HomeMy WebLinkAboutAgreement A-18-708-2 with ReliaStar LIfe Insurance Co..pdf- 1 -
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SECOND AMENDMENT TO AGREEMENT NO. 18-708
THIS SECOND AMENDMENT TO AGREEMENT No. 18-708 is made and entered into this
16th day of August, 2021, by and between the COUNTY OF FRESNO, a Political Subdivision of the
State of California, Fresno, California (hereinafter “COUNTY”), and ReliaStar Life Insurance Company,
a Minnesota Corporation, whose address is 20 Washington Ave. S., Minneapolis, MN 55401,
hereinafter referred to as "CONTRACTOR".
WITNESSETH:
WHEREAS, COUNTY and CONTRACTOR entered into Agreement number 18-708, dated
December 11th, 2018, and a First Amendment to Agreement No. 18-708 (identified as Agreement No.
18-708-1), dated December 15, 2020, (hereinafter collectively referred to as the “Agreement”),
pursuant to which CONTRACTOR agreed to provide Life Insurance and Accidental Death and
Dismemberment Insurance coverage, and Employee Assistance Program services to COUNTY
employees; and
WHEREAS, COUNTY and CONTRACTOR now desire to amend the Agreement in order to
extend the agreement from three (3) years to four (4) years, with one (1) consecutive twelve (12)
month extension.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which
is hereby acknowledged, COUNTY and CONTRACTOR agree as follows:
1. Section 3 – TERM of the Agreement is deleted in its entirety and replaced with the
following:
"3. TERM
The term of this Agreement shall be for a period of four (4) years, commencing on
December 31, 2018, through and including December 31, 2022. This Agreement may be extended for
one (1) additional consecutive twelve (12) month period upon written approval of both parties no later
than thirty (30) days prior to the first day of the next twelve (12) month extension period. The Director
of Human Resources or his or her designee is authorized to execute such written approval on behalf of
COUNTY based on CONTRACTOR’S satisfactory performance."
2. Section 5 – COMPENSATION & INVOICING of the Agreement is deleted in its entirety
Agreement No. 18-708-2
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and replaced with the following:
"5. COMPENSATION & INVOICING: COUNTY agrees to pay CONTRACTOR and
CONTRACTOR agrees to receive insurance premiums as follows:
A. Class 1 Employees: $0.35 per covered employee per biweekly pay period.
B. Class 2 Employees: $1.79 per covered employee per biweekly pay period.
C. Class 3 Employees: $8.77 per covered employee per biweekly pay period.
D. Employees and their spouse and/or eligible children who choose to enroll in a
supplemental life insurance policy shall pay the insurance premium subject to the following monthly
rates per $1,000 of coverage, based on their age:
1) Under 25 years of age: $0.06;
2) 25-29 years of age: $0.07;
3) 30-34 years of age: $0.08;
4) 35-39 years of age: $0.11;
5) 40-44 years of age: $0.16;
6) 45-49 years of age: $0.23;
7) 50-54 years of age: $0.37;
8) 55-59 years of age: $0.60;
9) 60-64 years of age: $0.94;
10) 65-69 years of age: $1.76; and
11) 70 years of age and older: $2.85.
12) All children of the employee: $0.14
E. EAP Services: COUNTY shall pay CONTRACTOR for EAP services provided at
the rate of $0.65 per permanent, active COUNTY employee per month. For purposes of this
paragraph, the monthly fee will be calculated using the number of permanent, active COUNTY
employees on the first calendar day of each month.
The compensation described in Sections 5.A through 5.D, above, is guaranteed in
years one (1) through four (4) of the Agreement and will remain unchanged in year five (5) of the
Agreement, if the Incurred Loss Ratio, as described in this Section 5, below, is 0.70 or less. If the
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Incurred Loss Ratio is greater than 0.70, CONTRACTOR may request an increase in the
compensation described in Sections 5.A through 5.D, above. Such increase must be agreed upon in
writing by COUNTY and CONTRACTOR.
The compensation described in Section 5E, above, will remain unchanged for the life of
the Agreement, regardless of the Incurred Loss Ratio.
For purposes of this Agreement, the Incurred Loss Ratio is equal to the total claims paid
by CONTRACTOR (total claims paid are equal to: paid life insurance claims [excluding accidental
death and dismemberment insurance claims paid], interest payments to beneficiaries, any potential
liability for employees utilizing the waiver of premium provision, and any pending unpaid claims which
are reported or not yet reported) divided by the total life insurance premiums received by
CONTRACTOR (excluding accidental death and dismemberment insurance premiums) through the
first 42 months of this Agreement.
CONTRACTOR shall submit a monthly electronic invoice for EAP services to the
County of Fresno Department of Human Resources. CONTRACTOR agrees that payment of said
invoice will be made no sooner than forty-five (45) days from date of receipt of invoice by the
COUNTY. Premiums for life insurance and AD&D insurance shall be remitted by COUNTY to
CONTRACTOR no sooner than 45 days after the last calendar day of the month in which premiums
are collected.
With regards to eligibility of coverage, in the event of a discrepancy between the
foregoing provisions and the terms of the CONTRACTORS Insurance Policies, the terms of the
Policies will govern.
In no event shall the cost to COUNTY for services performed under this Agreement be
in excess of $1,100,000 during the term of this Agreement. However, there is no aggregate limit on the
amount that CONTRACTOR may receive from employees who purchase optional life insurance from
CONTRACTOR as described in Sections 1.D through 1.F of this agreement. It is understood that all
expenses incidental to CONTRACTOR'S performance of services under this Agreement shall be
borne by CONTRACTOR.”
COUNTY and CONTRACTOR agree that this Second Amendment is sufficient to amend the
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Agreement and, that upon execution of this Amendment, the Agreement, First Amendment and this
Second Amendment together shall be considered the Agreement.
The parties agree that this Amendment may be executed by electronic signature as provided in
this section. An “electronic signature” means any symbol or process intended by an individual signing
this Amendment to represent their signature, including but not limited to (1) a digital signature; (2) a
faxed version of an original handwritten signature; or (3) an electronically scanned and transmitted (for
example by PDF document) of a handwritten signature. Each electronic signature affixed or attached
to this Amendment (1) is deemed equivalent to a valid original handwritten signature of the person
signing this Amendment for all purposes, including but not limited to evidentiary proof in any
administrative or judicial proceeding, and (2) has the same force and effect as the valid original
handwritten signature of that person. The provisions of this section satisfy the requirements of Civil
Code section 1633.5, subdivision (b), in the Uniform Electronic Transaction Act (Civil Code, Division 3,
Part 2, Title 2.5, beginning with section 1633.1). Each party using a digital signature represents that it
has undertaken and satisfied the requirements of Government Code section 16.5, subdivision (a),
paragraphs (1) through (5), and agrees that each other party may rely upon that representation. This
Amendment is not conditioned upon the parties conducting the transactions under it by electronic
means and either party may sign this Amendment with an original handwritten signature.
The Agreement, as hereby amended, is ratified and continued. All provisions, terms,
covenants, conditions and promises contained in the Agreement and not amended herein shall remain
in full force and effect.
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IN WITNESS WHEREOF , the parties hereto have executed this Second Amendment to Agreement No .
18-708 as of the day and year first hereinabove written.
~~ COUNTYZL~
(Authorize d--Si gnature) Steve Brand, Chairman of the Board
of Supervisors of the County of Fresno
6 Mona Zielke, Vice President l+-----------------
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Print Name & Title
20 Washinqton Ave S
Minneapolis , MN 55401
Mailing Address
FOR ACCOUNTING USE ONLY :
18 Fund : 1060
19 Subclass : 10000
20 ORG : 89250200
21 Account: 7295
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ATTEST:
Bernice E. Seidel
Clerk of the Board of Supervisors
County of Fresno , State of California
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