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HomeMy WebLinkAbout175-10 RESOLUTIONRESOLUTION NO. 175-10 A RESOLUTION APPROVING RFP #10-04 AND AUTHORIZING A CONTRACT WITH REGIONS INSURANCE INC. IN THE AMOUNT OF $14,000.00 WITH FOUR ONE YEAR AUTOMATIC RENEWAL OPTIONS FOR THE PROVISION OF INSURANCE BROKERAGE SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves RFP #10-04 and authorizes a contract, a copy of which is attached as Exhibit "A," with Regions Insurance Inc. in the amount of $14,000.00 with four one year automatic renewal options for the provision of insurance brokerage services. PASSED and APPROVED this 5th day of October, 2010. APPROVED: ATTEST: By: AAP ALO 1 ELD 405 AN, Mayor By: at144) Maki SON RA E. SMITH, City Clerk/Treasurer City of Fayetteville RFP 10-04, Insurance Brokerage & Consultation Services Agreement 44 This contract executed this �J ' day of b -e , 2010, between the City of Fayetteville, Arkansas, and Regions Insurance Inc .In consideration of the mutual covenants contained herein, the parties agree as follows. WITNESSETH: WHEREAS, City has previously determined that it has a need for INSURANCE BROKERAGE & CONSULTATION SERVICES; and WHEREAS, City, after soliciting competitive proposals for such services pursuant to City of Fayetteville RFP 10-04 (herein after referred to as Request for Proposal or RFP), City has awarded this contract to Regions Insurance Inc; and WHEREAS, Regions Insurance Inc. has represented that it is able to satisfactorily provide these services according to the terms and conditions of the RFP, which are incorporated herein by reference, and the terms and conditions are contained herein; and NOW THEREFORE, in consideration of the above and mutual covenants contained herein, the parties agree as follows: 1. Services to be Performed: Regions Insurance Inc. hereby agrees to provide the City with INSURANCE BROKERAGE SERVICES, as requested and more specifically outlined in the RFP, this agreement, and all subsequent official documents that form the Contract Documents for this Agreement. Regions Insurance Inc. shall provide, as a minimum, professional services and dedicated personnel necessary to perform the following: a. Develop a complete understanding of the City's areas of exposure and consult with City representatives about short and long term solutions. b. Evaluate existing insurance contracts, self retained risk and claims history and make recommendations concerning any changes, modifications, and/or additions in the terms, conditions and coverage limits needed to yield a comprehensive risk management program to protect the interests of the City. c. Identify programs, products and insurers capable of meeting the City's insurance needs and prepare specifications for markets capable of quoting for upcoming renewals. d. Approach appropriate markets on behalf of the City to obtain pricing with respect of the program adopted by the City. Competitive quotes from well rated insurance carriers will be obtained for each type of risk. City of Fayetteville, AR RFP 10-04, insurance Brokerage & Consultation Services e. Present for City consideration, in an understandable format, an evaluation of the results of each solicitation, with a comprehensive financial analysis and recommendations for selection of an insurer for each type of risk. f Negotiate on the City's behalf the details of insurance contracts with selected carriers and audit resulting policies for accuracy of coverage, terms and conditions, and compliance with financial arrangements and administrative procedures acceptable to the City. g. Provide evaluation, basic training and education relative to loss control, safety, claims management, and related topics in the area of risk management. h. Provide assistance in the form of advisory services or written reports as is customarily expected from a professional insurance Broker/Consultant. i. Provide claims processing support with insurance carriers for all policies, and produce quarterly written reports with loss runs. Address areas of concern, including the need for training and other preventive measures. j. Annually, approximately first week in May, Broker/Consultant will prepare a stewardship report which will include a complete list of insurance in force, an evaluation of the overall insurance program, including recommendations for change and a forecast of market conditions and estimated premium for future budgeting purposes. Regions Insurance Inc. assumes no liability in the event of inaccurate forecasts and premium estimates. At the time of the presentation of the stewardship report City personnel and Broker/Consultant will discuss any changes which are appropriate in services to be performed for the succeeding year. 2. Time of Service: Services shall be performed in a timely manner, as specified in the RFP. 3. Compensation: Compensation for the scope of services outlined in the contract will be as follows: a. Amount not to exceed $14,000.00 per year. Payments will be made within 30 days of receipt of invoice. b. In the event that operations change substantially by either the addition or deletion of other operations or entities or a substantial change in the scope and nature of the City's insurance program, the City will negotiate in good faith to revise compensation upward or downward as appropriate. c. Regions Insurance Inc. will disclose commissions received and will credit such commissions against compensation hereunder. If commissions exceed agreed-upon compensation hereunder, excess commissions will be returned to the City if permitted by law. Otherwise, excess commissions will be carried forward and applied against compensation for subsequent years of this agreement. 4. Insurance: Regions Insurance Inc. shall provide and maintain in force at all times during the term of the services contemplated herein insurance for Workers' Compensation, Commercial General Liability, Automobile Liability, and Errors and Omissions Liability. Such policies shall be issued by companies authorized to do City of Fayetteville, AR RFP 10-04, Insurance Brokerage & Consultation Services business in the State of Arkansas. Evidence of such coverage is to be submitted with contract approval. Minimum amount for Commercial General Liability and Errors and Omissions Liability is $1,000,000 aggregate. 5. Term of Agreement: Services performed pursuant to this Contract shall commence upon execution of this agreement and continue for a period of ONE (I) year, unless canceled or terminated within thirty (30) days written notice by either party. This contract may be automatically renewed for FOUR (4) additional one (I) year terms after the initial contract period. This option shall be exercised only if all discounts, prices, terms and conditions remain the same, and approval is granted by the Mayor or if contract exceeds $20,000 approved by Fayetteville City Council. In the event of termination, claims for compensation owed by the City shall be limited to verifiable services rendered 6. Amendment of Contract: This Contract may be amended only by mutual agreement of the parties. 7. Legal Compliance: Regions Insurance Inc. is responsible for full and complete compliance with all applicable laws, rules, regulations and licensing requirements imposed by any public authority having jurisdiction. 8. Approval of Agent: The City reserves the right to require Regions Insurance Inc. to replace the assigned agent with another agent of the same company if, in the opinion of the City staff, the agent is not rendering or is incapable of rendering the quality of service and cooperation required. 9. Auditable Records: Regions Insurance Inc. shall maintain such accounts and records in connection with its performance of services for the City as may reasonably be required by the City. Regions Insurance Inc. shall, at any reasonable time during the term and for a period of one year following the completion of work under the contract, afford the City's agents and auditors reasonable facilities and access for examination and audit of its records pertaining to its performance and shall, upon request by the City, produce and exhibit all such records. 10. Assignment and Subcontracting: Regions Insurance Inc. shall perform this contract. No assignment or subcontracting shall be allowed without the prior written consent of the City. In the event of a corporate acquisition and/or merger, Regions Insurance Inc. shall provide written notice to the City within thirty (30) business days of such notice of action or upon the occurrence of said action, whichever occurs first. The right to terminate this contract, which shall not be unreasonably exercised by the City, shall include, but not be limited to, instances in which a corporate acquisition and/or merger represent a conflict of interest or are contrary to any local, state, or federal laws. Action by the City awarding a proposal to a Proposer, which has disclosed its intent to assign or subcontract in its response to the RFP, without exception shall constitute approval for purposes of this Agreement. City of Fayetteville, AR RFP 10-04, Insurance Brokerage & Consultation Services 11. Cancellation: The City of Fayetteville reserves the right to cancel this Contract, without cause, by giving thirty (30) days notice to Regions Insurance Inc. of the intent to cancel, or with cause if at any time Regions Insurance Inc. fails to fulfill or abide by any of the terms or conditions specified. Failure of the Regions Insurance Inc. to comply with any of the provisions of this contract shall be considered a material breach of contract and shall be cause for immediate termination of the contract at the discretion of the City of Fayetteville. In addition to all other legal remedies available to the City of Fayetteville, the City reserves the right to cancel and obtain from another source any services which have not been provided within the period of time stated in the proposal, or if no such time is stated, within a reasonable period of time from the date of order or request, as determined by the City. In the event that sufficient budgeted funds are not available for a fiscal period, the City shall notify Regions Insurance Inc. of such occurrence and the Contract shall terminate on the last day of the then current fiscal period without penalty or expense to the City. The City reserves the right to terminate within the thirty (30) day notice because of budgetary issues. 12. Compensation: As compensation for Regions Insurance Inc. providing services to the City as described herein, the City shall pay Regions Insurance Inc. in arrears, based on the submission of invoices for work completed and properly authorized. 13. Permits & Licenses: Regions Insurance Inc. shall secure and maintain any and all permits and licenses required to complete this contract. 14. Minimum Insurance Requirements: Regions Insurance Inc shall maintain insurance in at least the amounts required in the RFP throughout the term of this contract. Regions Insurance Inc. must provide a Certificate of Insurance in accordance with the insurance requirements listed within the RFP, evidencing such coverage prior to issuance of a purchase order or commencement of any work under this contract. Regions Insurance Inc. shall ensure that any subcontractors or persons hired by subcontractors maintain the same level of insurance coverage as Regions Insurance Inc.. 15. Indemnification: Regions Insurance Inc. shall indemnify, pay the cost of defense, including but not limited to attorneys' fees, and hold harmless the City from all suits, actions or claims of any character brought on account of any injuries or damages received or sustained by any person, persons, or property by or from the said Regions Insurance Inc.; or by, or in consequence of any neglect in safeguarding the work; or on account of any act or omission, neglect or misconduct of Regions Insurance Inc. ; or by, or on account of, any claim or amounts recovered under the Workers' Compensation Law or of any other laws, by-laws, ordinances, order of decree, except only such injury or damage as shall have been occasioned by the sole negligence of the City of Fayetteville. The first ten dollars ($10.00) of compensation received by Regions Insurance Inc. represents specific consideration for this indemnification obligation. City of Fayetteville, AR RFP 10-04, Insurance Brokerage & Consultation Services Furthermore, Regions Insurance Inc., in performing its obligations under this contract, is acting independently and the City assumes no responsibility of liability for the Regions Insurance Inc. acts or omissions to third parties, and Regions Insurance Inc. shall agree to indemnify and hold harmless, the City, its officers and employees against any and all claims, lawsuits, judgments, costs and expenses for which recovery of damages is sought, suffered by any person or persons, that may arise out of or be occasioned by Regions Insurance Inc. breach of the terms or provisions of contract, or by any negligent act or omission of Regions Insurance Inc., its officers, agents, employees, or invitee, in the performance of this contract; except that the indemnity specified in this paragraph shall not apply to any liability resulting from the sole negligence of the City, its officers, or employees. In the event of joint and concurrent negligence of both Regions Insurance Inc. and the City, responsibility and indemnity, if any, shall be apportioned comparatively in accordance with the laws of the State of Arkansas, without, however, waiving any governmental immunity available to the City under Arkansas law and without waiving any defense of the parties under Arkansas law. This paragraph is solely for the benefit of Regions Insurance Inc. and the City and is not intended to create or grant any rights, contractual or otherwise, to any other person or entity. 16. Governing Law & Jurisdiction: Legal jurisdiction to resolve any disputes shall be Washington County, Arkansas with Arkansas law applying to the case. 17. Severability: The terms and conditions of this agreement shall be deemed to be severable. Consequently, if any clause, term, or condition hereof shall be held to be illegal or void, such determination shall not affect the validity of legality of the remaining terms and conditions, and notwithstanding any such determination, this agreement shall continue in full force and effect unless the particular clause, term, or condition held to be illegal or void renders the balance of the agreement impossible to perform. 18. Changes in Scope or Price: Changes, modifications, or amendments in scope, price, or fees to this contract shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in scope, cost or fees. 19. Freedom of Information Act: Documents prepared while performing City contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville, Regions Insurance Inc. will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19-101 et. seq.) Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. 20. Documents Comprising Contract: The contract shall include this Agreement for INSURANCE BROKERAGE SERVICES, as well as the following documents, which are incorporated herein by reference. City of Fayetteville, AR RFP 10-04, Insurance Brokerage & Consultation Services a. City of Fayetteville's Request for Proposal 10-04 and all of its addenda and attachments; b. Regions Insurance Inc. Certificate of Insurance as required, listing the City as an additional insured; c. Regions Insurance Inc. Proposal. If there is a conflict between the terms of this Agreement and the above referenced documents, the conflict shall be resolved as follows: the terms of this Agreement shall prevail over the other documents, and the terms of the remaining documents shall be given preference in their above listed order. WITNESS OUR HANDS THIS vJ DAY OF 7 D b -€r , 2010. ST: COMPMES ARY 10025 s 1465 E. Joyce Blvd, Ste 205 BUSINESS ADDRESS Fayetteville, AR 72703 CITY OF FAYETTEVILLE, FAYETTEVILLE, ARKANSAS Attest: &otAlt4i Sondra Smith, City Clerk „own ,.‘`c ▪ • .c.,11 -Y oF°•� • ▪ :• A /1/1 -irk/ • ; FAYETI EVIf LE; ;▪ ��y� kASo�?�`� ,,,�G7CN,� REGIONS INSURANCE INC. BY ErE'c /ert1,Sr. Vice c.e P AND TITLE City of Fayetteville, AR RFP 10-04, Insurance Brokerage & Consultation Services City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 10/5/2010 City Council Meeting Date Agenda Items Only Peggy Vice 9W Purchasing Finance & Internal Services Submitted By Division Action Required: Department Award of RFP 10-04 for Insurance Broker of Record Services and approval of a contract with Regions Insurance Inc. in the amount of $14,000 with (4) four one year options that automatically renew each year if all terms and conditions remain the same. $14,000 Cost of this request 1010.1610.5314.00 Account Number N/A Project Number Budgeted Item X 14,000.00 Category / Project Budget 14,000.00 Professional Services Program Category / Project Name Purchasing Funds Used to Date Program 1 Project Category Name General Remaining Balance Fund Name Budget Adjustment Attached Depart AiOr ttorney irector --i5.2.ot0 Date Previous Ordinance or Resolution # Original Contract Date: 5-14-10 Original Contract Number: Date 4 - iS-'t.Otc) Finance and Internal Services Director Date 11-6 —ft Date 7//616 Date Received in City 09-14-101)02:15 R C V D Clerk's Office 41, 91 - Received in Mayor's Office Comments: Revised January 15, 2009 CITY COUNCIL AGENDA MEMO To: Mayor and City Council Thru: Paul Becker, Finance & Internal Services Director From: Peggy Vice, Purchasing Manger k)" Date: September 13, 2010 Subj: Insurance Broker of Record Services Contract Recommendation Staff recommends award of RFP 10-04 for Insurance Broker of Record Services and approval of a contract for $14,000 for insurance brokerage services to Regions Insurance Inc. Background In 1995, a committee was assigned to evaluate the best approach to handling the City's insurance and risk exposure. The committee determined it would be best to hire a broker/consultant to analyze the City's needs and negotiate and place coverage to the best advantage of the City. The broker/consultant is paid a flat service lee and any commissions on policy premiums are credited to offset the fee or reduce rates to the City of Fayetteville. Discussion Proposals were received from six (6) respondents. The selection committee selected Regions Insurance Inc. Regions Insurance Inc. has been the City's provider for these services for the past two five year terms. It initially started out as Rebsamen Insurance and was purchased by Regions Insurance Inc. They have been an excellent service provider. They worked hand in hand with Accounting and Purchasing Divisions to handle the losses from the ice storm. They assisted the City in putting together the information required by FEMA to get reimbursed for the losses not covered by the City's insurance. RESOLUTION NO. A RESOLUTION APPROVING RFP #10-04 AND AUTHORIZING A CONTRACT WITH REGIONS INSURANCE INC. IN THE AMOUNT OF $14,000.00 WITH FOUR ONE YEAR AUTOMATIC RENEWAL OPTIONS FOR THE PROVISION OF INSURANCE BROKERAGE SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves RFP #10-04 and authorizes a contract, a copy of which is attached as Exhibit "A," with Regions Insurance Inc. in the amount of $14,000.00 with four one year automatic renewal options for the provision of insurance brokerage services. PASSED and APPROVED this 5th day of October, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer City of Fayetteville, Arkansas aye Purchasing Division — Room 306 113 W. Mountain ARKANSAS Fayetteville, AR 72701 Phone: 479.575.8220 TDD (Telecommunication Device for the Deaf): 479.521.1316 REQUEST FOR PROPOSAL: RFP 10-04, Insurance Brokerage & Consultation Services DEADLINE: Friday, August 06, 2010 at 2:00 PM, Central Standard Time DELIVERY LOCATION: Room 306 —113 W. Mountain, Fayetteville, AR 72701 PURCHASING AGENT: Andrea Foren, CPPB, aforencci.favetteville.ar.us, 479.575.8220 DATE OF ISSUE AND ADVERTISEMENT: Wednesday, July 14, 2010 REQUEST FOR PROPOSAL RFP 10-04, INSURANCE BROKERAGE & CONSULTATION SERVICES No late proposals will be accepted. RFP's shall be submitted in sealed envelopes labeled "RFP 10-04, Insurance Brokerage & Consultation Services" with the name and address of the bidder. All Proposals shall be submitted in accordance with the attached City of Fayetteville specifications and bid documents attached hereto. Each Proposer is required to fill in every blank and shall supply all information requested; failure to do so may be used as basis of rejection. Any bid, proposal, or statements of qualification will be rejected that violates or conflicts with state, local, or federal laws, ordinances, or policies. The undersigned hereby offers to furnish & deliver the articles or services as specified, at the prices & terms stated herein, and in strict accordance with the specifications and general conditions of bidding, all of which are made a part of this offer. This offer is not subject to withdrawal unless upon mutual written agreement by the Proposer/Bidder and City Purchasing Manager. Name of Firm: Regions Insurance, Inc. Contact Person: Eric Herget Title: Senior vice President E -Mail: eric.herget©regionsinsurance.com Business Address: 1465 E. Joyce Blvd., Suite 205 Phone: 501-519-0955 City: Fayetteville State: AR Zip: 72703 Signature: Date: 812110 City of Fayetteville, AR RFP 10-04, Insurance Brokerage & Consultation Services Page 1 of 25 City of Fayetteville RFP 10-04, Insurance Brokerage & Consultation Services SECTION D: Statement of Disclosure — To Be Submitted With ALL Proposals This page does not count towards page limitations set forth in this request for proposal or bid. Proposer must disclose any possible conflict of interest with the City of Fayetteville, including, but not limited to, any relationship with any City of Fayetteville employee. Your response must disclose if a known relationship exists between any principal or employee of your firm and any City of Fayetteville employee or elected City of Fayetteville official. If, to your knowledge, no relationship exists, this should also be stated in your response. Failure to disclose such a relationship may result in cancellation of a purchase and/or contract as a result of your response. This form must be completed and returned in order for your bid/proposal to be eligible for consideration. PLEASE CHECK ONE OF THE FOLLOWING TWO OPTIONS, AS IT APPROPRIATELY APPLIES TO YOUR FIRM: X 1) NO KNOWN RELATIONSHIP EXISTS 2) RELATIONSHIP EXISTS (Please explain) PLEASE FILL OUT THE SECTION BELOW AND SUBMIT THIS FORM WITH YOUR BID OR PROPOSAL: 1.) I, as an officer of this organization, or per the attached letter of authorization, am duly authorized to certify the information provided herein are accurate and true; and 2.) My organization shall comply with all State and Federal Equal Opportunity and Non -Discrimination requirements and conditions of employment. Eric Herget Printe (Lr Signature 8/2/10 Date City of Fayetteville, AR RFP 10-04, Insurance Brokerage & Consultation Services Page 16 of 25 City of Fayetteville RFP 10-04, Insurance Brokerage & Consultation Services SECTION F: Addendum Acknowledgement Form Please acknowledge receipt of addenda for this invitation to bid or request for proposal by signing and dating below. All addendums are hereby made a part of the bid or RFP documents to the same extent as though it were originally included therein. Proposers/Bidders should indicate their receipt of same in the appropriate blank listed herein. Failure to do so may subject vendor to disqualification. ADDENDUM NO. SIGNfi.TU E ANDPRINTED NAME _ DATE RECEIVED 1 w{j Eric Herget 7/21/2010 Note: Prior to submitting the response to this solicitation, it is the responsibility of the firm submitting a response to confirm if any addenda have been issued. If such document{s) has been issued, acknowledge receipt by signature and date in the section above. Failure to do so may result in being considered non- responsive. Information regarding addenda issued is available on the City of Fayetteville website under the Purchasing Division at www.accessfavetteville.orq by selection "Bid's, RFPs, and RFQ's" under the "Business" heading. City of Fayetteville, AR RFP 10-04, Insurance Brokerage & Consultation Services Pagel8of25 APPENDIX A - EXECUTIVE SUMMARY B - PROPOSAL PART I - BUSINESS ORGANIZATION PART II - CONCEPT AND SOLUTION PART III - PROGRAM PART IV - ACCOUNT TEAM PROPOSAL PART V - CORPORATE EXPERIENCE PART VI - AUTHORIZED NEGOTIATOR PART VII - COST PROPOSAL PART VIII - PROOF OF INSURANCE EXECUTIVE SUMMARY Response to RFP Regions Insurance and the City of Fayetteville have been partners for over 10 years. We have insured recycled rubber elephants, walking trails next to railroad tracks, consulted on complex claims, and assisted in getting you preferred legal counsel on claims and suits. Hopefully, you are satisfied with our work product. We certainly enjoy our relationship with the City of Fayetteville. Providing risk management services to towns, cities, states, colleges, and quasi -governmental entities is a specialty in itself. Your broker needs to know how tax revenue, budgets, local politics and city council interaction fits into the overall strategy. Those city employees charged with this function need the full support and attention of the broker/risk consultant. Cities and towns are asking so much more out of each and every employee and now more than ever you rely on your broker partner. At Regions Insurance, we work together, and we believe that we have put together an ideal team for you. You can reach out to anyone on this team at anytime. We feel our response time is spot on and challenge our competitors to provide better service to you. Your team consists of attorneys, claims and loss control specialists, and marketing advisors. The City has utilized the services of our contract/claims advocacy lawyers in the past in several functions. They have assisted with contract reviews and claim advocacy. No other agent/broker in Arkansas offers these services. Claims do happen. Insurers know this. You pay your premium and you expect claims to be settled and paid as quickly as possible. Our claims department works with your client service team to keep you informed, ask for your input, relay your input to adjustors and seek the outcome that is best for the City. This is one of the most important functions we perform for you. Our loss control specialists can assist you in identifying and eliminating risks that could cause potential claims, which is important to you because if there is a loss, you have to find out how to pay for the deductible and possibly an increase in premium down the road. Our strategy is to keep the loss from happening in the first place. Our marketing department has worked with your Regions Insurance service team to provide the proper coverage at the lowest premium possible. We have successfully negotiated to keep your deductible low without the premium increasing. We have been able to accomplish these things due to our strong relationships with the insurance marketplace and your underwriters. We have over $ I billionUSD in premiums placed for all of our customers. Regions Insurance has a professional services department. Public officials and law enforcement errors and omissions policies are a specialty placement. Knowing the latest coverage enhancement and exclusions to avoid is critical. This department also consists of an attorney, who can assist with these specialty placements and claims should they arise. Your city attorney will likely demand this expertise from your broker partner. Broker compensation is also important. We are paid via a fee, which has remained constant for several years. We feel that it is always best to operate under a fee arrangement, because it removes any conflict of interest. 11 your account were on commission, the broker compensation would be much higher. In summary, Regions Insurance appreciates your business. We hope to continue our long standing relationship with the City of Fayetteville. A. REGIONS INSURANCE, INC. Member Regions Insurance Group Part I — BUSINESS ORGANIZATION Response to RFP Regions Insurance, Inc. is a holding company formed in 2004 to be the parent structure for all of the insurance operations and agencies of Regions Financial Corp. Our corporate vision is to be a regional partnership of insurance professionals that are acknowledged as the best in our industry by our key constituencies; which are our employees, clients, underwriters, communities and shareholders. Our business model is defined by local office leadership, decentralized sales, broking and client service functions and a centralized corporate back office for administrative and financial support. Based on revenue size, we are one of the top 20 insurance brokers in the United States and one of the top 5 bank affiliated insurance agencies. The Confidence of Business Security. Regions Insurance, Inc. is your single source for a wide range of business insurance services and products. We have the capability to provide property and casualty insurance, risk management services, employee benefits insurance and consulting services for any size business. Enjoy the confidence of having our extensive experience and resources supporting your business each day. BACKGROUND ■ 2009 Revenues of $112 Million • Over $1 Billion Written Premium — 2009 ■ Ranked 20th U.S. Insurance Broker & 4th Bank Affiliated Agencies • 80 Years of Insurance Brokerage Experience with Rebsamen Legacy • 645 Employees ■ 32 Offices in 8 States • Regions Financial - 8th Largest Financial Institution with over $ 143 Billion in Assets ■ Regions Insurance, 1465 E. Joyce Blvd., Suite 205, Fayetteville, AR 72703 A REGIONS INSURANCE, INC, Mamuer Flotom insurance Oroua REGIONS FINANCIAL CORPORATION AND ITS OPERATING SUBSIDIARIES Regions Financial Corporation Regions Mortgage Morgan Keegan Regions Insurance Group Response to RFP Regions Bank Regions Insurance Regions Claims Management Insurisk 2 A REGIONS INSURANCE, INC, Member beybone Inibro U %IN Part II — CONCEPT AND SOLUTION Regions Insurance Offers Total Cost of Risk Program Management ■ Knowledge of financial programs and insurance products ■ Local service team with specialized support • Access to global markets • Personal service tailored to your needs • Mutually agreed written service standards • Scheduled meetings to measure results • Pro -active development and implementation of strategic risk management plan • Client advocacy on claims and insurance carrier recommendations ■ Service of the City of Fayetteville account with respect and integrity 3 Response to RFP A REGIONS INSURANCE, INC. M¢mtle kation, Imu Noce Group • Market and place insurance coverages specifically for the City of Fayetteville Regions Insurance is a licensed insurance agent. We have contracts with many mainline admitted insurance companies. We also employ licensed brokers and surplus lines brokers who are permitted to place business with markets controlled by the various insurance departments as to form or rate. We have correspondent relations at Lloyd's and in Bermuda that give us access to this capacity. • How we market YOUR insurance program Regions Insurance works on a collaborative consulting method of risk placement. Our primary goal is to remain familiar with the City's current program, exposures and risk management philosophy. We will continue to do in-depth analysis of the exposures and the market while considering the City's expectations for the placement. A complete submission outlining the expected terms and coverage requirements providing detailed loss and exposure information will be prepared with your assistance. Underwriters will be contacted in a timely manner to facilitate the placement. A proposal will be returned to the City of Fayetteville outlining all results with an analysis of the various quotes or alternatives offered. This will be done for all lines of coverage. • Monitor published financial information of the City's insurers Regions Insurance monitors the financial strength of all its markets. Regions Insurance has set a minimum financial standard of AM Best A- VII for general insurance placements. Regions Insurance will look to develop specific standards for the City's placements. • Review and maintain copies of all the City's policies, etc. Regions Insurance reviews all policy documents for accuracy. The service team will review all polices, binders, endorsements and supporting information before delivery. A note will be made of any discrepancies and corrections ordered before delivery to the City. • Provide assistance in evaluating current property values Regions Insurance has loss control consultants that have expertise in providing insurance to value estimates for a wide range of industrial and commercial properties. The loss control consultant can provide both property surveys and replacement cost evaluation reports. • Conduct strategic planning sessions, etc. Regions Insurance staff has facilitated strategic planning sessions, lead enterprise risk evaluation analysis, developed criteria to evaluate programs and developed practices meant to identify the new challenges that arise for a publicly traded corporation. One tool used to help developing goal and strategies is Benchmarking. Regions Insurance has access to the Advisen benchmarking data base. • Review insurance company recommendations for feasibility Regions Insurance loss control consultants have many years experience in working with our clients and the insurance carriers to coordinate loss control activities between our clients and the insurance carriers and develop implementation plans for realistic insurer recommendations. The loss control consultants can provide risk identification surveys for property, general and auto liability and workers compensation; fleet safety evaluations; safety program reviews on auto, general liability, workers compensation and property loss control programs; safety training required by OSHA & safety manager training; safety committee consultations; and develop emergency response and disaster recovery plans. 4 Response to RFP A REGIONS INSURANCE, INC. Hemmer 141041 IRSurAnte OWu9 • Review and submit losses to appropriate carriers Regions Insurance account service team reviews all notice of claims for completeness and forwards them to the appropriate carriers. They will also maintain a monitoring system to follow up with the carrier and the client on any outstanding claim. ■ Analyze loss experience for frequency and severity trends Regions Insurance maintains loss analysis software that allows your account service team to develop loss trends, severity level analysis and can forecast for future losses based on appropriate exposure basis information. Regions Insurance loss control consultants have the expertise to review occurrence reports to develop recommendations that may reduce the number accidents and their severity. • Review alternatives and disadvantages of alternative programs Regions Insurance account service team reviews all proposals from carriers and outlines advantages and disadvantages of each. Regions staff has experience with captives, finite and blended finite plans, self insurance and fronted self funded programs and can work with the City of Fayetteville to find the optimal plan or combination of plans. ■ Assist in expediting, resolution and settlement of claims and coverage questions Regions Insurance has in-house legal staff that has experience in claims advocacy for our clients. They have been involved in the design of policy wording, interpretation of policy intent and direct claim settlement. Regions Insurance also has an adjusting company that can be utilized for direct claims adjustment where agreed with the carrier. ■ Provide the City of Fayetteville with consulting services on request The Regions Insurance staff has people with expertise in most aspects of alternative methods of risk financing and of insurance products. Our staff has prepared analysis of captive insurance companies, self insured programs, and fronted self funded programs with recommendations as to the feasibility for the client. Regions Insurance has software that helps in determining optimal retentions and routinely provides cost of risk analysis for our clients by line or on an overall account. Regions Insurance in-house legal staff is available to review all contracts, plan agreement letters, representations and plan prospectus. • Provide specified reports as requested by the City of Fayetteville It is Regions Insurance's practice to provide an overall Stewardship Report as often as the client requires. The report includes summaries of the policies and programs; summaries of claim activity; loss forecast and analysis; and a summary of the income Regions insurance receives in fees and commissions if not on a flat fee basis. Every project (program, renewal or study) will have a timeline with weekly updates on the progress of the project. 5 Response to RFP A REGIONS INSURANCE, INC. Member flegbnf irouranee Group