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Item 4G ITEM 4G CITY OF SOUTHLAKI MEMORANDUM July 26, 2017 TO: Shana Yelverton, City Manager FROM: Stacey Black, Director of Human Resources SUBJECT: Approve a contract renewal with Unum to provide employee long term disability, life insurance, and accidental death and dismemberment insurance for the Plan Year October 1, 2017 to September 30, 2018. Action Requested: Approve a contract renewal with Unum to provide employee long term disability, life insurance and accidental death and dismemberment insurance for Plan Year October 1 , 2017 to September 30, 2018. Background Information: As part of its standard benefit package, the City provides all full-time employees with long term disability (LTD) insurance, basic life insurance (Life), and accidental death and dismemberment (AD&D) insurance. Unum is the City's current carrier for all three coverages and has been the carrier since October 1 , 2016. The proposed renewal is the second year of a three year rate guarantee. Unum provides the following levels of coverage to employees: LTD Life AD&D 1x Annual Salary 60% of salary after a 1x Annual Salary up to $50,000 90 day waiting period up to $50,000 (2x Annual Salary for Sworn Public Safety personnel) A summary of the proposed rates and the associated annual premium costs are below. Coverage Rate Volume Estimated Cost Monthly Annual LTD Rate/$100 $0.20 $1,542,905 $3,086 $37,030 AD&D Rate/$1,000 $0.03 $20,766,000 $623 $7,476 Basic Life Rate/$1,000 1 $0.071 $14,552,0001 $1 ,0191 $12,224 Total: $56,729 Shana Yelverton, City Manager ITEM 4G July 26, 2017 Page 2 The City has had a favorable experience with Unum and renewing the contract with Unum allows the City to maintain consistency in providers. Financial Considerations: The estimated cost of Life, AD&D and LTD Insurance is $56,729 annually. There is no rate increase FY 2018. The proposed Life, AD&D and LTD plan costs will be included in the proposed budget for Fiscal Year 2018. Strategic Link: Performance Management and Service Delivery: attract, develop and retain a skilled workforce. Citizen Input/ Board Review: N/A Legal Review: N/A Alternatives: Deny the contract renewal with Unum and seek alternative options. Supporting Documents: The following supporting documents are attached: • Unum Proposal Staff Recommendation: Approve a contract renewal with Unum to provide employee long term disability, life insurance and accidental death and dismemberment insurance for Plan Year October 1 , 2017 to September 30, 2018.. Long Term Disability Income Protection unu City Of Southlake For Broker Information Only Benefits & Cost Summary Long Term Disability Income Protection Insurance PREPARED FOR: City Of Southlake DATE: June 28, 2016 Unum's Group Long Term Disability Income Protection Offering is designed to help the employer: • Provide sound financial protection in the event of a disability • Increase productivity and performance • Meet diverse employee needs at every life stage • Attract and retain skilled employees This proposal for Long Term Disability Income Protection Insurance coverage includes all active full- time employees working 30 hours per week in the United States with the employer. Number of Eligible Employees: 313 Plan Description: Proposed coverage effective date: October 1, 2016 Monthly Benefit: 60% of monthly earnings to a maximum benefit of$5,000 per month. Definition of Disability: . 2 Year Regular Occupation Zero-Day Residual Accelerated Elimination Period Work Incentive Benefit during the first 12 months of disability payments Elimination Period: . 90 Days 30 Day Accumulation Feature Benefit Duration: Social Security Retirement Age/Reducing Benefit Duration Social Security Primary and family Integration: Standard Plan Features Included in Quote: • Work-life balance employee assistance program • Worldwide emergency travel assistance services • H R®/BenefitsAnswersNowTM Rehabilitation and Return to Work Assistance Program Dependent Care Benefit Guaranteed Insurability Full Maternity Benefits 3 Month Lump-Sum Accelerated Survivor Benefit Indexed Pre-Disability Earnings "Freeze"in Cost of Living Increases from Deductible Sources of Income Waiver of Premium for employees receiving LTD payments 12 Month Rehire Provision Comparative Reporting and Analysis Minimum Monthly Benefit - greater of$100 or 10% of the gross disability payment 24 months Mental Illness and Self-Reported Symptom Limitation Long Term Disability Income Protection unu City Of Southlake For Broker Information Only Standard Exclusions and Limitations 3/12 Pre-Existing Condition Exclusion Optional Plan Features Included in Quote: Risk Management Provisions: - claimants are not considered disabled if they can perform the duties of their occupation within a 40 hour work week - Unum disability payments are offset by third party settlements and by disability income payments from auto liability insurance - "gainful occupation" is defined as the gross disability payment Rates and Cost Information: Covered Payroll Rate Monthly Cost $1,531,512.58 0.20% of Covered Payroll $3,063.03 Rate Guarantee: 3 Year(s) Cost of Coverage Paid By: Employer (Rate assumes 100% participation) General Information Regarding Benefit Taxability: In general, the LTD monthly payment will be taxable: • If the Employer pays the premiums and employees'salaries are not grossed-up to include premiums as taxable income. • If the Employees pay premiums with pre-tax dollars. • If Employees share payments of premiums with the employer, a portion of the benefits will be taxed. In general, the LTD monthly payment will not be taxable: • If Employees pay premiums with post-tax dollars. • If the Employer pays the premiums and employees'salaries are grossed-up to include premiums as taxable income. Group Life and AD&D unum City Of Southlake For Broker Information Only Benefits & Cost Summary Group Life and Accidental Death and Dismemberment Insurance PREPARED FOR: City Of Southlake DATE: June 28, 2016 This proposal for Life and AD&D insurance coverage includes all active full-time employees working 30 hours per week in the United States with the employer. Class 1: All employees, excluding Police &Fire Class 2: Police &Fire Number of Eligible Employees: 313 Plan Description: Proposed coverage effective date: October 1, 2016 Life Insurance Employee Life Benefit Amount Overall Maximum 1 X annual earnings rounded to the next higher $1,000 $50,000 Employee Life Non-Medical Maximum The Employee Life non-medical maximum is equal to the overall maximum. Employee Life Benefit Reduction Formula Life Benefit Reduces to: - 65% at age 65; and - 45% at age 70 AD&D Insurance Employee AD&D Benefit Amount AD&D Maximum Class 1: 1 X annual earnings rounded to the next higher $1,000 $50,000 Class 2: 2 X annual earnings rounded to the next higher $1,000 $100,000 Employee AD&D Benefit Reduction Formula AD&D Benefit Reduces to: - 65% at age 65; and - 45% at age 70 Standard Plan Features Included in Quote: Life Planning Financia/&Legal Resources Life Insurance Conversion Privilege Unum Security Account 12 Month Rehire Provision 24 Month Life Insurance Suicide Exclusion applies to contributory amounts and medically underwritten amounts) Group Life and AD&D unum City Of Southlake For Broker Information Only • AD&D Education Benefit - 6%-$6,000 • AD&D Repatriation Benefit • AD&D Seat Belt and Airbag Benefit - Employee Only 10%/$25,000 Seatbelt-5%/$5,000 Airbag • AD&D Exposure and Disappearance Benefit • Enhanced AD&D Schedule of Benefits and Losses • Standard AD&D Exclusions and Limitations • Accelerated Benefit - 100% of the Life Amount to a maximum of$250,000 • Employee Life Insurance Premium Waiver • Portability Rates and Cost Information: Life Rates Volume Rate Monthly Cost Employee Life $14,367,900 $0.070 per $1,000 $1,005.75 AD&D Rates Volume Rate Monthly Cost Employee AD&D $19,967,900 $0.030 per $1,000 $599.04 Rate Guarantee: 3 Year(s) Employee Employer (Rate assumes 100% participation) Cost of Coverage Paid By: Lifestyle Life and AD&D unum City Of Southlake For Broker Information Only Benefits & Cost Summary Group Lifestyle Life and Accidental Death and Dismemberment Insurance PREPARED FOR: City Of Southlake DATE: June 28, 2016 This proposal for Lifestyle Life and AD&D insurance coverage includes all active full-time employees working 30 hours per week in the United States with the employer. Number of Eligible Employees: 168 Plan Description: Proposed coverage effective date: October 1, 2016 Life Insurance Employee Life Benefit Amount Overall Maximum Amounts in $10,000 benefit units as applied for by the employee The lesser of 5 X annual earnings and approved by Unum or $500,000 Employee Life Non-Medical Maximum $150,000 Employee Life Benefit Reduction Formula Life Benefit Reduces to: - 65% at age 70; and - 50% at age 75 Dependent Life Benefit Amount Overall Maximum Spouse: Amounts in $5,000 benefit units as The lesser of 100% of applied for by the employee and the Employee Life approved by Unum amount or $500,000 Child: - Live birth to 14 days: $1,000 The lesser of 100% of - 14 days to 6 months: $1,000 the Employee Life - 6 months to 26 years: amount or $10,000 Amounts in $2,000 benefit units as applied for by the employee and approved by Unum Spouse Life Non-Medical $30,000 Maximum: Spouse Life Benefit Reduction The Spouse Life Benefit amount will reduce by the same Formula: percentage and at the same time as the Employee Life Benefit amount. Lifestyle Life and AD&D unum City Of Southlake For Broker Information Only The amount of Life Insurance for a dependent will not be more than 100% of the employee Life amount. The employee must be covered for Life in order to insure dependents for Life. AD&D Insurance Employee AD&D Benefit Amount AD&D Maximum Amounts in $10,000 benefit units as applied for by the employee The lesser of 5 X annual earnings and approved by Unum or $500,000 Employee AD&D Benefit Reduction Formula AD&D Benefit Reduces to: - 65% at age 70; and - 50% at age 75 Dependent AD&D Benefit Amount AD&D Maximum Spouse: Amounts in $5,000 benefit units as The lesser of 100% of applied for by the employee and the Employee AD&D approved by Unum amount or $500,000 Child: - Live birth to 14 days: $1,000 The lesser of 100% of - 14 days to 6 months: $1,000 the Employee AD&D - 6 months to 26 years: amount or $10,000 Amounts in $2,000 benefit units as applied for by the employee and approved by Unum Spouse AD&D Benefit Reduction The Spouse AD&D Benefit amount will reduce by the same Formula: percentage and at the same time as the Employee AD&D Benefit amount. The amount of AD&D Insurance for a dependent will not be more than 100% of the employee AD&D amount. The employee must be covered for AD&D in order to insure dependents for AD&D. Standard Plan Features Included in Quote: Life Planning Financia/&Legal Resources Annual Enrollment Period Customized Enrollment Life Insurance Conversion Privilege Unum Security Account 12 Month Rehire Provision 24 Month Life Insurance Suicide Exclusion AD&D Education Benefit - 6%-$6,000 AD&D Repatriation Benefit AD&D Seat Belt and Airbag Benefit - Employee/Dependent 10%/$25,000 Seatbelt-5%/$5,000 Airbag AD&D Exposure and Disappearance Benefit Enhanced AD&D Schedule of Benefits and Losses Standard AD&D Exclusions and Limitations Accelerated Benefit - 100% of the Life Amount to a maximum of$250,000 Employee Life Insurance Premium Waiver Portability Lifestyle Life and AD&D unum City Of Southlake For Broker Information Only Rate Information: Life Rates Employee Life Monthly Spouse Life Monthly Child Life Step Rates per $10,000 Step Rates Monthly Rate per $5,000 Age Rate Rate $0.500 per $2,000 15-24 0.930 0.465 25-29 0.930 0.465 30-34 0.930 0.465 35-39 1.140 0.570 40-44 1.640 0.820 45-49 2.470 1.240 50-54 3.920 1.960 55-59 6.300 3.150 60-64 9.660 4.830 65-69 16.380 8.190 70-74 31.080 15.540 75+ 62.781 31.390 AD&D Rates Employee AD&D Spouse AD&D Child AD&D Monthly Rate Monthly Rate Monthly Rate $0.340 per $10,000 $0.130 per $5,000 $0.056 per $2,000 Rate assumes the following: The employee participation level is at least 46%. Rate Guarantee: 3 Year(s) Cost of Coverage Paid By: Employees Minimum Participation: In order for the case to be effective, the greater of 10 employees or 20% of the eligible employees must participate in the plan. LTD Highlights unum City Of Southlake For Broker Information Only LTD Coverage Highlights & Descriptions Some features listed below may be applicable only to certain employee classes. Please see the "Plan Description"section of your LTD Benefits and Cost Summary for specific plan details. Group Long Term Benefits that recognize and support the realities of daily life are of true value Disability Income to employees today, whether or not they have a disability. With this in Protection: mind, Group LTD Income Protection has been designed to match the full spectrum of employer needs more effectively than ever before. Unum's Group LTD Income Protection Program offers these family-focused benefits and support services: • Work-life balance employee assistance program: provides access to a comprehensive employee assistance and work-life program for the insured employee and their family, to help manage workplace stress and deal more effectively with personal issues ranging from severe to everyday problems. As an additional feature, the program includes these services: — OnClaim Support — Will Preparation (when LTD is sold with Life) • Worldwide emergency travel assistance services: delivers global travel assistance including medical and legal emergency support for employees and their families who travel for business or pleasure more than 100 miles from home. Dependent Care Benefit: Pays an additional $350 per dependent per month, to an overall family maximum of$1,000, to disabled employees who are receiving LTD payments while participating in the Rehab/Return to Work Assistance program. HR@/BenefitsAnswersNowTM: HR*/BenefitsAnswersNowTM is a regularly updated, online reference featuring two critical resources: HR compliance and benefits information. This well organized, easily searchable library of federal and state employment law is available around the clock to help you meet your business's growing HR challenges. You can also choose to receive regular monthly e-mail updates on HR news and trends. Customer support is available by telephone and e-mail. Rehabilitation and Provides a rehabilitation and return to work assistance benefit for disabled Return to Work employees who are receiving LTD payments, and who are medically able to Assistance Program: participate. Unum will determine eligibility for this program. Life/AD&D Highlights unum City Of Southlake For Broker Information Only Life/AD&D Coverage Highlights & Descriptions: Some features listed below may be applicable only to certain employee classes. Please see the "Plan Description"section of your Life/AD&D Benefits and Cost Summary for specific plan details. Life Planning Financial&This personalized financial counseling service provides expert, objective Legal Resources: financial counseling to survivors and terminally ill employees at no cost to them. This service is also extended to employees upon the death or terminal illness of their covered spouse. The financial consultants are master level consultants. They will help develop strategies needed to protect resources, preserve current lifestyles, and build future security. At no time will the consultants offer or sell any product or service. Accelerated Benefit: Pays a portion of the insured employee's Life benefit in the event the insured employee becomes terminally ill, and the employee's life expectancy has been reduced to less than 12 months. The employee's death benefit will be reduced by the Accelerated Life Benefit paid. Delayed Effective Date: Insurance coverage will be delayed if you are not in active employment because of an injury, sickness, temporary layoff, or leave of absence on the date that insurance would otherwise become effective. Portability: Allows an insured employee to elect portable coverage, at group rates, if the employee terminates employment, reduces hours or retires from the employer. Employees are not eligible for portable coverage if they have an injury or sickness, under the terms of this plan, that has a material effect on life expectancy. Life Insurance Premium Life insurance premiums will be waived for insured employees who become Waiver: disabled prior to a specified age, and who remain disabled during an elimination period. Premium Waiver Benefit To Age 65 Maximum: Life Insurance When an insured employee's group coverage ends, employees may convert Conversion Privilege: their coverage to individual life policies without providing evidence of insurability. AD&D Covered Losses The AD&D plan provides additional protection for insured employees in the and Benefits: event of an accidental bodily injury resulting in death or dismemberment. Benefits resulting from the accidental death are paid to the named beneficiary. Benefits resulting from a dismembering injury are paid to the insured. The loss must occur within 365 days of the accident. For Loss of: The Benefit will be: Life The full amount Both hands or both feet or sight The full amount of both eyes One hand and one foot The full amount One hand or one foot and the The full amount sight of one eye Speech and hearing The full amount One hand or one foot One half the full amount Speech or hearing One half the full amount Sight of one eye One half the full amount Thumb and index finger of the One quarter the full amount same hand Life/AD&D Highlights unum City Of Southlake For Broker Information Only No more than the full amount will be paid for all losses resulting from the same accident. AD&D Education Pays an additional lump sum benefit, to each qualified child of a deceased Benefit: insured employee (provided death occurs within 365 days of the accidental bodily injury), equal to the lesser of: 6% of the employee's AD&D benefit amount; or $6,000. Maximum Benefit Payments: 4 per lifetime Maximum Benefit Amount: $24,000 Maximum Benefit Period: 6 years from the date of the first benefit payment In order to qualify, a child must continue to be enrolled full-time in an accredited post-secondary institution of higher learning beyond the 12th grade level. If still at the 12th grade level, then the child must enroll in such an institution within 365 days of the employee's date of death. AD&D Repatriation Pays an additional accidental death benefit of up to $5,000 for preparation Benefit: and transportation of a deceased insured employee, provided death occurs at least 100 miles from the employee's principal residence. Life/AD&D Highlights unum City Of Southlake For Broker Information Only AD&D Seat Belt and Pays an additional accidental death benefit if an insured employee dies while Airbag Benefit: properly wearing a seat belt, and an additional accidental death benefit if the employee was protected by an airbag. Benefit Amount: • Seatbelt: 10% of the Full Amount of the insured employee's accidental death and dismemberment insurance benefit. • Airbag: 5% of the Full Amount of the insured employee's accidental death and dismemberment insurance benefit. Maximum Benefit: • Seatbelt: $25,000 • Airbag: $5,000. AD&D Exposure and Pays a benefit if the insured employee sustains an accidental bodily injury Disappearance Benefit: and is unavoidably exposed to the elements and suffers a loss. Unum will presume the insured employee suffered loss of life due to an accident if: • they are riding in a common public passenger carrier that is involved in an accident covered under the contract; and • as a result of the accident, the common public passenger carrier is wrecked, sinks, is stranded, or disappears; and • the insured employee's body is not found within one year of the accident. Unum Security Account: For Life and AD&D claims that are $10,000 or greater, a Retained Asset Account (the Unum Security Account) will be made available to the designated beneficiary. This account allows access to all paid benefits immediately, while paying interest on benefits that have not been accessed. Claim payment is satisfied by establishment of the Unum Retained Asset Account. The funds are retained in Unum's general account and Unum pays a guaranteed rate of interest on the funds in the retained asset account regardless of the investment performance of Unum's general account. The beneficiary can request a lump sum check instead of the retained asset account or they can access all or part of the funds in the retained asset account by writing a single or multiple drafts. While the funds are not FDIC insured, they are guaranteed by State Guaranty Associations. For more information regarding the Unum Retained Asset Account please contact your Unum representative. Lifestyle Life/AD&D Highlights unum City Of Southlake For Broker Information Only Lifestyle Life/AD&D Coverage Highlights & Descriptions: Some features listed below may be applicable only to certain employee classes. Please see the "Plan Description"section of your Lifestyle Life/AD&D Benefits and Cost Summary for specific plan details. Life Planning Financial&This personalized financial counseling service provides expert, objective Legal Resources: financial counseling to survivors and terminally ill employees at no cost to them. This service is also extended to employees upon the death or terminal illness of their covered spouse. The financial consultants are master level consultants. They will help develop strategies needed to protect resources, preserve current lifestyles, and build future security. At no time will the consultants offer or sell any product or service. Accelerated Benefit: Pays a portion of the insured employee's or dependent's Life benefit in the event the insured employee or dependent becomes terminally ill, and the employee's or dependent's life expectancy has been reduced to less than 12 months. The employee's or dependent's death benefit will be reduced by the Accelerated Life Benefit paid. Delayed Effective Date: Employee: Insurance coverage will be delayed if you are not in active employment because of an injury, sickness, temporary layoff, or leave of absence on the date that insurance would otherwise become effective. Dependent: Insurance coverage will be delayed if that dependent is totally disabled on the date that insurance would otherwise be effective. TOTALLY DISABLED means that, as a result of an injury or sickness or a disorder: Your dependent spouse: - is confined in a hospital or similar institution; - is confined at home under the care of a physician for a sickness or injury; or - has a life threatening condition. Your dependent children: - are confined in a hospital or similar institution; - are confined at home under the care of a physician for a sickness or injury. LIFE THREATENING CONDITION is a critical health condition that may result in your dependent's loss of life. Portability: Allows an insured employee and their dependents to elect portable coverage, at group rates, if the employee terminates employment, reduces hours or retires from the employer. Employees and their dependents are not eligible for portable coverage if they have an injury or sickness, under the terms of this plan, that has a material effect on life expectancy. Life Insurance Premium Life insurance premiums will be waived for insured employees who become Waiver: disabled prior to a specified age, and who remain disabled during an elimination period. Premium Waiver Benefit To Age 65 Maximum: Life Insurance When an insured employee's group coverage ends, employees and their Conversion Privilege: dependents may convert their coverage to individual life policies without providing evidence of insurability. Lifestyle Life/AD&D Highlights unum City Of Southlake For Broker Information Only AD&D Covered Losses The AD&D plan provides additional protection for insured employees in the and Benefits: event of an accidental bodily injury resulting in death or dismemberment. Benefits resulting from the accidental death are paid to the named beneficiary. Benefits resulting from a dismembering injury are paid to the insured. The loss must occur within 365 days of the accident. For Loss of: The Benefit will be: Life The full amount Both hands or both feet or sight The full amount of both eyes One hand and one foot The full amount One hand or one foot and the The full amount sight of one eye Speech and hearing The full amount One hand or one foot One half the full amount Speech or hearing One half the full amount Sight of one eye One half the full amount Thumb and index finger of the One quarter the full amount same hand No more than the full amount will be paid for all losses resulting from the same accident. AD&D Education Pays an additional lump sum benefit, to each qualified child of a deceased Benefit: insured employee (provided death occurs within 365 days of the accidental bodily injury), equal to the lesser of: 6% of the employee's AD&D benefit amount; or $6,000. Maximum Benefit Payments: 4 per lifetime Maximum Benefit Amount: $24,000 Maximum Benefit Period: 6 years from the date of the first benefit payment In order to qualify, a child must continue to be enrolled full-time in an accredited post-secondary institution of higher learning beyond the 12th grade level. If still at the 12th grade level, then the child must enroll in such an institution within 365 days of the employee's date of death. AD&D Repatriation Pays an additional accidental death benefit of up to $5,000 for preparation Benefit: and transportation of a deceased insured employee or their dependents, provided death occurs at least 100 miles from the employee's or their dependent's principal residence. Lifestyle Life/AD&D Highlights unum City Of Southlake For Broker Information Only AD&D Seat Belt and Pays an additional accidental death benefit if an insured employee or their Airbag Benefit: dependent dies while properly wearing a seat belt, and an additional accidental death benefit if the employee or their dependent was protected by an airbag. Benefit Amount: • Seatbelt: 10% of the Full Amount of the insured employee's or their dependent's accidental death and dismemberment insurance benefit. • Airbag: 5% of the Full Amount of the insured employee's or their dependent's accidental death and dismemberment insurance benefit. Maximum Benefit: • Seatbelt: $25,000 • Airbag: $5,000. AD&D Exposure and Pays a benefit if the insured employee or their dependents sustains an Disappearance Benefit: accidental bodily injury and is unavoidably exposed to the elements and suffers a loss. Unum will presume the insured employee or their dependents suffered loss of life due to an accident if: • they are riding in a common public passenger carrier that is involved in an accident covered under the contract; and • as a result of the accident, the common public passenger carrier is wrecked, sinks, is stranded, or disappears; and • the insured employee's or their dependent's body is not found within one year of the accident. Unum Security Account: For Life and AD&D claims that are $10,000 or greater, a Retained Asset Account (the Unum Security Account) will be made available to the designated beneficiary. This account allows access to all paid benefits immediately, while paying interest on benefits that have not been accessed. Claim payment is satisfied by establishment of the Unum Retained Asset Account. The funds are retained in Unum's general account and Unum pays a guaranteed rate of interest on the funds in the retained asset account regardless of the investment performance of Unum's general account. The beneficiary can request a lump sum check instead of the retained asset account or they can access all or part of the funds in the retained asset account by writing a single or multiple drafts. While the funds are not FDIC insured, they are guaranteed by State Guaranty Associations. For more information regarding the Unum Retained Asset Account please contact your Unum representative. General Information unum City Of Southlake For Broker Information Only Contacting Your Unum Sales Office: Location: Unum - Dallas Sales 5840 Legacy Circle Suite D200 Plano,TX 75024 Telephone: (972) 892-1400 Fax: (972) 892-1440 Sales Team: Cher Paris, Group Senior Sales Consultant Renee Johnson-Brooks, Market Specialist Proposal Conditions: This information is not intended to be a complete description of the insurance coverage available. For complete details of coverage and availability, please refer to LTD Policy Form Number: C.FP-6 and contact your Unum representative. This proposal is under no circumstances a contract for the insurance coverage described within. If this proposal is accepted, a contract outlining the coverage will be issued. The contract has exclusions and limitations that may affect any benefits payable. This proposal is based on census data received by Unum. Actual costs will be based on the final enrollment data of employees insured under the plan on its effective date. Quote assumes coverage of employees who are in active employment in the United States with the employer. Please contact your Unum representative to request a quote for coverage of any employees who do not fit this category. This quote will remain open until September 26, 2016 and includes standard services only, unless otherwise expressly described herein. Important Information Concerning the Sale of these Benefits: State laws require that insurance brokers be licensed and appointed with the applicable Unum Insurance subsidiary before engaging in the solicitation or sale of these benefits. Note that Unum cannot accept this business if the broker is not properly licensed and appointed before soliciting this proposal. Unum is prepared to help ensure compliance with these state regulations. Brokers who need to check their Unum appointment status should call the Broker Compensation Service Center at 800- 633-7491 opt. 2. Life/AD&D Policy Form Number: C.FP-2 Work-life balance employee assistance program is provided by Ceridian Corporation and is available with selected Unum insurance offerings. Exclusions, limitations and prior notice requirements may apply, and service features, terms and eligibility criteria are subject to change. The service is not valid after termination of coverage and may be withdrawn at any time. Please contact your Unum representative for full details. Worldwide emergency travel assistance services are provided by Assist America, Inc. Services are available with selected Unum insurance offerings. Exclusions, limitations and prior notice requirements may apply, and service features, terms and eligibility criteria are subject to change. The services are not valid after termination of coverage and may be withdrawn at any time. Please contact your Unum representative for full details. Life Planning is provided by Ceridian Incorporated. The services are subject to availability and may be withdrawn by Unum without prior notice. Genera/ Information unum City Of Southlake For Broker Information Only HRAnswerNow° and BenefitsAnswersNowTm are provided exclusively by CCH. CCH is not engaged in rendering legal advice. Users should consult with their own attorneys. The service is available with selected Unum insurance offerings. Exclusions, limitations and prior notice requirements may apply, and service features, terms and eligibility criteria are subject to change. The service is not valid after termination of coverage and may be withdrawn at any time. Please contact your Unum representative for full details. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. Underwritten by: Unum Life Insurance Company of America Portland, Maine 04122 © 2016 Unum Group. All rights reserved. (G-72128) BROKER COMPENSATION DISCLOSURE NOTICE FOR GROUP PRODUCTS Your insurance or benefits advisor can offer you advice and guidance as you select the policy and provider most appropriate for your needs. At Unum we recognize the important role these professionals play in the sale of our products and services and offer them a variety of compensation programs. Your advisor can provide you with information about these programs as well as those available from other providers. We support disclosure of broker compensation so that customers can make an informed buying decision. Brokers may be eligible to receive Base Commissions as well as Supplemental Commissions from Unum. Unless you have agreed in writing to compensate the broker differently, Unum provides Base Commissions to all brokers in connection with the sale of an insurance policy. Base Commissions are a fixed percentage of the policy premium, and may include a one time, first year flat amount for each policy sold. Base Commissions are paid by Unum to the broker(s) on your policy. In some circumstances, broker(s) may be eligible to receive commissions on your policy even after a broker of record change has occurred. A broker may also qualify for Supplemental Commissions paid by Unum. For group insurance products, Supplemental Commissions may be paid as a fixed percentage of total eligible group insurance premiums. The Supplemental Commission rate depends on the total dollar amount of all eligible premiums or number of group policies that the broker had in force with Unum in the prior calendar year. The Supplemental Commission rate may range from 0% to 13.80% of total premium paid. The exact Supplemental Commission percentage payable to any broker is based upon the total dollar amount of all eligible inforce or new sales insurance premiums or number of policies that the broker had inforce with Unum in the prior calendar year. Supplemental Commissions may be calculated differently for other insurance products. The premium you pay is not impacted whether or not your broker receives Supplemental Commissions. If you would like additional information about the range of compensation programs our company offers for your group insurance policy or any other Unum insurance product, you can find more details at www.unum.com. Should you have other questions not addressed by the website, including the Supplemental Commission percentage applicable to your broker, or if you want to speak to us directly about broker compensation, please call 1-800-ASK-UNUM (1-800-275-8686). Electronic Booklets unum City Of Southlake For Broker Information Only Deliver Your Unum Group Plan Booklets Electronically Why not save time, money and headaches? Unum group insurance plan booklets are available electronically and ready to go at the click of a mouse. This means: Faster delivery, E/ectronic an book/ets are a big time-saver for New plans and updates take less time to get to employees. plan administrators. The Easier updating, booklet is delivered No need to swap pages in a plan booklet. in a user-friendly PDF (portable document file) More efficient distribution, format. Most computers Benefit plans can be quickly distributed electronically to employees via have the required e-mail or local area networks. (Adobe Acrobat, a free software program, is required to view the Booklets online.) software -but we can give you that, too,just in Timely service, case. Just the kind of Print or email copies to new employees as needed - you don't have to service you'd expect from wait for plans to be mailed. the income protection leader. No storage requirements. No need to store paper documents on your shelves. Connect with Unum Unum has developed a wide range of processes, services and technological Solutions to make it easier for customers to connect with us. For more information on how you can receive your group benefits plan booklets electronically, contact your Unum representative today.