,308 $ 28,195 $ 21,378 $ 78,160 $39,020 $23,876 $893,162
The weighted average useful lives for the acquired amortizable intangible assets are as follows: purchased customer accounts, 15
years; and non-compete agreements, 5 years.
Goodwill of $648.1 million, which is net of any opening balance sheet adjustments within the allowable measurement period,
was allocated to the Retail, National Programs, Wholesale Brokerage and Services Segments in the amounts of $300.0 million,
$163.1 million, $185.0 million and $0.1 million, respectively. Of the total goodwill of $648.1 million, the amount currently deductible
for income tax purposes is $516.7 million and the remaining $131.4 million relates to the recorded earn-out payables and will not be
deductible until it is earned and paid.
For the acquisitions completed during 2020, the results of operations since the acquisition dates have been combined with those
of the Company. The total revenues from the acquisitions completed through December 31, 2020 included in the Consolidated
Statement of Income for the year ended December 31, 2020 were $93.9 million. The income before income taxes, including the
intercompany cost of capital charge, from the acquisitions completed through December 31, 2020 included in the Consolidated
Statement of Income for the year ended December 31, 2020 was $7.5 million. If the acquisitions had occurred as of the beginning
of the respective periods, the Company’s results of operations would be as shown in the following table. These unaudited pro
forma results are not necessarily indicative of the actual results of operations that would have occurred had the acquisitions
actually been made at the beginning of the respective periods.49
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(unaudited)Year Ended December 31,
(in thousands, except per share data)2020 2019
Total revenues $ 2,714,314 $ 2,579,075
Income before income taxes $ 650,618 $ 576,355
Net income $ 500,900 $ 436,722
Net income per share:
Basic $ 1.77 $ 1.55
Diluted $ 1.76 $ 1.54
Weighted average number of shares outstanding:
Basic 274,334 272,471
Diluted 275,867 274,616
Acquisitions in 2019
During the year ended December 31, 2019, the Company acquired the assets and assumed certain liabilities of 22 insurance
intermediaries, all the stock of one insurance intermediaries and 4 book of business (customer accounts). Additionally, miscellaneous
adjustments were recorded to the purchase price allocation of certain prior acquisitions completed within the last 12 months as
permitted by ASC 805. Such adjustments are presented in the “Other” category within the following two tables.
For the year ended December 31, 2019, several adjustments were made within the permitted measurement period that resulted
in an increase in the aggregate purchase price of the affected acquisitions of $4.1 million, relating to the assumption of certain
liabilities.
The following table summarizes the purchase price allocation made as of the date of each acquisition for current year acquisitions
and significant adjustments made during the measurement period for prior year acquisitions:
(in thousands)
Name Business segment Effective date of acquisition Cash paid
Common stock issued Other payable
Recorded earn-out payable Net assets acquired
Maximum potential earn-out payable
Smith Insurance Associates,
Inc. (Smith)Retail February 1, 2019 $ 20,129 $ — $ — $ 2,704 $ 22,833 $ 4,550
Donald P. Pipino Company,
LTD (Pipino)Retail February 1, 2019 16,420 — 135 9,821 26,376 12,996
AGA Enterprises, LLC
d/b/a Cossio Insurance
Agency (Cossio)Retail March 1, 2019 13,990 — 10 696 14,696 2,000
Medval, LLC (Medval)Services March 1, 2019 29,106 — 100 1,684 30,890 2,500
United Development Systems,
Inc. (United)Retail May 1, 2019 18,987 — 388 3,268 22,643 8,625
Twinbrook Insurance
Brokerage, Inc. (Twinbrook) Retail June 1, 2019 26,251 — 400 1,565 28,216 5,073
Innovative Risk Solutions,
Inc. (IRS)Retail July 1, 2019 26,435 — 2,465 6,109 35,009 9,000
WBR Insurance Agency, LLC et
al (WBR)Retail August 1, 2019 10,667 — 203 2,197 13,067 4,575
West Ridge Insurance
Agency, Inc. d/b/a Yozell
Associates (Yozell)Retail August 1, 2019 13,030 — 470 768 14,268 6,730
CKP Insurance, LLC (CKP)Retail August 1, 2019 89,190 20,000 4,000 38,093 151,283 76,500
Poole Professional Ltd.
Insurance Agents and Brokers
et al (Poole)Retail October 1, 2019 32,358 — 75 4,556 36,989 6,850
VerHagen Glendenning &
Walker LLP (VGW)Retail October 1, 2019 23,032 — 1,498 2,385 26,915 8,170
Other Various Various 36,665 — 2,391 9,026 48,082 14,454
Total $ 356,260 $ 20,000 $ 12,135 $ 82,872 $ 471,267 $162,023
50
Notes to CoNsolidated FiNaNCial statemeNts
The following table summarizes the estimated fair values of the aggregate assets and liabilities acquired as of the date of each
acquisition and adjustments made during the measurement period of the prior year acquisitions.
(in thousands)Smith Pipino Cossio Medval United Twinbrook IRS WBR Yozell CKP
Cash $ — $ — $ — $3,217 $ — $ — $ — $ — $ — $ —
Other current assets 680 819 236 1,708 477 919 1,375 449 1,781 9,170
Fixed assets 39 112 29 50 20 85 11 10 12 193
Goodwill 16,042 16,765 10,010 19,108 15,111 18,935 24,938 9,096 8,904 110,495
Purchased
customer accounts 6,500 11,360 4,403 7,300 7,065 8,557 8,800 4,022 3,550 32,274
Non-compete
agreements 41 11 21 1 11 12 11 34 21 21
Other assets —772 —15 —— — — ——
Total assets acquired 23,302 29,839 14,699 31,399 22,684 28,508 35,135 13,611 14,268 152,153
Other current liabilities (469)(3,463)(3)(480)(41)(292)(126)(166) —(870)
Other liabilities — — —(29) —— —(378) ——
Total liabilities
assumed (469)(3,463)(3)(509)(41)(292)(126)(544)—(870)
Net assets acquired $22,833 $26,376 $14,696 $30,890 $22,643 $28,216 $35,009 $13,067 $14,268 $151,283
(in thousands)Poole VGW Other Total
Cash $ — $ — $ — $ 3,217
Other current assets 938 1,190 (6,786) 12,956
Fixed assets 4 20 (130) 455
Goodwill 28,233 16,595 34,314 328,546
Purchased customer accounts 10,359 9,092 15,020 128,302
Non-compete agreements 33 34 161 412
Other assets —— (732)55
Total assets acquired 39,567 26,931 41,847 473,943
Other current liabilities (2,578) (16) 6,235 (2,269)
Other liabilities ——— (407)
Total liabilities assumed (2,578) (16) 6,235 (2,676)
Net assets acquired $ 36,989 $ 26,915 $ 48,082 $ 471,267
The weighted average useful lives for the acquired amortizable intangible assets are as follows: purchased customer accounts, 15
years; and non-compete agreements, 5 years.
Goodwill of $328.5 million, which is net of any opening balance sheet adjustments within the allowable measurement period,
was allocated to the Retail, National Programs, Wholesale Brokerage and Services Segments in the amounts of $302.6 million,
$0.1 million, $6.5 million and $19.3 million, respectively. Of the total goodwill of $328.5 million, the amount currently deductible for
income tax purposes is $245.6 million and the remaining $82.9 million relates to the recorded earn-out payables and will not be
deductible until it is earned and paid.
For the acquisitions completed during 2019, the results of operations since the acquisition dates have been combined with those
of the Company. The total revenues from the acquisitions completed through December 31, 2019 included in the Consolidated
Statement of Income for the year ended December 31, 2019 were $49.1 million. The income before income taxes, including the
intercompany cost of capital charge, from the acquisitions completed through December 31, 2019 included in the Consolidated
Statement of Income for the year ended December 31, 2019 was $3.4 million. If the acquisitions had occurred as of the beginning of
the respective periods, the Company’s results of operations would be as shown in the following table. These unaudited pro forma
results are not necessarily indicative of the actual results of operations that would have occurred had the acquisitions actually been
made at the beginning of the respective periods.
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(unaudited)Year Ended December 31,
(in thousands, except per share data)2019 2018
Total revenues $ 2,447,401 $ 2,120,867
Income before income taxes $ 545,182 $ 496,076
Net income $ 412,974 $ 369,277
Net income per share:
Basic $ 1.47 $ 1.33
Diluted $ 1.46 $ 1.31
Weighted average number of shares outstanding:
Basic 272,471 270,971
Diluted 274,616 275,521
Acquisitions in 2018
During the year ended December 31, 2018, the Company acquired the assets and assumed certain liabilities of 20 insurance
intermediaries, all the stock of three insurance intermediaries and one book of business (customer accounts). Additionally,
miscellaneous adjustments were recorded to the purchase price allocation of certain prior acquisitions completed within the last 12
months as permitted by ASC 805. Such adjustments are presented in the “Other” category within the following two tables.
For the year ended December 31, 2018, several adjustments were made within the permitted measurement period that resulted
in a decrease in the aggregate purchase price of the affected acquisitions of $21.4 thousand, relating to the assumption of certain
liabilities.
The following table summarizes the purchase price allocation made as of the date of each acquisition for current year acquisitions
and significant adjustments made during the measurement period for prior year acquisitions:
(in thousands)
Name
Business
segment
Effective date of
acquisition
Cash
paid
Common
stock
issued
Other
payable
Recorded
earn-out
payable
Net assets
acquired
Maximum
potential
earn-
out payable
Opus Advisory Group,
LLC (Opus)Retail February 1, 2018 $ 20,400 $ — $ 200 $ 2,384 $ 22,984 $ 3,600
Kerxton Insurance Agency,
Inc. (Kerxton)Retail March 1, 2018 13,176 — 1,490 2,080 16,746 2,920
Automotive Development
Group, LLC (ADG)Retail May 1, 2018 29,471 — 559 17,545 47,575 20,000
Servco Pacific, Inc. (Servco)Retail June 1, 2018 76,245 — — 934 77,179 7,000
Tower Hill Prime Insurance
Company (Tower Hill)
National
Programs July 1, 2018 20,300 — — 1,188 21,488 7,700
Health Special Risk,
Inc. (HSR)
National
Programs July 1, 2018 20,132 — — 1,991 22,123 9,000
Professional Disability
Associates, LLC (PDA) Services July 1, 2018 15,025 — — 9,818 24,843 17,975
Finance & Insurance
Resources, Inc. (F&I) Retail
September 1,
2018 44,940 — 410 9,121 54,471 19,500
Rodman Insurance Agency,
Inc. (Rodman)Retail
November 1,
2018 31,121 — 261 3,720 35,102 9,850
The Hays Group, Inc. et
al (Hays)Retail
November 16,
2018 605,000 100,000 — 19,600 724,600 25,000
Dealer Associates,
Inc. (Dealer)Retail
December 1,
2018 28,825 — 1,175 3,100 33,100 12,125
Other Various Various 30,293 — 1,367 5,896 37,556 12,998
Total $ 934,928 $ 100,000 $ 5,462 $ 77,377 $ 1,117,767 $147,668
52
Notes to CoNsolidated FiNaNCial statemeNts
The following table summarizes the estimated fair values of the aggregate assets and liabilities acquired as of the date of
each acquisition.
(in thousands)Opus Kerxton ADG Servco
Tower Hill HSR PDA F&I Rodman Hays
Cash $ — $ — $ — $ 8,188 $ — $ 3,114 $ (248) $ — $ — $ —
Other current assets 1,215 663 1,500 7,769 — 818 1,762 999 1,062 36,254
Fixed assets 11 10 67 179 $ — $ 124 $ 310 $ 34 $ 45 $ 4,936
Goodwill 16,414 12,423 35,769 54,429 — 18,737 16,547 36,423 26,572 456,217
Purchased
customer accounts 5,008 4,712 9,751 16,442 21,468 5,516 7,700 16,611 10,129 218,600
Non-compete
agreements 21 22 21 1 20 65 82 21 51 2,600
Other assets 315 419 467 1,478 — 21 6 383 542 13,977
Total assets acquired 22,984 18,249 47,575 88,486 21,488 28,395 26,159 54,471 38,401 732,584
Other current liabilities — (1,503) — (11,307) — (5,930) (1,093) — (3,299) (7,984)
Deferred income tax, net — — — — — (342) (223) — — —
Total liabilities
assumed — (1,503) — (11,307) — (6,272) (1,316) — (3,299) (7,984)
Net assets acquired $ 22,984 $ 16,746 $ 47,575 $ 77,179 $21,488 $ 22,123 $24,843 $54,471 $35,102 $724,600
(in thousands)Dealer Other Total
Cash $ — $ — $ 11,054
Other current assets 552 323 52,917
Fixed assets 13 100 5,829
Goodwill 21,467 22,712 717,710
Purchased customer accounts 10,986 15,085 342,008
Non-compete agreements 21 297 3,222
Other assets 226 754 18,588
Total assets acquired 33,265 39,271 1,151,328
Other current liabilities (165) (1,715) (32,996)
Other liabilities — — (565)
Total liabilities assumed (165) (1,715) (33,561)
Net assets acquired $33,100 $37,556 $1,117,767
The weighted average useful lives for the acquired amortizable intangible assets are as follows: purchased customer accounts,
15 years; and non- compete agreements, 5 years.
Goodwill of $717.7 million was allocated to the Retail, National Programs, Wholesale Brokerage and Services Segments in the
amounts of $676.9 million, $18.7 million, $5.5 million and $16.5 million, respectively. Of the total goodwill of $717.7 million, $640.3
million is currently deductible for income tax purposes. The remaining $77.4 million relates to the recorded earn-out payables and
will not be deductible until it is earned and paid.
For the acquisitions completed during 2018, the results of operations since the acquisition dates have been combined with those
of the Company. The total revenues from the acquisitions completed through December 31, 2018 included in the Consolidated
Statement of Income for the year ended December 31, 2018 were $82.4 million. The income before income taxes, including the
intercompany cost of capital charge, from the acquisitions completed through December 31, 2018 included in the Consolidated
Statement of Income for the year ended December 31, 2018 was $6.3 million. If the acquisitions had occurred as of the beginning of
the respective periods, the Company’s results of operations would be as shown in the following table. These unaudited pro forma
results are not necessarily indicative of the actual results of operations that would have occurred had the acquisitions actually been
made at the beginning of the respective periods.
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(unaudited)Year Ended December 31,
(in thousands, except per share data)2018 2017
Total revenues $ 2,259,812 $ 2,193,169
Income before income taxes $ 504,664 $ 503,927
Net income $ 375,670 $ 447,796
Net income per share:
Basic $ 1.35 $ 1.60
Diluted $ 1.33 $ 1.57
Weighted average number of shares outstanding:
Basic 270,971 272,580
Diluted 275,521 277,586
As of December 31, 2020, the maximum future contingency payments related to all acquisitions totaled $544.7 million.
ASC 805 is the authoritative guidance requiring an acquirer to recognize 100% of the fair values of acquired assets, including
goodwill, and assumed liabilities (with only limited exceptions) upon initially obtaining control of an acquired entity. Additionally,
the fair value of contingent consideration arrangements (such as earn-out purchase arrangements) at the acquisition date must be
included in the purchase price consideration. As a result, the recorded purchase prices for acquisitions include an estimation of the
fair value of liabilities associated with any potential earn-out provisions. Subsequent changes in these earn-out obligations will be
recorded in the Consolidated Statement of Income when incurred. Potential earn-out obligations are typically based upon future
earnings of the acquired entities, usually between one and three years.
As of December 31, 2020, the fair values of the estimated acquisition earn-out payables were re-evaluated and measured at fair
value on a recurring basis using unobservable inputs (Level 3) as defined in ASC 820-Fair Value Measurement. The resulting
additions, payments and net changes, as well as the interest expense accretion on the estimated acquisition earn-out payables, for
the years ended December 31, 2020, 2019 and 2018 were as follows:
Year Ended December 31,
(in thousands)2020 2019 2018
Balance as of the beginning of the period $ 161,513 $ 89,924 $ 36,175
Additions to estimated acquisition earn-out payables from new acquisitions 131,397 82,872 77,377
Payments for estimated acquisition earn-out payables (29,509) (9,917) (26,597)
Subtotal 263,401 162,879 86,955
Net change in earnings from estimated acquisition earn-out payables:
Change in fair value on estimated acquisition earn-out payables (11,814) (7,298) 603
Interest expense accretion 7,356 5,932 2,366
Net change in earnings from estimated acquisition earn-out payables (4,458) (1,366) 2,969
Balance as of December 31,$ 258,943 $161,513 $ 89,924
Of the $258.9 million of estimated acquisition earn-out payables as of December 31, 2020, $79.2 million was recorded as accounts
payable, and $179.7 million was recorded as another non-current liability. Included within additions to estimated acquisition earn-
out payables are any adjustments to opening balance sheet items prior to the one-year anniversary date of the acquisition and may
therefore differ from previously reported amounts. Of the $161.5 million of estimated acquisition earn-out payables as of December
31, 2019, $17.9 million was recorded as accounts payable, and $143.6 million was recorded as other non-current liabilities. Of the
$89.9 million of estimated acquisition earn-out payables as of December 31, 2018, $21.1 million was recorded as accounts payable,
and $68.8 million was recorded as other non-current liabilities.
54
Notes to CoNsolidated FiNaNCial statemeNts
NOTE 4. Goodwill
The changes in the carrying value of goodwill by reportable segment for the years ended December 31, are as follows:
(in thousands)Retail National Programs Wholesale Brokerage Services Total
Balance as of January 1, 2019 $ 2,063,150 $ 926,206 $ 291,622 $ 151,808 $ 3,432,786
Goodwill of acquired businesses 302,640 74 6,479 19,353 328,546
Goodwill disposed of relating to sales of businesses (14,499) (739)— — (15,238)
Balance as of December 31, 2019 $ 2,351,291 $ 925,541 $ 298,101 $ 171,161 $ 3,746,094
Goodwill of acquired businesses 299,961 163,070 184,956 108 648,095
Goodwill disposed of relating to sales of businesses (782)—— — (782)
Foreign currency translation adjustments during the year — 2,511 — — 2,511
Balance as of December 31, 2020 $2,650,470 $ 1,091,122 $ 483,057 $ 171,269 $4,395,918
NOTE 5. Amortizable Intangible Assets
Amortizable intangible assets at December 31, 2020 and 2019 consisted of the following:
(in thousands)
December 31, 2020 December 31, 2019
Gross
carrying
value
Accumulated
amortization
Net
carrying
value
Weighted
average
life in
years(1)
Gross
carrying
value
Accumulated
amortization
Net
carrying
value
Weighted
average
life in
years(1)
Purchased
customer accounts $ 2,164,968 $ (1,118,316) $ 1,046,652 15.0 $ 1,925,326 $ (1,011,574) $ 913,752 15.0
Non-compete agreements 35,093 (32,085) 3,008 4.6 33,881 (30,865) 3,016 4.6
Total $2,200,061 $ (1,150,401) $1,049,660 $1,959,207 $ (1,042,439) $ 916,768
(1) Weighted average life calculated as of the date of acquisition.
Amortization expense for amortizable intangible assets for the years ending December 31, 2021, 2022, 2023, 2024 and 2025 is
estimated to be $113.8 million, $109.4 million, $102.4 million, $98.5 million and $96.1 million, respectively.
NOTE 6. Investments
At December 31, 2020, the Company’s amortized cost and fair values of fixed maturity securities are summarized as follows:
(in thousands)Cost
Gross unrealized gains
Gross unrealized losses Fair value
U.S. Treasury securities, obligations of
U.S. Government agencies and Municipalities $28,372 $ 464 $ (5) $28,831
Corporate debt 7,190 239 (6) 7,423
Total $35,562 $ 703 $ (11) $36,254
At December 31, 2020, the Company held $28.8 million in fixed income securities composed of U.S. Treasury securities, securities
issued by U.S. Government agencies and municipalities, and $7.4 million issued by corporations with investment-grade ratings. Of the
total, $11.3 million is classified as short-term investments on the Consolidated Balance Sheets as maturities are less than one year in
duration. Additionally, the Company holds $7.0 million in short-term investments, which are related to time deposits held with various
financial institutions.
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For securities in a loss position, the following table shows the investments’ gross unrealized loss and fair value, aggregated
by investment category and length of time that individual securities have been in a continuous unrealized loss position as of
December 31, 2020:
Less than 12 Months 12 Months or More Total
(in thousands)Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses
U.S. Treasury securities, obligations of U.S. Government
agencies and Municipalities $1,995 $ (5) $ — $ — $1,995 $ (5)
Corporate debt 808 (6) —— 808 (6)
Total $2,803 $ (11) $ — $ — $2,803 $ (11)
The unrealized losses from corporate issuers were caused by interest rate increases. At December 31, 2020, the Company had
3 securities in an unrealized loss position. The corporate securities are highly rated securities with no indicators of potential
impairment. Based upon the ability and intent of the Company to hold these investments until recovery of fair value, which may be
maturity, the bonds were not considered to be other-than-temporarily impaired at December 31, 2020.
At December 31, 2019, the Company’s amortized cost and fair values of fixed maturity securities are summarized as follows:
(in thousands)Cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
U.S. Treasury securities, obligations of
U.S. Government agencies and Municipalities $26,487 $ 174 $ (39) $26,622
Corporate debt 5,324 68 (8) 5,384
Total $31,811 $ 242 $ (47) $32,006
The following table shows the investments’ gross unrealized loss and fair value, aggregated by investment category and length of
time that individual securities have been in a continuous unrealized loss position as of December 31, 2019:
(in thousands)
Less than 12 Months 12 Months or More Total
Fair value Unrealized losses Fair value Unrealized losses Fair value
Unrealized losses
U.S. Treasury securities, obligations of
U.S. Government agencies and Municipalities $ — $ — $ 7,053 $ (39) $ 7,053 $ (39)
Corporate debt —— 998 (8) 998 (8)
Total $ — $ — $ 8,051 $ (47) $ 8,051 $ (47)
The unrealized losses in the Company’s investments in U.S. Treasury Securities and obligations of U.S. Government Agencies and bonds
from corporate issuers were caused by interest rate increases. At December 31, 2019, the Company had 10 securities in an unrealized
loss position. The contractual cash flows of the U.S. Treasury Securities and obligations of the U.S. Government agencies investments are
either guaranteed by the U.S. Government or an agency of the U.S. Government. Accordingly, it is expected that the securities would not
be settled at a price less than the amortized cost of the Company’s investment. The corporate securities are highly rated securities with
no indicators of potential impairment. Based upon the ability and intent of the Company to hold these investments until recovery of fair
value, which may be maturity, the bonds were not considered to be other-than- temporarily impaired at December 31, 2019.
The amortized cost and estimated fair value of the fixed maturity securities at December 31, 2020 by contractual maturity are set forth
below:
(in thousands)Amortized cost Fair value
Years to maturity:
Due in one year or less $ 11,214 $ 11,283
Due after one year through five years 23,348 23,976
Due after five years through ten years 1,000 995
Total $ 35,562 $ 36,254
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The amortized cost and estimated fair value of the fixed maturity securities at December 31, 2019 by contractual maturity are set
forth below:
(in thousands)Amortized cost Fair value
Years to maturity:
Due in one year or less $ 4,616 $ 4,628
Due after one year through five years 27,195 27,378
Due after five years through ten years ——
Total $ 31,811 $ 32,006
The expected maturities in the foregoing table may differ from the contractual maturities because certain borrowers have the right
to call or prepay obligations with or without penalty.
Proceeds from the sales and maturity of the Company’s investment in fixed maturity securities were $8.6 million. This along with
maturing time deposits yielded total cash proceeds from the sale of investments of $11.0 million in the period of January 1, 2020 to
December 31, 2020. These proceeds, along with other sources of cash were used to purchase an additional $14.2 million of fixed
maturity securities and to fund certain general corporate purposes. The gains and losses realized on those sales for the period
from January 1, 2020 to December 31, 2020 were insignificant.
Proceeds from the sales and maturity of the Company’s investment in fixed maturity securities were $5.8 million for the year ended
December 31, 2019. This along with maturing time deposits yielded total cash proceeds from the sale of investments of $8.5 million
in the period of January 1, 2019 to December 31, 2019. These proceeds were used to purchase an additional $17.5 million of fixed
maturity securities and to fund certain general corporate purposes. The gains and losses realized on those sales for the period
from January 1, 2019 to December 31, 2019 were insignificant.
Realized gains and losses are reported on the Consolidated Statement of Income, with the cost of securities sold determined on a
specific identification basis.
At December 31, 2020, investments with a fair value of approximately $4.2 million were on deposit with state insurance
departments to satisfy regulatory requirements.
NOTE 7. Fixed Assets
Fixed assets at December 31 consisted of the following:
(in thousands)2020 2019
Furniture, fixtures and equipment $ 259,524 $ 231,005
Leasehold improvements 42,261 42,485
Construction in progress 81,736 38,035
Land, buildings and improvements 8,428 8,400
Total cost 391,949 319,925
Less accumulated depreciation and amortization (190,834) (171,298)
Total $ 201,115 $ 148,627
Depreciation expense for fixed assets amounted to $26.3 million in 2020, $23.4 million in 2019 and $22.8 million in 2018.
Construction in progress primarily reflects expenditures related to the construction of the new headquarters in Daytona Beach,
Florida which was subsequently placed into service in January of 2021.
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NOTE 8. Accrued Expenses and Other Liabilities
Accrued expenses and other current liabilities at December 31 consisted of the following:
(in thousands)2020 2019
Accrued incentive compensation $159,356 $144,475
Accrued compensation and benefits 41,550 60,260
Lease liability(1)43,542 43,415
Deferred revenue 53,956 41,180
Reserve for policy cancellations 31,081 18,353
Accrued interest 15,260 10,984
Accrued rent and vendor expenses 6,682 7,422
Other 20,310 11,628
Total $371,737 $337,717
(1) The Lease liability is the current portion of the Operating lease liabilities as reflected in the Consolidated Balance Sheets as of December 31, 2020 and 2019.
NOTE 9. Long-Term Debt
Long-term debt at December 31, 2020 and 2019 consisted of the following:
(in thousands)December 31, 2020 December 31, 2019
Current portion of long-term debt:
Current portion of 5-year term loan facility expires 2022 $ 40,000 $ 40,000
Current portion of 5-year term loan credit agreement expires 2023 30,000 15,000
Total current portion of long-term debt 70,000 55,000
Long-term debt:
Note agreements:
4.200% Senior Notes, semi-annual interest payments, balloon due 2024 499,416 499,259
4.500% Senior Notes, semi-annual interest payments, balloon due 2029 349,540 349,484
2.375% Senior Note due 2031, semi-annual interest payments, balloon due 2031 699,252 —
Total notes 1,548,208 848,743
Credit agreements:
5-year term loan facility, periodic interest and principal payments, LIBOR plus up
to 1.750%, expires June 28, 2022 250,000 290,000
5-year revolving loan facility, periodic interest payments, currently LIBOR plus up to
1.500%, plus commitment fees up to 0.250%, expires June 28, 2022 —100,000
5-year term loan facility, periodic interest and principal payments, LIBOR plus up
to 1.750%, expires December 21, 2023 240,000 270,000
Total credit agreements 490,000 660,000
Debt issuance costs (contra)(12,302)(8,400)
Total long-term debt less unamortized discount and debt issuance costs 2,025,906 1,500,343
Current portion of long-term debt 70,000 55,000
Total debt $ 2,095,906 $1,555,343
On June 28, 2017, the Company entered into an amended and restated credit agreement (the “Amended and Restated Credit
Agreement”) with the lenders named therein, JPMorgan Chase Bank, N.A. as administrative agent and certain other banks as
co-syndication agents and co-documentation agents. The Amended and Restated Credit Agreement amended and restated the
credit agreement dated April 17, 2014, among such parties (the “Original Credit Agreement”). The Amended and Restated Credit
Agreement extends the applicable maturity date of the existing revolving credit facility (the “Revolving Credit Facility”) of $800.0
million to June 28, 2022 and re-evidences unsecured term loans at $400.0 million while also extending the applicable maturity
date to June 28, 2022. The quarterly term loan principal amortization schedule was reset. At the time of the execution of the
Amended and Restated Credit Agreement, $67.5 million of principal from the original unsecured term loans was repaid using
operating cash balances, and the Company added an additional $2.8 million in debt issuance costs related to the Revolving Credit 58
Notes to CoNsolidated FiNaNCial statemeNts
Facility to the Condensed Consolidated Balance Sheets. The Company also expensed to the Condensed Consolidated Statements
of Income $0.2 million of debt issuance costs related to the Original Credit Agreement due to certain lenders exiting prior to
execution of the Amended and Restated Credit Agreement. The Company also carried forward $1.6 million on the Condensed
Consolidated Balance Sheets the remaining unamortized portion of the Original Credit Agreement debt issuance costs, which will
be amortized over the term of the Amended and Restated Credit Agreement. As of December 31, 2020, there was an outstanding
debt balance issued under the term loan of the Amended and Restated Credit Agreement of $290.0 million and no borrowings
outstanding against the Revolving Credit Facility. As of December 31, 2019, there was an outstanding debt balance issued under
the term loan of the Amended and Restated Credit Agreement of $330.0 million with $100.0 million in borrowings outstanding
against the Revolving Credit Facility.
On September 18, 2014, the Company issued $500.0 million of 4.200% unsecured Senior Notes due in 2024. The Senior Notes
were given investment grade ratings of BBB-/Baa3 with a stable outlook. The notes are subject to certain covenant restrictions and
regulations which are customary for credit rated obligations. At the time of funding, the proceeds were offered at a discount of the
original note amount which also excluded an underwriting fee discount. The net proceeds received from the issuance were used
to repay the outstanding balance of $475.0 million on the Revolving Credit Facility and for other general corporate purposes. As of
December 31, 2020 and December 31, 2019, there was an outstanding debt balance of $500.0 million exclusive of the associated
discount balance.
On December 21, 2018, the Company entered into a term loan credit agreement (the “Term Loan Credit Agreement”) with the
lenders named therein, Wells Fargo Bank, National Association, as administrative agent, and certain other banks as co-syndication
agents and as joint lead arrangers and joint bookrunners. The Term Loan Credit Agreement provides for an unsecured term loan in
the initial amount of $300.0 million, which may, subject to lenders’ discretion, potentially be increased up to an aggregate amount
of $450.0 million (the “Term Loan”). The Term Loan is repayable over the five-year term from the effective date of the Term Loan
Credit Agreement, which was December 21, 2018. Based on the Company’s net debt leverage ratio or a non- credit enhanced
senior unsecured long-term debt rating as determined by Moody’s Investor Service and Standard & Poor’s Rating Service, the
rates of interest charged on the term loan are 1.000% to 1.750%, above the adjusted 1-Month LIBOR rate. On December 21, 2018,
the Company borrowed $300.0 million under the Term Loan Credit Agreement and used $250.0 million of the proceeds to reduce
indebtedness under the Revolving Credit Facility. As of December 31, 2020, there was an outstanding debt balance issued under
the Term Loan of $270.0 million. As of December 31, 2019, there was an outstanding debt balance issued under the Term Loan of
$285.0 million.
On March 11, 2019, the Company completed the issuance of $350.0 million aggregate principal amount of the Company’s 4.500%
Senior Notes due 2029. The Senior Notes were given investment grade ratings of BBB-/Baa3 with a stable outlook. The notes
are subject to certain covenant restrictions, which are customary for credit rated obligations. At the time of funding, the proceeds
were offered at a discount of the original note amount, which also excluded an underwriting fee discount. The net proceeds
received from the issuance were used to repay a portion of the outstanding balance of $350.0 million on the Revolving Credit
Facility, utilized in connection with the financing related to our acquisition of Hays and for other general corporate purposes. As of
December 31, 2020, and December 31, 2019 there was an outstanding debt balance of $350.0 million exclusive of the associated
discount balance.
On September 24, 2020, the Company completed the issuance of $700.0 million aggregate principal amount of the Company’s
2.375% Senior Notes due 2031. The Senior Notes were given investment grade ratings of BBB- stable outlook and Baa3 positive
outlook. The notes are subject to certain covenant restrictions, which are customary for credit rated obligations. At the time of
funding, the proceeds were offered at a discount of the original note amount, which also excluded an underwriting fee discount.
The net proceeds received from the issuance were used to repay a portion of the outstanding balance of $200.0 million on the
Revolving Credit Facility, utilized in connection with the financing related to the acquisitions of LP Insurance Services, LLP and CKP
Insurance, LLC and for other general corporate purposes. As of December 31, 2020, there was an outstanding debt balance of
$700.0 million exclusive of the associated discount balance.
The Amended and Restated Credit Agreement and Term Loan Credit Agreement require the Company to maintain certain financial
ratios and comply with certain other covenants. The Company was in compliance with all such covenants as of December 31, 2020
and December 31, 2019.
The 30-day Adjusted LIBOR Rate for the term loan of the Amended and Restated Credit Agreement and Term Loan Credit
Agreement as of December 31, 2020 was 0.188%.
Interest paid in 2020, 2019 and 2018 was $52.4 million, $58.3 million, and $38.0 million, respectively.
At December 31, 2020, maturities of long-term debt were $70.0 million in 2021, $280.0 million in 2022, $210.0 million in 2023,
$500.0 million in 2024, $350.0 million in 2029 and $700.0 million in 2031.
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NOTE 10. Income Taxes
On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”). The Tax Reform
Act makes changes to the U.S. tax code that affected our income tax rate in 2017. The Tax Reform Act reduces the U.S. federal
corporate income tax rate from 35.0% to 21.0% and requires companies to pay a one-time transition tax on certain unrepatriated
earnings from foreign subsidiaries. The Tax Reform Act also establishes new tax laws that became effective January 1, 2018.
ASC 740 requires a company to record the effects of a tax law change in the period of enactment, however, shortly after the
enactment of the Tax Reform Act, the SEC staff issued SAB 118, which allows a company to record a provisional amount when it
does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the
change in the tax law. The measurement period ends when the company has obtained, prepared and analyzed the information
necessary to finalize its accounting, but cannot extend beyond one year.
For 2017, we made a reasonable estimate of the impact of the Tax Reform Act and recorded a one-time credit in our 2017 income
tax expense of $120.9 million, which reflects an estimated reduction in our deferred income tax liabilities of $124.2 million as a
result of the maximum federal rate decreasing to 21.0% from 35.0%, which was partially offset by an estimated increase in income
tax payable in the amount of $3.3 million as a result of the transition tax on cash and cash equivalent balances related to untaxed
accumulated earnings associated with our international operations. During 2018, we made a credit adjustment to the transition
tax on untaxed international operations in the amount of $1.6 million. This adjustment was a reduction of income tax expense
for 2018 as a result of updated calculations based on the Company’s tax filings for the 2017 year end. As of December 31, 2020,
management does not expect any further changes to the amounts previously recorded and adjusted under SAB 118.
Significant components of the provision for income taxes for the years ended December 31 are as follows:
(in thousands)2020 2019 2018
Current:
Federal $ 93,620 $ 85,507 $ 77,694
State 34,123 28,905 25,096
Foreign 325 620 409
Total current provision 128,068 115,032 103,199
Deferred:
Federal 11,655 14,994 8,483
State 4,119 (2,587) 6,519
Foreign (226)(24) 6
Total deferred provision 15,548 12,383 15,008
Total tax provision $143,616 $127,415 $118,207
A reconciliation of the differences between the effective tax rate and the federal statutory tax rate for the years ended December
31 is as follows:
2020 2019 2018
Federal statutory tax rate 21.0% 21.0% 21.0%
State income taxes, net of federal income tax benefit 5.3 3.8 5.7
Non-deductible employee stock purchase plan expense 0.3 0.3 0.2
Non-deductible meals and entertainment 0.1 0.3 0.3
Non-deductible officers’ compensation 0.3 0.2 0.3
Tax Reform Act deferred tax revaluation and transition tax impact 0.0 0.0 (0.3)
Stock Vesting under ASU 2016-19 (3.5) (1.1) (1.4)
Other, net (0.5) (0.3) (0.2)
Effective tax rate 23.0% 24.2% 25.6%
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the corresponding amounts used for income tax reporting purposes.
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Significant components of the Company’s net deferred tax liabilities as of December 31 are as follows:
(in thousands)2020 2019
Non-current deferred tax liabilities:
Intangible assets $400,335 $360,660
Fixed assets 11,740 10,325
ASC 842 ROU Asset 46,730 46,188
Impact of adoption of ASC 606 revenue recognition 19,928 24,687
Net unrealized holding (loss)/gain on available-for-sale securities 176 36
Total non-current deferred tax liabilities 478,909 441,896
Non-current deferred tax assets:
Deferred compensation 59,897 52,566
Accruals and reserves 19,497 7,743
ASC 842 lease liabilities 53,150 52,185
Net operating loss carryforwards and 163(j) disallowed carryforwards 3,168 2,377
Valuation allowance for deferred tax assets (1,025) (1,252)
Total non-current deferred tax assets 134,687 113,619
Net non-current deferred tax liability $344,222 $328,277
Income taxes paid in 2020, 2019 and 2018 were $132.9 million, $110.0 million and $110.6 million, respectively.
At December 31, 2020, the Company had no net operating loss carryforwards for federal purposes and $36.0 million net operating
loss carryforwards for state income tax reporting purposes, portions of which expire in the years 2021 through indefinite. The state
carryforward amount is derived from the operating results of certain subsidiaries. As of December 31, 2020, the Company had a net
operating loss carryforward in Canada of $6.4 million.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in thousands)2020 2019 2018
Unrecognized tax benefits balance at January 1 $1,127 $1,639 $1,694
Gross increases for tax positions of prior years 848 778 594
Gross decreases for tax positions of prior years (708) (791) (5)
Settlements — (499) (644)
Unrecognized tax benefits balance at December 31 $1,267 $1,127 $1,639
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31,
2020, 2019 and 2018 the Company had $0.3 million, $0.2 million and $0.2 million of accrued interest and penalties related to
uncertain tax positions, respectively.
The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate if recognized was $1.3 million
as of December 31, 2020, $1.1 million as of December 31, 2019 and $1.6 million as of December 31, 2018. The Company does not
expect its unrecognized tax benefits to change significantly over the next 12 months.
The Company is subject to taxation in the United States and various state jurisdictions. The Company is also subject to taxation in
the United Kingdom and Canada. In the United States, federal returns for fiscal years 2016 through 2020 remain open and subject
to examination by the Internal Revenue Service. The Company files and remits state income taxes in various states where the
Company has determined it is required to file state income taxes. The Company’s filings with those states remain open for audit
for the fiscal years 2016 through 2020. In the United Kingdom, the Company’s filings remain open for audit for the fiscal years
2019 and 2020. In Canada, the Company’s filings remain open for audit for the fiscal years 2016 through 2020. The Company also
operates in Bermuda and the Cayman Islands. The Company is not subject to any income taxes in these countries.
During 2018, the Company settled the previously disclosed State of Massachusetts income tax audit for the fiscal year 2013 through 2014.
During 2019, the Company settled the previously disclosed State of Colorado income tax audit for the fiscal years 2013-2016, the
State of Kansas income tax audit for the fiscal years 2014-2016, and the State of New York income tax audit for the fiscal years
2015-2017. The Company is currently under audit in the states of California, Illinois, Massachusetts and Wisconsin for the fiscal
years 2015 through 2017. In addition, the Company is under audit in the state of Wisconsin for the fiscal year 2018.
In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. The Company
has determined it is not practical to determine the unrecognized deferred tax liabilities on the undistributed earnings from the
Company’s international subsidiaries as such earnings are considered to be indefinitely reinvested.61
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NOTE 11. Employee Savings Plan
The Company has an Employee Savings Plan (401(k)) in which substantially all employees with more than 30 days of service are
eligible to participate. Under this plan, the Company makes matching contributions of up to 4.0% of each participant’s annual
compensation. The Company’s contribution expense to the plan totaled $31.2 million in 2020, $22.8 million in 2019 and $22.8
million in 2018.
NOTE 12. Stock-Based Compensation
Performance Stock Plan
In 1996, the Company adopted and the shareholders approved a performance stock plan, under which until the suspension of
the plan in 2010, up to 28,800,000 Performance Stock Plan (“PSP”) shares could be granted to key employees contingent on the
employees’ future years of service with the Company and other performance-based criteria established by the Compensation
Committee of the Company’s Board of Directors. Before participants may take full title to Performance Stock, two vesting
conditions must be met. Of the grants currently outstanding, specified portions satisfied the first condition for vesting based
upon 20% incremental increases in the 20-trading-day average stock price of Brown & Brown’s common stock from the price on
the business day prior to date of grant. Performance Stock that has satisfied the first vesting condition is considered “awarded
shares.” Awarded shares are included as issued and outstanding common stock shares and are included in the calculation of
basic and diluted net income per share. Dividends are paid on awarded shares and participants may exercise voting privileges
on such shares. Awarded shares satisfy the second condition for vesting on the earlier of a participant’s: (i) 15 years of continuous
employment with Brown & Brown from the date shares are granted to the participants (or, in the case of the July 2009 grant to
Powell Brown, 20 years), (ii) attainment of age 64 (on a prorated basis corresponding to the number of years since the date of
grant), or (iii) death or disability. On April 28, 2010, the PSP was suspended and any remaining authorized, but unissued shares, as
well as any shares forfeited in the future, were reserved for issuance under the 2010 Stock Incentive Plan (the “2010 SIP”).
At December 31, 2020, 10,217,232 shares had been granted, net of forfeitures, under the PSP. As of December 31, 2020, 909,828
shares had met the first condition of vesting and had been awarded, and 9,307,404 shares had satisfied both conditions of vesting
and had been distributed to participants. Of the shares that have not vested as of December 31, 2020, the initial stock prices
ranged from $8.30 to $10.31.
The Company uses a path-dependent lattice model to estimate the fair value of PSP grants on the grant date.
A summary of PSP activity for the years ended December 31, 2020, 2019 and 2018 is as follows:
Weighted-
average
grant date
fair value
Granted
shares
Awarded
shares
Shares
not yet
awarded
Outstanding at January 1, 2018 $5.16 1,694,476 1,694,476 —
Granted $ — ———
Awarded $ — ———
Vested $5.53 (453,860) (453,860)—
Forfeited $4.92 (44,524) (44,524)—
Outstanding at December 31, 2018 $5.03 1,196,092 1,196,092 —
Granted $ — ———
Awarded $ — ———
Vested $5.29 (115,040) (115,040)—
Forfeited $4.74 (29,760) (29,760)—
Outstanding at December 31, 2019 $5.00 1,051,292 1,051,292 —
Granted $ — ———
Awarded $ — ———
Vested $6.06 (119,072) (119,072)—
Forfeited $5.03 (22,392) (22,392)—
Outstanding at December 31, 2020 $4.86 909,828 909,828 —
The total fair value of PSP grants that vested during each of the years ended December 31, 2020, 2019 and 2018 was $5.0 million,
$3.5 million and $11.9 million, respectively.
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Stock Incentive Plans
On April 28, 2010, the shareholders of the Company, Inc. approved the 2010 Stock Incentive Plan (“2010 SIP”), which was
suspended on May 1, 2019. On May 1, 2019, the shareholders of the Company, Inc. approved the 2019 Stock Incentive Plan (“2019
SIP”) that provides for the granting of restricted stock, restricted stock units, stock options, stock appreciation rights, and other
stock-based awards to employees and directors contingent on performance-based and/or time-based criteria established by
the Compensation Committee of the Company’s Board of Directors. In addition, the 2019 SIP provides for a limited delegation of
authority of the Company’s Chief Executive Officer to grant awards to individuals who are not subject to Section 16 of the Securities
Exchange Act of 1934. The principal purpose of the 2019 SIP is to attract, incentivize and retain key employees by offering those
persons an opportunity to acquire or increase a direct proprietary interest in the Company’s operations and future success. The
number of shares of stock reserved for issuance under the 2019 SIP is 2,283,475 shares, plus any shares that are authorized for
issuance under the 2010 SIP (described below), and not already subject to grants under the 2010 SIP, and that were outstanding as
of May 1, 2019, the date of suspension of the 2010 SIP, together with PSP shares, 2010 SIP shares and 2019 SIP shares forfeited after
that date. As of May 1, 2019, 6,957,897 shares were available for issuance under the 2010 SIP, which were then transferred to the
2019 SIP.
The Company has granted stock to our employees in the form of Restricted Stock Awards and Performance Stock Awards under
the 2010 SIP and 2019 SIP. To date, a substantial majority of stock grants to employees under these plans vest in five to ten years.
The Performance Stock Awards are subject to the achievement of certain performance criteria by grantees, which may include
growth in a defined book of business, Organic Revenue growth and operating profit growth of a profit center, Organic Revenue
growth of the Company and consolidated diluted net income per share growth at certain levels of the Company. The performance
measurement period ranges from three to five years. Beginning in 2016, certain Performance Stock Awards have a payout range
between 0% to 200% depending on the achievement against the stated performance target. Prior to 2016, the majority of the
grants had a binary performance measurement criteria that only allowed for 0% or 100% payout.
Non-employee members of the Board of Directors received shares annually issued pursuant to the 2010 SIP and 2019 SIP as part
of their annual compensation. A total of 26,620 shares were issued in January 2018, 27,885 shares were issued in April 2019 and
16,490 shares were issued in May 2020.
The Company uses the closing stock price on the day prior to the grant date to determine the fair value of grants under the 2010
SIP and 2019 SIP and then applies an estimated forfeiture factor to estimate the annual expense. Additionally, the Company uses
the path-dependent lattice model to estimate the fair value of grants with PSP-type vesting conditions as of the grant date. SIP
shares that satisfied the first vesting condition for PSP-type grants or the established performance criteria are considered awarded
shares. Awarded shares are included as issued and outstanding common stock shares and are included in the calculation of basic
and diluted net income per share.
A summary of 2010 SIP and 2019 SIP activity for the years ended December 31, 2020, 2019 and 2018 is as follows:
Weighted-
average
grant date
fair value
Granted
shares
Awarded
shares
Shares not
yet awarded
Outstanding at January 1, 2018 $15.58 12,821,990 4,809,604 8,012,386
Granted $22.87 1,577,721 454,313 1,123,408
(1)
Awarded $15.89 — 2,489,905 (2,489,905)
Vested $14.09 (933,916) (933,916)—
Forfeited $16.37 (2,363,420) (224,587) (2,138,833)
Outstanding at December 31, 2018 $16.69 11,102,375 6,595,319 4,507,056
Granted $28.53 1,812,047 797,778 1,014,269
(2)
Awarded $17.26 299,339 1,954,983 (1,655,644)
Vested $14.29 (1,068,211) (1,068,211)—
Forfeited $19.09 (503,632) (209,293) (294,339)
Outstanding at December 31, 2019 $18.10 11,641,918 8,070,576 3,571,342
Granted $46.58 970,997 148,015 822,982(3)
Awarded $19.71 497,082 1,880,512 (1,383,430)
Vested $15.97 (3,059,619) (3,059,619)—
Forfeited $20.75 (356,041) (119,637) (236,404)
Outstanding at December 31, 2020 $19.89 9,694,337 6,919,847 2,774,490
(1) Of the 1,123,408 shares of performance-based restricted stock granted in 2018, the payout for 576,886 shares may be increased up to 200% of the target or
decreased to zero, subject to the level of performance attained. The amount reflected in the table includes all restricted stock grants at a target payout of 100%.63
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(2) Of the 1,014,269 shares of performance-based restricted stock granted in 2019, the payout for 501,384 shares may be increased up to 200% of the target or decreased
to zero, subject to the level of performance attained. The amount reflected in the table includes all restricted stock grants at a target payout of 100%.
(3) Of the 822,982 shares of performance-based restricted stock granted in 2020, the payout for 365,606 shares may be increased up to 200% of the target or decreased
to zero, 20,611 shares may be increased up to 120% of the target or decreased to zero, 15,850 shares may be increased up to 150% of the target or decreased to zero,
and 56,226 shares may be increased up to 150% or decreased to 50% of target subject to the level of performance attained. The amount reflected in the table includes all
restricted stock grants at a target payout of 100%.
The following table sets forth information as of December 31, 2020, 2019 and 2018, with respect to the number of time-based
restricted shares granted and awarded, the number of performance-based restricted shares granted, and the number of
performance-based restricted shares awarded under our Performance Stock Plan and 2010 and 2019 Stock Incentive Plans:
Year
Time-based restricted stock granted and awarded
Performance-based restricted stock granted
Performance-based restricted stock awarded
2020 148,015 822,982(1)1,880,512
2019 797,778 1,014,269
(2)1,954,983
2018 454,313 1,123,408
(3)2,489,905
(1) Of the 822,982 shares of performance-based restricted stock granted in 2020, the payout for 365,606 shares may be increased up to 200% of the target or
decreased to zero, 20,611 shares may be increased up to 120% of the target or decreased to zero, 15,850 shares may be increased up to 150% of the target or
decreased to zero, and 56,226 shares may be increased up to 150% or decreased to 50% of target subject to the level of performance attained. The amount
reflected in the table includes all restricted stock grants at a target payout of 100%.
(2) Of the 1,014,269 shares of performance-based restricted stock granted in 2019, the payout for 501,384 shares may be increased up to 200% of the target or decreased
to zero, subject to the level of performance attained. The amount reflected in the table includes all restricted stock grants at a target payout of 100%.
(3) Of the 1,123,408 shares of performance-based restricted stock granted in 2018, the payout for 576,886 shares may be increased up to 200% of the target or decreased
to zero, subject to the level of performance attained. The amount reflected in the table includes all restricted stock grants at a target payout of 100%.
At December 31, 2020, 8,624,668 shares were available for future grants under the 2019 SIP. This amount is calculated assuming
the maximum payout for all restricted stock grants.
Employee Stock Purchase Plan
The Company has a shareholder-approved Employee Stock Purchase Plan (“ESPP”) with a total of 34,000,000 authorized shares of
which 5,378,467 were available for future subscriptions as of December 31, 2020. Employees of the Company who regularly work
20 hours or more per week are eligible to participate in the ESPP. Participants, through payroll deductions, may allot up to 10% of
their compensation towards the purchase of a maximum of $25,000 worth of Company stock between August 1st of each year and
the following July 31st (the “Subscription Period”) at a cost of 85% of the lower of the stock price as of the beginning or end of the
Subscription Period.
The Company estimates the fair value of an ESPP share option as of the beginning of the Subscription Period as the sum of: (1) 15%
of the quoted market price of the Company’s stock on the day prior to the beginning of the Subscription Period, and (2) 85% of the
value of a one-year stock option on the Company stock using the Black-Scholes option-pricing model. The estimated fair value of
an ESPP share option as of the Subscription Period beginning in August 2020 was $12.43. The fair values of an ESPP share option
as of the Subscription Periods beginning in August 2019 and 2018, were $7.46 and $5.88, respectively.
For the ESPP plan years ended July 31, 2020, 2019 and 2018, the Company issued 962,131, 976,303 and 985,601 shares of
common stock, respectively. These shares were issued at an aggregate purchase price of $29.3 million, or $30.51 per share, in
2020, $24.0 million, or $24.63 per share, in 2019, and $18.7 million, or $18.96 per share, in 2018.
For the five months ended December 31, 2020, 2019 and 2018 (portions of the 2020-2021, 2019-2020, and 2018-2019 plan years),
381,371, 419,446 and 402,349 shares of common stock (from authorized but unissued shares), respectively, were subscribed to by
ESPP participants for proceeds of approximately $14.8 million, $12.8 million and $9.9 million, respectively.
Summary of Non-Cash Stock-Based Compensation Expense
The non-cash stock-based compensation expense for the years ended December 31 is as follows:
(in thousands)2020 2019 2018
Stock incentive plan $50,198 $39,626 $28,027
Employee stock purchase plan 8,789 6,504 4,744
Performance stock plan 762 864 748
Total $59,749 $46,994 $33,519
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Summary of Unamortized Compensation Expense
As of December 31, 2020, the Company estimates there to be $112.6 million of unamortized compensation expense related to
all non-vested stock- based compensation arrangements granted under the Company’s stock-based compensation plans, based
upon current projections of grant measurement against performance criteria. That expense is expected to be recognized over a
weighted average period of 3.29 years.
NOTE 13. Supplemental Disclosures of Cash Flow Information and
Non-Cash Financing and Investing Activities
The Company’s cash paid during the period for interest and income taxes are summarized as follows:
Year Ended December 31,
(in thousands)2020 2019 2018
Cash paid during the period for:
Interest $ 52,378 $ 58,290 $ 38,032
Income taxes, net of refunds $131,596 $109,766 $110,350
The Company’s significant non-cash investing and financing activities are summarized as follows:
Year Ended December 31,
(in thousands)2020 2019 2018
Other payables issued for purchased customer accounts $ 9,130 $ 12,135 $ 5,462
Estimated acquisition earn-out payables and related charges $131,397 $ 82,872 $ 77,378
Notes received on the sale of fixed assets and customer accounts $ — $ 9,903 $ 52
Our Restricted Cash balance is composed of funds held in separate premium trust accounts as required by state law or, in some
cases, per agreement with our carrier partners. The following is a reconciliation of cash and cash equivalents inclusive of restricted
cash as of December 31, 2020, 2019 and 2018.
Balance as of December 31,
(in thousands)2020 2019 2018
Table to reconcile cash and cash equivalents inclusive of restricted cash
Cash and cash equivalents $ 817,398 $542,174 $438,961
Restricted cash 454,517 420,801 338,635
Total cash and cash equivalents inclusive of restricted cash at the end of the period $1,271,915 $962,975 $777,596
NOTE 14. Commitments and Contingencies
Legal Proceedings
The Company records losses for claims in excess of the limits of, or outside the coverage of, applicable insurance at the time and to
the extent they are probable and estimable. In accordance with ASC Topic 450-Contingencies, the Company accrues anticipated costs
of settlement, damages, losses for liability claims and, under certain conditions, costs of defense, based upon historical experience
or to the extent specific losses are probable and estimable. Otherwise, the Company expenses these costs as incurred. If the best
estimate of a probable loss is a range rather than a specific amount, the Company accrues the amount at the lower end of the range.
The Company’s accruals for legal matters that were probable and estimable were not material at December 31, 2020 and 2019. We
continue to assess certain litigation and claims to determine the amounts, if any, that management believes will be paid as a result of
such claims and litigation and, therefore, additional losses may be accrued and paid in the future, which could adversely impact the
Company’s operating results, cash flows and overall liquidity. The Company maintains third-party insurance policies to provide coverage
for certain legal claims, in an effort to mitigate its overall exposure to unanticipated claims or adverse decisions. However, as (i) one
or more of the Company’s insurance carriers could take the position that portions of these claims are not covered by the Company’s
insurance, (ii) to the extent that payments are made to resolve claims and lawsuits, applicable insurance policy limits are eroded and (iii)
the claims and lawsuits relating to these matters are continuing to develop, it is possible that future results of operations or cash flows
for any particular quarterly or annual period could be materially affected by unfavorable resolutions of these matters. Based upon the
AM Best Company ratings of these third-party insurers, management does not believe there is a substantial risk of an insurer’s material
non-performance related to any current insured claims.65
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On the basis of current information, the availability of insurance and legal advice, in management’s opinion, the Company is not currently
involved in any legal proceedings which, individually or in the aggregate, would have a material adverse effect on its financial condition,
operations and/or cash flows.
NOTE 15. Leases
Substantially all of the Company’s leases are classified as operating leases and primarily represent real estate leases for office
space used to conduct the Company’s business that expire on various dates through 2041. Leases generally contain renewal
options and escalation clauses based upon increases in the lessors’ operating expenses and other charges. The Company
anticipates that most of these leases will be renewed or replaced upon expiration.
The Company assesses at inception of a contract if it contains a lease. This assessment is based on: (1) whether the contract
involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit
from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset.
The right-of-use asset is initially measured at cost, which is primarily composed of the initial lease liability, plus any initial direct
costs incurred, less any lease incentives received. The lease liability is initially measured at the present value of the minimum
lease payments through the term of the lease. Minimum lease payments are discounted to present value using the incremental
borrowing rate at the lease commencement date, which approximates the rate of interest the Company expects to be paid
on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms and economic
conditions. The Company elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a
total term of 12 months or less. The effect of short-term leases on the Company’s right-of-use asset and lease liability would not
be significant. The balances and classification of operating lease right-of-use assets and operating lease liabilities within the
Condensed Consolidated Balance Sheets as of December 31, 2020 and 2019 is as follows:
(in thousands)
December 31,
2020
December 31,
2019
Balance Sheet
Assets:
Operating lease right-of-use assets 186,998 184,288
Total assets Operating lease assets $ 186,998 $ 184,288
Liabilities:
Current operating lease liabilities
Accrued expenses and
other liabilities 43,542 43,415
Non-current operating lease liabilities Operating lease liabilities 172,935 167,855
Total liabilities $ 216,477 $ 211,270
As of December 31, 2020, the Company has entered into future lease agreements expected to commence in 2021 consisting of
undiscounted lease liabilities of $5.0 million.
The expense recognition for operating leases under Topic 842 is substantially consistent with Topic 840. Therefore, there was no
significant impact to Company’s results of operations presented in the Company’s Condensed Consolidated Statements of Income
as a result of adopting ASU 2016-02 in the first quarter of 2019.
Variable lease cost is lease payments that are based on an index or similar rate. They are initially measured using the index or rate
in effect at lease commencement and are based on the minimum payments stated in the lease. Additional payments based on the
change in an index or rate, or payments based on a change in the Company’s portion of the operating expenses, including real
estate taxes and insurance, are recorded as a period expense when incurred.
Lease expense for operating leases consists of the lease payments, inclusive of lease incentives, plus any initial direct costs, and
is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in
the period that were not included in the initial lease liability. Variable lease cost is lease payments that are based on an index or
similar rate. They are initially measured using the index or rate in effect at lease commencement and are based on the minimum
payments stated in the lease. Additional payments based on the change in an index or rate, or payments based on a change in the
Company’s portion of the operating expenses, including real estate taxes and insurance, are recorded as a period expense when
incurred.
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Notes to CoNsolidated FiNaNCial statemeNts
The components of lease cost for operating leases for the 12 months ended December 31, 2020 and 2019 were:
(in thousands)
Twelve Months Ended
December 31, 2020
Twelve Months Ended
December 31, 2019
Operating leases:
Lease cost $ 53,821 $ 49,872
Variable lease cost 3,739 3,819
Short term lease cost 468 267
Operating lease cost $ 58,028 $ 53,958
Sublease income (1,798)(1,386)
Total lease cost net $ 56,230 $ 52,572
The weighted average remaining lease term and the weighted average discount rate for operating leases as of December 31, 2020
were:
Weighted-average remaining lease term 5.94
Weighted-average discount rate 3.32
Maturities of the operating lease liabilities by fiscal year at December 31, 2020 for the Company’s operating leases are as follows:
(in thousands)
Operating
leases
2021 $ 49,923
2022 46,447
2023 39,251
2024 31,033
2025 22,921
Thereafter 49,687
Total undiscounted lease payments 239,262
Less: Imputed interest 22,785
Present value of future lease payments $216,477
Supplemental cash flow information for operating leases:
(in thousands)
Twelve Months Ended
December 31, 2020
Twelve Months Ended
December 31, 2019
Cash paid for amounts included in measurement of liabilities
Operating cash flows from operating leases $ 54,946 $ 51,894
Right-of-use assets obtained in exchange for new operating liabilities $ 45,750 $ 46,730
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NOTE 16. Quarterly Operating Results (Unaudited)
Quarterly operating results for 2020 and 2019 were as follows:
(in thousands, except per share data)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2020
Total revenues $ 698,495 $ 598,806 $ 673,962 $ 642,111
Total expenses $ 493,242 $ 469,405 $ 515,434 $ 511,195
Income before income taxes $ 205,253 $ 129,401 $ 158,528 $ 130,916
Net income $ 152,400 $ 96,784 $ 133,979 $ 97,320
Net income per share:
Basic $ 0.54 $ 0.34 $ 0.47 $ 0.34
Diluted $ 0.54 $ 0.34 $ 0.47 $ 0.34
2019
Total revenues $ 619,280 $ 575,219 $ 618,683 $ 578,989
Total expenses $ 470,760 $ 451,697 $ 466,845 $ 476,940
Income before income taxes $ 148,520 $ 123,522 $ 151,838 $ 102,049
Net income $ 113,896 $ 92,593 $ 115,506 $ 76,519
Net income per share:
Basic $ 0.41 $ 0.33 $ 0.41 $ 0.27
Diluted $ 0.40 $ 0.33 $ 0.41 $ 0.27
Quarterly financial results are affected by seasonal variations. The timing of insurance policy renewals sold by the Company and
acquisitions may cause revenues, expenses, and net income to vary significantly between quarters.
The sum of the quarterly results may not equal year to date or year ended results due to rounding.
NOTE 17. Segment Information
Brown & Brown’s business is divided into four reportable segments: (1) the Retail Segment, which provides a broad range of
insurance products and services to commercial, public and quasi-public entities, and to professional and individual customers,
and non-insurance risk-mitigating products through our automobile dealer services (“F&I”) businesses, (2) the National Programs
Segment, which acts as an MGA, provides professional liability and related package products for certain professionals, a range of
insurance products for individuals, flood coverage, and targeted products and services designated for specific industries, trade
groups, governmental entities and market niches, all of which are delivered through nationwide networks of independent agents,
and Brown & Brown retail agents, (3) the Wholesale Brokerage Segment, which markets and sells excess and surplus commercial
and personal lines insurance, primarily through independent agents and brokers, as well as Brown & Brown retail agents, and (4)
the Services Segment, which provides insurance-related services, including third-party claims administration and comprehensive
medical utilization management services in both the workers’ compensation and all-lines liability arenas, as well as Medicare Set-
aside services, Social Security disability and Medicare benefits advocacy services and claims adjusting services.
Brown & Brown conducts all of its operations within the United States of America, except for a wholesale brokerage operation
based in London, England, retail operations in Bermuda and the Cayman Islands, and a national programs operation in Canada.
These operations earned $35.1 million, $17.7 million and $15.2 million of total revenues for the years ended December 31, 2020,
2019 and 2018, respectively. Long-lived assets held outside of the United States during each of these three years were not
material.
The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the
performance of its segments based upon revenues and income before income taxes. Inter-segment revenues are eliminated.
Summarized financial information concerning the Company’s reportable segments is shown in the following table. The “Other”
column includes any income and expenses not allocated to reportable segments and corporate-related items, including the
intercompany interest expense charge to the reporting segment. In addition, the total assets balance in “Other” is negative,
reflecting the historical accumulation of the purchase price for acquisitions which are funded at the Corporate level, net of a portion
returned to Corporate through intercompany interest charges, as well as the historical accumulation of payments for income taxes,
dividends, and share repurchases which are paid by Corporate, but not pushed down to the segments.
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Notes to CoNsolidated FiNaNCial statemeNts
Year Ended December 31, 2020
(in thousands)Retail
National
Programs
Wholesale
Brokerage Services Other Total
Total revenues $ 1,472,766 $ 610,640 $ 352,797 $174,012 $ 3,160 $2,613,375
Investment income $ 163 $ 756 $ 184 $ — $ 1,708 $ 2,811
Amortization $ 67,315 $ 27,166 $ 8,481 $ 5,561 $ — $ 108,523
Depreciation $ 9,071 $ 8,658 $ 1,948 $ 1,424 $ 5,175 $ 26,276
Interest expense $ 85,968 $ 20,597 $ 10,281 $ 4,142 $ (62,015) $ 58,973
Income before income taxes $ 262,245 $ 182,892 $ 93,593 $ 27,994 $ 57,375 $ 624,099
Total assets $ 7,093,627 $3,510,983 $1,791,717 $480,440 $(3,910,275) $8,966,492
Capital expenditures $ 13,175 $ 7,208 $ 3,324 $ 1,424 $ 45,569 $ 70,700
Year Ended December 31, 2019
(in thousands)Retail National Programs Wholesale Brokerage Services Other Total
Total revenues $ 1,367,261 $ 518,384 $ 310,087 $193,781 $ 2,658 $2,392,171
Investment income $ 149 $ 1,397 $ 178 $ 139 $ 3,917 $ 5,780
Amortization $ 63,146 $ 25,482 $ 11,191 $ 5,479 $ — $ 105,298
Depreciation $ 7,390 $ 6,791 $ 1,674 $ 1,229 $ 6,333 $ 23,417
Interest expense $ 87,295 $ 16,690 $ 4,756 $ 4,404 $ (49,485) $ 63,660
Income before income taxes $ 222,875 $ 143,737 $ 82,739 $ 40,337 $ 36,241 $ 525,929
Total assets $ 6,413,459 $3,110,368 $1,390,250 $481,336 $(3,772,592) $7,622,821
Capital expenditures $ 12,497 $ 10,365 $ 6,171 $ 804 $ 43,271 $ 73,108
Year Ended December 31, 2018
(in thousands)Retail
National
Programs
Wholesale
Brokerage Services Other Total
Total revenues $ 1,042,763 $ 494,463 $ 287,014 $189,246 $ 760 $2,014,246
Investment income $ 2 $ 506 $ 165 $ 205 $ 1,868 $ 2,746
Amortization $ 44,386 $ 25,954 $ 11,391 $ 4,813 $ — $ 86,544
Depreciation $ 5,289 $ 5,486 $ 1,628 $ 1,558 $ 8,873 $ 22,834
Interest expense $ 35,969 $ 26,181 $ 5,254 $ 2,869 $ (29,693) $ 40,580
Income before income taxes $ 217,845 $ 117,375 $ 70,171 $ 34,508 $ 22,563 $ 462,462
Total assets $ 5,850,045 $2,940,097 $1,283,877 $471,572 $(3,856,923) $6,688,668
Capital expenditures $ 6,858 $ 12,391 $ 2,518 $ 1,525 $ 18,228 $ 41,520
NOTE 18. Insurance Company WNFIC
Although the reinsurers are liable to the Company for amounts reinsured, our subsidiary, WNFIC remains primarily liable to its
policyholders for the full amount of the policies written whether or not the reinsurers meet their obligations to the Company when
they become due. The effects of reinsurance on premiums written and earned at December 31 are as follows:
2020 2019
(in thousands)Written Earned Written Earned
Direct premiums $ 728,109 $ 716,515 $ 697,072 $ 668,971
Assumed premiums — — — —
Ceded premiums 728,093 716,499 697,059 668,958
Net premiums $ 16 $ 16 $ 13 $ 13
All premiums written by WNFIC under the National Flood Insurance Program are 100.0% ceded to FEMA, for which WNFIC received
a 30.1% expense allowance from January 1, 2020 through September 30, 2020 and a 30.0% expense allowance from October 1,
2020 through December 31, 2020. As of December 31, 2020 and 2019, the Company ceded $725.8 million and $694.9 million of
written premiums for Federal Flood, respectively.69
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As of December 31, 2020, the Consolidated Balance Sheets contained Reinsurance recoverable of $43.5 million and Prepaid
reinsurance premiums of $377.6 million. As of December 31, 2019, the Consolidated Balance Sheets contained reinsurance
recoverable of $58.5 million and prepaid reinsurance premiums of $366.0 million. There was no net activity in the reserve for
losses and loss adjustment expense for the years ended December 31, 2020 and 2019, as WNFIC’s direct premiums written were
100.0% ceded to two reinsurers. The balance of the reserve for losses and loss adjustment expense, excluding related reinsurance
recoverables was $43.5 million as of December 31, 2020 and $58.5 million as of December 31, 2019.
WNFIC maintains capital in excess of minimum statutory amount of $7.5 million as required by regulatory authorities. The statutory
capital and surplus of WNFIC was $32.6 million as of December 31, 2020 and $29.6 million as of December 31, 2019. As of
December 31, 2020 and 2019, WNFIC generated statutory net income of $0.8 million and $8.1 million, respectively. The maximum
amount of ordinary dividends that WNFIC can pay to shareholders in a rolling 12 month period is limited to the greater of 10.0% of
statutory adjusted capital and surplus of 100.0% of adjusted net income. There was no dividend payout in 2019 and 2020 and the
maximum dividend payout that may be made in 2021 without prior approval is $3.3 million.
NOTE 19. Shareholders’ Equity
Under the authorization from the Company’s Board of Directors, shares may be purchased from time to time, at the Company’s
discretion and subject to the availability of stock, market conditions, the trading price of the stock, alternative uses for capital,
the Company’s financial performance and other potential factors. These purchases may be carried out through open market
purchases, block trades, accelerated share repurchase plans of up to $100.0 million each (unless otherwise approved by the Board
of Directors), negotiated private transactions or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1
of the Securities Exchange Act of 1934. On May 1, 2019, the Company’s Board of Directors authorized the purchasing of up to an
additional $372.5 million of the Company’s outstanding common stock.
During 2018, the Company entered into accelerated share repurchase agreement (“ASR”) with an investment bank to purchase
an aggregate $100.0 million of the Company’s common stock. As part of the ASR, the company received an initial share delivery
of 2,910,150 shares of the Company’s common stock with a fair market value of approximately $80.0 million in 2018. On May 17,
2019, this agreement was completed with the delivery of 566,599 shares of the Company’s common stock, which in total all shares
purchased under this ASR represented an average price of $28.76 per share. In addition to the settlement of the ASR, during 2019,
the Company made share repurchases in the open market of 1,087,914 shares at a total cost of $38.7 million, at an average price of
$35.55 per share. During 2020, the Company repurchased 1,234,417 shares at an average price of $44.63 for a total cost of $55.1
million under the current share repurchase authorization. At December 31, 2020, the remaining amount authorized by our Board
of Directors for share repurchases was approximately $406.2 million. Under the authorized repurchase programs, the Company
has repurchased a total of approximately 16.7 million shares for an aggregate cost of approximately $591.3 million between 2014
and 2020.
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GAAP Reconciliation
INCOME BEFORE INCOME TAXES TO EBITDAC(1) AND INCOME BEFORE INCOME TAXES MARGIN(2) TO EBITDAC MARGIN(3)
Total 2020 2019 2018 2017 2016
Total Revenues $2,613,375 $2,392,171 $2,014,246 $1,881,347 $1,766,629
Income before income taxes 624,099 525,929 462,462 449,722 423,499
Income before income taxes margin 23.9%22.0%23.0%23.9%24.0%
Amortization 108,523 105,298 86,544 85,446 86,663
Depreciation 26,276 23,417 22,834 22,698 21,003
Interest 58,973 63,660 40,580 38,316 39,481
Change in estimated acquisitions earnout payables (4,458)(1,366)2,969 9,200 9,185
EBITDAC $ 813,413 $ 716,938 $ 615,389 $ 605,382 $ 579,831
EBITDAC margin 31.1%30.0%30.6%32.2%32.8%
(1) “EBITDAC,” a non-GAAP measure, is defined as income before interest, income taxes, depreciation, amortization and the change in estimated acquisition
earn-out payables.
(2) “Income before income taxes margin” is defined as income before income taxes divided by total revenues.
(3) “EBITDAC margin,” a non-GAAP measure, is defined as EBITDAC divided by total revenues.
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Report of Independent Registered
Public Accounting Firm
To the shareholders and the Board of Directors of Brown & Brown, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Brown & Brown, Inc. and subsidiaries (the “Company”) as of
December 31, 2020 and 2019, the related consolidated statements of income, shareholders’ equity, and cash flows, for each of the
three years in the period ended December 31, 2020, and the related notes (collectively referred to as the “financial statements”). In
our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December
31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31,
2020, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal
Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and
our report dated February 23, 2021, expressed an unqualified opinion on the Company’s internal control over financial reporting.
Adoption of New Accounting Standards
As discussed in Note 15 to the consolidated financial statements, the Company changed its method of accounting for leases
on January 1, 2019, on a modified retrospective basis due to the adoption of Financial Accounting Standards Board Accounting
Standards Codification 842, Leases, and related amendments.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required
to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements,
whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on
a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the
accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that
was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that
are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and
we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the
accounts or disclosures to which it relates.
Earn-out obligation — Refer to Notes 1 (Goodwill and Amortizable Intangible Assets) and 3 (Business Combinations) to the
financial statements
Critical Audit Matter Description
The Company’s acquisition purchase price for business combinations is typically based upon a multiple of average annual
operating profit and/or revenue earned over a one to three-year period within a minimum and maximum price range. The recorded
purchase prices for most acquisitions include an estimation of the fair value of liabilities associated with potential earn-out
provisions, when an earn-out obligation is part of the negotiated transaction. The fair value of the earn-out obligations is based
upon the present value of the expected future payments to be made to the sellers of the acquired businesses in accordance with
the provisions contained in the respective purchase agreements. Subsequent changes in the fair value of the earn-out obligations
are recorded in the consolidated statement of income when incurred.72
In determining fair value of the earn-out obligation, the acquired business’s future performance is estimated using financial
projections of future earnings developed by management that are discounted to a present value using a risk-adjusted rate that
takes into consideration the likelihood that the forecasted earn-out obligation will be paid. The earn-out obligation balance was
$258.9 million as of December 31, 2020 and the potential maximum earn-out obligation was $544.7 million. Of the total earn-out
obligation balance, $79.2 million is recorded as accounts payable and $179.7 million is recorded as other non-current liability.
We identified the earn-out obligation as a critical audit matter because of the increased auditor judgment and extent of effort
required to evaluate whether an adjustment is required for the earn-out obligation in periods after the acquisition. Specifically,
there was a high degree of auditor judgment and an increased extent of effort to audit the reasonableness of management’s
assumptions related to projections of future earnings of the acquired businesses.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the forecasted future earnings assumptions used in determining the fair value of the earn-out
obligation included the following, among others:
• We tested the effectiveness of controls over management’s earn-out obligation calculation, including those controls over
management’s determination of future earnings.
• We read the asset/stock purchase agreements and associated addenda and agreed the provisions of the contracts to the
earn-out obligation models for our testing selections.
• We read any post-acquisition asset/stock purchase agreements and associated addenda modifications for any additional
terms to evaluate the completeness and reasonableness of the models utilized to calculate the earn-out obligation for our
testing selections.
• We evaluated the reasonableness of projections of future earnings for the earn-out obligation models by comparing the
projections to historical results and assessing management’s key assumptions for our testing selections.
• We evaluated management’s ability to accurately forecast future earnings by comparing actual results to management’s
historical forecast and forecasted growth rates to that of comparable subsidiaries for our testing selections.
Certified Public Accountants
Tampa, Florida
February 23, 2021
We have served as the Company’s auditor since 2002.
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RepoRt of Independent RegIsteRed publIc AccountIng fIRm
Report of Independent Registered
Public Accounting Firm
To the shareholders and the Board of Directors of Brown & Brown, Inc.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Brown & Brown, Inc. (the “Company”) and subsidiaries as of
December 31, 2020, based on criteria established in Internal Control—Integrated Framework: (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects,
effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control—
Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated financial statements as of and for the year ended December 31, 2020, of the Company and our report
dated February 23, 2021 expressed an unqualified opinion on those financial statements.
As described in Management’s Annual Report on Internal Control Over Financial Reporting, management excluded from its
assessment the internal control over financial reporting at Special Risk Insurance Managers Ltd., Texas All Risk General Agency,
Inc. et al, The Colonial Group, Inc. et al, RLA Insurance Intermediaries, LLC, Buiten & Associates, LLC, Amity Insurance Agency,
Inc., BrookStone Insurance Group, LLC, VAS GenPar, LLC, J.E. Brown & Associates Insurance Services, Inc., CoverHound, Inc. and
CyberPolicy, Inc., South & Western General Agency, Inc., and Berry Insurance Group, Inc. which were acquired in 2020 and whose
financial statements constitute approximately (0.22) and 8.44 percent of net and total assets, respectively, 2.3 percent of revenues,
and (0.75) percent of net income of the consolidated financial statement amounts as of and for the year ended December 31, 2020.
Accordingly, our audit did not include the internal control over financial reporting of these acquired entities.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting, and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report
on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control
over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to
be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a
material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed
risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Certified Public Accountants
Tampa, Florida
February 23, 202174
Management’s Report on Internal
Control Over Financial Reporting
The management of Brown & Brown, Inc. and its subsidiaries (“Brown & Brown”) is responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined in Securities Exchange Act Rule 13a-15(f). Under the
supervision and with the participation of management, including Brown & Brown’s principal executive officer and principal financial
officer, Brown & Brown conducted an evaluation of the effectiveness of internal control over financial reporting based upon the
framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission (“COSO”).
In conducting Brown & Brown’s evaluation of the effectiveness of its internal control over financial reporting, Brown & Brown has
excluded the following acquisitions completed by Brown & Brown during 2020: Special Risk Insurance Managers Ltd., Texas All
Risk General Agency, Inc. et al, The Colonial Group, Inc. et al, RLA Insurance Intermediaries, LLC, Buiten & Associates, LLC, Amity
Insurance Agency, Inc., BrookStone Insurance Group, LLC, VAS GenPar, LLC, J.E. Brown & Associates Insurance Services, Inc.,
CoverHound, Inc. and CyberPolicy, Inc., South & Western General Agency, Inc., and Berry Insurance Group, Inc. (collectively the
“2020 Excluded Acquisitions”), which were acquired during 2020 and whose financial statements constitute approximately (0.22%)
and 8.44% of net and total assets, respectively, 2.3% of revenues, and (0.75%) of net income of the consolidated financial statement
amounts as of and for the year ended December 31, 2020. Refer to Note 3 to the Consolidated Financial Statements for further
discussion of these acquisitions and their impact on Brown & Brown’s Consolidated Financial Statements.
Based upon Brown & Brown’s evaluation under the framework in Internal Control-Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission, management concluded that internal control over financial
reporting was effective as of December 31, 2020. Management’s internal control over financial reporting as of December 31, 2020,
has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which is
included herein.
Brown & Brown, Inc.
Daytona Beach, Florida
February 23, 2021
J. Powell Brown R. Andrew Watts
Chief Executive Officer Executive Vice President, Chief Financial Officer
and Treasurer
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Performance Graph
The following graph is a comparison of five-year cumulative total shareholder returns for our common stock as compared
with the cumulative total shareholder return for the NYSE Composite Index, and a group of peer insurance broker and agency
companies (Aon plc, Arthur J. Gallagher & Co, Marsh & McLennan Companies, and Willis Towers Watson Public Limited Company).
The returns of each company have been weighted according to such companies’ respective stock market capitalizations as of
December 31, 2015 for the purposes of arriving at a peer group average. The total return calculations are based upon an assumed
$100 investment on December 31, 2015, with all dividends reinvested.
12/15 12/16 12/17 12/18 12/19 12/20
Brown & Brown, Inc.100.00 141.79 164.69 178.34 257.99 312.32
NYSE Composite 100.00 112.08 133.26 121.54 152.85 163.66
Peer Group 100.00 118.67 146.56 158.69 219.34 247.57
Comparison of 5-Year Cumulative Total Return*
Among Brown & Brown, Inc., the NYSE Composite Index, and Peer Group
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$350.00
$300.00
12/2012/1912/1812/1712/1612/15
Brown & Brown, Inc. NYSE Composite Peer Group
* 100 invested on 12/31/15 in stock or index, including reinvestment of dividends.
Fiscal year ending December 31
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Shareholder Information
Corporate Offices
300 North Beach Street
Daytona Beach, Florida 32114
(386) 252-9601
Outside Counsel
Holland & Knight LLP
200 South Orange Avenue, Suite 2600
Orlando, Florida 32801
Corporate Information and Shareholder Services
The Company has included, as Exhibits 31.1 and 31.2, and
32.1 and 32.2 to its Annual Report on Form 10-K for fiscal year
2020, filed with the Securities and Exchange Commission,
certificates of the Chief Executive Officer and the Chief
Financial Officer of the Company certifying the Company’s
public disclosure is accurate and complete and that they have
established and maintained adequate internal controls. The
Company has also submitted to the New York Stock Exchange
a certificate from its Chief Executive Officer certifying that he is
not aware of any violation by the Company of New York Stock
Exchange corporate governance listing standards.
A copy of the Company’s 2020 Annual Report on Form 10-K
will be furnished without charge to any shareholder who
directs a request in writing to:
Corporate Secretary
Brown & Brown, Inc.
300 North Beach Street
Daytona Beach, Florida 32114
A reasonable charge will be made for copies
of the exhibits to the Form 10-K.
Annual Meeting
The Annual Meeting of Shareholders of
Brown & Brown, Inc. will be held virtually.
Please register at
http://www.viewproxy.com/bbinsurance.com/2021/htype.asp.
Transfer Agent and Registrar
American Stock Transfer & Trust Company, LLC
6201 15th Ave.
Brooklyn, New York 11219
(800) 937-5449
email: info@amstock.com
www.amstock.com
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
201 North Franklin Street
Suite 3600
Tampa, Florida 33602
Stock Listing
The New York Stock Exchange Symbol: BRO
On February 22, 2021, there were 282,089,166 shares of
our common stock outstanding, held by approximately 1,489
shareholders of record.
Additional Information
Information concerning the services of Brown & Brown, Inc.,
as well as access to current earnings releases, is available on
Brown & Brown’s website at www.bbinsurance.com.
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Ten-Year Statistical Summary
The following includes selected Consolidated Financial Data for each of the five fiscal years in the period ended December 31
that have been derived from our Consolidated Financial Statements. Such data should be read in conjunction with Management’s
Discussion and Analysis of Financial Condition and Results of Operations in this Annual Report and with our Consolidated Financial
Statements and related Notes thereto in Item 8 of Part II of this Annual Report.
(in thousands, except per share data, and percentages)
Year Ended December 31,
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Revenues
Commissions & fees $ 2,606,108 $ 2,384,737 $ 2,009,857 $ 1,857,270 $ 1,762,787 $ 1,656,951 $ 1,567,460 $ 1,355,503 $ 1,189,081 $ 1,005,962
Investment income 2,811 5,780 2,746 1,626 1,456 1,004 747 638 797 1,267
Other income, net 4,456 1,654 1,643 22,451 2,386 2,554 7,589 7,138 10,154 6,313
Total revenues(1)2,613,375 2,392,171 2,014,246 1,881,347 1,766,629 1,660,509 1,575,796 1,363,279 1,200,032 1,013,542
Expenses
Employee compensation and benefits 1,436,377 1,308,165 1,068,914 994,652 925,217 856,952 811,112 705,603 624,371 519,869
Other operating expenses 365,973 377,089 332,118 283,470 262,872 251,055 235,328 195,677 174,389 144,079
(Gain)/loss on disposal (2,388) (10,021) (2,175)(2,157) (1,291)(619) 47,425 ———
Amortization 108,523 105,298 86,544 85,446 86,663 87,421 82,941 67,932 63,573 54,755
Depreciation 26,276 23,417 22,834 22,698 21,003 20,890 20,895 17,485 15,373 12,392
Interest 58,973 63,660 40,580 38,316 39,481 39,248 28,408 16,440 16,097 14,132
Change in estimated earn-out payables (4,458) (1,366) 2,969 9,200 9,185 3,003 9,938 2,533 1,418 (2,206)
Total expenses 1,989,276 1,866,242 1,551,784 1,431,625 1,343,130 1,257,950 1,236,047 1,005,670 895,221 743,021
Income before income taxes 624,099 525,929 462,462 449,722 423,499 402,559 339,749 357,609 304,811 270,521
Income taxes(2)143,616 127,415 118,207 50,092 166,008 159,241 132,853 140,497 120,766 106,526
Net income $ 480,483 $ 398,514 $ 344,255 $ 399,630 $ 257,491 $ 243,318 $ 206,896 $ 217,112 $ 184,045 $ 163,995
Earnings per Share Information
Net income per share - diluted(3)$ 1.69 $ 1.40 $ 1.22 $ 1.40 $ 0.91 $ 0.85 $ 0.71 $ 0.74 $ 0.63 $ 0.57
Weighted average number of shares outstanding - diluted(3) 275,867 274,616 275,521 277,586 275,608 280,224 285,782 285,248 284,020 280,528
Dividends paid per share $ 0.35 $ 0.33 $ 0.31 $ 0.28 $ 0.25 $ 0.23 $ 0.21 $ 0.19 $ 0.17 $ 0.16
Year-End Financial Position
Total assets(4)$ 8,966,492 $ 7,622,821 $ 6,688,668 $ 5,747,550 $ 5,262,734 $ 4,979,844 $ 4,931,027 $ 3,620,232 $ 3,103,650 $ 2,587,148
Long-term debt(5)$ 2,025,906 $ 1,500,343 $ 1,456,990 $ 856,141 $ 1,018,372 $ 1,071,618 $ 1,142,948 $ 379,171 $ 449,136 $ 250,033
Total shareholders’ equity $ 3,754,223 $ 3,350,279 $ 3,000,568 $ 2,582,699 $ 2,360,211 $ 2,149,776 $ 2,113,745 $ 2,007,141 $ 1,807,333 $ 1,643,963
Total shares outstanding at year-end(3)283,004 281,655 279,583 276,210 280,208 277,970 286,972 290,838 287,756 286,704
Other Information
Number of full-time equivalent employees at year-end 11,136 10,083 9,590 8,491 8,297 7,807 7,591 6,992 6,438 5,557
Total revenues per average number of employees(6)$ 246,324 $ 243,193 $ 222,809 $ 224,130 $ 219,403 $ 215,679 $ 216,114 $ 203,020 $ 191,729 $ 186,949
Stock price at year-end(3)$ 47.41 $ 39.48 $ 27.56 $ 25.73 $ 22.43 $ 16.05 $ 16.45 $ 15.70 $ 12.73 $ 11.32
Stock price earnings multiple at year-end(7)28.1 28.2 22.6 18.3 24.6 18.9 23.3 21.1 20.2 20.0
Return on beginning shareholders’ equity(8)14%13%13%17%12%12%10%12%11%11%
(1) Years 2017 and 2016 do not reflect the adoption of “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”), ASC Topic 340 - Other Assets and Deferred
Cost (“ASC 340”) and ASU 2016-08, “Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net)”, which was adopted under the modified
retrospective method.
(2) Years 2017 and 2016 do not reflect the adoption of ASU 2016-09, “Improvements to Employee Share Based Payment Accounting” (“ASU 2016-09”), which was
adopted using the prospective method.
(3) Years 2017 and 2016 reflect the 2-for-1 stock split that occurred on March 28, 2018.
(4) All years presented reflect the adoption of ASU No. 2015-17, “Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”).
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(in thousands, except per share data, and percentages)
Year Ended December 31,
202020192018 2017 2016 2015 2014 2013 2012 2011
Revenues
Commissions & fees$ 2,606,108 $ 2,384,737 $ 2,009,857 $ 1,857,270 $ 1,762,787 $ 1,656,951 $ 1,567,460 $ 1,355,503 $ 1,189,081 $ 1,005,962
Investment income2,811 5,780 2,746 1,626 1,456 1,004 747 638 797 1,267
Other income, net4,456 1,654 1,643 22,451 2,386 2,554 7,589 7,138 10,154 6,313
Total revenues(1)2,613,375 2,392,171 2,014,246 1,881,347 1,766,629 1,660,509 1,575,796 1,363,279 1,200,032 1,013,542
Expenses
Employee compensation and benefits1,436,377 1,308,165 1,068,914 994,652 925,217 856,952 811,112 705,603 624,371 519,869
Other operating expenses365,973 377,089 332,118 283,470 262,872 251,055 235,328 195,677 174,389 144,079
(Gain)/loss on disposal(2,388) (10,021) (2,175)(2,157) (1,291)(619) 47,425 ———
Amortization108,523 105,298 86,544 85,446 86,663 87,421 82,941 67,932 63,573 54,755
Depreciation26,276 23,417 22,834 22,698 21,003 20,890 20,895 17,485 15,373 12,392
Interest58,973 63,660 40,580 38,316 39,481 39,248 28,408 16,440 16,097 14,132
Change in estimated earn-out payables(4,458) (1,366) 2,969 9,200 9,185 3,003 9,938 2,533 1,418 (2,206)
Total expenses1,989,276 1,866,242 1,551,784 1,431,625 1,343,130 1,257,950 1,236,047 1,005,670 895,221 743,021
Income before income taxes 624,099 525,929 462,462 449,722 423,499 402,559 339,749 357,609 304,811 270,521
Income taxes(2)143,616 127,415 118,207 50,092 166,008 159,241 132,853 140,497 120,766 106,526
Net income$ 480,483 $ 398,514 $ 344,255 $ 399,630 $ 257,491 $ 243,318 $ 206,896 $ 217,112 $ 184,045 $ 163,995
Earnings per Share Information
Net income per share - diluted(3)$ 1.69 $ 1.40 $ 1.22 $ 1.40 $ 0.91 $ 0.85 $ 0.71 $ 0.74 $ 0.63 $ 0.57
Weighted average number of shares outstanding - diluted(3) 275,867 274,616 275,521 277,586 275,608 280,224 285,782 285,248 284,020 280,528
Dividends paid per share $ 0.35 $ 0.33 $ 0.31 $ 0.28 $ 0.25 $ 0.23 $ 0.21 $ 0.19 $ 0.17 $ 0.16
Year-End Financial Position
Total assets(4)$ 8,966,492 $ 7,622,821 $ 6,688,668 $ 5,747,550 $ 5,262,734 $ 4,979,844 $ 4,931,027 $ 3,620,232 $ 3,103,650 $ 2,587,148
Long-term debt(5)$ 2,025,906 $ 1,500,343 $ 1,456,990 $ 856,141 $ 1,018,372 $ 1,071,618 $ 1,142,948 $ 379,171 $ 449,136 $ 250,033
Total shareholders’ equity$ 3,754,223 $ 3,350,279 $ 3,000,568 $ 2,582,699 $ 2,360,211 $ 2,149,776 $ 2,113,745 $ 2,007,141 $ 1,807,333 $ 1,643,963
Total shares outstanding at year-end(3)283,004 281,655 279,583 276,210 280,208 277,970 286,972 290,838 287,756 286,704
Other Information
Number of full-time equivalent employees at year-end11,136 10,083 9,590 8,491 8,297 7,807 7,591 6,992 6,438 5,557
Total revenues per average number of employees(6)$ 246,324 $ 243,193 $ 222,809 $ 224,130 $ 219,403 $ 215,679 $ 216,114 $ 203,020 $ 191,729 $ 186,949
Stock price at year-end(3)$ 47.41 $ 39.48 $ 27.56 $ 25.73 $ 22.43 $ 16.05 $ 16.45 $ 15.70 $ 12.73 $ 11.32
Stock price earnings multiple at year-end(7)28.1 28.222.6 18.3 24.6 18.9 23.3 21.1 20.2 20.0
Return on beginning shareholders’ equity(8)14%13%13%17%12%12%10%12%11%11%
(1) Years 2017 and 2016 do not reflect the adoption of “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”), ASC Topic 340 - Other Assets and Deferred
Cost (“ASC 340”) and ASU 2016-08, “Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net)”, which was adopted under the modified
retrospective method.
(2) Years 2017 and 2016 do not reflect the adoption of ASU 2016-09, “Improvements to Employee Share Based Payment Accounting” (“ASU 2016-09”), which was
adopted using the prospective method.
(3) Years 2017 and 2016 reflect the 2-for-1 stock split that occurred on March 28, 2018.
(4) All years presented reflect the adoption of ASU No. 2015-17, “Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”).
(5) Please refer to Part I, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 9 “Long-Term Debt”
for more details.
(6) Represents total revenues divided by the average of the number of full-time equivalent employees at the beginning of the year and the number of
full-time equivalent employees at the end of the year.
(7) Stock price at year-end divided by net income per share diluted.
(8) Represents net income divided by total shareholders’ equity as of the beginning of the year.
Ten-Year STaTiSTical SummarY
ONWARD & UPWARD
TO $4 BILLION AND BEYOND
300 North Beach Street
Daytona Beach, Florida 32114
(386) 252-9601
bbinsurance.com
Clay County Utility Authority
RFP# 2020/2021-A9 – Benefits Administrative Services
Section I Required Forms
Clay County Utility Authority
RFP# 2020/2021-A9 – Benefits Administrative Services
Section J Attachments
Sample Benefit Guide
April 1, 2019 through March 31, 2020
This Benefit Guide provides a brief description of plan benefits. For more information on plan benefits, exclusions,
and limitations, please refer to the Plan documents or contact the carrier/administrator directly. If any conflict
arises between this Guide and any plan provisions, the terms of the actual plan document or other applicable
documents will govern in all cases. Benefits are subject to modification at any time.
CITY OF GROVELAND
EMPLOYEE BENEFIT GUIDE
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INTRODUCTION
The City of Groveland is committed to providing our employees with a comprehensive benefits program to help you stay
healthy and feel secure. This booklet will describe those benefits which include medical, dental, vision, life/AD&D and voluntary
life/AD&D insurance. For a detailed description of these benefits please refer to the applicable Certificates of Coverage.
ELIGIBILITY GUIDELINES
The City’s benefit plan year is from April 1st through March 31st. The City provides medical, dental, vision, and basic life
insurance to employees that complete the waiting period and meet eligibility requirements. Employees may purchase
medical, dental, vision, and voluntary life for themselves and their dependents through payroll deduction.
Employees are eligible to participate in the City’s employee benefits program:
• if they work 30 or more hours a week. Coverage will be effective 1st of the month following 30 days of
employment.
Dependent Eligibility
A dependent is defined as the participant’s legal spouse and dependent child(ren) of the participant. Dependent children may
be covered as follows:
• Medical
• To end of the calendar year following their 26th birthday with no eligibility requirements
• From their 26th birthday to the end of the calendar year of their 30th birthday if they are unmarried and do not have a dependent of his or her own, is a resident of Florida or a student, and not enrolled in any other health plan
• Dental & Vision
• To the end of the calendar year following their 26th birthday
• Voluntary Life
• Unmarried dependent children from 14 days to age 19, or to age 26 if full time student
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Premiums for medical, dental, and vision insurance are deducted through a Cafeteria Plan established under Section 125 of the
Internal Revenue Code (IRC) and are pre-tax to the extent permitted. Under Section 125, changes to your pre-tax benefits can
be made ONLY during the Open Enrollment period unless you or your qualified dependents experience a qualifying event and
the request to make a change is made within 30 days of the qualifying event. An “eligible” qualifying event is determined by
the Internal Revenue Service (IRS) Code, Section 125.
MID-YEAR CHANGES
Qualified Life Events Include but are not limited to:
· You get married or divorced
· You have a child, gain legal custody or adopt a child
· An increase or decrease in your work hours causes eligibility or ineligibility
· A covered dependent no longer meets eligibility criteria for coverage
· A child gains or loses coverage with an ex-spouse
· Gain or loss of Medicare coverage
· Losing eligibility for coverage under a State Medicaid or CHIP (including Florida Kid Care)
program (60-day notification period).
IMPORTANT
If you experience a qualifying event, you must contact Human Resources within 30 days of the qualifying event to make the
appropriate changes to your coverage. Beyond 30 days, requests will be denied and the employee may be responsible both
legally and financially for any claim and/or expense incurred as a result of the employee or a dependent who continues to be
enrolled but no longer meets eligibility requirements. If approved, changes will take place on the date of the qualifying event.
Any cancellations will be processed on the date that coverage ends. You will be required to furnish valid documentation
supporting a change in status or “Qualifying Event.” Occurrence of a Qualifying Event during the plan year does not allow for
change of Plan type.
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MEDICAL INSURANCE RATES EFFECTIVE APRIL 1, 2019
Plan 1: Copay Plan
Employee Pays (Per Payroll Deduction)
Employee Only $0
Employee + Spouse $122.46
Employee + Child(ren) $110.22
Family $269.41
Plan 2: $1,500 Deductible
Employee Pays (Per Payroll Deduction)
Employee Only $0
Employee + Spouse $118.88
Employee + Child(ren) $107.00
Family $261.54
Plan 3: $500 Deductible
Employee Pays (Per Payroll Deduction)
Employee Only $0
Employee + Spouse $125.30
Employee + Child(ren) $112.77
Family $275.65
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UNITEDHEALTHCARE MEDICAL PLAN 1
Network: Choice Plus
Website: myuhc.com
Benefits
UnitedHealthcare
Plan 1
PPO Network Non-Network
Annual Deductible $0 Individual
$0 Family
$5,000 Individual
$10,000 Family
Coinsurance N/A 50%
Annual Out of Pocket Maximum
(Includes Deductible & Copays)
$6,500 Individual
$13,000 Family
$19,500 Individual
$39,000 Family
Preventive Care $0 Deductible + Coinsurance
Virtual Visit $0 N/A
Physician Office Visit $30 Deductible + Coinsurance
Specialist Office Visit $60 Deductible + Coinsurance
Outpatient Surgery $1,000 Deductible + Coinsurance
Inpatient Hospitalization $1,000 Deductible + Coinsurance
Emergency Room (Facility Only) $500 $500
Urgent Care $50 Deductible + Coinsurance
Lab $0 Deductible + Coinsurance
X-Ray $0 Deductible + Coinsurance
Advanced Imaging $250 Deductible + Coinsurance
Prescription Drugs
Tier 1
Tier 2
Tier 3
Tier 4
Specialty
$10 Copay
$40 Copay
$70 Copay
25% Coinsurance
35% Coinsurance
Please see the benefit summary for non-
network pharmacy benefits.
Mail Order Prescription
Tier 1
Tier 2
Tier 3
Tier 4
Specialty
$20 Copay
$80 Copay
$140 Copay
25% Coinsurance
Excluded
Please see the benefit summary for non-
network pharmacy benefits.
For Limitations & Exclusions, please refer to the certificate of coverage or benefit summary.
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UNITEDHEALTHCARE MEDICAL PLAN 2
Network: Choice Plus
Website: myuhc.com
Benefits
UnitedHealthcare
Plan 2
PPO Network Non-Network
Annual Deductible $1,500 Individual
$3,000 Family
$4,500 Individual
$9,000 Family
Coinsurance 20% 50%
Annual Out of Pocket Maximum
(Includes Deductible & Copays)
$5,000 Individual
$10,000 Family
$15,000 Individual
$30,000 Family
Preventive Care $0 Deductible + Coinsurance
Virtual Visit $0 N/A
Physician Office Visit $35 Deductible + Coinsurance
Specialist Office Visit $45 Deductible + Coinsurance
Outpatient Surgery Deductible & Coinsurance Deductible + Coinsurance
Inpatient Hospitalization Deductible & Coinsurance Deductible + Coinsurance
Emergency Room (Facility Only) $350 $350
Urgent Care $50 Deductible + Coinsurance
Lab $0 Deductible + Coinsurance
X-Ray $0 Deductible + Coinsurance
Advanced Imaging $150 Deductible + Coinsurance
Prescription Drugs
Tier 1
Tier 2
Tier 3
Tier 4
Specialty
$10 copay
$45 copay
$90 copay
25% Coinsurance
35% Coinsurance
Please see the benefit summary for non-
network pharmacy benefits.
Mail Order Prescription
Tier 1
Tier 2
Tier 3
Tier 4
Specialty
$20 copay
$90 copay
$180 copay
25% Coinsurance
Excluded
Please see the benefit summary for non-
network pharmacy benefits.
For Limitations & Exclusions, please refer to the certificate of coverage or benefit summary.
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UNITEDHEALTHCARE MEDICAL PLAN 3
Network: Choice Plus
Website: myuhc.com
Benefits
UnitedHealthcare
Plan 3
PPO Network Non-Network
Annual Deductible $500 Individual
$1,000 Family
$1,500 Individual
$3,000 Family
Coinsurance 20% 50%
Annual Out of Pocket Maximum
(Includes Deductible & Copays)
$4,000 Individual
$8,000 Family
$12,000 Individual
$24,000 Family
Preventive Care $0 Deductible & Coinsurance
Virtual Visit $0 N/A
Physician Office Visit $25 Deductible & Coinsurance
Specialist Office Visit $30 Deductible & Coinsurance
Outpatient Surgery Deductible & Coinsurance Deductible & Coinsurance
Inpatient Hospitalization Deductible & Coinsurance Deductible & Coinsurance
Emergency Room (Facility Only) $350 $350
Urgent Care $50 Deductible & Coinsurance
Lab $0 Deductible & Coinsurance
X-Ray $0 Deductible & Coinsurance
Advanced Imaging $150 Deductible & Coinsurance
Prescription Drugs
Tier 1
Tier 2
Tier 3
Tier 4
Specialty
$10 copay
$30 copay
$50 copay
25% Coinsurance
35% Coinsurance
Please see the benefit summary for non-
network pharmacy benefits.
Mail Order Prescription
Tier 1
Tier 2
Tier 3
Tier 4
Specialty
$20 copay
$60 copay
$100 copay
25% Coinsurance
Excluded
Please see the benefit summary for non-
network pharmacy benefits.
For Limitations & Exclusions, please refer to the certificate of coverage or benefit summary.
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DENTAL & VISION INSURANCE RATES EFFECTIVE APRIL 1, 2019
Dental
Employee Pays (Per Payroll Deduction)
Employee Only $0
Employee + Spouse $6.75
Employee + Child(ren) $6.47
Family $13.61
Vision
Employee Pays (Per Payroll Deduction)
Employee Only $0
Employee + Spouse $0.85
Employee + Child(ren) $0.77
Family $1.69
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SUN LIFE DENTAL PLAN
Network: Sun Life Dental
Website: www.sunlife.com
For dental frequencies, please refer to the certificate of coverage or benefit
summary.
Benefits
Sun Life
Dental PPO
PPO Network Out-of-Network1
Annual Deductible
$50 per individual and $150 per family
Deductible is waived for Preventive
Services
$50 per individual and $150 per family
Deductible is waived for Preventive
Services
Annual Plan Maximum $1,000 per individual
Orthodontia Lifetime Maximum $1,000 lifetime per child under age 26
Type I: Preventive Services
Routine Exam Plan pays 100% Plan pays 100% 1
Teeth Cleaning Plan pays 100% Plan pays 100% 1
X-rays (Panoramic, Bitewings) Plan pays 100% Plan pays 100% 1
Sealants - Child to Age 14 Plan pays 100% Plan pays 100% 1
Fluoride - Child to Age 14 Plan pays 100% Plan pays 100% 1
Type II: Basic Services
Simple Extractions Plan pays 100% Plan pays 80% 1
Fillings Plan pays 100% Plan pays 80% 1
Space Maintainers - Child to Age 19 Plan pays 100% Plan pays 80% 1
Type III: Major Services
Root Canal Therapy Plan pays 60% Plan pays 50% 1
Bridges Plan pays 60% Plan pays 50% 1
Dentures Plan pays 60% Plan pays 50% 1
Crowns Plan pays 60% Plan pays 50% 1
Complex Surgical Extractions Plan pays 60% Plan pays 50% 1
Type IV: Orthodontic Services
Orthodontia Treatment - Child to Age 19 Plan pays 50% Plan pays 50% 1
1 If you use a non-network provider, you are responsible for paying the difference in cost between the non-network
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How does a PPO work?
PPO stands for Participating Provider Organization. With a dental PPO plan, dental providers agree to participate in a dental network by
offering discounted fees on most dental procedures. When you visit a provider in the network, you could see lower out-of-pocket costs
because providers in the network agree to these pre-negotiated discounted fees on eligible claims.
How do I find a dentist?
Simply visit www.sunlife.com/findadentist . Follow the prompts to find a dentist in your area who participates in the PPO network. You
do not need to select a dentist in advance.
Do I have to choose a dentist in the PPO network?
No. You can visit any licensed dentist for services. However, you could see lower out-of-pockets costs when you visit a dentist in the
network.
Where do I find my dental ID card?
Your personalized electronic dental ID card is available through Online Advantage. You can register at
www.sunlife.com/onlineadvantage . Please present this card to your dentist at your next visit to show that you are covered by a Sun
Life Dental plan.
What if I have already started dental work…like a root canal or braces…that requires several visits?
Your coverage with us and your prior plan may handle these procedures differently. To ensure a smooth transition for work in
progress, call our dental claims experts before your next visit at 800-442-7742.
Is it necessary to request a pre-determination of benefits prior to receiving services?
A pre-determination of benefits allows Sun Life to review your provider's plan for treatment before the work is done. We can tell you
ahead of time how much of the work will probably be covered by the plan, and how much you may need to cover. If the charge for any
dental treatment is expected to exceed $300, it is recommended that a dental treatment plan be submitted for review before
treatment begins.
Do I have to file the claim?
Dentists in the PPO network will file claims for you. Some non-network dentists will file claims for you as well. If a nonnetwork dentist
will not file your claim, simply ask your dentist to complete a standard American Dental Association (ADA) claim form and mail it to:
Sun Life Financial
P.O. Box 2940
Clinton, IA 52733
How can I get more information about my coverage?
After the effective date of your coverage, you can visit www.sunlife.com/onlineadvantage to create an account with Online Advantage.
Once you're logged in, you'll be able to see your plan details, personalized dental ID card, and more. Or you can call Sun Life's Dental
Customer Service at 800-442-7742. You can also call any time, day or night, to access our automated system and get answers to
common questions when it's convenient for you.
For Limitations & Exclusions, please refer to the certificate of coverage or benefit summary.
DENTAL Q&A
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SUN LIFE VISION PLAN
Network: VSP
Website: Sunlife.com
Benefits
Sun Life Vision
In-Network Out-of-Network
Eye Exams $10 copay Reimbursed up to $45
Eyeglass Lenses and Frames
Single Standard Lenses $25 copay Reimbursed up to $30
Bifocal Standard Lenses $25 copay Reimbursed up to $50
Trifocal Standard Lenses $25 copay Reimbursed up to $60
Lenticular Standard Lenses $25 copay Reimbursed up to $100
Frames $130 allowance; 20% off balance Reimbursed up to $70
Contact Lenses
Standard Fit and Follow Up Up to $60 copay Reimbursed up to $105
Elective Lenses $130 allowance Reimbursed up to $105
Medically Necessary Lenses Paid in Full Reimbursed up to $210
Frequency
Eye Exam Once every 12 months
Lenses—Eyeglass or Contact Once every 12 months
Frames Once every 24 months
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How do I use my vision benefit?
Once enrolled, simply tell your VSP doctor you’re a member and they will handle the rest. If you visit an in-network doctor
for services and materials, you don’t need an ID card or have forms to complete.
How do I locate an in-network VSP doctor?
There are three ways to find an in-network doctor:
1. Visit vsp.com and select the Choice network.
2. Call 800-877-7195.
3. Download our mobile app, Benefit Tools, and search for a doctor near you.
What happens if I use an out-of-network doctor?
You will be required to pay the full amount to the doctor at time of service. You can then submit a claim for
reimbursement, which is a lesser benefit when compared to visiting a VSP doctor.
When will my coverage become effective?
Your coverage starts on the effective date specified in your group policy, provided you are at active work on that date.
Otherwise, your coverage will become effective on the day you return to full-time duties.
Can I enroll as a late entrant?
If you elect coverage more than 31 days after your eligibility date, your effective date will be delayed to the next plan
anniversary date.
How can I get more information about my coverage?
After the effective date of your coverage, you can visit www.sunlife.com/onlineadvantage to create an account with Online
Advantage. Once you're logged in, you'll be able to see your plan details and more. Or you can call Customer Service at 800
-877-7195.
For Limitations & Exclusions, please refer to the certificate of coverage or benefit summary.
VISION Q&A
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SUN LIFE BASIC LIFE/AD&D & VOLUNTARY LIFE INSURANCE
Group Life and AD&D Insurance
Group Life and AD&D Insurance is arranged through Sun Life. All eligible employees receive a life and accidental death &
dismemberment (AD&D) insurance benefit of $20,000. This benefit is provided at no cost to you.
Voluntary and AD&D Life Insurance
Voluntary Life and AD&D Insurance is arranged through Sun Life. You have the option of purchasing additional Life and AD&D
Insurance at attractive rates and the convenience of payroll deduction. Your cost is based on age and amount of coverage you
select. Age-related cost adjustments will occur on the policy anniversary date, April 1. You must elect coverage for yourself to
cover your spouse/children. Spouse premium is based on the spouse’s age. Children are not eligible for AD&D coverage.
When initially eligible, you are guaranteed the insurance amounts below without submitting any evidence of insurability (EOI)
or proof of good health as long as you enroll within 31 days of your initial eligibility date. Any life insurance coverage over the
Guarantee Issue Amount will be subject to evidence of insurability. It is your responsibility to complete and submit the required
EOI forms, to obtain the amount in excess of the guarantee issue amount, within 31 days of the date you apply for coverage. If
you choose not to participate at the time you are initially eligible and elect to enroll at a later time, you may be required to
submit evidence of insurability for all amounts of coverage.
Important Reminders
Group Life and AD&D Insurance benefits reduce to 65% at age 65 and to 45% at age 70.
Voluntary Life and AD&D Insurance benefits reduce to 65% at age 65, 45% at age 70, 30% at age 75, 20% at age 80 and 15% at
age 85.
You must be actively at work on the effective date or your coverage will be delayed until you return to active employment.
For Limitations & Exclusions, please refer to the certificate of coverage or benefit summary.
Coverage Benefit Amounts Guarantee Issue
Employee Increments of $10,000 up to a maximum of $500,000, but not to exceed 5x your basic annual
earnings. Coverage ends at termination of employment or retirement.
$100,000
Spouse Increments of $5,000 up to a maximum of $150,000, but not to exceed 50% of the employee
coverage amount. Spouse coverage terminates at age 70.
$25,000
Child(ren) Increments of $1,000 up to a maximum of $10,000, but not to exceed 50% of the employee
coverage amount. A full benefit is payable for a dependent child who is 6 months to 19 years old or
to age 23 if a full time student. A reduced benefit is payable for a child from 14 days to 6 months.
$10,000
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SUN LIFE EMPLOYEE LIFE RATES
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SUN LIFE SPOUSE & CHILD LIFE RATES
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IMPORTANT NOTICES
The Newborn’s and Mother’s Health Protection Act
Group health plans and health insurance issuers generally may not, under Federal law, restrict benefits for any hospital length
of stay in connection with childbirth for the mother or newborn child to less than 48 hours following a vaginal delivery, or less
than 96 hours following a cesarean section. However, Federal law generally does not prohibit the mother’s or newborn’s
attending provider, after consulting with the mother, from discharging the mother or her newborn earlier than 48 hours (or 96
hours as applicable). In any case, plans and issuers may not, under Federal law, require that a provider obtain authorization
from the plan or the insurance issuer for prescribing a length of stay not in excess of 48 hours (or 96 hours).
Women’s Health and Cancer Rights Act (WHCRA) – Enrollment Notice
The Women’s Health and Cancer Rights Act of 1998 (WHCRA) provides protections for individuals who elect breast reconstruc-
tion after a mastectomy. Under WHCRA, group health plans offering mastectomy coverage must provide coverage for certain
services relating to the mastectomy, in a manner determined in consultation with the attending physician and the patient.
The required coverage includes:
• All stages of reconstruction of the breast on which the mastectomy was performed;
• Surgery and reconstruction of the other breast to produce a symmetrical appearance;
• Prostheses; and
• Treatment of physical complications of the mastectomy, including lymphedema.
Under WHCRA, mastectomy benefits may be subject to annual deductibles and coinsurance consistent with those established
for other benefits under the plan or coverage. Group health plans, health insurance companies and HMOs covered by the law
must provide written notification to individuals of the coverage required by WHCRA upon enrollment and annually thereafter.
If you would like more information on WHCRA benefits, call Member Services on the back of your health insurance ID card.
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IMPORTANT NOTICES
Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with
City of Groveland and about your options under Medicare’s prescription drug coverage. This information can help you decide whether or not you
want to join a Medicare drug plan. If you are considering joining, you should compare your current coverage, including which drugs are covered at
what cost, with the coverage and costs of the plans offering Medicare prescription drug coverage in your area. Information about where you can get
help to make decisions about your prescription drug coverage is at the end of this notice.
There are two important things you need to know about your current coverage and Medicare’s prescription drug coverage:
• Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You can get this coverage if you join a Medicare
Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug
plans provide at least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a higher monthly premium.
• City of Groveland has determined that the prescription drug coverage offered by UnitedHealthcare is, on average for all plan participants,
expected to pay out as much as standard Medicare prescription drug coverage pays and is therefore considered Creditable Coverage.
Because your existing coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you later decide to
join a Medicare drug plan.
When Can You Join A Medicare Drug Plan?
You can join a Medicare drug plan when you first become eligible for Medicare and each year from October 15 to December 7 . However, if
you lose your current creditable prescription drug coverage, through no fault of your own, you will also be eligible for a two (2) month
Special Enrollment Period (SEP) to join a Medicare drug plan.
What Happens To Your Current Coverage If You Decide to Join A Medicare Drug Plan?
If you decide to join a Medicare drug plan, your current City of Groveland coverage will be affected. If you enroll in a Medicare
prescription drug plan, you and your eligible dependents will not be eligible to receive all of your current health and prescription drug
benefits. UnitedHealthcare administers the group health coverage available to City of Groveland employees, retirees and dependents. The
included prescription drug benefit provides:
If you do decide to join a Medicare drug plan and drop your current City of Groveland coverage, be aware that you and your dependents will not
be able to get this coverage back.
You should also know that if you drop or lose your current
coverage with City of Groveland and don’t join a Medicare drug plan within 63 continuous days after your current coverage ends,
you may pay a higher premium (a penalty) to join a Medicare drug plan later.
If you go 63 continuous days or longer without creditable prescription drug coverage, your monthly premium may go up by at least 1% of
the Medicare base beneficiary premium per month for every month that you did not have that coverage. For example, if you go nineteen
months without creditable coverage, your premium may consistently be at least 19% higher than the Medicare base beneficiary premium.
You may have to pay this higher premium (a penalty) as long as you have Medicare prescription drug coverage. In addition, you may have to
wait until the following October to join.
Contact the person listed below for further information. You’ll get this notice each year. You will also get it before the next period
you can join a Medicare drug plan, and if this coverage through City of Groveland changes. You also may request a copy of this notice at any
time.
Network Non-Network Mail Order
Tier 1 $10 30% Coinsurance $20
Tier 2 $40 30% Coinsurance $40
Tier 3 $70 30% Coinsurance $140
Tier 4 25% Coinsurance 30% Coinsurance 25% Coinsurance
FOR MEDICAL PLAN 1
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IMPORTANT NOTICES
For More Information About Your Options Under Medicare Prescription Drug Coverage...
More detailed information about Medicare plans that offer prescription drug coverage is in the “Medicare & You” handbook. You’ll get a copy of
the handbook in the mail every year from Medicare. You may also be contacted directly by Medicare drug plans.
For more information about Medicare prescription drug coverage:
• Visit www.medicare.gov
• Call your State Health Insurance Assistance Program (see the inside back cover of your copy of the “Medicare & You” hand-
book for their telephone number) for personalized help
• Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.
If you have limited income and resources, extra help paying for Medicare prescription drug coverage is available. For information about this extra
help, visit Social Security on the web at www.socialsecurity.gov, or call them at 1-800-772-1213 (TTY 1-800-325-0778).
Remember: Keep this Creditable Coverage notice. If you decide to join one of the Medicare drug plans, you may be required to provide a copy
of this notice when you join to show whether or not you have maintained creditable coverage and, therefore, whether or not you are
required to pay a higher premium (a penalty).
Date: 03/12/2019
Name of Entity/Sender: City of Groveland
Contact--Position/Office: Deo Persaud / HR Director
Address: 156 S Lake Ave, Groveland, FL 34736
Phone Number: 352-429-2141
FOR MEDICAL PLAN 1
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IMPORTANT NOTICES
Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with
City of Groveland and about your options under Medicare’s prescription drug coverage. This information can help you decide whether or not you
want to join a Medicare drug plan. If you are considering joining, you should compare your current coverage, including which drugs are covered at
what cost, with the coverage and costs of the plans offering Medicare prescription drug coverage in your area. Information about where you can get
help to make decisions about your prescription drug coverage is at the end of this notice.
There are two important things you need to know about your current coverage and Medicare’s prescription drug coverage:
• Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You can get this coverage if you join a Medicare
Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug
plans provide at least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a higher monthly premium.
• City of Groveland has determined that the prescription drug coverage offered by UnitedHealthcare is, on average for all plan participants,
expected to pay out as much as standard Medicare prescription drug coverage pays and is therefore considered Creditable Coverage.
Because your existing coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you later decide to
join a Medicare drug plan.
When Can You Join A Medicare Drug Plan?
You can join a Medicare drug plan when you first become eligible for Medicare and each year from October 15 to December 7 . However, if
you lose your current creditable prescription drug coverage, through no fault of your own, you will also be eligible for a two (2) month
Special Enrollment Period (SEP) to join a Medicare drug plan.
What Happens To Your Current Coverage If You Decide to Join A Medicare Drug Plan?
If you decide to join a Medicare drug plan, your current City of Groveland coverage will be affected. If you enroll in a Medicare
prescription drug plan, you and your eligible dependents will not be eligible to receive all of your current health and prescription drug
benefits. UnitedHealthcare administers the group health coverage available to City of Groveland employees, retirees and dependents. The
included prescription drug benefit provides:
If you do decide to join a Medicare drug plan and drop your current City of Groveland coverage, be aware that you and your dependents will not
be able to get this coverage back.
You should also know that if you drop or lose your current
coverage with City of Groveland and don’t join a Medicare drug plan within 63 continuous days after your current coverage ends,
you may pay a higher premium (a penalty) to join a Medicare drug plan later.
If you go 63 continuous days or longer without creditable prescription drug coverage, your monthly premium may go up by at least 1% of
the Medicare base beneficiary premium per month for every month that you did not have that coverage. For example, if you go nineteen
months without creditable coverage, your premium may consistently be at least 19% higher than the Medicare base beneficiary premium.
You may have to pay this higher premium (a penalty) as long as you have Medicare prescription drug coverage. In addition, you may have to
wait until the following October to join.
Contact the person listed below for further information. You’ll get this notice each year. You will also get it before the next period
you can join a Medicare drug plan, and if this coverage through City of Groveland changes. You also may request a copy of this notice at any
time.
Network Non-Network Mail Order
Tier 1 $10 30% Coinsurance $20
Tier 2 $45 30% Coinsurance $90
Tier 3 $90 30% Coinsurance $180
Tier 4 25% Coinsurance 30% Coinsurance 25% Coinsurance
FOR MEDICAL PLAN 2
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IMPORTANT NOTICES
For More Information About Your Options Under Medicare Prescription Drug Coverage...
More detailed information about Medicare plans that offer prescription drug coverage is in the “Medicare & You” handbook. You’ll get a copy of
the handbook in the mail every year from Medicare. You may also be contacted directly by Medicare drug plans.
For more information about Medicare prescription drug coverage:
• Visit www.medicare.gov
• Call your State Health Insurance Assistance Program (see the inside back cover of your copy of the “Medicare & You” hand-
book for their telephone number) for personalized help
• Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.
If you have limited income and resources, extra help paying for Medicare prescription drug coverage is available. For information about this extra
help, visit Social Security on the web at www.socialsecurity.gov, or call them at 1-800-772-1213 (TTY 1-800-325-0778).
Remember: Keep this Creditable Coverage notice. If you decide to join one of the Medicare drug plans, you may be required to provide a copy
of this notice when you join to show whether or not you have maintained creditable coverage and, therefore, whether or not you are
required to pay a higher premium (a penalty).
Date: 03/12/2019
Name of Entity/Sender: City of Groveland
Contact--Position/Office: Deo Persaud / HR Director
Address: 156 S Lake Ave, Groveland, FL 34736
Phone Number: 352-429-2141
FOR MEDICAL PLAN 2
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IMPORTANT NOTICES
Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with
City of Groveland and about your options under Medicare’s prescription drug coverage. This information can help you decide whether or not you
want to join a Medicare drug plan. If you are considering joining, you should compare your current coverage, including which drugs are covered at
what cost, with the coverage and costs of the plans offering Medicare prescription drug coverage in your area. Information about where you can get
help to make decisions about your prescription drug coverage is at the end of this notice.
There are two important things you need to know about your current coverage and Medicare’s prescription drug coverage:
• Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You can get this coverage if you join a Medicare
Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug
plans provide at least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a higher monthly premium.
• City of Groveland has determined that the prescription drug coverage offered by UnitedHealthcare is, on average for all plan participants,
expected to pay out as much as standard Medicare prescription drug coverage pays and is therefore considered Creditable Coverage.
Because your existing coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you later decide to
join a Medicare drug plan.
When Can You Join A Medicare Drug Plan?
You can join a Medicare drug plan when you first become eligible for Medicare and each year from October 15 to December 7 . However, if
you lose your current creditable prescription drug coverage, through no fault of your own, you will also be eligible for a two (2) month
Special Enrollment Period (SEP) to join a Medicare drug plan.
What Happens To Your Current Coverage If You Decide to Join A Medicare Drug Plan?
If you decide to join a Medicare drug plan, your current City of Groveland coverage will be affected. If you enroll in a Medicare
prescription drug plan, you and your eligible dependents will not be eligible to receive all of your current health and prescription drug
benefits. UnitedHealthcare administers the group health coverage available to City of Groveland employees, retirees and dependents. The
included prescription drug benefit provides:
If you do decide to join a Medicare drug plan and drop your current City of Groveland coverage, be aware that you and your dependents will not
be able to get this coverage back.
You should also know that if you drop or lose your current
coverage with City of Groveland and don’t join a Medicare drug plan within 63 continuous days after your current coverage ends,
you may pay a higher premium (a penalty) to join a Medicare drug plan later.
If you go 63 continuous days or longer without creditable prescription drug coverage, your monthly premium may go up by at least 1% of
the Medicare base beneficiary premium per month for every month that you did not have that coverage. For example, if you go nineteen
months without creditable coverage, your premium may consistently be at least 19% higher than the Medicare base beneficiary premium.
You may have to pay this higher premium (a penalty) as long as you have Medicare prescription drug coverage. In addition, you may have to
wait until the following October to join.
Contact the person listed below for further information. You’ll get this notice each year. You will also get it before the next period
you can join a Medicare drug plan, and if this coverage through City of Groveland changes. You also may request a copy of this notice at any
time.
Network Non-Network Mail Order
Tier 1 $10 30% Coinsurance $20
Tier 2 $30 30% Coinsurance $60
Tier 3 $50 30% Coinsurance $100
Tier 4 25% Coinsurance 30% Coinsurance 25% Coinsurance
FOR MEDICAL PLAN 3
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IMPORTANT NOTICES
For More Information About Your Options Under Medicare Prescription Drug Coverage...
More detailed information about Medicare plans that offer prescription drug coverage is in the “Medicare & You” handbook. You’ll get a copy of
the handbook in the mail every year from Medicare. You may also be contacted directly by Medicare drug plans.
For more information about Medicare prescription drug coverage:
• Visit www.medicare.gov
• Call your State Health Insurance Assistance Program (see the inside back cover of your copy of the “Medicare & You” hand-
book for their telephone number) for personalized help
• Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.
If you have limited income and resources, extra help paying for Medicare prescription drug coverage is available. For information about this extra
help, visit Social Security on the web at www.socialsecurity.gov, or call them at 1-800-772-1213 (TTY 1-800-325-0778).
Remember: Keep this Creditable Coverage notice. If you decide to join one of the Medicare drug plans, you may be required to provide a copy
of this notice when you join to show whether or not you have maintained creditable coverage and, therefore, whether or not you are
required to pay a higher premium (a penalty).
Date: 03/12/2019
Name of Entity/Sender: City of Groveland
Contact--Position/Office: Deo Persaud / HR Director
Address: 156 S Lake Ave, Groveland, FL 34736
Phone Number: 352-429-2141
FOR MEDICAL PLAN 3
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PART A: General Information
When key parts of the health care law take effect in 2014, there will be a new way to buy health insurance: the Health Insurance Market-
place. To assist you as you evaluate options for you and your family, this notice provides some basic information about the new Market-
place and employment based health coverage offered by your employer.
What is the Health Insurance Marketplace?
The Marketplace is designed to help you find health insurance that meets your needs and fits your budget. The Marketplace offers "one-
stop shopping" to find and compare private health insurance options. You may also be eligible for a new kind of tax credit that lowers your
monthly premium right away. Open enrollment for health insurance coverage through the Marketplace begins in October 2013 for cover-
age starting as early as January 1, 2014.
Can I Save Money on my Health Insurance Premiums in the Marketplace?
You may qualify to save money and lower your monthly premium, but only if your employer does not offer coverage, or offers coverage
that doesn't meet certain standards. The savings on your premium that you're eligible for depends on your household income.
Does Employer Health Coverage Affect Eligibility for Premium Savings through the Marketplace?
Yes. If you have an offer of health coverage from your employer that meets certain standards, you will not be eligible for a tax credit
through the Marketplace and may wish to enroll in your employer's health plan. However, you may be eligible for a tax credit that lowers
your monthly premium, or a reduction in certain cost-sharing if your employer does not offer coverage to you at all or does not offer cov-
erage that meets certain standards. If the cost of a plan from your employer that would cover you (and not any other members of your
family) is more than 9.5% of your household income for the year, or if the coverage your employer provides does not meet the "minimum
value" standard set by the Affordable Care Act, you may be eligible for a tax credit.1
Note: If you purchase a health plan through the Marketplace instead of accepting health coverage offered by your employer, then you may
lose the employer contribution (if any) to the employer-offered coverage. Also, this employer contribution -as well as your employee con-
tribution to employer-offered coverage- is often excluded from income for Federal and State income tax purposes. Your payments for cov-
erage through the Marketplace are made on an after-tax basis.
How Can I Get More Information?
For more information about your coverage offered by your employer, please check your summary plan description or contact your Human
Resources Department. The Marketplace can help you evaluate your coverage options, including your eligibility for coverage through the
Marketplace and its cost. Please visit HealthCare.gov for more information, including an online application for health insurance coverage
and contact information for a Health Insurance Marketplace in your area.
PART B: Information About Health Coverage Offered by Your Employer
This section contains information about any health coverage offered by your employer. If you decide to complete an application for cover-
age in the Marketplace, you will be asked to provide this information. This information is numbered to correspond to the Marketplace ap-
plication.
1
1An employer-sponsored health plan meets the "minimum value standard" if the plan's share of the total allowed benefit costs covered by
the plan is no less than 60 percent of such costs
3. Employer Name
City of Groveland
4. Employer Identification Number (EIN)
5. Employer Address
156 S Lake. Ave
6. Employer Phone Number
352-429-2141
7. City
Groveland
8. State
Florida
9. ZIP Code
34736
10. Who can we contact about employee health coverage at this job?
Deo Persaud
11. Phone Number
352-429-3852
12. Email Address
deo.persaud@groveland-fl.gov
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Here is some basic information about health coverage offered by this employer:
As your employer, we offer a health plan to:
☐ All employees.
☒ Some employees. Eligible employees are working 30 or more hours per week.
With respect to dependents:
☒We do offer coverage. Eligible dependents are: a spouse of the employee, a natural child, a stepchild, a legally adopt-
ed child, a child for whom legal guardian ship has been awarded to the employee or spouse, the newborn child of an
enrolled dependent until the newborn reaches 18 months of age.
☐ We do not offer coverage.
☒ If checked, this coverage meets the minimum value standard, and the cost of this coverage to you is intended to be affordable, based
on employee wages.
** Even if your employer intends your coverage to be affordable, you may still be eligible for a premium discount through the Market-
place. The Marketplace will use your household income, along with other factors, to determine whether you may be eligible for a premium
discount. If, for example, your wages vary from week to week (perhaps you are an hourly employee or you work on a commission basis), if
you are newly employed mid-year, or if you have other income losses, you may still qualify for a premium discount.
If you decide to shop for coverage in the Marketplace, HealthCare.gov will guide you through the process. Here's the employer infor-
mation you'll enter when you visit HealthCare.gov to find out if you can get a tax credit to lower your monthly premiums.
The information below corresponds to the Marketplace Employer Coverage Tool. Completing this section is optional for employers, but
will help ensure employees understand their coverage choices.
13. Is the employee currently eligible for coverage offered by this employer, or will the employee be eligible in the next 3 months?
☒Yes (Continue)
13a. If the employee is not eligible today, including as a result of a waiting or probationary period, when is the employee
eligible for coverage? _____________(mm/dd/yyyy) (Continue)
☐ No (STOP and return this form to employee)
14. Does the employer offer a health plan that meets the minimum value standard*?
☒Yes (Go to question 15)☐No (Stop and return this form to employee)
15. For the lowest-cost plan that meets the minimum value standard* offered only to the employee (don’t include family plans): If the em-
ployer has wellness programs, provide the premium that the employee would pay if he/she received the maximum discount for any tobac-
co cessation programs, and didn’t receive any other discounts based on wellness programs.
How much would the employee have to pay in premiums for this plan per month? $0.00
If the plan year will end soon and you know that the health plans offered will change, go to question 16. If you don’t know, STOP and re-
turn form to employee.
16. What change will the employer make for the new plan year?
☐ Employer won’t offer health coverage
☐ Employer will start offering health coverage to employees or change the premium for the lowest-cost plan available only to
the employee that meets the minimum value standard.* (Premium should reflect the discount for wellness programs. See ques-
tion 15.)
A. How much will the employee have to pay in premiums per month for that plan? $____________
Date of Change: ____________
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To see if any other states have added a premium assistance program since January 31, 2019, or for more information on
special enrollment rights, contact either:
U.S. Department of Labor U.S. Department of Health and Human Services
Employee Benefits Security Administration Centers for Medicare & Medicaid Services
www.dol.gov/agencies/ebsa www.cms.hhs.gov
1-866-444-EBSA (3272) 1-877-267-2323, Menu Option 4, Ext. 61565
Premium Assistance Under Medicaid and the Children’s Health Insurance Program (CHIP)
If you or your children are eligible for Medicaid or CHIP and you’re eligible for health coverage from your employer, your state may
have a premium assistance program that can help pay for coverage, using funds from their Medicaid or CHIP programs. If you or your
children aren’t eligible for Medicaid or CHIP, you won’t be eligible for these premium assistance programs but you may be able to buy
individual insurance coverage through the Health Insurance Marketplace. For more information, visit www.healthcare.gov.
If you or your dependents are already enrolled in Medicaid or CHIP and you live in a State listed below, contact your State Medicaid or
CHIP office to find out if premium assistance is available.
If you or your dependents are NOT currently enrolled in Medicaid or CHIP, and you think you or any of your dependents might be
eligible for either of these programs, contact your State Medicaid or CHIP office or dial 1-877-KIDS NOW or www.insurekidsnow.gov to
find out how to apply. If you qualify, ask your state if it has a program that might help you pay the premiums for an employer-
sponsored plan.
If you or your dependents are eligible for premium assistance under Medicaid or CHIP, as well as eligible under your employer plan,
your employer must allow you to enroll in your employer plan if you aren’t already enrolled. This is called a “special enrollment”
opportunity, and you must request coverage within 60 days of being determined eligible for premium assistance. If you have
questions about enrolling in your employer plan, contact the Department of Labor at www.askebsa.dol.gov or call 1-866-444-EBSA
(3272).
If you live in one of the following states, you may be eligible for assistance paying your employer health plan premiums.
The following list of states is current as of January 31, 2019. Contact your State for more information on eligibility –
IMPORTANT NOTICES
FLORIDA – Medicaid
Website: http://flmedicaidtplrecovery.com/hipp/
Phone: 1-877-357-3268
GEORGIA – Medicaid
Website: www.medicaid.georgia.gov
- Click on Health Insurance Premium Payment
(HIPP)
Phone: 404-656-4507
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KEY CONTACTS
Company Name Contact Information
Public Risk Insurance Advisors
Francene Marra: (386) 239-5769 or
fmarra@bbpria.com
Melanie Stegall: (386) 239-5779 or
mstegall@bbpria.com
UnitedHealthcare Medical: (866) 633-2446
Care24 Employee Assistance Program for Medical Enrollees:
(888) 887-4114
ConnectCare3
Patient Advocate Services for Medical Enrollees:
(877) 223-2350
info@connectcare3.com
SunLife
Dental & Vision: (800) 442-7742
Life: (800) 247-6875
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Clay County Utility Authority
RFP# 2020/2021-A9 – Benefits Administrative Services
Section J Attachments
Sample Renewal Marketing
Proposal
Melanie Stegall Employee Benefits Advisor
Francene Marra
Employee Benefits
Team Leader
Morgan Johnson
Marketing Specialist
Effective Date: January 1, 2021
A Proposal of Employee Benefits
Coverage and Service
Client Name
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Public Risk Insurance Advisors
Commitment to Our Clients
The Employee Benefits Division at Pubic Risk Insurance Advisors is focused on providing you with the best products at the most competitive rates possible. We ensure
a very high level of customer service by remaining involved with you after the plan’s effective date.
In addition to the PRIA's Employee Benefits Advisor, all clients are assigned a team of dedicated service and marketing professionals committed to fast, efficient and
friendly service during plan renewal and every other day of the year.
• We provide assistance with carriers to resolve any issues concerning policy administration, claims and billing.
• We provide expertise in designing, analyzing, and maintaining an employee benefits program that will help you attract and retain quality employees.
• We provide timely guidance on local and national trends in employee benefits and in the carrier marketplace.
As part of the 6th largest insurance broker in the country (as determined by Business Insurance magazine) we have the resources to partner with clients of all sizes and
industries to maximize benefits and contain costs. The Employee Benefits Division in Daytona Beach, FL is fully automated and highly efficient in marketing plan
renewals and new business. We have access to all local and national carriers, third party administrators, and other specialists in the employee benefits industry
including:
Medical ∙ Dental ∙ Vision ∙ Life ∙ Disability Plans ∙ Cafeteria Plans ∙ 401(k) Plans ∙ Self‐funded and Partially Self‐funded arrangements ∙ Employee Assistance Programs ∙
Voluntary (employee‐paid) Long‐Term Disability, Short‐Term Disability, Dental and Accident & Sickness plans.
Phone
(386) 252‐6176
(386) 845‐9229 ‐ Fax
Address
Public Risk Insurance Advisors
220 South Ridgewood Avenue
Daytona Beach, FL 32114
Website
www.bbpria.com
NYSE Listed: BRO
Brown & Brown is one of the largest and most respected independent insurance intermediaries in the nation, with over 80 years of continuous service. The Company
is ranked as the sixth largest such organization in the United States by Business Insurance magazine.
Public Risk Insurance Advisors (PRIA), a wholly owned subsidiary of Brown & Brown, Inc., has established itself as one of the premier insurance services organizations
for public entities in the United States. Our in‐depth understanding of the unique risk exposures and operating environment of public entities allows us to tailor
insurance products and services to effectively meet their needs. As the only independent insurance agency solely dedicated to the public entity market, we are
uniquely qualified to meet and exceed the expectations of our clients. Our 20 years of insuring local governments has afforded us significant experience and insight
into the unique challenges and constraints that our clients face.
As a Brown & Brown company, PRIA has access to hundreds of insurance markets nationwide. The buying power and premium leverage within the organization is
surpassed by few agencies.
PRIA focuses on developing innovative approaches towards managing your risk. Cost effective insurance products, professional service, and commitment to client’s
needs are our primary goals. Proof of account satisfaction is reflected by a 97% business retention rate.
Employee Benefits is just one area of expertise we can provide. Our benefit programs include
Medical, Dental, Vision, Cobra, Life, Disability and Section 125 pre‐tax reimbursement accounts just to name a few. We are able to provide fully insured programs for
employers of all sizes and self funded programs to meet the special needs of employers interested in that type of arrangement. In addition to providing the insurance
programs, we assist in the design, cost‐containment, management and development of your employee benefit package.
All Employee Benefit clients are assigned an "In House" Employee Beefits Specialist to assist with Billing, Claims, Eligibility, Enrollment, or any other issues or questions
that arise.
For our clients that opt for self insured programs, we not only provide the mentioned above, but also supply detailed reports to help you monitor your program closely.
We also place the reinsurance, help design a plan to meet your needs and work closely with you and the Third Party administrator during the implementation as well as
throughout the year to ensure the plan operates smoothly.
As for property and casualty, PRIA is a recognized leader in the area of professional liability, governmental and municipal insurance programs, pollutions liability and
many other specialized areas of risk. All property and casualty clients are assigned an "In‐House" Public Risl Specialist.
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Public Risk Insurance Advisors Disclaimers and Disclosures:
• Brown & Brown makes every attempt to place coverage with carriers rated A‐ or better through A.M. Best, a national credit rating Advisors with a specific focus on the
insurance industry. Additional information, including carrier ratings can be found at www.ambest.com. Brown & Brown cannot certify the financial soundness or stability of a
company, so we encourage you to review the financial information for each carrier as found in one or more of the following sources before making a decision as to where to
place your coverage: a state department of insurance website, A.M. Best Company website, or a carrier website.
• The analysis of the following plans is a summary. Please refer to the policy certificate for a full list of coverage and exclusions.
• The rates and benefits in this proposal are based upon underwriting factors which include, but are not limited to, the census provided, the effective date shown, the status of
employees/dependents (i.e. actively at work, COBRA, FMLA), final enrollment, etc. If any of the aforementioned changes prior to the proposed effective date, the final
provisions, including rates, for these plans may vary or result in the proposed plan to be withdrawn.
• If you select to change carriers, any existing plans with other carriers should not be cancelled until advised by Public Risk Insurance Advisors.
• This proposal may not be a complete listing of all available benefit options. Different benefit levels may be available.
• This presentation is the proprietary work product of Public Risk Insurance Advisors and is not authorized for further use or distribution.
• All insurance carriers have their own operating procedures. A change in carrier could affect certain benefits and coverage.
• Public Risk Insurance Advisors representatives are available to explain any items presented. It is assumed that the recipients of this proposal will seek an explanation of any
items that may be in question.
• Public Risk Insurance Advisors representatives may from time to time provide guidance regarding certain requirements affecting health plans, including the requirements of
federal and state health care reform legislation. Such guidance is based on good‐faith interpretation of laws and regulations currently in effect, and is not intended to be a
substitute for legal advice. Employers should contact their own legal counsel for advice regarding legal requirements.
• The network directories/facility lists obtained via paper directories or carrier websites may contain providers and facilities that are no longer participating in the insurance
carriers’ networks. We cannot be responsible for any changes to the provider/facility listings that are not reflected. To ensure that a specific provider or facility is still
participating in the provider’s preferred network, we recommend contacting the provider/facility directly.
• Failure to adhere to provisions of the Affordable Care Act (such as pay‐or‐play, employer reporting requirements, benefit mandates, etc.) may result in significant fees and
penalties to the employer. For a more comprehensive explanation of what fees and penalties may apply to you, you may contact your Public Risk Insurance Advisors
representative at any time.
• You are required to comply with Health Care Reform's Summary of Benefits & Coverage (SBC) distribution guidelines, which include requirements for SBC distribution at the
plan renewal date. If an employee must enroll to continue coverage, the SBC must be provided when open enrollment materials are distributed. If enrollment materials are not
distributed, employees must receive an SBC by the first day they are eligible to enroll. For insured plans, if coverage continues automatically for the next year, the SBC must be
provided at least 30 days before the beginning of the new plan year. If the policy is not issued by that date, the SBC must be provided within seven business days once the
information is available. Please refer to the Department of Health & Human Services' (HHS) official guidance for complete details regarding renewal and other SBC distribution
guidelines.
• Compensation: In addition to the commissions or fees received by us for assistance with the placement, servicing, claims handling, or renewal of your insurance coverages,
other parties, such as excess and surplus lines brokers, wholesale brokers, reinsurance intermediaries, underwriting managers and similar parties, some of which may be owned
in whole or in part by Brown & Brown, Inc., may also receive compensation for their role in providing insurance products or services to you pursuant to their separate contracts
with insurance or reinsurance carriers. That compensation is derived from your premium payments. Additionally, it is possible that we, or our corporate parents or affiliates,
may receive contingent payments or allowances from insurers based on factors which are not client‐specific, such as the performance and/or size of an overall book of business
produced with an insurer. We generally do not know if such a contingent payment will be made by a particular insurer, or the amount of any such contingent payments, until
the underwriting year is closed. That compensation is partially derived from your premium dollars, after being combined (or “pooled”) with the premium dollars of other
insured’s that have purchased similar types of coverage. We may also receive invitations to programs sponsored and paid for by insurance carriers to inform brokers regarding
their products and services, including possible participation in company‐sponsored events such as trips, seminars, and advisory council meetings, based upon the total volume
of business placed with the carrier you select. We may, on occasion, received loans or credit from insurance companies. Additionally, in the ordinary course of our business, we
may receive and retain interest on premiums you pay from the date we receive them until the date of premiums are remitted to the insurance company or intermediary. In the
event that we assist with placement and other details of arranging for the financing of your insurance premium, we may also receive a fee from the premium finance company.
Questions and Information Requests: Should you have any questions or require additional information, please contact this office at 386‐252‐6176 or, if you prefer, submit your
question or request online at http://www.bbinsurance.com/customerinquiry.shtml.
Disclaimer Information
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FSC I less than 1 less than 1 mill FSC IX 250 to 500
FSC II 1 to 2 1 to 2 FSC X 500 to 750
FSC III 2 to 5 2 to 5 FSC XI 750 to 1,000
FSC IV 5 to 10 5 to 10 FSC XII 1,000 to 1,250
FSC V 10 to 25 10 to 25 FSC XIII 1,250 to 1,500
FSC VI 25 to 50 25 to 50 FSC XIV 1,500 to 2,000
FSC VII 50 to 100 50 to 100 FSC XV greater than 2,000
FSC VIII 100 to 250 100 to 250 " ‐‐ "unknown / not rated
The insurance company providing coverage has the following A.M. Best Financial Rating:
A++ to D = Highest to Lowest Rating
XV to I = Largest to Smallest Rating
Not Rated Companies:
NR = Not rated by A.M. Best
Carrier Name Best's Rating for Stability FSC Rating for Assets/ Surplus Web Address Provider Directory
Aetna Life Insurance Company A XV www.aetna.com Yes
Aetna Health Inc. A XV www.aetna.com Yes
Blue Cross & Blue Shield of Florida, Inc. (dba Florida Blue)A+XV www.floridablue.com Yes
Cigna Health and Life Insurance Company A XV www.cigna.com Yes
CIGNA HealthCare (underwitten by Life Ins Co of North America)A XV www.cigna.com Yes
Florida Combined Life Insurance Company A IX www.bcbsfl.com N/A
Guardian Life Insurance Company of America A++XV www.glic.com Yes
Humana Health Insurance of Florida, Inc. (PPO , EPO, Indemnity Plans)A‐XV www.humana.com Yes
Humana Insurance Company (Ancillary)A‐XV www.humana.com Yes
Lincoln National Life Insurance Company A+XV www.lfg.com Yes
Metropolitan Life Insurance Company A+XV www.metlife.com Yes
Standard Insurance Company A XIII www.standard.com N/A
Sun Life Assurance Company of Canada
(Underwritten by Union Security
Insurance Co)
A+XV www.sunlife.com Yes
United Concordia Companies, Inc.A IX www.unitedconcordia.com Yes
United Healthcare Insurance Company (Insurance Paper)A XV www.uhc.com Yes
United Healthcare of Florida, Inc. (HMO Paper)A XV www.uhc.com Yes
Outlooks:
CURRENT GUIDE TO BEST'S RATINGS
Best's Rating:
Represents an opinion based on a company's financial strength, operating performance and market profile
Secure Best's Ratings: A++ to B+ (Superior to Good)
Vulnerable Best's Ratings: B to D (Fair to Poor)
s = Syndicate (operating at Lloyds)
Financial Size Categories:
Reflects the company's size based on its capital surplus and conditional reserve funds in millions of U.S. dollars, using the scale below:
A.M. BEST'S INSURANCE RATINGS & CARRIER WEBSITES
Positive = indicates possible rating upgrade due to favorable financial/market trend relative to the current rating level.
Not Rated Companies:
NR = Companies that are not rated by A.M. Best
Rating Modifiers:
u = Under Review (change in financial condition)
pd = Public Data (Insurers do not subscribe to Best's rating process)
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Medical
Aetna See Proposal FSA / RRA
BlueCross BlueShield See Proposal Aetna See Proposal
Cigna Current Carrier‐ See Proposal BlueCross BlueShield See Proposal
Humana DTQ‐ Not Competitive Cigna See Proposal
Maestro Health See Proposal EBC Flex See Proposal
PCG Health See Proposal HSA Bank DTQ‐ Due to size
United HealthCare See Proposal Infinisource See Proposal
ProBenefits See Proposal
Dental TASC See Proposal
Aetna See Proposal Wageworks See Proposal
BlueCross BlueShield See Proposal
Cigna Current Carrier‐ See Proposal PBM
Delta Dental No Response Aetna See Proposal
Guardian See Proposal Axia Strategies See Proposal
Humana See Proposal BlueCross BlueShield See Proposal
Lincoln See Proposal Cigna See Proposal
MetLife See Proposal RxBenefits See Proposal
Mutual of Omaha DTQ‐ Not Competitive UHC See Proposal
Principal DTQ‐ Not Competitive WellDyneRx See Proposal
Solstice
Proposal Received, but not A Rated.
City received email copy of
proposal.
Standard See Proposal
SunLife See Proposal
United HealthCare See Proposal
United Concordia See Proposal
Marketing Summary
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Executive Summary of Self‐Funded Administration Fees
Client Name
January 1, 2020 ‐ December 31, 2020
Administrative Fees
Enrollment
Single: 701
Family:485
Total:1186
Contract Period:
Rate Guarantee
TPA: Current ‐ Cigna Renewal ‐ Cigna Proposal ‐ Aetna Proposal ‐ Florida Blue
Plan Administration Cost:
Medical Administration $34.18 $34.18 $28.08 $50.15
Rx Administration Included Included (ASO Fee $49.18 if Carve Out) Included Included
COBRA Administration
Included Included
Payflex $0.50pepm + $500 Implementation
Fee (Waived if FSA Bundled) + $250 Annual
Fee $1.25
Rate Guarantee N/A 3 Years, 3% Cap Y4 and Y5 3 Years 2 Years; $51.65 Y3&4, $53.15 Y5
Fee Holiday Terms N/A 3 Months Y1, 1 Month Y2 2 Months N/A
Fee Holiday Y1 Total $43,937.00 $121,612.44 $66,605.76 N/A
Run‐out Fees 4 months of ASO fees 4 months of ASO fees None 3 Months of ASO Fees
Network Access Fee Included Included See Schedule in Proposal
File Feeds to Marathon Health Included Included Included Additional Fees
Utilization Review Included Included Included Included
Third Party Stop Loss Fee N/A Included $0.45
Rx Carve Out Fee N/A $15.00 Not Available with Carve Out Rx $4.00
Disease Management Included Included Included Included
Large Case Management Included Included Included Included
Transplant Coordination Included Included Included Included
National Advantage Program w/Medicare Fee Schedule Included Included 50% of Savings Retained Included
Itemized Bill Review TBD TBD 50% of Savings Retained No Charge
Third Party Claim & Code Review Program TBD TBD 37.5% of Savings Retained No Charge
Second Opinion TBD TBD $1 pm Activation Fee; $2,500 per Consult
Best Doctors Second Opinion‐ $2.48 pepm; requires
Teladoc
Standard Facility Charge Review 29% of recoveries 29% of recoveries 50% of Savings Retained No Charge
Subrogation Recovery 29% of recoveries 29% of recoveries 37.5% of Savings Retained 30% of recoveries
Claims Fiduciary Fee TBD TBD Included $1.25 pemp
Telemedicine MD Live & AmWell MD Live & AmWell Teladoc Teladoc
General Medicine Admin Fee Included Included $0.25 pmpm $0.90
Behavioral Health Admin Fee N/A N/A
$0.07 pmpm (Optional and not included in
monthly fee below)N/A
Dermatology Admin Fee N/A N/A
$0.25 pmpm (Optional and not included in
monthly fee below)N/A
Per Consultation Admin Fee N/A N/A $3.00 Claims Costs Apply
Wellness Your Health First Your Health First (See Questionnaire) Simple Steps to a Healthy Life (See Questionnaire) Rally $2.25 pepm
Monthly Cost per Employee: $34.18 $34.18 $28.83 $51.40
Annual Administration Cost: $486,449.76 $486,449.76 $410,308.56 $731,524.80
HRA Administration $1.44 $1.44 $2.75 $4.75
# HRA Enrollees 2019 698 698 698 698
HRA Debit Card $0.50 $0.50
Annual HRA Cost $16,249.44 $16,249.44 $23,034.00 $39,786.00
Annual Administration Including HRA: $502,699.20 $502,699.20 $433,342.56 $771,310.80
Difference from Current:$0.00 ($69,356.64)$268,611.60
1st Year Administration Including HRA & Fee Holiday:$458,762.20 $381,086.76 $366,736.80 $772,008.80
Difference from Current:($77,675.44)($92,025.40)$313,246.60
Allowances:
Implementation/Communication Allowance N/A $30,000.00 $50,000.00
Online Enrollment Fund (Annual)$40,000.00 ‐
Misc (RDS Reporting, CSN, Data Feeds, COBRA)$11,000.00 See Response to Questions
AdHoc Reporting Fund $10,000.00
1st 5 hours Free; No Public Entity Has Used
More than 5 Hours
Annual Wellness Allowance $60,000.00 $60,000.00 $100,000 Y1, $50,000 Y2+
Annual Well Worker Award $5,000.00
Additional:
Network Open Access Plus Open Access Plus OAPOS; OAMC +65 Retirees Select (AltNet) FL; PPO Other States
PBM Cigna/Express Scripts Cigna/Express Scripts Aetna
Rx rebates ‐ % to client 100%
$130/brand ; $433.50/brand MO; See
Schedule for Hep C and Y2 & Y3 (Estimated
$2,000,000 over 3 Years)
$130/brand; $335/brand 90 Retail/ $375/brand MO/
$1,130/specialty; See Schedule
90 Day Rx at Retail Included (CVS)Included (CVS)‐
Data or Reporting Charge
AdHoc after $10,000 fund is $300/hour; $175
Additional Hours
1st 5 hours Free; $200/hour after 1st 5 hours;
No Public Entity Has Used More than 5 Hours AdHoc $125/hour after 5/quarter for Free
Performance Guarantees:$60,004 Service PG 50% of Fees
Service Notes:Public Sector Service Specialists Dedicated Public Sector Account Team
24/7 Live Customer Support Net Effective Trend Guarantee 3.5%
One Guide Concierge Service ($3.50 pepm)Customer Service M‐F 8:00 to 6:00
Concierge Level Member Service
6SP
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Executive Summary of Self‐Funded Administration Fees
Client Name
January 1, 2020 ‐ December 31, 2020
Administrative Fees
Enrollment
Single: 701
Family:485
Total:1186
Contract Period:
Rate Guarantee
TPA: Current ‐ Cigna Proposal ‐ Maestro Health Proposal ‐ PCG Proposal ‐ United Healthcare
Reference Based Pricing
Plan Administration Cost:
Medical Administration $34.18 $15.00 $32.38 $29.00
Reference Based Pricing Repricing Facility Claims N/A $16.00 N/A N/A
Rx Administration Included Included Included Included
COBRA Administration Included Included Included 0.55 pepm
Rate Guarantee N/A 3 Years 3 Years 3 Years; +3% Y4; +3% Y5
Fee Holiday $43,937.00 N/A N/A N/A
Run‐out Fees 4 months of ASO fees 4 Months of ASO Fees TBD 2 Months of ASO Fees
Network Access Fee Included $4.50 Included
File Feeds to Marathon Health Included Included Included Included (Standard Medical, Rx, & Eligibility)
Utilization Review Included Included Included
Third Party Stop Loss Fee N/A N/A N/A $1 pepm
Rx Carve Out Fee N/A N/A N/A Not Available with Carve Out Rx
Disease Management Included Included N/R Included
Large Case Management Included Included N/R Included (See Schedule)
Transplant Coordination Included Included N/R Included
National Advantage Program w/Medicare Fee Schedule TBD Included N/R N/A
Itemized Bill Review TBD Included N/R 31% of Savings Retained
Third Party Claim & Code Review Program TBD Included N/R N/A
Second Opinion TBD Included N/R N/A
Standard Facility Charge Review 29% of recoveries Included N/R 24% of Savings Retained
Subrogation Recovery 29% of recoveries 25% of Savings Retained N/R 33.33% of Savings Retained
Claims Fiduciary Fee TBD 1.00 pepm N/R $1 pepm if Elected
Shared Savings 29% of Savings Retained Included N/R 35% of Savings Retained
Telemedicine MD Live & AmWell Teladoc N/R
General Medicine Admin Fee Included 2.75 pepm N/R $0.00
Behavioral Health Admin Fee N/A Included N/R $0.00
Dermatology Admin Fee N/A Included N/R $0.00
Per Consultation Admin Fee N/A TBD N/R $0.00
Wellness Your Health First HealthyMe (See Proposal) N/R
Comprehensive Program Rally & Real
Appeal(See Proposal)
Monthly Cost per Employee: $34.18 $35.50 $32.38 $29.55
Annual Administration Cost:$486,449.76 $505,236.00 $460,832.16 $420,555.60
HRA Administration $1.44 $4.00 Included in Medical
# HRA Enrollees 2019 698 698 698 698
HRA Debit Card $0.50 N/R $0.50
Annual HRA Cost $16,249.44 $33,504.00 N/R $4,188.00
Annual Administration Including HRA:$502,699.20 $538,740.00 $460,832.16 $424,743.60
Difference from Current: N/A $36,040.80 ($41,867.04) ($77,955.60)
1st Year Administration Including HRA & Fee Holiday: $458,762.20 $538,740.00 $460,832.16 $424,743.60
Difference from Current:$79,977.80 $2,069.96 ($34,018.60)
Allowances:
Implementation/Communication Allowance TBD $40,000.00 $50,000.00
Online Enrollment Fund (Annual)
Misc (RDS Reporting, CSN, Data Feeds, COBRA TBD
AdHoc Reporting Fund
Annual Wellness Allowance $0.00 $50,000.00 $50,000.00
Annual Well Worker Award ‐‐ ‐‐
Additional:
Network Open Access Plus PHCS Non Facility Claims Cigna (??)
UHC Choice Plus POS (Also, Premium
Designation Physicians)
PBM Cigna/Express Scripts Southern Scripts Citizens Rx Optum
Rx rebates ‐ % to client 100% Transparent Model
Data or Reporting Charge Included Included $23,000 + $0.35pepy for Expanded Reporting
AdHoc Reports Additional Fees
Performance Guarantees :See TPA Fee Schedule Public Sector Focus, State of FL Vendor
Service Notes:
Claims Data Savings Analysis
$3,000,000+ in Claims
Savings Per Year (34%)
Customer Service M‐F 8:00
to 6:00
$250 per SBC
7SP
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Executive Summary of Medical & Prescription Drug Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Plan Name
Plan Type
Plan Details
Single Family Single Family Single Family Single Family
Plan Deductible: $750 $2,250 $2,500 $5,000 $750 $2,250 $2,500 $5,000
Embedded Deductible:
Calendar or Policy Year:
Coinsurance:
Maximum Out‐of‐Pocket: $2,500 $7,500 $6,500 $10,500 $2,500 $7,500 $6,500 $10,500
(Includes Deductible, Copay, Rx)
Physician Services
Office Visit:
Specialist:
Chiropractic:
Telemedicine:
Hospital / Emergency Services
Inpatient Hospital Per Admission:
Emergency Room:
Urgent Care:
Outpatient Surgical Facility:
Ambulatory Surgery Center:
Diagnostic Services
Lab & X‐Ray Outpatient:
Advanced Imaging Services (MRI, MRA, PET, CT):
Prescription Drug
Deductible:
Prescription Maximum Out‐of‐Pocket: $4,100 $5,700 $4,100 $5,700
Prescription Tier
Mail Order Prescription (90 Day Supply):
Non‐Network Plan Details
Plan Deductible: $1,500 $4,500 $5,000 $10,000 $1,500 $4,500 $5,000 $10,000
Coinsurance:
Maximum Out‐of‐Pocket: $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000
Per Occurrence Deductible (Inpatient/Outpatient):
Plan Rates | Current Enrollment
Employee: 285 197 122 97
Employee + One: 122 73 60 19
Employee + Family: 160 50 0 1
Estimated Monthly Premiums: 567 320 182 117
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:$15,966,264 $3,544,341
$11,203,766 $4,762,498 $2,393,474 $1,150,867
Aetna‐ Actives & Pre‐65 Retirees Aetna‐ Over 65 Retirees
$933,647 $396,875 $199,456 $95,906
$2,015.85 $1,757.82 $1,777.98 $1,550.39
$2,762.38 $2,408.79 $2,436.42 $2,124.55
Aetna‐ Actives & Pre‐65 Retirees Aetna‐ Over 65 Retirees
$862.22 $751.85 $760.47 $663.13
40% 40% 40% 40%
N/A N/A
Non‐Network Non‐Network Non‐Network Non‐Network
N/A N/A
$250 Deductible + Coinsurance
$10 $0
$5 | $40% of Cost, $35 min.‐ $75 $5 | $35 | $70 | $250
2.5x Retail Copay 2.5x Retail Copay
Deductible + Coinsurance Deductible + Coinsurance
$250 $250
N/A N/A
$20 $20
Deductible + Coinsurance Deductible + Coinsurance
$20 $20
$75
Deductible + Coinsurance Deductible + Coinsurance
Deductible + Coinsurance
$35 $35
$35 $35 $35 $35
$20 $20 $20 $20
$35 $35
Yes Yes‐ Includes Rx Yes Yes‐ Includes Rx
Yes Yes
Calendar Calendar Calendar Calendar
20% 20%
Yes Yes
POS POS POS POS
Network Network Network Network
20% 20%
Aetna‐ Actives & Pre‐65 Retirees Aetna‐ Over 65 Retirees
OAMC $750‐ Actives & Pre‐65 Retirees
OAMC $2,500‐ Actives & Pre‐65
Retirees OAMC $750‐ Over 65 Retirees OAMC $2,500‐ Over 65 Retirees
$250 $250
$75
Deductible + Coinsurance Deductible + Coinsurance
Deductible + Coinsurance Deductible + Coinsurance
N/A
2.5x Retail Copay 2.5x Retail Copay
N/A
$5 | $40% of Cost, $35 min.‐ $75 max. | $5 | $35 | $70 | $250
Deductible + Coinsurance
$75 $75
N/A N/A
$10 $0
$250 Deductible + Coinsurance
8SP
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Executive Summary of Medical & Prescription Drug Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Plan Name
Plan Type
Plan Details
Single Individual + 1 Family Single Individual + 1 Family Single Family Single Family
Plan Deductible:$750 $1,500 $2,250 $2,500 $5,000 $7,500 $750 $2,250 $2,500 $5,000
Embedded Deductible:
Calendar or Policy Year:
Coinsurance:
Maximum Out‐of‐Pocket: $2,500 $5,000 $7,500 $6,500 $10,500 $13,200 $2,500 $7,500 $6,500 $10,500
(Includes Deductible, Copay)
Physician Services
Office Visit:
Specialist:
Chiropractic:
Telemedicine:
Hospital / Emergency Services
Inpatient Hospital Per Admission:
Emergency Room:
Urgent Care:
Outpatient Surgical Facility:
Ambulatory Surgery Center:
Diagnostic Services
Lab & X‐Ray Outpatient:
Advanced Imaging Services (MRI, MRA, PET, CT):
Prescription Drug
Deductible:
Prescription Maximum Out‐of‐Pocket:$4,100 $5,700 $5,700 $4,100 $5,700
Prescription Tier
Mail Order Prescription (90 Day Supply):
Non‐Network Plan Details
Plan Deductible:$1,500 $3,000 $4,500 $5,000 $10,000 $15,000 $1,500 $4,500 $5,000 $10,000
Coinsurance:
Maximum Out‐of‐Pocket: $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000
Per Occurrence Deductible (Inpatient/Outpatient):N/A N/A N/A N/A
Non‐Network Non‐Network Non‐Network Non‐Network
40%40%40%40%
2.5x Retail Copay 2.5x Retail Copay 2.5x Retail Copay 2.5x Retail Copay
N/A N/A N/A N/A
$5 | $40% of Cost, $35 min.‐ $75 max. |
60% of Cost, $70 min.‐ $100 max | $250 $5 | $35 | $70 | $250
$5 | $40% of Cost, $35 min.‐ $75 max. |
60% of Cost, $70 min.‐ $100 max | $250 $5 | $35 | $70 | $250
$250 Deductible + Coinsurance $250 Deductible + Coinsurance
N/A N/A
$10 Deductible + Coinsurance $10 $0
Deductible + Coinsurance Deductible + Coinsurance Deductible + Coinsurance Deductible + Coinsurance
Deductible + Coinsurance Deductible + Coinsurance Deductible + Coinsurance Deductible + Coinsurance
$250 $250 $250 $250
$75 $75 $75 $75
Deductible + Coinsurance Deductible + Coinsurance Deductible + Coinsurance Deductible + Coinsurance
$50 $50 $35 $35
$20 $20 $20 $20
$20 $20 $20 $20
$35 CCN Specialist | $50 Non‐CCN
Specialist
$35 CCN Specialist | $50 Non‐CCN
Specialist $35 $35
Yes Yes‐ Includes Rx Yes Yes‐ Includes Rx
Calendar Calendar Calendar Calendar
20%20%20%20%
Yes Yes Yes Yes
Open Access Plan (OAP)Consumer Driven Health Plan (CDHP)ASC POSII (OAPC)ASC POSII (OAHD)
POS POS POS POS
Current ‐ Cigna Proposed ‐ Aetna
Plan Design Comparison for Self Funded Proposal
Network Network Network Network
9SP
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Executive Summary of Medical & Prescription Drug Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Plan Name
Plan Type
Plan Details
Single Individual + 1 Family Single Individual + 1 Family Single Individual + 1 Family Single Individual + 1 Family
Plan Deductible:$750 $1,500 $2,250 $2,500 $5,000 $7,500 $750 $1,500 $2,250 $2,500 $5,000 $7,500
Embedded Deductible:
Calendar or Policy Year:
Coinsurance:
Maximum Out‐of‐Pocket: $2,500 $5,000 $7,500 $6,500 $10,500 $13,200 $2,500 $5,000 $7,500 $6,500 $10,500 $13,200
(Includes Deductible, Copay)
Physician Services
Office Visit:
Specialist:
Chiropractic:
Telemedicine:
Hospital / Emergency Services
Inpatient Hospital Per Admission:
Emergency Room:
Urgent Care:
Outpatient Surgical Facility:
Ambulatory Surgery Center:
Diagnostic Services
Lab & X‐Ray Outpatient:
Advanced Imaging Services (MRI, MRA, PET, CT):
Prescription Drug
Deductible:
Prescription Maximum Out‐of‐Pocket:$4,100 $5,700 $5,700 $4,100 $5,700 $5,700
Prescription Tier
Mail Order Prescription (90 Day Supply):
Non‐Network Plan Details
Plan Deductible:$1,500 $3,000 $4,500 $5,000 $10,000 $15,000 $1,500 $3,000 $4,500 $5,000 $10,000 $15,000
Coinsurance:
Maximum Out‐of‐Pocket: $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000
Per Occurrence Deductible (Inpatient/Outpatient):N/A N/A
Three potential deviations: 1. TMJ – we can administer the benefit as written for
surgical services, but are unable to administer the case‐by‐case review for non‐
surgical services. 2. Urgent Care – our claim system is unable to determine if the
service was emergency or no‐emergency. We would suggest differentiation for in and
out of network rather than severity. 3. Genetic Testing – our claim system cannot
determine if the person has symptoms or signs of a genetically‐linked inherited
disease. We would suggest removing those parameters for coverage.
Non‐Network Non‐Network
N/A N/A
Non‐Network Non‐Network
20%20%
Yes Yes‐ Includes Rx
Deductible + Coinsurance Deductible + Coinsurance
$250 $250
$75 $75
$35 PD Specialist | $50 Non‐PD
Specialist
$35 PD Specialist | $50 Non‐PD
Specialist
$50 $50
$20 $20
$5 | $40% of Cost, $35 min.‐ $75 max. |
60% of Cost, $70 min.‐ $100 max | $250 $5 | $35 | $70 | $250
2.5x Retail Copay 2.5x Retail Copay 2.5x Retail Copay 2.5x Retail Copay
40%40%40%40%
$5 | $40% of Cost, $35 min.‐ $75 max. |
60% of Cost, $70 min.‐ $100 max | $250 $5 | $35 | $70 | $250
N/A
$250 Deductible + Coinsurance $250 Deductible + Coinsurance
N/A N/A
N/A
$10 Deductible + Coinsurance
Deductible + Coinsurance Deductible + Coinsurance Deductible + Coinsurance Deductible + Coinsurance
Deductible + Coinsurance Deductible + Coinsurance
N/A N/A
Deductible + Coinsurance Deductible + Coinsurance
$10 Deductible + Coinsurance
$75 $75
Deductible + Coinsurance Deductible + Coinsurance
$20 $20
$20 $20 $20 $20
$35 CCN Specialist | $50 Non‐CCN
Specialist
$35 CCN Specialist | $50 Non‐CCN
Specialist
$250 $250
Calendar Calendar Calendar Calendar
20%20%
$50 $50
Yes Yes
Open Access Plan (OAP)Consumer Driven Health Plan (CDHP)Choice Plus AQOOMOD Choice Plus AQORMOD
POS POS
Yes Yes‐ Includes Rx
POS POS
Network Network
Yes Yes
Plan Design Comparison for Self Funded Proposal
Current ‐ Cigna Proposed ‐ United HealthCare
Network Network
10SP
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Executive Summary of Self‐Funded Dental
Client Name
January 1, 2020 ‐ December 31, 2020
Enrollment 1212
Carrier ASO Fee Annual ASO 2018 Claims Cost Total 2018 Cost Total Effective Discount PPO Discount OON/80th Discount
Cigna Current (Based on 2018 Claims) 2.96 43,050.24 634,656.00 677,706.24 TBD TBD TBD
Cigna Renewal (W/Med) 2.96 43,050.24 TBD TBD TBD
Aetna 2.70 39,268.80 35% 35% 4%
BCBS/FCL 3.90 56,721.60 29% 44% 7%
Guardian 2.96 43,050.24 29% 25% 12%
Humana 2.86 41,595.84 ‐ 38% ‐
MetLife 4.00 58,176.00 34% 41% 5%
Standard 3.51 51,049.44 21% 21% 2%
UHC 2.58 37,523.52 22% 34% 3%
United Concordia 7.00 101,808.00 32% 42% 9%
11SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive
1 per calendar year, under age
19 Preventive 1 per calendar year, under age 19
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14
Fillings:Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Rate Change from Current:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$2.96 packaged ($3.21 if stand‐alone)$2.96
Proposal ‐ Cigna
$889,564
Proposal ‐ Cigna ASO Fees
$55,818 $18,312
$669,821 $219,743
$55,818
$669,821
$15,625
$187,499
$857,320
Proposal‐ Cigna
Proposal‐ Cigna
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$61.20 $65.14 $61.20 $76.34
$121.35 $125.98 $121.35 $147.65
Proposal ‐ Cigna
$31.23 $33.39 $31.23 $39.13
< 15% variation from current enrollment < 15% variation from current enrollment < 15% variation from current enrollment < 15% variation from current enrollment
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years
(5% rate cap year 4, 6.5% rate cap year 5)‐ Fully
Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
None None None None
Continuing current contributions Continuing current contributions Continuing current contributions Continuing current contributions
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Dental Base PPO Plan Dental Buy Up PPO Plan‐ Alternate
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Online subsidy credit included in Medical ASO fees.
Current ‐ Cigna Proposal ‐ Cigna
$2.96 packaged ($3.21 if stand‐alone)
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO Cigna Dental PPO Cigna Dental PPO
Dental Base PPO Plan Dental Buy Up PPO Plan
16SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
X‐Ray (Full Mouth): Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14
Fillings:Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Rate Change from Current:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$2.96 $2.96 packaged ($3.21 if stand‐alone)
$125.98
$55,818
$669,821
$15,625
$187,499
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees Proposal ‐ Aetna ASO Fees
Continuing current contributions Continuing current contributions
< 15% variation from current enrollment
Proposal ‐ Aetna
$809,934
$51,467 $16,027
$617,607 $192,327
Proposal ‐ Aetna
$33.33 $40.16
$61.91 $74.58
$90.48 $108.97
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years‐ ASO | 1 Year (5% rate cap on year 2)‐ Fully
Insured
Assumes 1,212 employees enrolled
Yes Yes Yes Yes
None None None None
Proposal‐ Cigna
$31.23
$61.20
$121.35
$33.39
$65.14
None None None
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years‐ ASO | 1 Year (5% rate cap on year 2)‐ Fully
Insured
< 15% variation from current enrollment Assumes 1,212 employees enrolled
None
None None None None
80th 80th 80th 80th
$1,500 $3,000 $1,500 $3,000
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Non‐Network
Yes Yes Yes Yes
Yes
Proposal ‐ AetnaCurrent ‐ Cigna
Yes Yes Yes Yes
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Yes
$2.70
Rate assumes medical and dental will be awarded. Aetna is not providing an Online Enrollment subsidy.Online subsidy credit included in Medical ASO fees.
Cigna Dental PPO Cigna Dental PPO Aetna Dental PPO II Aetna Dental PPO II
Dental Base PPO Plan Dental Buy Up PPO Plan Low Plan High Plan
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network
$1,500 $1,500 $1,500 $1,500
Yes Yes
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive
1 per calendar year, under age
19 Preventive 1 per calendar year, under age 19
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
X‐Ray (Full Mouth): Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14
Fillings:Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Rate Change from Current:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
$55,818 $15,625
$669,821 $187,499
Current ‐ Cigna Proposal ‐ Aetna
Proposal‐ Cigna
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%100% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO Aetna Dental PPO II Aetna Dental PPO II
Dental Base PPO Plan Dental Buy Up PPO Plan Low Plan‐ Option 2 High Plan‐ Option 2
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%100% | 80% | 50% | 50%
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
< 15% variation from current enrollment < 15% variation from current enrollment Assumes 1,212 employees enrolled Assumes 1,212 employees enrolled
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years‐ ASO | 1 Year (5% rate cap on year 2)‐ Fully
Insured
3 Years‐ ASO | 1 Year (5% rate cap on year 2)‐ Fully
Insured
None None None None
Continuing current contributions Continuing current contributions
$52,496 $16,347
$629,951 $196,169
Proposal ‐ Aetna
$34.00 $40.96
$63.14 $76.07
$92.29 $111.15
Online subsidy credit included in Medical ASO fees.Rate assumes medical and dental will be awarded. Aetna is not providing an Online Enrollment subsidy.
Proposal ‐ Aetna
$826,120
Proposal ‐ Aetna ASO Fees
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)$2.70
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per benefit period Preventive 2 per benefit period
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 2 per benefit period, under age 14 Preventive 2 per benefit period, under age 14
X‐Ray (Bitewings):Preventive 2 per calendar year Preventive 2 per calendar year Preventive Once per benefit period Preventive Once per benefit period
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive
Once in any 36 consecutive month
benefit period Preventive
Once in any 36 consecutive month benefit
period
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive Under age 16 Preventive Under age 16
Fillings:Basic As needed Basic As needed Basic One per tooth per 12 months Basic One per tooth per 12 months
Oral Surgery (Simple):Basic As needed Basic As needed Basic Once per lifetime Basic Once per lifetime
Oral Surgery (Complex):Basic As needed Basic As needed Basic Once per lifetime Basic Once per lifetime
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per lifetime per tooth Basic Once per lifetime per tooth
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic
Once per quadrant every 24 months, age
18+Basic
Once per quadrant every 24 months, age
18+
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Once per quadrant per 36 months Basic Once per quadrant per 36 months
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Once per 60 months Major Once per 60 months
Bridges Major Replacement every 5 years Major Replacement every 5 years Major One per 5 years Major One per 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major One per 5 years Major One per 5 years
Implants:Not covered N/A Not covered N/A Major One per tooth per lifetime, age 16+Major One per tooth per lifetime, age 16+
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
Proposal‐ Cigna
$121.35 $125.98
$55,818 $15,625
$669,821 $187,499
Proposal‐ Cigna
$857,320
$31.23 $33.39
$61.20 $65.14
Online subsidy credit included in Medical ASO fees.
ASO fees will remain the same as quoted for the Alternate High Plan Coinsurance 100/80/50/50 both in & out of network. BCBS is
not providing an Online Enrollment subsidy.
Proposal ‐ BCBS
$0
Proposal ‐ BCBS ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)$3.90
Renewal ‐ Cigna ASO FeesCurrent ‐ Cigna ASO Fees
$0 $0
$0 $0
Proposal ‐ BCBS
Not Provided Not Provided
Not Provided Not Provided
Not Provided Not Provided
< 15% variation from current enrollment < 15% variation from current enrollment 50%50%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 3 Years 3 Years
None None Yes Yes
Continuing current contributions Continuing current contributions Continuing current contributions Continuing current contributions
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO BlueDental ChoicePlus BlueDental ChoicePlus
Dental Base PPO Plan Dental Buy Up PPO Plan Low Plan High Plan
Current ‐ Cigna Proposal ‐ BCBS
Network Network Network Network
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive
1 per calendar year, under age
19 Preventive 1 per calendar year, under age 19
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14
Fillings:Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes: Online subsidy credit included in Medical ASO fees.
Fee would be $2.66 with no implementation credit. College Tuition Benefit: Additional $0.45 pepm.
Online Enrollment subsidy: ASO & Fully‐Insured Options One‐ Time Allowance Reimbursement of up to $10,000 or
2% of fully‐insured premium (lesser of) for program and transition related expenses.
Proposal ‐ Guardian
$763,412
Proposal ‐ Guardian ASO Fees
$48,361 $15,256
$580,338 $183,075$669,821 $187,499
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)
$55,818 $15,625
$2.96
Proposal ‐ Guardian
$30.30 $37.05
$58.67 $71.21
$87.04 $105.36
< 15% variation from current enrollment < 15% variation from current enrollment 93%93%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5% rate
cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 3 Years‐ ASO | 2 Years Fully Insured 3 Years‐ ASO | 2 Years Fully Insured
Proposal‐ Cigna
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
None None Yes Yes
Continuing current contributions Continuing current contributions Contributory Contributory
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
80% | 80% | 50% | 50%
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Current ‐ Cigna Proposal ‐ Guardian
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Network Network Network Network
Cigna Dental PPO Cigna Dental PPO DentalGuard Preferred DentalGuard Preferred
Dental Base PPO Plan Dental Buy Up PPO Plan Low Option High Option
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive
1 per calendar year, under age
19 Preventive 1 per calendar year, under age 19
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14
Fillings:Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
$55,818 $15,625
$669,821 $187,499
Current ‐ Cigna Proposal ‐ Guardian
Proposal‐ Cigna
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO DentalGuard Preferred DentalGuard Preferred
Dental Base PPO Plan Dental Buy Up PPO Plan Low Option High Option
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
< 15% variation from current enrollment < 15% variation from current enrollment 93%93%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5% rate
cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 3 Years‐ ASO | 2 Years Fully Insured 3 Years‐ ASO | 2 Years Fully Insured
None None Yes Yes
Continuing current contributions Continuing current contributions Contributory Contributory
$48,361 $17,318
$580,338 $207,810
Proposal ‐ Guardian
$30.30 $41.75
$58.67 $80.55
$87.04 $120.48
Online subsidy credit included in Medical ASO fees.
Fee would be $2.66 with no implementation credit. College Tuition Benefit: Additional $0.45 pepm.
Online Enrollment subsidy: ASO & Fully‐Insured Options One‐ Time Allowance Reimbursement of up to $10,000 or
2% of fully‐insured premium (lesser of) for program and transition related expenses.
Proposal ‐ Guardian
$788,148
Proposal ‐ Guardian ASO Fees
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)$2.96
21SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per year Preventive 2 per year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 1 per year, through age 18 Preventive 1 per year, through age 18
X‐Ray (Bitewings):Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per year Preventive 2 per year
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive One set every 3 years Preventive One set every 3 years
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive Through age 13 Preventive Through age 13
Fillings:Basic As needed Basic As needed Basic 1 per tooth every 2 years Basic 1 per tooth every 2 years
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic
1 per tooth per lifetime and 1 re‐
treatment Basic
1 per tooth per lifetime and 1 re‐
treatment
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic 1 per quadrant every 3 years Basic 1 per quadrant every 3 years
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic 1 per quadrant every 3 years Basic 1 per quadrant every 3 years
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major 1 per tooth every 5 years Major 1 per tooth every 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major 1 per tooth every 5 years Major 1 per tooth every 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major 1 per tooth every 5 years Major 1 per tooth every 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes: Online subsidy credit included in Medical ASO fees.
ASO fees will remain the same as quoted for the Alternate High Plan Coinsurance 100/80/50/50 both in & out of
network. Humana is not providing an Online Enrollment subsidy.
Proposal ‐ Humana
$0
Proposal ‐ Humana ASO Fees
$0 $0
$0 $0$669,821 $187,499
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)
$55,818 $15,625
$2.86
Proposal ‐ Humana
Not Provided Not Provided
Not Provided Not Provided
Not Provided Not Provided
< 15% variation from current enrollment < 15% variation from current enrollment Minimum 800 subscribers Minimum 800 subscribers
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5% rate
cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 3 Years 3 Years
Proposal‐ Cigna
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
None None None None
Continuing current contributions Continuing current contributions Continuing current contributions Continuing current contributions
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
80% | 80% | 50% | 50%
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Current ‐ Cigna Proposal ‐ Humana
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Network Network Network Network
Cigna Dental PPO Cigna Dental PPO HumanaDental PPO HumanaDental PPO
Dental Base PPO Plan Dental Buy Up PPO Plan Low Plan High Plan
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
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Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per year Preventive 2 per year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 1 per year, through age 18 Preventive 1 per year, through age 18
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 1 set per year Preventive 1 set per year
X‐Ray (Full Mouth): Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 3 years Preventive 1 per 3 years
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive 1 per 36 months, through age 13 Preventive 1 per 36 months, through age 13
Fillings:Basic As needed Basic As needed Basic 1 per 24 months Basic 1 per 24 months
Oral Surgery (Simple):Basic As needed Basic As needed Basic Evaluated per tooth Basic Evaluated per tooth
Oral Surgery (Complex):Basic As needed Basic As needed Basic Evaluated per tooth Basic Evaluated per tooth
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Evaluated per tooth Basic Evaluated per tooth
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic 1 per 24 months Basic 1 per 24 months
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic 1 per 36 months Basic 1 per 36 months
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major 1 per 5 years, age 16+Major 1 per 5 years, age 16+
Bridges Major Replacement every 5 years Major Replacement every 5 years Major 1 per 5 years Major 1 per 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major 1 per 5 years Major 1 per 5 years
Implants:Not covered N/A Not covered N/A Major 1 per 5 years, age 16+Major 1 per 5 years, age 16+
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes: Online subsidy credit included in Medical ASO fees.Online Enrollment subsidy: Lincoln will confirm subsidy amounts at finalist stage if chosen.
Proposal ‐ Lincoln
$874,610
Proposal ‐ Lincoln ASO Fees
$55,584 $17,300
$667,009 $207,601$669,821 $187,499
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)
$55,818 $15,625
N/A
Proposal ‐ Lincoln
$36.00 $43.35
$66.86 $80.49
$97.71 $117.64
< 15% variation from current enrollment < 15% variation from current enrollment 90%90%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5% rate
cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 1 Year 1 Year
Proposal‐ Cigna
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
None None None None
Continuing current contributions Continuing current contributions 50%50%
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
80% | 80% | 50% | 50%
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Current ‐ Cigna Proposal ‐ Lincoln
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Network Network Network Network
Cigna Dental PPO Cigna Dental PPO Lincoln DentalConnect Lincoln DentalConnect
Dental Base PPO Plan Dental Buy Up PPO Plan Option 1.00 (Low Plan)Option 1.01 (High Plan)
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
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Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per year Preventive 2 per year
Fluoride Treatment: Preventive
1 per calendar year, under age
19 Preventive 1 per calendar year, under age 19 Preventive 1 per year, through age 18 Preventive 1 per year, through age 18
X‐Ray (Bitewings):Preventive 2 per calendar year Preventive 2 per calendar year Preventive 1 set per year Preventive 1 set per year
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 3 years Preventive 1 per 3 years
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive 1 per 36 months, through age 13 Preventive 1 per 36 months, through age 13
Fillings:Basic As needed Basic As needed Basic 1 per 24 months Basic 1 per 24 months
Oral Surgery (Simple):Basic As needed Basic As needed Basic Evaluated per tooth Basic Evaluated per tooth
Oral Surgery (Complex):Basic As needed Basic As needed Basic Evaluated per tooth Basic Evaluated per tooth
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Evaluated per tooth Basic Evaluated per tooth
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic 1 per 24 months Basic 1 per 24 months
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic 1 per 36 months Basic 1 per 36 months
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major 1 per 5 years, age 16+Major 1 per 5 years, age 16+
Bridges Major Replacement every 5 years Major Replacement every 5 years Major 1 per 5 years Major 1 per 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major 1 per 5 years Major 1 per 5 years
Implants:Not covered N/A Not covered N/A Major 1 per 5 years, age 16+Major 1 per 5 years, age 16+
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
$55,818 $15,625
$669,821 $187,499
Current ‐ Cigna Proposal ‐ Lincoln
Proposal‐ Cigna
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO Lincoln DentalConnect Lincoln DentalConnect
Dental Base PPO Plan Dental Buy Up PPO Plan Option 1.00 (Low Plan‐ Alternate Plan Design)Option 1.02 (High Plan‐ Alternate Plan Design)
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
< 15% variation from current enrollment < 15% variation from current enrollment 90%90%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 1 Year 1 Year
None None None None
Continuing current contributions Continuing current contributions 50%50%
$55,584 $20,663
$667,009 $247,960
Proposal ‐ Lincoln
$36.00 $51.77
$66.86 $96.14
$97.71 $140.52
Online subsidy credit included in Medical ASO fees.Online Enrollment subsidy: Lincoln will confirm subsidy amounts at finalist stage if chosen.
Proposal ‐ Lincoln
$914,969
Proposal ‐ Lincoln ASO Fees
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)N/A
24SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 times in 1 calendar year Preventive 2 times in 1 calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive
1 per calendar year, under age
19 Preventive 1 time in 1 year Preventive 1 time in 1 year
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 times in 1 calendar year Preventive 2 times in 1 calendar year
X‐Ray (Full Mouth): Preventive 1 per 36 months Preventive 1 per 36 months Preventive Once in 36 months Preventive Once in 36 months
Sealants: Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive 1 per molar in 36 months Preventive 1 per molar in 36 months
Fillings: Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple): Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex): Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major 1 per tooth in 60 months Major 1 per tooth in 60 months
Bridges Major Replacement every 5 years Major Replacement every 5 years Major 1 in 60 months Major 1 in 60 months
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major 1 in 60 months Major 1 in 60 months
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes: Online subsidy credit included in Medical ASO fees.
Online Enrollment subsidy: MetLife will provide 3% of premium on fully‐insured coverage with the condition it is one of
the many platforms they work with.
Proposal ‐ MetLife
$796,885
Proposal ‐ MetLife ASO Fees
$50,765 $15,642
$609,180 $187,706$669,821 $187,499
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)
$55,818 $15,625
$4.00
Proposal ‐ MetLife
$32.55 $39.19
$60.45 $72.78
$91.14 $106.37
< 15% variation from current enrollment < 15% variation from current enrollment 93%93%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years‐ ASO | 2 Years (8% rate cap on year 3)‐ Fully
Insured
3 Years‐ ASO | 2 Years (8% rate cap on year 3)‐ Fully
Insured
Proposal‐ Cigna
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
None None None None
Continuing current contributions Continuing current contributions Continuing current contributions Continuing current contributions
None None 12 months for all services 12 months for all services
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
80% | 80% | 50% | 50%
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Current ‐ Cigna Proposal ‐ MetLife
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Network Network Network Network
Cigna Dental PPO Cigna Dental PPO PDP Plus PDP Plus
Dental Base PPO Plan Dental Buy Up PPO Plan Low Plan High Plan
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
25SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 times in 1 calendar year Preventive 2 times in 1 calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 1 time in 1 year Preventive 1 time in 1 year
X‐Ray (Bitewings):Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 times in 1 calendar year Preventive 2 times in 1 calendar year
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive Once in 36 months Preventive Once in 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive 1 per molar in 36 months Preventive 1 per molar in 36 months
Fillings:Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major 1 per tooth in 60 months Major 1 per tooth in 60 months
Bridges Major Replacement every 5 years Major Replacement every 5 years Major 1 in 60 months Major 1 in 60 months
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major 1 in 60 months Major 1 in 60 months
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
$55,818 $15,625
$669,821 $187,499
Current ‐ Cigna Proposal ‐ MetLife
Proposal‐ Cigna
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO PDP Plus PDP Plus
Dental Base PPO Plan Dental Buy Up PPO Plan Alternate Low Plan Alternate High Plan
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
None None 12 months for all services 12 months for all services
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
< 15% variation from current enrollment < 15% variation from current enrollment 93%93%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years‐ ASO | 2 Years (8% rate cap on year 3)‐ Fully
Insured
3 Years‐ ASO | 2 Years (8% rate cap on year 3)‐ Fully
Insured
None None None None
Continuing current contributions Continuing current contributions Continuing current contributions Continuing current contributions
$50,765 $17,520
$609,180 $210,237
Proposal ‐ MetLife
$32.55 $43.89
$60.45 $81.52
$91.14 $119.14
Online subsidy credit included in Medical ASO fees.
Online Enrollment subsidy: MetLife will provide 3% of premium on fully‐insured coverage with the condition it is one of
the many platforms they work with.
Proposal ‐ MetLife
$819,417
Proposal ‐ MetLife ASO Fees
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)$4.00
26SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per benefit period Preventive 2 per benefit period
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 1 per benefit period, age 18 & under Preventive 1 per benefit period, age 18 & under
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per benefit period Preventive 2 per benefit period
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 in 3 years Preventive 1 in 3 years
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive Age 13 & under Preventive Age 13 & under
Fillings:Basic As needed Basic As needed Basic 1 per 6 months Basic 1 per 6 months
Oral Surgery (Simple):Basic As needed Basic As needed Basic
Several procedures available‐ limited to
any 5 of these procedures per lifetime Basic
Several procedures available‐ limited
to any 5 of these procedures per
lifetime
Oral Surgery (Complex):Basic As needed Basic As needed Basic
Several procedures available‐ limited to
any 5 of these procedures per lifetime Basic
Several procedures available‐ limited
to any 5 of these procedures per
lifetime
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic 1 per 12 months Basic 1 per 12 months
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major 1 in 5 years per tooth Major 1 in 5 years per tooth
Bridges Major Replacement every 5 years Major Replacement every 5 years Major 1 in 5 years Major 1 in 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major 1 in 5 years Major 1 in 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes: Online subsidy credit included in Medical ASO fees.
PolicyLink Dental + Vision: Members can use up to $150 of their annual dental plan maximum towards vision benefits at the
provider of their choice. (Vision must be placed with a carrier that is not The Standard.)
Online Enrollment subsidy: Standard will provide 1% of the fully insured premium.
Proposal ‐ Standard
$888,932
Proposal ‐ Standard ASO Fees
$56,495 $17,583
$677,939 $210,994$669,821 $187,499
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)
$55,818 $15,625
$3.51
Proposal ‐ Standard
$36.59 $44.05
$67.95 $81.81
$99.32 $119.57
< 15% variation from current enrollment < 15% variation from current enrollment 60%60%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years‐ ASO | 2 Years (8% rate cap on 3rd year)‐ Fully
Insured
3 Years‐ ASO | 2 Years (8% rate cap on 3rd year)‐ Fully
Insured
Proposal‐ Cigna
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
None None Yes Yes
Continuing current contributions Continuing current contributions Continuing current contributions Continuing current contributions
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
80% | 80% | 50% | 50%
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Current ‐ Cigna Proposal ‐ Standard
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Network Network Network Network
Cigna Dental PPO Cigna Dental PPO Ameritas Ameritas
Dental Base PPO Plan Dental Buy Up PPO Plan Low Plan 1 High Plan 1
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
27SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per benefit period Preventive 2 per benefit period
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive
1 per calendar year, under age
19 Preventive 1 per benefit period, age 18 & under Preventive 1 per benefit period, age 18 & under
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per benefit period Preventive 2 per benefit period
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 in 3 years Preventive 1 in 3 years
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive Age 13 & under Preventive Age 13 & under
Fillings:Basic As needed Basic As needed Basic 1 per 6 months Basic 1 per 6 months
Oral Surgery (Simple):Basic As needed Basic As needed Basic
Several procedures available‐ limited
to any 5 of these procedures per
lifetime Basic
Several procedures available‐ limited to
any 5 of these procedures per lifetime
Oral Surgery (Complex):Basic As needed Basic As needed Basic
Several procedures available‐ limited
to any 5 of these procedures per
lifetime Basic
Several procedures available‐ limited to
any 5 of these procedures per lifetime
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic 1 per 12 months Basic 1 per 12 months
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major 1 in 5 years per tooth Major 1 in 5 years per tooth
Bridges Major Replacement every 5 years Major Replacement every 5 years Major 1 in 5 years Major 1 in 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major 1 in 5 years Major 1 in 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
$55,818 $15,625
$669,821 $187,499
Current ‐ Cigna Proposal ‐ Standard
Proposal‐ Cigna
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO Ameritas Ameritas
Dental Base PPO Plan Dental Buy Up PPO Plan Low Plan 2 High Plan 2
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
< 15% variation from current enrollment < 15% variation from current enrollment 60%60%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years‐ ASO | 2 Years (8% rate cap on 3rd year)‐ Fully
Insured
3 Years‐ ASO | 2 Years (8% rate cap on 3rd year)‐ Fully
Insured
None None Yes Yes
Continuing current contributions Continuing current contributions Continuing current contributions Continuing current contributions
$56,495 $20,510
$677,939 $246,118
Proposal ‐ Standard
$36.59 $51.16
$67.95 $95.18
$99.32 $140.18
Online subsidy credit included in Medical ASO fees.
PolicyLink Dental + Vision: Members can use up to $150 of their annual dental plan maximum towards vision benefits at the
provider of their choice. (Vision must be placed with a carrier that is not The Standard.)
Online Enrollment subsidy: Standard will provide 1% of the fully insured premium.
Proposal ‐ Standard
$924,057
Proposal ‐ Standard ASO Fees
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)$3.51
28SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive
1 per calendar year, under age
19 Preventive 1 per 6 months, under age 19 Preventive 1 per 6 months, under age 19
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 in 36 months Preventive 1 in 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
Once per tooth per 36 months, under
age 14 Preventive
Once per tooth per 36 months, under
age 14
Fillings:Basic As needed Basic As needed Basic Once per tooth surface in 24 months Basic Once per tooth surface in 24 months
Oral Surgery (Simple):Basic As needed Basic As needed Basic No limitation Basic No limitation
Oral Surgery (Complex):Basic As needed Basic As needed Basic
Multiple surgical services on 1 area of
the mouth will be based on the most
inclusive procedure Basic
Multiple surgical services on 1 area of
the mouth will be based on the most
inclusive procedure
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic 1 time per tooth in 24 months Basic 1 time per tooth in 24 months
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic
Once per 24 months per area of the
mouth Basic
Once per 24 months per area of the
mouth
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic
Once per 36 months per area of the
mouth Basic
Once per 36 months per area of the
mouth
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Once per tooth in any 5 years Major Once per tooth in any 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major Once in any 5 years Major Once in any 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major Once in any 5 years Major Once in any 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes: Online subsidy credit included in Medical ASO fees.Online Enrollment subsidy: Up to $2.00 pepm
Proposal ‐ Sun Life
$824,978
Proposal ‐ Standard ASO Fees
$52,430 $16,318
$629,165 $195,813$669,821 $187,499
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)
$55,818 $15,625
N/A
Proposal ‐ Sun Life
$33.96 $40.88
$63.06 $75.93
$92.17 $110.96
< 15% variation from current enrollment < 15% variation from current enrollment Assumes 92.9%Assumes 92.9%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 2 Years 2 Years
Proposal‐ Cigna
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
None None None None
Continuing current contributions Continuing current contributions Contributory Contributory
None None None None
Yes Yes Yes Yes
80th 80th 45% off the 80th percentile (MAC)45% off the 80th percentile (MAC)
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
80% | 80% | 50% | 50%
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Current ‐ Cigna Proposal ‐ Sun Life
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Network Network Network Network
Cigna Dental PPO Cigna Dental PPO Sun Life Dental Sun Life Dental
Dental Base PPO Plan Dental Buy Up PPO Plan Basic Plan Enhanced Plan
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
29SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 1 per 6 months, under age 19 Preventive 1 per 6 months, under age 19
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 in 36 months Preventive 1 in 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
Once per tooth per 36 months, under
age 14 Preventive
Once per tooth per 36 months, under
age 14
Fillings:Basic As needed Basic As needed Basic Once per tooth surface in 24 months Basic Once per tooth surface in 24 months
Oral Surgery (Simple):Basic As needed Basic As needed Basic No limitation Basic No limitation
Oral Surgery (Complex):Basic As needed Basic As needed Basic
Multiple surgical services on 1 area of
the mouth will be based on the most
inclusive procedure Basic
Multiple surgical services on 1 area of
the mouth will be based on the most
inclusive procedure
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic 1 time per tooth in 24 months Basic 1 time per tooth in 24 months
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic
Once per 24 months per area of the
mouth Basic
Once per 24 months per area of the
mouth
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic
Once per 36 months per area of the
mouth Basic
Once per 36 months per area of the
mouth
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Once per tooth in any 5 years Major Once per tooth in any 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major Once in any 5 years Major Once in any 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major Once in any 5 years Major Once in any 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes: Online subsidy credit included in Medical ASO fees.Online Enrollment subsidy: Up to $2.00 pepm
Proposal ‐ Sun Life
$839,599
Proposal ‐ Standard ASO Fees
$53,359 $16,608
$640,305 $199,294$669,821 $187,499
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)
$55,818 $15,625
N/A
Proposal ‐ Sun Life
$34.56 $41.61
$64.18 $77.27
$93.80 $112.94
< 15% variation from current enrollment < 15% variation from current enrollment Assumes 92.9%Assumes 92.9%
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 2 Years 2 Years
Proposal‐ Cigna
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
None None None None
Continuing current contributions Continuing current contributions Contributory Contributory
None None None None
Yes Yes Yes Yes
80th 80th 45% off the 80th percentile (MAC)45% off the 80th percentile (MAC)
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
100% | 80% | 50% | 50%
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Current ‐ Cigna Proposal ‐ Sun Life
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Network Network Network Network
Cigna Dental PPO Cigna Dental PPO Sun Life Dental Sun Life Dental
Dental Base PPO Plan Dental Buy Up PPO Plan Basic Plan 2 Enhanced Plan 2
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
30SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 times per calendar year Preventive 2 times per calendar year
Fluoride Treatment: Preventive
1 per calendar year, under age
19 Preventive
1 per calendar year, under age
19 Preventive
2 times per calendar year, under 20
years old Preventive
2 times per calendar year, under 20
years old
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 1 series of film per calendar year Preventive 1 series of film per calendar year
X‐Ray (Full Mouth): Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 time per 36 months Preventive 1 time per 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
Once every 36 months, under 20 years
old Preventive
Once every 36 months, under 20 years
old
Fillings:Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic 1 time per tooth per lifetime Basic 1 time per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic 1 time per quadrant per 24 months Basic 1 time per quadrant per 24 months
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic
1 quadrant or site per 24 months per
surgical area Basic
1 quadrant or site per 24 months per
surgical area
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major 1 time per tooth per 60 months Major 1 time per tooth per 60 months
Bridges Major Replacement every 5 years Major Replacement every 5 years Major 1 per 60 months Major 1 per 60 months
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major 1 per 60 months Major 1 per 60 months
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes: Online subsidy credit included in Medical ASO fees.
Online Enrollment subsidy: Online Onboarding is included in the proposed premiums or fees. No separate additional subsidy is
included.
Proposal ‐ United HealthCare
$850,319
Proposal ‐ United HealthCare ASO Fees
$54,040 $16,820
$648,480 $201,839$669,821 $187,499
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)
$55,818 $15,625
$2.58
Proposal ‐ United HealthCare
$35.00 $42.14
$65.00 $78.26
$95.00 $114.38
< 15% variation from current enrollment < 15% variation from current enrollment 75% of eligible employees 75% of eligible employees
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 3 Years‐ ASO | 1 Year‐ Fully Insured 3 Years‐ ASO | 1 Year‐ Fully Insured
Proposal‐ Cigna
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
None None None None
Continuing current contributions Continuing current contributions Contributory Contributory
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
80% | 80% | 50% | 50%
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Current ‐ Cigna Proposal ‐ United HealthCare
Yes Yes Yes Yes
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Network Network Network Network
Cigna Dental PPO Cigna Dental PPO Options PPO 30 Options PPO 30
Dental Base PPO Plan Dental Buy Up PPO Plan Low Option High Option
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 times per calendar year Preventive 2 times per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive
1 per calendar year, under age
19 Preventive
2 times per calendar year, under 20
years old Preventive
2 times per calendar year, under 20
years old
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 1 series of film per calendar year Preventive 1 series of film per calendar year
X‐Ray (Full Mouth): Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 time per 36 months Preventive 1 time per 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
Once every 36 months, under 20 years
old Preventive
Once every 36 months, under 20 years
old
Fillings:Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic 1 time per tooth per lifetime Basic 1 time per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic 1 time per quadrant per 24 months Basic 1 time per quadrant per 24 months
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic
1 quadrant or site per 24 months per
surgical area Basic
1 quadrant or site per 24 months per
surgical area
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major 1 time per tooth per 60 months Major 1 time per tooth per 60 months
Bridges Major Replacement every 5 years Major Replacement every 5 years Major 1 per 60 months Major 1 per 60 months
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major 1 per 60 months Major 1 per 60 months
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
$55,818 $15,625
$669,821 $187,499
Current ‐ Cigna Proposal ‐ United HealthCare
Proposal‐ Cigna
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO Options PPO 30 Options PPO 30
Dental Base PPO Plan Dental Buy Up PPO Plan Low Option‐ Alternate High Option‐ Alternate
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
< 15% variation from current enrollment < 15% variation from current enrollment 75% of eligible employees 75% of eligible employees
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured 3 Years‐ ASO | 1 Year‐ Fully Insured 3 Years‐ ASO | 1 Year‐ Fully Insured
None None None None
Continuing current contributions Continuing current contributions Contributory Contributory
$54,040 $18,684
$648,480 $224,207
Proposal ‐ United HealthCare
$35.00 $46.81
$65.00 $86.93
$95.00 $127.06
Online subsidy credit included in Medical ASO fees.
Online Enrollment subsidy: Online Onboarding is included in the proposed premiums or fees. No separate additional subsidy
is included.
Proposal ‐ United HealthCare
$872,687
Proposal ‐ United HealthCare ASO Fees
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)$2.58
32SP
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive
1 per calendar year, under age
19 Preventive
1 per calendar year, under age
19 Preventive 1 per calendar year, under age 19
X‐Ray (Bitewings): Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
X‐Ray (Full Mouth): Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months
Sealants: Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14
Fillings: Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple): Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
$55,818 $15,625
$669,821 $187,499
Current ‐ Cigna Proposal ‐ United Concordia
Proposal‐ Cigna
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO Concordia Flex PPO Concordia Flex PPO
Dental Base PPO Plan Dental Buy Up PPO Plan Low Option High Option
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
< 15% variation from current enrollment < 15% variation from current enrollment < 15% variation from current enrollment < 15% variation from current enrollment
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5% rate
cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years‐ ASO | 2 Years (7.5% rate cap on year 3)‐ Fully
Insured
3 Years‐ ASO | 2 Years (7.5% rate cap on year 3)‐ Fully
Insured
None None None None
Continuing current contributions Continuing current contributions Continuing current contributions Continuing current contributions
$49,625 $15,447
$595,501 $185,359
Proposal ‐ United Concordia
$32.14 $38.70
$59.69 $71.87
$87.24 $105.04
Online subsidy credit included in Medical ASO fees.Online Enrollment subsidy: One‐time implementation credit of $2,500 to be used at their discretion.
Proposal ‐ United Concordia
$780,860
Proposal ‐ United Concordia ASO Fees
Proposal‐ Cigna
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)$7.00
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Executive Summary of Dental Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network:
Plan Name:
Plan Details Single Family Single Family Single Family Single Family
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum): $50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Orthodontic Lifetime Maximum:
Included Adult Ortho:
Dental Services Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency Benefit Level Frequency
Routine Exam & Cleaning: Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
Fluoride Treatment: Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19 Preventive 1 per calendar year, under age 19
X‐Ray (Bitewings):Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year Preventive 2 per calendar year
X‐Ray (Full Mouth):Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months Preventive 1 per 36 months
Sealants:Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14 Preventive
1 treatment per tooth every 36
months, under age 14
Fillings:Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Simple):Basic As needed Basic As needed Basic As needed Basic As needed
Oral Surgery (Complex):Basic As needed Basic As needed Basic As needed Basic As needed
Root Canal Therapy:Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime Basic Once per tooth per lifetime
Periodontal Scaling:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Periodontal Surgery:Basic Depends on the service Basic Depends on the service Basic Depends on the service Basic Depends on the service
Crowns:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Bridges Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Dentures:Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years Major Replacement every 5 years
Implants:Not covered N/A Not covered N/A Not covered N/A Not covered N/A
Non‐Network Details
Coinsurance Percentage (Preventive | Basic | Major | Ortho):
Deductible (Family Maximum):$50 $150 $50 $150 $50 $150 $50 $150
Deductible Waived for Preventive:
Calendar Year Maximum:
Percent of UCR:
Waiting Periods:
Late Entrant Penalties:
Allows Annual Open Enrollment:
Included Rollover:
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates I Current Enrollment
Employee:504 95
Employee + One:294 79
Employee + Family:182 58
Total:980 232
Estimated Monthly Premiums:
Estimated Annual Premiums:
Estimated Grand Total Annual Premiums:
ASO Fees PEPM
Notes:
$198,134
$857,320
Current ‐ Cigna ASO Fees Renewal ‐ Cigna ASO Fees
Online subsidy credit included in Medical ASO fees.Online Enrollment subsidy: One‐time implementation credit of $2,500 to be used at their discretion.
$793,635
Proposal ‐ United Concordia ASO Fees
$2.96 $2.96 packaged ($3.21 if stand‐alone)
Proposal‐ Cigna
$31.23 $33.39
$61.20 $65.14
$121.35 $125.98
$55,818
Proposal ‐ United Concordia
$49,625
$595,501
Proposal ‐ United Concordia
$32.14 $41.37
$59.69 $76.82
$87.24 $112.28
$15,625
$669,821 $187,499
Proposal‐ Cigna
$16,511
< 15% variation from current enrollment < 15% variation from current enrollment < 15% variation from current enrollment < 15% variation from current enrollment
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years (3% rate cap on years 4 & 5)‐ ASO | 3 Years (5%
rate cap year 4, 6.5% rate cap year 5)‐ Fully Insured
3 Years‐ ASO | 2 Years (7.5% rate cap on year 3)‐ Fully
Insured
3 Years‐ ASO | 2 Years (7.5% rate cap on year 3)‐ Fully
Insured
None None None None
Continuing current contributions Continuing current contributions Continuing current contributions Continuing current contributions
None None None None
Yes Yes Yes Yes
80th 80th 80th 80th
None None None None
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Non‐Network Non‐Network Non‐Network Non‐Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Alternative High Plan
$1,500 $1,500 $1,500 $1,500
Yes Yes Yes Yes
Yes Yes Yes Yes
$1,500 $3,000 $1,500 $3,000
Current ‐ Cigna Proposal ‐ United Concordia
$7.00
Network Network Network Network
80% | 80% | 50% | 50%80% | 80% | 50% | 50%80% | 80% | 50% | 50%100% | 80% | 50% | 50%
Cigna Dental PPO Cigna Dental PPO Concordia Flex PPO Concordia Flex PPO
Dental Base PPO Plan Dental Buy Up PPO Plan Alternative Low Plan
34SP
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Executive Summary of Vision Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Network
Plan Name
Copays
Exam:
Materials:
Contact Fitting & Follow‐up:
Frequencies
Exams:
Lenses:
Frames:
Contacts:
Allowances
Frames:
Contact (Elective):
Contact (Medically Necessary):
Non‐Network Allowances
Exam:
Single Vision:
Bifocal:
Trifocal:
Frames:
Contact (Elective):
Contact (Medically Necessary):
Employer Contribution:
Participation Requirement:
Rate Guarantee:
Plan Rates | Current Enrollment Current Renewal
Employee: 361 $4.89 $4.89 361
Employee + One: 210 $9.28 $9.28 210
Family: 165 $12.10 $12.10 165
Total: 736 736
Estimated Monthly Premiums: $5,711 $5,711
Estimated Annual Premiums:$68,527 $68,527
$10 $10 $10
$20 $20 $20
Current ‐ Envolve Proposal ‐ Dual Option ‐ Envolve
Network Network Network
Envolve Vision Network Envolve Vision Network Envolve Vision Network
12 months 12 months 12 months
12 months (in lieu of contact lenses) 12 months (in lieu of contact lenses) 12 months (in lieu of contact lenses)
Standard: Paid in Full | Specialty : $75 +
20% off balance
Standard: Paid in Full | Specialty : $75 +
20% off balance
Standard: Paid in Full | Specialty : $75 +
20% off balance
$150 + 20% off balance $150 + 20% off balance $150 + 20% off balance
$150 + 20% off balance $150 + 20% off balance $150 + 20% off balance
24 months 24 months 12 months
12 months (in lieu of contact lenses) 12 months (in lieu of contact lenses) 12 months (in lieu of contact lenses)
38.50 38.50 38.50
37.50 37.50 37.50
Paid in Full Paid iin Full Paid in Full
Non‐Network Non‐Network Non‐Network
105 105 105
105 105 105
55 55 55
90 90 90
50% 50% 50%
Rate Guarantee until 12/31/2019 Rate Guarantee until 12/31/2019 TBD
210 210 210
0% 0% 0%
Rates are subject to change in July, 2019.
Proposal ‐ Dual Option ‐ Envolve
$68,527 TBD
$12.10 $19.80
$5,711 TBD
$9.28 $15.17
$4.89 $8.00
35SP
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Executive Summary of Flexible Spending Account Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Plan Details
FSA RRA FSA RRA FSA RRA FSA RRA
Initial Set‐up Fee: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Annual Renewal Fee: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Admin Fee (pepm): $416.66 $416.66 $4.63 $4.43 $3.00 $4.00 $3.50 $4.50 $3.50 $3.50 $415.66 $4.25
Minimum Monthly Amount:$416.66 $416.66 $0 $0 $100 $0 $60 $60 $60 $0 $415.66 $0
Rate Guarantee:
Plan Rates Current Renewal Current Renewal FSA RRA FSA RRA FSA RRA FSA RRA
Number of Participants:147 147 3 3 147 3 147 3 147 3 147 3
Estimated Annual Premiums (First Year):$4,999.92 $4,999.92 $166.68 $159.48 $5,292 $144 $6,174 $720 $6,174 $126 $4,988 $153
Estimated Annual Premiums:$4,999.92 $4,999.92 $166.68 $159.48 $5,292 $144 $6,174 $720 $6,174 $126 $4,988 $153
Rate Change from Current (%):0.0%‐4.3%5.8% ‐13.6%23.5% 332.0%23.5% ‐24.4%‐0.2% ‐8.2%
Rate Change from Current ($):$0.00 ‐$7.20 $292.08 ‐$22.68 $1,174.08 $553.32 $1,174.08 ‐$40.68 ‐$12.00 ‐$13.68
3 Years 3 Years 3 Years3 Years
FSA RRA
WageWorks‐ Current | Renewal EBC Flex Infinisource TASCWageWorks‐ Current | Renewal Aetna
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Executive Summary of Flexible Spending Account Coverage
Client Name
January 1, 2020 ‐ December 31, 2020
Vendor
Plan Details
FSA RRA FSA RRA FSA RRA
Initial Set‐up Fee:$0 $0 $0 $0 $0 $0 $500 $500 $0 N/A
Annual Renewal Fee:$0 $0 $0 $0 $0 $0 $300 $300 $0 N/A
Admin Fee (pepm):$416.66 $416.66 $4.63 $4.43 $5.50 $3.50 $5.00 $5.00 $4.59 N/A
Minimum Monthly Amount:$416.66 $416.66 $0 $0 $100 $0 $0 $0 $0 N/A
Rate Guarantee:1 Year N/A
Plan Rates Current Renewal Current Renewal FSA RRA FSA RRA FSA RRA
Number of Participants:147 147 3 3 147 3 147 3 147 N/A
Estimated Annual Premiums (First Year):$4,999.92 $4,999.92 $167 $159 $9,702 $126 $9,620 $980 $8,097 N/A
Estimated Annual Premiums:$4,999.92 $4,999.92 $167 $159 $9,702 $126 $9,120 $480 $8,097 N/A
Rate Change from Current (%):0.0%‐4.3%94.0% ‐24.4%92.4% 488.0%61.9% N/A
Rate Change from Current ($):$0.00 ‐$7.20 $4,702.08 ‐$40.68 $4,120.08 ‐$4,519.92 $3,096.84 N/A
WageWorks‐ Current | RenewalWageWorks‐ Current | Renewal BCBS
3 Years
ProBenefits CIGNA
FSA RRA
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Clay County Utility Authority
RFP# 2020/2021-A9 – Benefits Administrative Services
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