Standard Life Insurance Company has been our vendor since 2002, providing life insurance in the amount of $25,000 to all active employees covered under the City's medical plan; $2,500 for dependents of active employees; and, $10,000 for each City of Sparks Retiree.  The contract with Standard Life Insurance Company terms on June 30, 2015.  Our city’s health insurance broker/consultant – L/P Insurance Services sought bid requests from fifteen (15) companies. Eight (8) declined to quote.  Four (4) presented quotes that were not competitive.  Three (3) offered competitive quotes: Standard, Symetra and Aetna.

The City's current annual cost for Life Insurance is $57,411.  Symetra Life Insurance Company presented a quote at no increase over the current rate and offered a thirty-six (36) month contract.  Standard Life insurance requested a 13.16% increase in rates for a thirty-six (36) month contract.  Aetna presented a quote of 13.68% over the current rate.  Symetra offers identical services to Standard's current policy for $7,554 less over a three (3) year period.

Council could direct staff not to purchase life insurance from Symetra Life Insurance Company or to find other solutions to address this group health benefit.

I move to approve to purchase a group life and accidental death and dismemberment insurance policy with Symetra Life Insurance Company for 2015/16 and authorize for the Contracts and Risk Manager to execute agreements for the policy.