Request for Proposal for:
Payroll Deducted Insurance Benefits
Mobile County Commission
Request for Proposals
Number: 2-2010
Date: June 2, 2010
Submitted by:
Contact: Larry Washington
273 Azalea Road
Building 2, Suite 102
Mobile, Alabama 36609
251-345-8956 office phone
251-463-7903 cell
251-345-3360 fax
[email protected]
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Table of Contents
Letter of Transmittal……………………………………………………………………………………………………3
Profile of Proposer………………………………………………………………………………………………………4
Client References
Summary of Proposer’s Qualifications………………………………………………………………………….6
Proposed Approach for the Development and Provisions of Service………………………………7
Product Brochures, Rates
Sample Announcement Letter
Fees and Expenses……………………………………………………………………………………………………..10
Other Considerations…………………………………………………………………………………………………11
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Letter of Transmittal
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Profile of Proposer
Liberty National Life Insurance Company is authorized to sell and market all products and provide
administration of the Section 125/Voluntary Benefit Insurance Plans outlined in this request for proposal.
Our Company is licensed to sell in all states nationwide and all Agents working to enroll this case are
licensed in Alabama.
Who we are
More than a century ago, a fraternal organization known as the Heralds of Liberty was formed and became
the forerunner of our company. In 1929, we were incorporated as a stock company called Liberty National
Life Insurance Company and launched into the stormy sea of the Great Depression, which only buoyed our
determination to succeed. Liberty National is a wholly owned subsidiary of Torchmark Corporation (NYSE:
TMK). TMK is one of the largest publicly held holding companies in the nation, specializing in life and health
insurance.
Financial Stability/Industry Performance Ratings
Stability is an absolute essential in insurance. When selecting an insurance provider, customers want a
company upon which they can depend to pay claims. Clients invest in a policy and expect that policy to
perform when needed. For more than a century, Liberty National Life has been meeting the insurance needs
of its customers. Proof of our stability is reflected in our industry ratings. Liberty National Life Insurance
Company is rated by several financial rating agencies as shown below:
A.M. Best – A+ (Superior) as of 6/09 – Financial Size – Class X
Standard & Poor’s – AA- “Very Strong” as of 6/09
Moody’s – A1 as of 1/09
Fitch – AA (Very Strong) as of 6/08
Additionally, every year since 1995, Liberty National Life has been recognized as one of the Ward’s 50
Benchmark Group of Life and Health Insurers based on safety, consistency and performance.
Local office address
The primary contact for this request for proposal is Mr. Larry Washington from our Mobile, Alabama North
Branch Office. The Branch office phone number is 251-345-8956. The Branch office address is 273 Azalea
Road, Building 2, Suite 102, Mobile, Alabama 36609.
Product Experience
Liberty National has been in the worksite arena for the past four decades providing voluntary benefits and
Section 125 products. Our most popular products offered include a Group Term Life product and our
Cancer coverage. We are highly ranked among major insurance companies in the country and primarily
provide life and supplemental health insurance to individuals, families and working Americans across the
country. We continue to operate and be known as a low cost provider because of our efficiency. After 100
years, success hasn't spoiled the business proposition we offered at the very beginning: Value. What makes
Liberty National Life unique is our longevity in the marketplace. We are not all things to all people. Rather,
we focus on providing quality individual and worksite life/health products at an affordable price to
individuals, couples and families.
Liberty National has branch offices in more than 200 locations and more than 8,000 Sales Representatives.
Each of these offices employs a Branch Manager, Unit Managers, and Agents, and has an existing client base. Our
Company believes in personal, one-on-one service for insurance needs. Our Agents call on Liberty National
customers regularly at home and at their place of employment to discuss their existing coverage and personal
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insurance needs. Liberty National does not use subcontractors, nor have we ever defaulted on a contract or been
denied a bid due to non-responsibility to perform.
References
See attached listing.
Pending Litigation
Liberty National, like all insurance companies, is routinely involved in litigation and/or arbitration
proceedings related to its business. We have researched our records for the past 5 years and, apart from
settlements to avoid the costs of litigation, none of which was in an amount the Company deems material,
we have found only 2 instances where an award was made by an arbitrator in favor of a claimant--both of
which were disputed claims where the amount of the claim was finally awarded to the claimant.
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Summary of Proposer’s Qualifications
Mr. Larry Washington is a licensed Agent representing Liberty National Life Insurance Company. Mr.
Washington joined the Company in July of 1986 as an Agent. He has earned the National Quality Award
(NQA) and the National Sales Achievement Award with Liberty National. Each of these awards signifies Mr.
Washington’s level of salesmanship and dedication to writing quality business that stays on the books. He
ensures customers understand the product they are purchasing and matches that to their budget. Larry has
also qualified for Liberty National’s Torch Club, our annual convention five times.
Mr. Washington is a member of the National Association of Insurance and Financial Advisors (NAIFA) Board
of Directors and holds the designation of Life Underwriter Training Council Fellow (LUTCF).
He is the lead contact for the following worksite franchises in the cities of Mobile and Prichard:
-Mobile County Public School System
-City of Mobile
-City of Prichard
-Prichard Water and Sewer Board
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Proposed Approach for the Development and Provision
of Service
Voluntary Supplemental Benefits Offered
For the Mobile County Commission proposal, Liberty National Life would like to offer the following
products: Group Term Life, CareerLife Plus, Cancer Care Plus, Hospital Intensive Care, Accident Protector
Plus, Hospital Income, Critical Illness and Accidental Death. Please see attached brochures and rates for a
description of the benefits of each plan.
While we believe these policies are highly competitive, and more affordable than our competitors are
offering in the marketplace, Liberty National is willing to enhance our offering by providing Accidental
Death coverage to every employee and dependant.
This policy consists of $3,000 Accidental Death coverage each for the employee and spouse along with
$1,000 for each minor child. This program is at no cost until the end of the year, at which time
the premium is only $10 per year for the entire family. At the end of the first year, the cost for this
coverage is billed to their home and is separate from any insurance being offered through Mobile County.
Employees are under no obligation to pay premiums on the $3,000 Accidental Death policy or continue
coverage. They are provided this coverage at the time they meet with us whether or not they purchase
additional products. Our experience is most will participate in our other offerings as well, due to the low
cost of the coverage.
Enrollment
Liberty National is sensitive to our customers’ need for the enrollment process to run efficiently, by taking
the least amount of time to meet with employees. That’s why we meet with the supervisor of the
department and schedule a time convenient for each enrollment.
To help promote the enrollment, Liberty National would create and print an announcement letter
and provide copies to the bookkeeper for insertion in the last pay period envelopes prior to enrollment. This
announcement letter would be on the County’s letterhead and signed by the appropriate person, and sent to
all eligible employees announcing the insurance coverage being made available to them.
On the scheduled enrollment date, we then meet with the employees individually to answer any
questions they may have about the coverage and complete the application. The enrollment process
typically takes up to 15 minutes. We also have a Laptop Sales Presentation, which outlines the
need for coverage using facts/figures, helps detail specific product benefits and uses an electronic
application process to complete the sale. Upon policy approval, the Agent will deliver the policies
to the bookkeeper or contact person and a Policy Delivery Acknowledgement will be signed. The
bookkeeper will distribute the policies through the County’s normal method of internal distribution.
Rather than calling your Benefits Administrator with questions about our products, at time of enrollment
the customer will receive the Agent’s business card and contact information so that the customer can call
the Agent at anytime to speak to them about product benefits, questions, claims, etc. Our Agents are local
and just a phone call away.
When we enroll prospective customers we provide appropriate materials to explain the benefits of the
product, and discuss the strength of the company behind the coverage. We will have a licensed Liberty
National Agent meet with each employee to explain our products, complete the application, and provide a
brochure.
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Service Philosophy
Liberty National believes in one-on-one, local Agent service. Liberty National does not use an outside subcontractor – we use licensed Liberty National Agents to explain the insurance coverage being purchased.
Our Agents call on Liberty National customers regularly at home and at their place of employment to discuss
their existing coverage and personal insurance needs.
Customer Service
Service is often the distinction between a good and a great company. A great company goes the extra mile
not just to sell a product, but also to establish a relationship with the customer. At Liberty National, we
believe we are a great company, and we continuously strive to deliver superior service and customer
convenience.
Prompt claims processing is the most important customer service we can provide. Liberty National’s
Customer Service department has a dedicated team of experienced representatives who handle incoming
calls and assist our policyholders. Our policyholders will experience a live interaction with our customer
service representatives. The policyholder will not have to experience an automated system when calling our
customer service group. We provide answers to general policy inquiries, billing and claim information. Our
business hours are Monday – Friday 7:30AM to 5:00PM Central Standard Time. Our toll free number
is 1-800-333-0637.
Claim Submission Procedure
Claims can be submitted using a standard claim form HCFA 1500, or UB-04, by the provider or the policyholder to
the following address:
Liberty National Life Insurance Company
Attn: Claims Department
P. O. Box 8080
McKinney, TX 75070
Complaints
The customer service group acts quickly to resolve escalated policyholder requests. Our representatives
identify escalated issues by calculating the interval between the date of request and the current date. All
requests should be processed within 10-15 business days, excluding complex claims processing. The
representatives will use this rule and escalate the request if it is outside of the standard 10-15 business
day window.
Once identified by our customer service representatives, the supervisors are notified. Our supervisors are
trained to resolve the issue within 24 hours, where applicable. If the issue is unable to be resolved by our
customer service department, our supervisors have the appropriate department contacts to escalate
matters for resolution. Our department supervisors and manager will continually follow-up with the
policyholder to make sure they are provided with the most recent information.
Appeal Process
We strive to make our customers’ experience with our Company a positive one. In the event of a need for a
policyholder to appeal a denied claim, our appeal process is summarized below.
Decisions you can appeal:
You can appeal the following decisions:
1. We do not approve a service that you or your treating provider has requested.
2. We do not pay for a service that you have already received.
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3. We do not authorize a service or pay for a claim because we say that it is not ‘medically necessary.’
4. We do not authorize a service or pay for a claim because we say that it is not covered under your
insurance policy, and you believe it is covered.
Decisions you cannot appeal:
You cannot appeal the following decisions:
1. You disagree with our decision as to the amount of ‘usual and customary charges.’
2. You disagree with our decision to issue or not issue a policy to you.
3. You are dissatisfied with any rate increases you may receive under your insurance policy.
We have three levels of appeal:
Level 1: Informal Reconsideration
Level 2: Formal Appeal
Level 3: External Independent Review
We make the decisions at Level 1 and Level 2. An outside reviewer, who is completely independent from our
Company, makes Level 3 decisions. You are responsible for paying the costs of the external review if you choose
to appeal Level 3.
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Fees and Expenses
Billing
Our Liberty National representative handling your account will go over the billing process with the
bookkeeper prior to the billing date to ensure a smooth billing cycle. One of the biggest advantages
Liberty offers is that payroll deductions start the first pay period of the next month following the
enrollment period. This means immediately following the enrollment, the bookkeeper will receive
Payroll Deduction Authorization forms to begin the deduction process. The bookkeeper will have
a month to gather the deductions before Liberty National sends the first bill. We will resolve any
billing issues within 30 days of notification of any variances.
Liberty National’s billing process is on the 1st of each month for companies that pay their premiums
monthly. If you choose to have a payment other than monthly, we would send a billing
after each payment is received and applied. When the billing is received, any deletion of terminated
employees or other corrections can be noted on our billing and returned with the check for payment.
Electronic funds transfer
Liberty National provides the convenience of electronic funds transfer. The bookkeeper simply
follows these two easy steps:
Step 1: When making a Direct Deposit (ACH) for your company to Liberty National, simply wire
the payment to the financial institution we provide to you upon awarding of the bid to us.
Step 2: Notify the following people prior to sending the ACH deposit through so they
can track payment to insure proper payment.
Payroll Deduction Schedule
We want to make paying premiums as convenient for you and your employees as possible. Payroll
deductions payment can be any of these methods: Weekly, Bi-Weekly, Semi-Monthly, 4 Weeks, or Monthly.
Shortages
We will waive any shortages up to $5.00. Should there be shortages we would call to verify with the Mobile
County bookkeeper to determine how to balance the billing statement.
Billing Number
Our billing toll-free number is 1-888-488-0134.
Agent Commission
Mr. Larry Washington will coordinate the enrollment of the Mobile County employees and will engage other
Agents in the Mobile, AL North Branch Office to assist in the process. Our licensed Agents earn a commission for
the sale of products, but their commission is built into the price of the product. There is no separate, extra fee
for commissions.
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Other Considerations
Electronic Enrollment
Liberty National uses an electronic application to enroll applicants. Use of this electronic system helps
ensure the application cannot be submitted with missing information. Rates are calculated by the system
and all forms required are submitted automatically. Use of this system reduces the possibility of human
error and speeds up the issue process so the customer receives their policy promptly.
Electronic employee access system
Once individuals become Liberty National policyholders they can log on to www.libnat.com and register their
policies.
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