[Adopted 3-13-2012 by Ord. No. MC-4663]
As used in this article, the following terms shall have the
meanings indicated:
Includes the purchase of insurance coverages, alternatives
to insurance such as self-insurance programs, as well as participation
in a joint self-insurance fund, risk management program or related
services provided by a contracting unit insurance group, or participation
in an insurance fund established by a local unit pursuant to N.J.S.A.
40A:10-6, or a joint insurance fund established pursuant to N.J.S.A.
40A:10-36 et seq.
Includes all services associated with procuring, evaluating
and administering insurance, including but not limited to brokerage,
risk management or administrative services, and claims processing
or administration services, including such services provided by a
contracting unit insurance group, or an insurance fund established
by a local unit pursuant to N.J.S.A. 40A:10-6, or a joint insurance
fund established pursuant to N.J.S.A. 40A:10-36 et seq.
Prior to entering into any contract to obtain insurance or insurance
consulting services, the City of Camden shall secure full and open
competition among insurers, and insurance consulting service providers,
for the City of Camden's business. The City of Camden is hereby
authorized, and directed, to use the competitive contracting process
set forth in N.J.S.A. 40A:11-4.3, 40A:11-4.4 and 40A:11-4.5, to secure
such competition, except to the extent this article requires additional
measures to better ensure maximum competition and fairness to all
interested parties.
This open competition shall provide that at least 60 but not
more than 120 days prior to the contract commencement date, the City
of Camden shall advertise in the newspapers authorized to print legal
notices for the municipality, and in a newspaper circulated in at
least five counties in the state, and on the City of Camden's
website, a request for proposals to provide insurance and insurance
consulting services. The notice shall advise the reader that details
of the City of Camden's insurance requirement are available from
the Purchasing Agent on request and shall include the phone number
of the Purchasing Agent.
The request for proposals shall be designed and drafted by the
Business Administrator or his designee, and shall set forth such detailed
information as may be required for all proposers to understand and
possess equal information concerning the City of Camden's insurance
or insurance consulting services needs, including the current terms
of, and fees or premiums paid for, such coverages or services, current
coverages, loss experience and anticipated or desirable needs with
respect to the relevant coverages or services sought. All requests
for proposal information, including claims, expense and loss data,
shall be made available to all proposers in both written and electronic
format.
Responses to the request for proposal shall be submitted to
the City of Camden at least 30 days prior to the anticipated commencement
of the contract.
At no time during the proposal solicitation process shall any
official or employee of the City of Camden, or any officer, employee
or representative of any provider of insurance consulting services
to the City of Camden, convey information, including price, to any
potential proposer which could confer an unfair advantage upon that
proposer over any other potential proposer.
A provider of insurance consulting services to the City of Camden
shall be compensated for its services to or on behalf of the City
of Camden solely by the City of Camden. Compensation shall be set
on a fixed fee or hourly basis, or on such other common and readily
comparable basis applicable to all proposers and set forth in the
request for proposal documents, provided that compensation shall not
be determined as a percentage of premium costs.
No provider of insurance or of insurance consulting services
to the City of Camden shall pay to any insurance consulting service
provider to the City of Camden, or to any other third party, any form
of compensation including but not limited to commissions, fees, incentives,
bonuses, rebates or any other thing of value, in consideration of
obtaining the City of Camden's insurance or insurance consulting
business.
No provider of insurance consulting services to the City of
Camden shall accept any form of compensation including but not limited
to commissions, fees, incentives, bonuses, rebates or any other thing
of value, from any provider of insurance, other insurance service
provider, or any other third party, in consideration of obtaining
or servicing the City of Camden's insurance or insurance consulting
business.
Any person or entity proposing to provide insurance or insurance
consulting services to the City of Camden shall certify in its proposal
that it shall neither pay nor accept any form of compensation including
but not limited to commissions, fees, incentives, bonuses, rebates
or any other thing of value in consideration of obtaining or servicing
the City of Camden's insurance or insurance consulting business
from any party other than the City of Camden.
Any person or entity selected to provide insurance or insurance
consulting services to the City of Camden shall certify at least annually
and prior to any renewal of its contract that it has not paid nor
accepted any form of compensation, including but not limited to commissions,
fees, incentives, bonuses, rebates or any other thing of value, in
consideration of obtaining or servicing the City of Camden's
insurance or insurance consulting business from any party other than
the City of Camden.
Any provider of insurance consulting service that assists the
City of Camden in soliciting, evaluating, or selecting any provider
of insurance or other insurance consulting services to the City of
Camden shall disclose to the City of Camden the aggregate compensation,
including but not limited to commissions, fees, incentives, bonuses,
rebates or any other thing of value, it has received in the prior
year from each provider of insurance or insurance consulting services
solicited or evaluated by the City of Camden. Such disclosure shall
be made as soon as practicable, but in no event later than the date
of the evaluation report recommending an award by the governing body.
The request for proposals for any insurance or insurance consulting
services for the City of Camden shall clearly establish the compensation
restrictions and the certification and disclosure requirements established
by this article as mandatory, nonwaivable terms, the violation of
which may be grounds for (i) terminating any contract resulting therefrom;
and/or (ii) requiring the insurer or insurance service provider to
immediately return to the public entity any compensation including
but not limited to commissions, fees, incentives, bonuses, rebates
or any other thing of value, paid or received in violation of this
article, and a commensurate reduction in premiums to be paid by the
public entity for the affected coverage(s) in the future.
Whenever soliciting quotations for insurance coverage, the City
Business Administrator or Insurance Broker shall obtain at least three
quotations and shall submit the request for proposals to at least
one joint insurance fund, and with respect to health insurance, to
the State Health Benefits Plan, at the same time it is published,
and shall determine if the SHBP and/or joint insurance fund can provide
the same or similar coverages. The evaluation report shall include
an analysis and discussion of the availability, terms and price of
comparable coverage from such joint insurance fund and the SHBP as
part of its award recommendation.
