TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 2, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Issue purchase order and enter into an agreement with Hartford Life and Accident Insurance Company to provide group term life insurance for employees for a three-year period, in an amount not to exceed $270,000.00, Account 101-25000-601250, 501-50000-601250, Requisition 1645550
Body
Dear Sir:
At the Board Meeting of December 1, 2022, in accordance with Contract 22-RFP-12, the Board of Commissioners awarded a purchase order to Mesirow Insurance Services, Inc., whose name was changed to Alliant Insurance Services, Inc. (Alliant) as of May 31, 2024, to serve as the District’s broker-of-record for a three-year period from 2023 through 2025. On April 3, 2025, the Board of Commissioners approved an extension of this contract through 2027. In this capacity, Alliant has responsibility for securing quotes from the insurance market for specified insurance policies, including life insurance coverage, and presenting the quotes from qualified carriers to the Human Resources Department for review and for recommendation of a selected carrier to the Director of Procurement and Materials Management. The premium for the life insurance coverage is paid directly to the insurance carrier. The current coverage will expire on December 31, 2025.
The life insurance program currently offered by the District includes $25,000.00 basic term life insurance coverage for each employee. The cost of this coverage is paid by the District. Employees are also provided an opportunity to purchase additional coverage up to a maximum of $250,000.00. Optional spouse coverage of $5,000.00 or $10,000.00 and dependent coverage of $2,500.00 or $5,000.00 are also available. These additional coverages are voluntary and are paid by the employee.
On April 15, 2022, the District received the bid quotations which Alliant had solicited pursuant to the detailed specifications for the group term life insurance coverage. Three (3) carriers were approached for quotations and all three responded. Quotes were received from Hartford Life and Accident Insurance Company (Hartford); Prudential Financial (Prudential); and Unum Life Insurance Company of America (Unum). Hartford and Prudential submitted quotes for the requested three-year contract period with rate guarantees for the 36-month period. Unum submitted a quote with rate guarantees for a 24-month period.
The quotations/responses were evaluated by Alliant and representatives from the Human Resources Department. Based on the review, it was determined that the District should place this coverage with Hartford. The company is licensed with the Illinois Department of Insurance to do business in Illinois and complied with the terms and conditions of the bid specifications. The company’s A.M. Best Company rating is A+ (Superior). Hartford’s quote was the most cost effective for the District and maintains the current rates for employee optional life insurance through the three-year term of the policy. The quote also provides a rate guarantee for an additional year in comparison to the incumbent’s proposal.
The Diversity Section has reviewed this contract and determined that Alliant, which serves as the District’s insurance broker for placement of the life insurance coverage, has met the requirements of Appendix A. The Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE) and/or Small Business Enterprises (SBE) goals are: 20% MBE, 10% WBE and 10% SBE.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order to Hartford in an amount not to exceed $270,000.00.
The estimated expenditures for 2026, 2027 and 2028 are $90,000.00 per year. Funds for 2026, 2027 and 2028 are contingent upon the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK:JEF
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for October 2, 2025
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