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HomeMy WebLinkAboutHR18-161 - Original - CIGNA - Group Accident Policy #OK 969625 - 01/01/2018 i Records Management Document CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to the City Clerk's Office. All portions are to be completed. If you have questions, please contact the City Clerk's Office at 253-856-5725. ® Blue/Motion Sheet Attached ® Pink Sheet Attached Vendor Name: Cigna Vendor Number (]DE): Contract Number (City Clerk) Ti12�. ...l�lp �� ... Category:'Contra c..t Agreement Sub-Category (if applicable) gGhr, Project Name: Contract Execution Date: 1/1/18 Termination Date: 12/31/2020 Contract Manager: Laura Horea Department: HR Contract Amount: $705.000 Approval Authority: ❑ Director ❑ Mayor ® City Council Other Details: PROTECTION FOR YOU AND YOUR INSURANCE POLICY THE WASHINGTON LIFE AND DISABILITY INSURANCE GUARANTY ASSOCIATION PREFACE This brochure briefly describes the coverage provided through the Washington Life&Disability Insurance Guaranty Association("Association'). The Association is a nonprofit unincorporated legal entity created by the Washington Life and Disability Insurance Guaranty Association Act,Chapter 48.32A RCW("Act"). Every life and disability insurance company authorized to do business in Washington is a member of the Association. A Board of Directors("Board"),composed of representatives from member insurers,and the Insurance Commissioner,ex officio,oversee the operation of the Association. 'I he expenses of the Association are paid by assessments made against each member insurer. Persons covered by the Act are not charged for the expenses of the Association or the protection provided under the Act. Coverage is provided for certain life and disability insurance. However,the Association does not cover all such insurance. Coverage that is provided is subject to the limitations and exclusions provided by the Act. The purpose of this brochure is to help you understand the general nature and the conditions of the protection provided under the Act. It is only a summary, however,and if you have specific questions that are not discussed here you may contact either the Association or the Office of the Insurance Commissioner. Washington Life and Disability Company Supervision Division Insurance Guaranty Association Office of the Insurance Commissioner P.O.Box 2292 P.O.Box 40259 Shelton, WA 98584 Olympia,WA 98504-0259 360-426-6744 360-725-7214 QUESTIONS AND ANSWERS 1. WHAT INSURANCE POLICIES ARE COVERED UNDER THE ACT? The Act applies to life insurance policies,disability insurance policies,and annuity contracts issued by an insurance company authorized to do business in Washington. The term"disability insurance,"as used in the Act,includes not only disability income insurance, but also policies commonly referred to as"health insurance"(which includes long term care policies). Together,all of these policies and contracts are sometimes referred to as"covered policies," a term used in this brochure. 2. ARE THERE POLICIES OR INSURERS NOT COVERED BY THE ACT? The Act specifically excludes certain types of policies or portions of policies, including,but not limited to:The portion of a policy not guaranteed by the insurer;the portion of a policy to the extent the interest rate or crediting rate exceeds the limits in the Act;policies of reinsurance, unless assumption certificates have been issued; policies issued in Washington by an insurer at a time when the insurer was not licensed or did not have a certificate of authority; policies issued to a self-insured plan or program; certain unallocated employee benefit plan annuities protected by federal law;and unallocated annuity contracts not issued to or in connection with a benefit plan or a government lottery. The Act also does not apply to policies or contracts issued by health care service contractors, health maintenance organizations,fraternal benefit societies, self funded multiple employer welfare arrangements, mandatory state pooling plans, mutual assessment companies, insurance exchanges,or an organization that has a certificate or license limited to issuance of certain charitable gift annuities. 3. WHO IS PROTECTED UNDER THE ACT? You are covered by the Act if you are an owner of or certificate holder under a policy or contract(other than an unallocated annuity contract or structured settlement annuity),and: Y You are a Washington resident; at- You are not a Washington resident,but only if:the insurer is domiciled in Washington;there is an association similar to the Washington Association in your state of residency; and you are not covered in your state of residency, because the insurer was not licensed in that state;or ➢ You are a beneficiary,assignee,or payee of one of the above, regardless of where you reside(except for nonresident certificate holders under group policies). Owners of unallocated annuity contracts are covered if the contract was issued to or in connection with a specific benefit plan whose plan sponsor has its principal place of business in Washington, or the contract was issued to or in connection with a government lottery and the owner is a Washington resident. A payee under a structured settlement annuity(or beneficiary of a deceased payee) is also covered, if the payee is a Washington resident,or the payee is not a Washington resident, but the contract owner is a resident;or the insurer that issued the annuity is domiciled in Washington and coverage is not available in the state in which the payee resides. Residency is generally determined at the time of entry of an order of liquidation against the insurer.If you move to another state and reside there when such an order is entered,you may still have protection under the law of that state. You should contact the insurance department in your new state of residence to find out about guaranty act protection there. 4. HOW DOES THE ASSOCIATION PROTECT COVERED PERSONS AGAINST LOSS? After an order of liquidation is entered against a company,the Association begins its work of carrying out the purpose of the Act,which is to assure the performance of insurance obligations of that company. The Association is authorized to carry out its duties by working with insurance companies in good standing to assume or take over the covered policies.The association may also directly provide benefits and coverage as authorized by the Act. The Association has the authority to collect the funds necessary to provide protection to covered persons against losses on their covered policies. 5. WHERE DOES THE ASSOCIATION GET THE MONEY TO PROVIDE'fI1IS PROTECTION? The Association is authorized to collect money from all life and disability insurance companies doing business in Washington.The funds collected from an assessment are used to pay claims to covered persons and/or to fiend the assumption of covered policies by another insurer. 6, DOES THE ASSOCIATION PAYOUT THE MONEY IT COLLECTS RIGHT AWAY OR DO COVERED PERSONS HAVE TO WAIT? The Association generally cannot make an assessment for covered policies issued by a company until after an order of liquidation has been entered against the company,and a reasonable estimate can be made of the amount of money needed. Insurance companies receiving an assessment notice must make their payments within thirty days. Because it takes time for an action to be commenced against a financially impaired insurer,for a Court to issue an order,and for funds to be collected to satisfy the obligations of that insurer,sonic delay,hopefully short, is unavoidable before payments can be made. Although it is impossible to predict how long this process will take in any given case,an average time period of twelve to eighteen months is not unusual. When necessary,the Association may borrow money to make payments more promptly,particularly in cases that will take an unusual amount of time to be resolved. 7. WHAT IS TILE AMOUNT OF PROTECTION PROVIDED BY THE ACT? The Act provides the following maximum amounts of protection: LifeInsurance Death Benefits.....................................................................................................................................$500,000 Disability Benefits and Health Benefits(including Long Term Care Benefits).....................................................$500,000 Present Value of Individual Annuities .....................................................................................................................$500,000 Unallocated Annuity Contracts,other than certain government retirement plans (limit is per contract owner or plan sponsor).,....—.... —.......... .......................................................... ......$5,000,000 Government Retirement Plans in Unallocated Annuities established under Internal Revenue Code § §401, 403(b),or 457(limit is per participant)..........................................................................................................$I00,000 This protection becomes effective at the time of entry of a Court order of liquidation against the insurer. Of course, if the amount owed under the contract or policy is less than the maximum benefit under the Act,the covered person will be entitled to protection only up to the actual amount owed. Furthermore,the maximum protection available to each covered person remains the same, regardless of the number of contracts through which he or she has a claim. 8, IF A HUSBAND AND WIFE EACH INDIVIDUALLY OWN A COVERED POLICY,IS THE PROTECTION UNDER THE ACT PROVIDED TO EACH OF THEM? Yes. As long as the residency requirements are met,both would be entitled to the protection provided by the Act, up to the maximum amount. 9, WHY DOESN'T MY INSURANCE COMPANY ADVERTISE THE FACT THAT ITS POLICIES AND CONTRACTS ARE PROTECTED UNDER THE ACT? Under Washington law, insurance companies are prohibited from advertising that their policies or contracts may be covered under the Act. You should not rely on coverage under the Act when selecting an insurance company, 10. WHY HASN'T MY AGENT TOLD ME ABOUT THE GUARANTY ACT? Your insurance agent is subject to the same prohibitions as your insurance company.As a representative of the company, an agent must exercise great care when soliciting business and consequently,will generally not discuss the subject of a guaranty act with clients. 1 I. WHO SHOULD I CONTACT IF I BELIEVE THERE HAS BEEN A VIOLATION OF THE ACT? You should contact the Association if you believe your rights have been violated under the Act. If you are dissatisfied with the actions of the Association,you may also contact the Office of the Insurance Commissioner. CONCLUSION This brochure has been prepared by the Washington Life and Disability Insurance Guaranty Association. Its purpose is to inform the public in a general way of the protections that are available in this state on insurance policies and annuity contracts issued by companies authorized to do business in Washington. The Association does not,by this brochure, endorse any company or its products,but rather seeks to address some of the concerns that you may have regarding the security of insurance policies and annuity contracts. For more information or answers to specific questions you may contact the Washington Life and Disability Insurance Guaranty Association or the Office of the Insurance Commissioner,whose addresses and telephone numbers are shown in the Preface. _.___._....e....................................� .............................. This brochure is prepared by and made available through the Washington Life and Disability Insurance Guaranty Association,which has granted member insurance companies permission to reproduce and distribute the brochure. It is the responsibility of the company,or any representative of a company, reproducing this brochure,to ensure that the use thereof does not violate applicable laws or regulations. IMPORTANT NOTICES GROUP ACCIDENT If a Covered Person resides in one of the following states,the important notice will apply, New Mexico residents: This type of plan is NOT considered "minimum essential coverage" under the Affordable Care Act (ACA) and therefore does NOT satisfy the individual mandate that you have health insurance coverage. If you do not have other health insurance coverage, you may be subject to a federal tax penalty. Please consult your tax advisor. TL-00-6000a.NM Life Insurance Company of North America 1601 Chestnut Street, Philadelphia, Pennsylvania 19192-2235 A Stock Insurance Company GROUP ACCIDENT POLICY POLICYHOLDER: City of Kent POLICY NUMBER: OK 969625 POLICY EFFECTIVE DATE: January 1,2018 POLICY ANNIVERSARY DATE: January 1 STATE OF ISSUE: Washington This Policy describes the terms and conditions of insurance. This Policy goes into effect subject to its applicable terms and conditions at 12:01 AM on the Policy Effective Date shown above at the Policyholder's address. The laws of the State of Issue shown above govern this Policy. We and the Policyholder agree to all of the terms of this Policy. THIS IS A GROUP ACCIDENT ONLY INSURANCE POLICY. IT DOES NOT PAY BENEFITS FOR LOSS CAUSED BY SICKNESS. THIS IS A LIMITED POLICY. PLEASE READ IT CAREFULLY. i&SL 0� A Anna Krishtul,Corporate Secretary Matthew G. Mandcrs,President Countersigned Where Required By Law GA-00-1000.00 TABLE OF CONTENTS SECTION PAGE NUMBER SCHEDULE OF AFFILIATES-,... ............ ..................................... .......... ...A SCHEDULEOF BENEFITS...........................................................................................................................................2 GENERALDEFINITIONS ................................................................................................_...........,....---....,....,......,........6 ELIGIBILITY AND EFFECTIVE DATE PROVISIONS.................................... ...................................,..............5 COMMONEXCLUSIONS..............................................---...............................................................................9 CONVERSIONPRIVILEGE......---......................................................................,.............................................10 CLAIMPROVISIONS.......................................................................................--.............. ..............................12 ADMINISTRATIVE PROVISIONS............. ............................................................... ................ ...J4 GENERAL PROVISIONS---....--......... ...........-... .................................... ....... .............-.15 ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGE----...----...... ...................... ......-...17 EXPOSURE AND DISAPPEARANCE COVERAGE........................................................................................I8 CHILD CARE CENTER BENEFIT....._..............................................................................................................19 COMMON CARRIER BENEFIT........................................................................................................................20 SEATBELT AND AIRBAG BENEFIT...............................................................................................................20 SPECIAL EDUCATION BENEFIT..........................................................................................................................21 SPOUSE RETRAINING BENEFIT....................... ......................-................ ....... .....................................22 DOMESTIC PARTNER/CIVIL UNION PARTNER RIDER..............................................................................23 TRAVELASSISTANCE SERVICES ..........................................................................................................................24 GA-00-1000.00 SCHEDULE OF AFFILIATES The following affiliates are covered tinder this Policy on the effective dates listed below. AFFILIATE NAME LOCATION EFFECTIVE DATE None GA-00-1000.00 1 SCHEDULE OF BENEFITS This Policy is intended to be read in Its entirety. In order to understand all the conditions,exclusions and limitations applicable to its benefits,please read all the policy provisions carefully. The Schedule of Benefits provides a brief outline of the coverage and benefits provided by this Policy. Please read the Description of Coverages and Benefits Section for full details. Policyholder: City of Kent Effective Date of Policyholder Participation: January 1,2018 Covered Classes: Class 1 All active,Benefited Employees of the City of Kent regularly working a minimum required weekly hours for their job subject to a minimum of 20 hours per week,and the elected Mayor currently in office. 2 SCHEDULE OF BENEFITS FOR CLASS I This Schedule of Benefits shows maximums,benefit periods and any limitations applicable to benefits provided in this Policy for each Covered Person unless otherwise indicated. Principal Sum,when referred to in this Schedule, means the Employee's Principal Sum in effect on the date of the Covered Accident causing the Covered Injury or Covered Lass unless otherwise specified. Eligibility Waiting Period The Eligibility Waiting Period is the period of time the Employee must be in a Covered Class to be eligible for coverage. For Employees hired on or before the Policy Effective Date: No Waiting Period For Employees hired after the Policy Effective Date: No Waiting Period Time Period for Loss: Any Covered Loss must occur within: 365 days of the Covered Accident Maximum Age for Insurance: None BASIC ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS Employee Principal Sum: I times Annual Compensation rounded to the next higher$1,000, if not already a multiple thereof, subject to a maximum of $50,000. Annual Compensation means an Employee's annual earnings for normal work established by the Policyholder for hisjob classification,excluding commissions, bonuses,overtime or other extra compensation. Changes in the Covered Person's amount of insurance resulting from a change in the Employee's amount of Annual Compensation take effect,subject to any Active Service requirement,on the first day of the month following the change in Annual Compensation. 3 SCHEDULE OF COVERED LOSSES Covered Loss Benefit Loss of Life 100%of the Principal Sum Loss of Two or More Hands or Feet 100%of the Principal Sum Loss of Sight of Both Eyes 100%of the Principal Sum Loss of One Hand or One Foot and Sight in One Eye 100%of the Principal Sum Loss of Speech and Hearing(in both ears) 100%of the Principal Sum Quadriplegia 100%of the Principal Sum Paraplegia 75%of the Principal Sum Hemiplegia 50%of the Principal Sum Oniplegia 25%of the Principal Sum Coma Monthly Benefit 1%of the Principal Sum Number of Monthly Benefits 11 When Payable At the end of each month during which the Covered Person remains comatose Lump Sum Benefit 100%of the Principal Sum When Payable Beginning of the 12'"month Loss of One Hand or Foot 50%of the Principal Sum Loss of Sight in One Eye 50%of the Principal Sum Severance and Reattachment of One Hand or Foot 50%of the Principal Sum Loss of Speech 50%of the Principal Sum Loss of Hearing(in both ears) 50%of the Principal Sum Loss of all Four Fingers of the Same Hand 25%of the Principal Sum Loss of Thumb and Index Finger of the Same Hand 25%of the Principal Sum Loss of all the Toes of the Same Foot 20%of the Principal Sum Age Reductions A Covered Person's Principal Sum will be reduced to the percentage of his Principal Sum in effect on the date preceding the first reduction,as shown below. Age Percentage of Benefit Amount 70 but less than 75 65% 75 or over 50% Benefit reductions will be effective on January 1st coinciding with or next following the Covered Person's attainment of age as specified in schedule above. 4 ADDITIONAL ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGES Accidental Death and Dismemberment benefits are provided under the following coverages. Any benefits payable under them are as shown in the Schedule n/'Covered Losses and are not paid in addition to any other Accidental Death and Dismemberment benefits. EXPOSURE AND DISAPPEARANCE COVERAGE Principal Sum multiplied by the percentage applicable to the Covered Loss,as shown in the Schedule of Covered Losses. ADDITIONAL ACCIDENT BENEFITS Any benefits payable under these Additional Accident Benefits shown below are paid in addition to any other Accidental Death and Dismemberment benefits payable. CHILD CARE CENTER BENEFIT Benefit Amount 25%of the Employee's Principal Sum subject to a maximum of$5,000 per year Maximum Benefit Period the earlier of4 years or until the child turns 13 for each surviving Dependent Child COMMON CARRIER BENEFIT 100%multiplied by the percentage of the Principal Sum applicable to the Covered Loss,as shown in the Schedule of Covered Losses,subject to a maximum of$50,000 SEATBELT AND AIRBAG BENEFIT Seatbelt Benefit 100%of the Principal Sum subject to a Maximum Benefit of $50,000 Airbag Benefit 5%of the Principal Sum subject to a Maximum Benefit of $2,500 Default Benefit $1,000 SPECIAL.EDUCATION BENEFIT Surviving Dependent Child Benefit 25%of the Principal Sum subject to a Maximum Benefit of $5,000 Maximum Number of Annual Payments For Each Surviving Dependent Child 4 Default Benefit $1,000 SPOUSE RETRAINING BENEFIT Benefit 25%of the Principal Sum subject to a Maximum Benefit of $5,000 INITIAL PREMIUM RATES Premium Rate: Basic Insurance Employee Rate: $0.02 per$1,000 Mode of Premium Payment: Monthly Contributions: The cost of the coverage is paid by the Policyholder Premium Due Dates: The Policy Effective Date and the first day of each succeeding modal period Premium rates are subject to change in accordance with the Changes in Premium Rates section contained in the Administrative Provisions section of this Policy. GA-00-1100.48 5 GENERAL DEFINITIONS Please note that certain words used in this Policy have specific meanings. The words defined below and capitalized within the text of this Policy have the meanings set forth below. Active Service An Employee will be considered in Active Service with his employer on any day that is either of the following: 1. one of the Employer's scheduled work days on which the Employee is performing his regular duties on a full-time basis, either at one of the Employer's usual places of business or at some other location to which the Employer's business requires the Employee to travel; 2. a scheduled holiday,vacation day or period of Employer-approved paid leave of absence,other than sick leave,only if the Employee was in Active Service on the preceding scheduled workday. Age ACovered Person's Age, for purposes of initial premium calculations,is his Age attained on the date coverage becomes effective for him under this Policy. Thereafter, it is his Age attained on his last birthday. Aircraft A vehicle which: 1. has a valid certificate of airworthiness;and 2. is being flown by a pilot with a valid license to operate the Aircraft. Covered Accident A sudden,unforeseeable event that results,directly and independently of all other causes, in a Covered Injury or Covered Loss and meets all of the following conditions: 1. occurs while the Covered Person is insured under this Policy; 2. is not contributed to by disease,Sickness, mental or bodily infirmity; 3. is not otherwise excluded under the terms of this Policy. Covered Injury Any bodily harm that results directly and independently of all other causes from a Covered Accident. Covered Loss A loss that is all of the following: 1. the result,directly and independently of all other causes,of a Covered Accident; 2. one of the Covered Losses specified in the Schedule of Covered Losses; 3. suffered by the Covered Person within the applicable time period specified in the Schedule ofBenefils. Covered Person An eligible person,as defined in the Schedule of Benefts, for whom an enrollment form has been accepted by Us and required premium has been paid when due and for whom coverage under this Policy remains in force. Employee For eligibility purposes,an Employee of the Employer who is in one of the Covered Classes. Employer The Policyholder and any affiliates,subsidiaries or divisions shown in the Schedule of Covered Affiliates and which are covered under this Policy on the date of issue or subsequently agreed to by Us. He,His,Him Refers to any individual, male or female. 6 Hospital An institution that meets all of the following: I. it is licensed as a Hospital pursuant to applicable law; 2. it is primarily and continuously engaged in providing medical care and treatment to sick and injured persons; 3. it is managed under the supervision of a staff of medical doctors; 4. it provides 24-hour nursing services by or under the supervision of a graduate registered nurse(R.N.); 5. it has medical,diagnostic and treatment facilities,with major surgical facilities on its premises,or available on a prearranged basis; 6. it charges for its services. The tern Hospital does not include a clinic,facility,or unit of a Hospital for: 1. rehabilitation,convalescent,custodial,educational or nursing care; 2. the aged,drug addicts or alcoholics; 3. a Veteran's Administration Hospital or Federal Government Hospital unless the Covered Person incurs an expense. Inpatient A Covered Person who is confined for at least one full day's Hospital room and board. The requirement that a person be charged for room and board does not apply to confinement in a Veteran's Administration Hospital or Federal Government Hospital and in such case,the term'Inpatient'shall mean a Covered Person who is required to be confined for a period of at least a full day as determined by the Hospital. Nurse A licensed graduate Registered Nurse(R.N.), a licensed practical Nurse(L.P.N.)or a licensed vocational Nurse(L.V.N.)and who is not: I. employed or retained by the Policyholder; 2. living in the Covered Person's household;or 3. a parent,sibling,spouse or child of the Covered Person. Outpatient A Covered Person who receives treatment,services and supplies while not an Inpatient in a Hospital. Physician A licensed health care provider practicing within the scope of his license and rendering care and treatment to a Covered Person that is appropriate for the condition and locality and who is not: 1. employed or retained by the Policyholder; 2. living in the Covered Person's household; 3. a parent,sibling,spouse or child of the Covered Person. Prior Plan The plan of insurance providing similar benefits, sponsored by the Employer in effect immediately prior to this Policy's Effective Date. Sickness A physical or mental illness. Totally Disabled or Totally Disabled or Total Disability means either: Total Disability 1. inability of the Covered Person who is currently employed to do any type of work for which he is or may become qualified by reason of education,training or experience;or 2. inability of the Covered Person who is not currently employed to perform all of the activities of daily living including eating,transferring,dressing, toileting, bathing,and continence,without human supervision or assistance. We,Us,Our Life Insurance Company of North America. GA-00-1200.48 7 ELIGIBILITY AND EFFECTIVE DATE PROVISIONS Policy Effective Date The Insurance Company agrees to provide Accident Insurance Benefits described in this Policy in consideration of the Policyholder's application and payment of the initial premium when due. Insurance coverage begins on the Policy Effective Date shown on this Policy's first page. Eligibility An Employee becomes eligible for insurance under this Policy on the date he meets all of the requirements of one of the Covered Classes and completes any Eligibility Waiting Period, as shown in the Schedule ojBenefits. Effective Date for Individuals Insurance becomes effective for an eligible Employee, subject to the Deferred Effective Date provision below, on the latest of the following dates: 1. the effective date of this Policy; 2. the date the Employee becomes eligible. DEFERRED EFFECTIVE DATE Active Service The effective date of insurance will be deferred for any Employee who is not in Active Service on the date coverage would otherwise become effective. Coverage will become effective on the later of the date he returns to Active Service and the date coverage would otherwise have become effective. Effective Date of Changes Any increase or decrease in the amount of insurance for the Covered Person resulting from: I. a change in benefits provided by this Policy;or 2. a change in the Employee's Covered Class will take effect on the date of such change. Increases will take effect subject to any Active Service requirement. TERMINATION OF INSURANCE The insurance on a Covered Person will end on the earliest date below: 1. the date this Policy or insurance for a Covered Class is terminated; 2. the next premium due date after the date the Covered Person is no longer in a Covered Class or satisfies eligibility requirements tinder this Policy; 3. the last day of the last period for which premium is paid; 4. the next premium due date after the Covered Person attains the maximum Age for insurance under this Policy. Termination will not affect a claim for a Covered Loss or Covered Injury that is the result,directly and independently of all other causes,of a Covered Accident that occurs while coverage was in effect. CONTINUATION OF INSURANCE Continuation for Layoff, Leave of Absence or Family Medical Leave Insurance for an Employee may be continued until the earliest of the following dates if:(a)an Employee is on a temporary layoff,an Employer-approved leave of absence or an Employer-approved family medical leave; and(b)required premium contributions are paid when due. 1. for a layoff: the end of the month in which the layoff begins. 2. for an Employer-approved leave of absence: 12 month(s). 3. for an Employer-approved family medical leave: up to the later of the period of the approved FMLA leave or the leave period required by law in the state in which the Employee is employed. GA-00-1300.00 8 COMMON EXCLUSIONS In addition to any benefit-specific exclusions, benefits will not be paid for any Covered injury or Covered Loss which, directly or indirectly, in whole or in part, is caused by or results from any of the following unless coverage is specifically provided for by name in the Description ofBeneftts Section: I. intentionally self-inflicted injury,suicide or any attempt thereat while sane or insane; 2. commission or attempt to commit a felony or an assault; 3. commission of or active participation in a riot or insurrection; 4. bungeejumping; parachuting; skydiving; parasailing;hang-gliding; 5. declared or undeclared war or act of war; 6. flight in,boarding or alighting from an Aircraft or any craft designed to fly above the Earth's surface: a. except as a passenger on a regularly scheduled commercial airline; b. being flown by the Covered Person or in which the Covered Person is a member of the crew; C. being used for: i. crop dusting, spraying or seeding,giving and receiving flying instruction, fire fighting,sky writing, sky diving or hang-gliding,pipeline or power line inspection, aerial photography or exploration,racing,endurance tests, stunt or acrobatic flying;or ii. any operation that requires a special permit from the FAA,even if it is granted(this does not apply if the permit is required only because of the territory flown over or landed on); d, designed for flight above or beyond the earth's atmosphere; C. an ultra-light or glider; f. being used for the purpose of parachuting or skydiving; g. being used by any military authority,except an Aircraft used by the Air Mobility Command or its foreign equivalent; 7, Sickness,disease,bodily or mental infirmity,bacterial or viral infection or medical or surgical treatment thereof, except for any bacterial infection resulting from an accidental cut or wound or accidental ingestion of contaminated food; $. travel in any Aircraft owned,leased or controlled by the Policyholder,or any of its subsidiaries or affiliates. An Aircraft will be deemed to be"controlled"by the Policyholder if the Aircraft may be used as the Policyholder wishes for more than 10 straight days, or more than 15 days in any year; 9. a Covered Accident that occurs while engaged in the activities of active duty service in the military,navy or air force of any country or international organization. Covered Accidents that occur while engaged in Reserve or National Guard training are not excluded until training extends beyond 31 days; 10. operating any type of vehicle white under the influence of alcohol or any drug, narcotic or other intoxicant including any prescribed drug for which the Covered Person has been provided a written warning against operating a vehicle while taking it. Under the influence of alcohol,for purposes of this exclusion,means intoxicated,as defined by the law of the state in which the Covered Accident occurred; I I, voluntary ingestion of any narcotic, drug,poison,gas or fumes, unless prescribed or taken under the direction of a Physician and taken in accordance with the prescribed dosage; 12. in addition,benefits will not be paid for services or treatment rendered by a Physician,Nurse or any other person who is: a. employed or retained by the Policyholder; b. providing homeopathic, aroma-therapeutic or herbal therapeutic services; C. living in the Covered Person's household; d. a parent,sibling,spouse or child of the Covered Person. GA-00-1403.00 9 CONVERSION PRIVILEGE I. If the Covered Person's insurance or any portion of it ends for any of the following reasons: a. employment or membership ends; b. eligibility ends(except for age for the Employee); the Covered Person may have Us issue converted accident insurance on an individual policy or an individual certificate under a designated group policy. The Covered Person may apply for an amount of coverage that is: a. in$1,000 increments; b. not less than$25,000,regardless of the amount of insurance under the group policy;and c. not more than the amount of insurance he had under the group policy, except as provided above, up to a maximum amount of$250,000. The Covered Person must be under age 70 to get a converted policy. If the Covered Person's insurance or any portion of it ends for non-payment of premium, he may not convert. If the Covered Person's insurance ends for a reason described in 2.below, conversion is subject to that section. The converted policy or certificate will cover accidental death and dismemberment.The policy or certificate will not contain disability or other additional benefits. The Covered Person need not show Us that he is insurable. If the Covered Person has converted his group coverage and later becomes insured under the same group plan as before,he may not convert a second time unless he provides,at his own expense,proof of insurability or proof the prior converted policy is no longer in force. The Covered Person must apply for the individual policy within 31 days after his coverage under this Group Policy ends and pay the required premium,based on Our table of rates for such policies,his Age and class of risk. Ifthe Covered Person has assigned ownership of his group coverage,the owner/assignee must apply for the individual policy. If the Covered Person suffers a Covered Loss or dies during this 31-day period as the result of an accident that would have been covered under this Group Policy,We will pay as a claim under this Group Policy the amount of insurance that the Covered Person was entitled to convert. It does not matter whether the Covered Person applied for the individual policy or certificate. If such policy or certificate is issued, it will be in exchange for any other benefits under this Group Policy. The individual policy or certificate will take effect on the day following the date coverage under the Group Policy ended;or, if later,the date application is made. Exclusions The converted policy may exclude the hazards or conditions that apply to the Covered Person's group coverage at the time it ends. We will reduce payment under the converted policy by the amount of any benefits paid under the group policy if both cover the same loss. 2. If the Covered Person's insurance ends because this Group Policy is terminated or is amended to terminate insurance for the Covered Person's class,and he has been covered under this Group Policy or, any group accident insurance issued to the Employer which the Group Policy replaced,for at least five years,the Covered Person may have Us issue an individual policy or certificate of accident insurance subject to the same terms,conditions and limitations listed above. However,the amount he may apply for"ill be limited to the lesser of the following: a. coverage under this Group Policy less any amount of group accident insurance for which he is eligible on the date this Group Policy is terminated or for which he became eligible within 31 days of such termination,or b. $10,000. 10 Extension of Conversion Period If the Covered Person is eligible to convert and is not notified of this right at least 15 days prior to the end of the 31 day conversion period,the conversion period will be extended. The Covered Person will have 15 days from the date notice is given to apply for a converted policy or certificate. In no event will the conversion period be extended beyond 90 days. Notice,for the purpose of this section,means written notice presented to the Covered Person by the Policyholder or mailed to the Covered Person's last known address as reported by the Policyholder. If the Covered Person sustains a Covered Loss or dies during the extended conversion period,but more than 31 days after his coverage under the Group Policy terminates,benefits will not be paid under the Group Policy. if the Covered Person's application for a converted policy or certificate is received by Us and the required premium is paid,benefits may be payable under the converted policy or certificate. GA-01-1505.00 11 CLAIM PROVISIONS Notice of Claim Written or authorized electronic/telephonic notice of claim must be given to Us within 31 days after a Covered Loss occurs or begins or as soon as reasonably possible. If written or authorized electronic/telephonic notice is not given in that time, the claim will not be invalidated or reduced if it is shown that written or authorized electronic/telephonic notice was given as soon as was reasonably possible.Notice can be given to Us at Our Home Office in Philadelphia,Pennsylvania, such other place as We may designate for the purpose,or to Our authorized agent. Notice should include the Policyholder's name and policy number and the Covered Person's name,address,policy and certificate number. Claim Forms We will send claim forms for filing proof of loss when We receive notice of a claim. If such forms are not sent within 15 days after We receive notice,the proof requirements will be met by submitting, within the time fixed in this Policy for filing proof of loss, written or authorized electronic proof of the nature and extent of the loss for which the claim is made. Claimant Cooperation Provision Failure of a claimant to cooperate with Us in the administration of the claim may result in termination of the claim. Such cooperation includes,but is not limited to,providing any information or documents needed to determine whether benefits are payable or the actual benefit amount due. Proof of Loss Written or authorized electronic proof of loss satisfactory to Us must be given to Us at Our office,within 90 days of the loss for which claim is made. if(a)benefits are payable as periodic payments and(b)each payment is contingent upon continuing loss,then proof of loss must be submitted within 90 days after the termination of each period for which We are liable. If written or authorized electronic notice is not given within that time, no claim will be invalidated or reduced if it is shown that such notice was given as soon as reasonably possible. In any case, written or authorized electronic proof must be given not more than one year after the time it is otherwise required,except if proof is not given solely due to the lack of legal capacity. Time of Payment of Claims We will pay benefits due under this Policy for any loss other than a loss for which this Policy provides any periodic payment immediately upon receipt of due written or authorized electronic proof of such loss. Subject to due written or authorized electronic proof of loss,all accrued benefits for loss for which this Policy provides periodic payment will be paid monthly unless otherwise specified in tine benefits descriptions and any balance remaining unpaid at the termination of liability will be paid immediately upon receipt of proof satisfactory to Us. Payment of Claims All benefits will be paid in United States currency. Benefits for loss of life will be payable in accordance with the Beneficiary provision and these Claim Provisions. All other proceeds payable under this Policy,unless otherwise stated, will be payable to the covered Employee or to his estate. If We are to pay benefits to the estate or to a person who is incapable of giving a valid release,We may pay$1,000 to a relative by blood or marriage whom We believe is equitably entitled. Any payment made by Us in good faith pursuant to this provision will fully discharge Us to the extent of such payment and release Us from all liability. Payment of Claims to Foreign Employees The Policyholder may, in a fiduciary capacity,receive and hold any benefits payable to covered Employees whose place of employment is other than the United States of America. We will not be responsible for the application or disposition by the Policyholder of any such benefits paid. Our payments to the Policyholder will constitute a full discharge of Our liability for those payments under this Policy. Physical Examination and Autopsy We,at Our own expense,have the right and opportunity to examine the Covered Person when and as often as We may reasonably require while a claim is pending and to make an autopsy in case of death where it is not forbidden by law. 12 Legal Actions No action at law or in equity may be brought to recover under this Policy less than 60 days after written or authorized electronic proof of loss has been furnished as required by this Policy. No such action will be brought more than three years after the time such written proof of loss must be furnished. Beneficiary The beneficiary is the person or persons the Employee names or changes on a form executed by him and satisfactory to Us. This form may be in writing or by any electronic means agreed upon between Us and the Policyholder. Consent of the beneficiary is not required to affect any changes,unless the beneficiary has been designated as an irrevocable beneficiary, or to make any assignment of rights or benefits permitted by this Policy. A beneficiary designation or change will become effective on the date the Employee executes it. However, We will not be liable for any action taken or payment made before We record notice of the change at our Home Office. If more than one person is named as beneficiary,the interests of each will be equal unless the Employee has specified otherwise. The share of any beneficiary who does not survive the Covered Person will pass equally to any surviving beneficiaries unless otherwise specified. If there is no named beneficiary or surviving beneficiary,or if the Employee dies while benefits are payable to him, We may make direct payment to the first surviving class of the following classes of persons: 1. spouse; 2. child or children; 3. mother or father; 4. sisters or brothers; 5. estate of the Covered Person. Recovery of Overpayment If benefits are overpaid, We have the right to recover the amount overpaid by either of the following methods. ' 1. A request for lump sum payment of the overpaid amount, 2. A reduction of any amounts payable under this Policy. If there is an overpayment due when the Covered Person dies, Us may recover the overpayment from the Covered Person's estate. GA-00-1600.00 13 ADMINISTRATIVE PROVISIONS Premiums All premium rates are expressed in, and all premiums are payable in,United States currency. The premiums for this Policy will be based on the rates set forth in the Schedule nf&nefits,the plan and amounts of insurance in effect. If a Covered Person's insurance amounts are reduced due to age,premium will be based on the amounts of insurance in force on the day after the reduction took place. Changes in Premium Rates We may change the premium rates from time to time with at least 31 days advance written notice to the Policyholder. No change in rates will be made until 36 months after the Policy Effective Date. An increase in rates will not be made more often than once in a 12-month period. However,We reserve the right to change rates at any time if any of the following events take place: 1. the terms of this Policy change; 2. the terms of the Policyholder's participation change', 3. a division,subsidiary,affiliated company or eligible class is added or deleted from this Policy; 4. there is a change in the factors bearing on the risk assumed; 5. any federal or state law or regulation is amended to the extent it affects Our benefit obligation. Payment of Premium The first premium is due on the Policyholder's effective date of participation under this Policy. Thereafter,premiums are due on the Premium Due Dates agreed upon between Us and the Policyholder. If any premium is not paid when due,the Policyholder's participation under this Policy will be terminated as of the Premium Due Date on which premium was not paid. Grace Period A Grace Period of 31 days will be granted for payment of required premiums under this Policy. This Policy will be in force during the Policy Grace Period. The Policyholder is liable to Us for any unpaid premium for the time its participation under this Policy was in force. GA-00-1701.00 14 GENERAL PROVISIONS Entire Contract;Changes This Policy,including the endorsements,amendments and any attached papers constitutes the entire contract of insurance. No change in this Policy will be valid until approved by one of Our executive officers and endorsed on or attached to this Policy. No agent has authority to change this Policy or to waive any of its provisions. Misstatement of Fact If the Covered Person has misstated any fact,all amounts payable under this Policy will be such as the premium paid would have purchased had such fact been correctly stated. Certificates Where required by law,We will provide a certificate of insurance for delivery to the Covered Person. Each certificate will list Elie benefits,cuudifons and limits of this Policy. It will stale to whom benefits will be paid. 30 Day Right To Examine Certificate If a Covered Person does not like the Certificate for any reason, it may be returned to Us within 30 days after receipt. We will return any premium that has been paid and the Certificate will be void as if it had never been issued. Multiple Certificates The Covered Person may have in force only one certificate at a time under this Policy. If at any time the Covered Person has been issued more than one certificate,then only the largest shall be in effect. We will refund premiums paid for the others for any period of time that more than one certificate was issued. Assignment We will be bound by an assignment of a Covered Person's insurance under this Policy only when the original assignment or a certified copy of the assignment,signed by the Covered Person and any irrevocable beneficiary,is filed with Us. The assignee may exercise all rights and receive all benefits assigned only while the assignment remains in effect and insurance under this Policy and the Covered Person's certificate remains in force. Incontestability I. Of This Policy or Participation Under This Policy All statements made by the Policyholder to obtain this Policy or to participate under this Policy are considered representations and not warranties. No statement will be used to deny or reduce benefits or be used as a defense to a claim, or to deny the validity of this Policy or of participation under this Policy unless a copy of the instrument containing the statement is,or has been,furnished to the Policyholder. After two years from the Policy Effective Date,no such statement will cause this Policy to be contested except for fraud. 2. Of A Covered Person's Insurance All statements made by a Covered Person are considered representations and not warranties. No statement will be used to deny or reduce benefits or be used as a defense to a claim, unless a copy of the instrument containing the statement is,or has been,furnished to the claimant. After two years from the Covered Person's effective date of insurance,or from the effective date of increased benefits,no such statement will cause insurance or the increased benefits to be contested except for fraud or lack of eligibility for insurance. In the event of death or incapacity,the beneficiary or representative shall be given a copy. 15 Policy Termination We may terminate coverage on or after the first anniversary of the policy effective date. The Policyholder may terminate coverage on any premium due date. Written or authorized electronic notice must be given at least 31 days prior to such premium due date. Termination will not affect a claim for a Covered Loss that is the result, directly and independently of all other causes,of a Covered Accident that occurs while coverage was in effect. Reinstatement This Policy may be reinstated if it lapsed for nonpayment of premium. Requirements for reinstatement are written application of the Policyholder satisfactory to Us and payment of all overdue premiums. Any premium accepted in connection with a reinstatement will be applied to a period for which premium was not previously paid. Clerical Error A Covered Person's insurance will not be affected by error or delay in keeping records of insurance under this Policy. if such error or delay is found,We will adjust the premium fairly. Conformity with Statutes Any provisions in conflict with the requirements of any state or federal law that apply to this Policy are automatically changed to satisfy the minimum requirements of such laws. Policy Changes We may agree with the Policyholder to modify a plan of benefits without the Covered Person's consent. Workers' Compensation Insurance This Policy is not in place of and does not affect any requirements for coverage under any Workers' Compensation law, Examination of the Policy This Group Policy will be available for inspection at the Policyholder's office during regular business hours. Examination of Records We will be permitted to examine all of the Policyholder's records relating to this Group Policy. Examination may occur at any reasonable time while the Group Policy is in force; or it may occur: 1. at any time for two years after the expiration of this Group Policy;or, if later, 2. upon the final adjustment and settlement of all Group Policy claims. The Policyholder is acting as an agent of the Covered Person for transactions relating to this insurance. The actions of the Policyholder will not be considered Our actions. Ownership of Records All records maintained by the insurance Company are,and shall remain,the property of the Insurance Company. GA-00-1800.00 16 DESCRIPTION OF COVERAGES AND BENEFITS This Description of Coverages and Benefits Section describes the Accident Coverages and Benefits provided by this Policy. Benefit amounts,benefit periods and any applicable aggregate and benefit maximums are shown in the Schedule of Benefits. Certain words capitalized in the text of these descriptions have special meanings within this Policy and are defined in the General Definitions section. Please read these and the Common Exclusions sections in order to understand all of the terms,conditions and limitations applicable to these coverages and benefits. ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS Covered Loss We will pay the benefit for any one of the Covered Losses listed in the Schedule of Benefits, if the Covered Person suffers a Covered Loss resulting directly and independently of all other causes from a Covered Accident within the applicable time period specified in the Schedule of Benefits. If the Covered Person sustains more than one Covered Loss as a result of the same Covered Accident, benefits will be paid for the Covered Loss for which the largest available benefit is payable. If the loss results in death, benefits will only be paid under the Loss of Life benefit provision. Any Loss of Life benefit will be reduced by any paid or payable Accidental Dismemberment benefit. I-Lowever, if such Accidental Dismemberment benefit equals or exceeds the Loss of Life benefit,no additional benefit will be paid. Definitions Loss of a Hand or Foot means complete Severance through or above the wrist or ankle joint. Loss of Sight means the total, permanent loss of all vision in one eye which is irrecoverable by natural, surgical or artificial means. Loss of Speech means total and permanent loss of audible communication which is irrecoverable by natural, surgical or artificial means. Loss of Hearing means total and permanent loss of ability to hear any sound in both ears which is irrecoverable by natural,surgical or artificial means. Loss of a Thumb and Index Finger of the Same Hand or Four Fingers of the Same Hand means complete Severance through or above the metacarpophalangeal joints of the same hand(the joints between the fingers and the hand). Loss of Toes means complete Severance through the metatarsalphalangeal joint. Paralysis or Paralyzed means total loss of use of a limb.A Physician must determine the loss of use to be complete and irreversible. Quadriplegia means total Paralysis of both upper and both lower limbs. Hemiplegin means total Paralysis of the upper and lower limbs on one side of the body. Paraplegia means total Paralysis of both lower limbs or both upper limbs. Uniplegia means total Paralysis of one upper or one lower limb. 17 Coma means a profound state of unconsciousness which resulted directly and independently from all other causes from a Covered Accident, and from which the Covered Person is not likely to be aroused through powerful stimulation. This condition must be diagnosed and treated regularly by a Physician. Coma does not mean any state of unconsciousness intentionally induced during the course of treatment of a Covered Injury unless the state of unconsciousness results from the administration of anesthesia in preparation for surgical treatment of that Covered Accident. Severance means the complete and permanent separation and dismemberment of the part from the body. Exclusions The exclusions that apply to this benefit are in the Common F=Iusions section. GA-00-2100.00 ADDITIONAL ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGES Accidental Death and Dismemberment benefits are provided under the following coverages. Any benefits payable under them are shown in the Schedule ofCovered Losses and will not be paid in addition to any other Accidental Death and Dismemberment benefits payable. EXPOSURE AND DISAPPEARANCE COVERAGE Benefits for Accidental Death and Dismemberment,as shown in the Schedule of Covered Losses, will be payable if a Covered Person suffers a Covered Loss which results directly and independently of all other causes from unavoidable exposure to the elements following a Covered Accident. If the Covered Person disappears and is not found within one year from the date of the wrecking,sinking or disappearance of the conveyance in which the Covered Person was riding in the course of a trip which would otherwise be covered under this Policy, it will be presumed that the Covered Person's death resulted directly and independently of all other causes from a Covered Accident. Exclusions The exclusions that apply to this coverage are in the Common Exclusions Section. GA-00-2202.00 18 ADDITIONAL ACCIDENT BENEFITS Accidental Death and Dismemberment benefits are provided under the following Additional Benefits. Any benefits payable under them will be paid in addition to any other Accidental Death and Dismemberment benefit payable. CHILD CARE CENTER BENEFIT We will pay benefits shown in the Schedule of Benefits for the care of each surviving Dependent Child in a Child Care Center if death of the covered Employee results directly and independently of all other causes from a Covered Accident and all of the following conditions are met: 1. one or more surviving Dependent Children is under Age 13 and: a. was enrolled in a Child Care Center on the date of the Covered Accident;or b. enrolls in a Child Care Center within 90 days from the date of the Covered Accident. This benefit will be payable to the Surviving Spouse if the Spouse has custody of the child. If the Surviving Spouse does not have custody of the child,benefits will be paid to the child's legally appointed guardian. Payments will be made at the end of each 12 month period that begins after the date of the covered Employee's death. A claim must be submitted to Us at the end of each 12 month period. A 12 month period begins: 1. when the Dependent Child enters a Child Care Center for the first time,within the period specified in(lb)above, after the covered Employee's death;or 2. on the first of the month following the covered Employee's death,if the Dependent Child was enrolled in a Child Care Center before the covered Employee's death. Each succeeding 12 month period begins on the day immediately following the last day ofthe preceding period. Pro rata payments will be made for periods of enrollment in a Child Care Center of less than 12 months. Definitions For purposes of this benefit: Child Care Center is a facility which: I. is licensed and run according to laws and regulations applicable to child care facilities;and 2. provides care and supervision for children in a group setting on a regular,daily basis. A Child Care Center does not include any of the following: l. a Hospital; 2. the child's home; 3. care provided during normal school hours while a child is attending grades one through twelve. Dependent Child(ren) An Employee's unmarried child who meets the following requirements: 1. A child from live birth to 26 years old; 2. A child who is 26 or more years old, primarily supported by the Employee and incapable of self- sustaining employment by reason of mental or physical handicap. A child, for purposes of this provision, includes an Employee's: 1. natural child; 1 adopted child,beginning with any waiting period pending finalization of the child's adoption; 3. stepchild who resides with the Employee; 4. child for whom the Employee is legal guardian, as long as the child resides with the Employee and depends on the Employee for financial support. Financial support means that the Employee is eligible to claim the dependent for purposes of Federal and State income tax returns. Surviving Spouse will include the Spouse. Spouse will include the Employee's lawful spouse. Exclusions The exclusions that apply to this benefit are in the Common 1. elusion Section. GA-00-2222a.00 19 COMMON CARRIER BENEFIT We will pay the benefit shown in the Schedule ofBenefits if the Covered Person suffers a Covered Loss that results directly and independently of all other causes from a Covered Accident that occurs while riding as a fare-paying passenger in,or being struck by, a Common Carrier. Riding includes getting into and out of the Common Carrier. Definition For purposes of this benefit: Common Carrier means: 1. a public conveyance, including Aircraft, licensed for hire to carry fare-paying passengers;or 2. a transport Aircraft operated by the Air Mobility Command or a similar air transport service of another country. Exclusions The exclusions that apply to this benefit are in the Common Exclusions Section. GA-00-2225.00 SEATBELT AND AIRBAG BENEFIT We will pay the benefit shown in the Schedule of Benefits, subject to the conditions and exclusions described below,when the Covered Person dies directly and independently of all other causes from a Covered Accident while wearing a seatbelt and operating or riding as a passenger in an Automobile. An additional benefit is provided if the Covered Person was also positioned in a seat protected by a properly-functioning and properly deployed Supplemental Restraint System(Airbag). Verification of proper use of the seatbelt at the time of the Covered Accident and that the Supplemental Restraint System properly inflated upon impact must be a part of an official police report of the Covered Accident or be certified, in writing, by the investigating officer(s)and submitted with the Covered Person's claim to Us. If such certification or police report is not available or it is unclear whether the Covered Person was wearing a seatbelt or positioned in a seat protected by a properly functioning and properly deployed Supplemental Restraint System, We will pay a default benefit shown in the Schedule of Benefits to the Covered Person's beneficiary. Definitions For purposes of this benefit: Supplemental Restraint System means an airbag that inflates upon impact for added protection to the head and chest areas. Automobile means a self-propelled,private passenger motor vehicle with four or more wheels which is a type both designed and required to be licensed for use on the highway of any state,province or country. Automobile includes, but is not limited to, a sedan, station wagon, sport utility vehicle,or a motor vehicle of the pickup,van,camper,or motor-home type. Automobile does not include a mobile home or any motor vehicle which is used in mass or public transit. Exclusions The exclusions that apply to this benefit are in the Common Exclusions Section. GA-00-2251.00 20 SPECIAL EDUCATION BENEFIT We will pay the benefit,up to the Maximum Benefit shown in the Schedule ofBenefils, for each qualifying Dependent Child. The Covered Person's death must result,directly and independently of all other causes from a Covered Accident for which an Accidental Death Benefit is payable under this Policy. This benefit is subject to the conditions and exclusions described below. A qualifying Dependent Child must: 1. a. be enrolled as a full-time student in an accredited school of higher learning beyond the 121s grade level on the date of the covered Employee's Covered Accident; or b. be at the 12'"grade level on the date of the covered Employee's Covered Accident and then enroll as a full-time student at an accredited school of higher learning within 365 days from the date of the Covered Accident and continue his education as a full-time student. 2. continue his education as a full-time student in such accredited school of higher learning; and 3. incur expenses for tuition, fees,books,room and board,transportation and any other costs payable directly to,or approved and certified by, such school. Payments will be made to each qualifying Dependent Child or to the child's legal guardian, if the child is a minor at the end of each year for the number of years shown in the Schedule of Benefits. We must receive proof satisfactory to Us of the Dependent Child's enrollment and attendance within 31 days of the end of each year. The first year for which a Special Education Benefit is payable will begin on the first of the month following the date the covered Employee died, if the surviving Dependent Child was enrolled on that date in an accredited school of higher learning beyond the 12th grade; otherwise on the date he enrolls in such school. Each succeeding year for which benefits are payable will begin on the date following the end of the preceding year. If no Dependent Child qualifies for Special Education Benefits within 365 days of the covered Employee's death,We will pay the default benefit shown in the Schedule of Benefas to the covered Employee's beneficiary. Definitions For the purposes of this benefit: Dependent Child(ren) An Employee's unmarried child who meets the following requirements: 1. A child from live birth to 26 years old; 2. A child who is 26 or more years old, primarily supported by the Employee and incapable of self- sustaining employment by reason of mental or physical handicap. A child,for purposes of this provision, includes an Employee's: 1. natural child; 2. adopted child, beginning with any waiting period pending finalization of the child's adoption; 3. stepchild who resides with the Employee; 4. child for whom the Employee is legal guardian,as long as the child resides with the Employee and depends on the Employee for financial support. Financial support means that the Employee is eligible to claim the dependent for purposes of Federal and State income tax returns. Exclusions The exclusions that apply to this benefit are in the Common Fxclusions Section. GA-00-2252a.00 21 SPOUSE RETRAINING BENEFIT We will pay expenses incurred,as described below,up to the Maximum Benefit shown in the Schedule of Benefits, to enable the covered Employee's Spouse to obtain occupational or educational training needed for employment if the covered Employee dies directly and independently of all other causes from a Covered Accident. This benefit is subject to the conditions and exclusions described below. This benefit will be payable if the covered Employee dies within one year of a Covered Accident and is survived by his Spouse who: 1. enrolls,within three years after the covered Employee's death in any accredited school for the purpose of retraining or refreshing skills needed for employment;and 2. incurs expenses payable directly to,or approved and certified by,such school. Definitions For the purposes of this benefit: Spouse will include the Employee's lawful spouse. Exclusions The exclusions that apply to this benefit are in the Common Exclusions Section. GA-00-2254a.00 22 AMENDATORY RIDER DOMESTIC PARTNER/CIVIL UNION PARTNER COVERAGE Policy No.: OK 969625 Effective Date: January 1,2013 This rider amends the Policy and Certificate to which it is attached. It is effective on the Effective Date shown above, and expires when the Policy expires. Domestic Partner/Civil Union Partner means the following: I. A person with whom the Employee has a registered civil union or domestic partnership under state law which imposes legal obligations on the parties substantially similar to marriage. Such person will continue to be recognized as a Domestic Partner or Civil Union Partner unless and until: (1)the civil union or domestic partnership is dissolved under applicable law;or(2)either the Employee or the Domestic Partner/Civil Union Partner marries another person. All references in the policy to"Spouse"shall be changed to read"Spouse,Domestic Partner,and Civil Union Partner" except as follows: 1. The definition of"Spouse'remains unchanged. 2. A Domestic Partner/Civil Union Partner shall be deemed eligible to be enrolled for insurance or eligible for Additional Benefits on the latest of: a. the date of registration tinder item 1 of the definition of Domestic Partner/Civil Union Partner; b. the date that the Employee is eligible for insurance under the Policy;or; c. the effective date of this Amendment to the Policy. 3. A child of a Domestic Partner/Civil Union Partner may only be eligible to be insured or eligible for Additional Benefits i f: a. the child is primarily dependent on the Employee for financial support; b. the Employee has a legal obligation of support of the child; or c. the Employee is the child's legal guardian. Any provision of the Policy that otherwise excludes any person who is not legally able to marry the Employee is changed by the following: In the case of any person of the same sex as the Employee,the exclusion of persons legally able to marry will not apply for the first 12 months that the Employee's state of residence allows same-sex couples to marry. Except for the above this rider does not change the Policy or Certificate to which it is attached. LIFE INSURANCE COMPANY OF NORTH AMERICA A. Matthew G.Murders, President TL-007153 23 LIFE INSURANCE COMPANY OF NORTH AMERICA AMENDATORY RIDER TRAVEL ASSISTANCE SERVICES Policyholder: City of Kent Policy No.: OK 969625 Effective Date: January I,2018 This rider amends the Policy and Certificate to which it is attached. It is effective on the Effective Date shown above,and expires when the Policy expires. Travel Assistance Services We will pay the cost of the Covered Services described below, subject to all applicable conditions and exclusions,resulting, directly and independently of all other causes, from a Covered Medical Emergency. The Covered Medical Emergency must occur and Covered Services must be incurred during the course of travel or other activities covered by the Policy,and while the Covered Person is either more than 100 miles from his permanent residence or outside of his country of permanent residence. To obtain services,the Covered Person must contact Us or our authorized service provider at the phone number provided by the Policyholder. All services must be provided by our authorized service provider unless authorized by Us. Covered Services Covered Services includes the reasonable costs for medically necessary services provided by Us or by our authorized service provider, and which are provided by our authorized service provider unless authorized by Us,for any of the following. Emergency Medical Evacuation Medically necessary expenses for Transportation of the Covered Person to the nearest adequate medical facility,if adequate medical care is not available at the Covered Person's location. Cost of any medically necessary services or equipment that the Covered Person receives during transportation covered under this provision. Cost of transporting qualified and licensed medical professional(s)or an Immediate Family Member or a Travel Companion if medically required to escort the Covered Person during transportation covered under this provision„ Transportation will be provided by medically equipped specialty aircraft,commercial airline,train or ambulance depending upon the medical needs and available transportation specific to each case. 24 Return Transportation Any increase in the cost of the Covered Person's return transportation to his or her home or work location following emergency medical evacuation covered under this benefit,above the cost of the Covered Person's original scheduled return transportation. Any increased cost of the transportation for an Immediate Family Member or Travel Companion of the Covered Person to return to his or her primary residence, if he or she accompanied the Covered Person on the trip where the emergency occurred,and was as a result not able to return to his or her primary residence when originally scheduled. Unless it is medically necessary for another means of transportation to be provided, such return transportation costs will be covered for the same class of travel as the Covered Person's original transportation. In the case of an Immediate Family Members who is a child under age 18,who is left without a parent,guardian or other adult to accompany the child,we will cover the reasonable cost of an escort to accompany the child to the nearest airport. If under the applicable rules of the airline,the child is too young to travel unaccompanied by an adult, we will pay the round trip economy airfare for an adult family member from the child's place of residence to the airport nearest the child. Immediate Family Member Visit Expenses for an Immediate Family Member or Friend of the Covered Person to visit the Covered Person during hospitalization away from the Covered Person's primary residence, if the Covered Person is hospitalized or expected to remain hospitalized for 7 or more consecutive days following emergency medical evacuation covered under this benefit. Such expenses shall be limited to one person only,and shall include round-trip economy airfare,and an allowance of $150.00 per day for up to 7 days for meals and lodging. If a Dependent Child is evacuated,we will pay the expenses of an adult Immediate Family Member who accompanied the Dependent Child on the trip where the emergency occurred,to accompany the Dependent Child during the evacuation and during the Dependent Child's return to his or her place of residence. If the Dependent Child was not accompanied by an adult Immediate Family Member on the trip where the emergency occurred, we will pay expenses described in the preceding paragraph, without regard to the expected duration on the hospitalization. Repatriation of Remains If the Covered Person dies as a result of a Covered Medical Emergency,or during a Medical Evacuation covered by this Policy,the following expenses will be covered: I. Embalming; 2. Cremation in the locality where death occurred and um for return ashes; 3. A container appropriate for transportation of remains; 4. Autopsy if required by law; 5. Expenses of securing documentation necessary for return of remains; 6. Transportation of the body or remains to the Covered Person's place of permanent residence. 25 Definitions "Covered Medical Emergency" means an injury, illness or disease diagnosed by a Physician which causes severe or acute symptoms that, if not provided with immediate care or treatment,would reasonably be expected to result in serious deterioration of the Covered Person's health or place his life in jeopardy; and which first manifests itself suddenly and unexpectedly during the travel or other hazards covered by the Policy. "Immediate Family Member"means a spouse, parent,child, step-parent,step-child, brother or sister, step-brother or step- sister,grandparent,or Domestic Partner. "Travel Companion"means an individual,other than an Immediate Family Member,who accompanied the Covered Person on the trip where the emergency occurred. "Friend"means a person chosen by the Covered Person,other than an Immediate Family Member who is able to visit the Covered Person. Limitations Covered Expenses are secondary to,and in excess of,any expenses for medical or transportation services paid or payable under any workers' compensation law. No payment will be made for services without authorization of those services by Us or the express written approval of Our approved vendor. If coverage for these services is provided under more than one policy issued by the Insurance Company,we will only provide or pay for these services under one such policy. 26 Exclusions The exclusions listed in the Policy's Common Exclusions section will not apply to Medical Evacuation and Repatriation Expenses, except for exclusions relating to war or acts of war,suicide or intentionally self-inflicted injury. In addition,the following exclusions apply specifically to this coverage: I. Non-Emergency,routine or minor medical problems,tests and exams where there is no clear or significant risk of death or imminent serious Injury or harm to the Covered Person; 2. a condition which would allow for treatment at a future date convenient to the Covered Person and which does not require Emergency evacuation or repatriation; 3. expenses incurred if a purpose of the Covered Person's trip is to obtain medical treatment; 4. services provided for which no charge is normally made, in the absence of insurance; 5. transportation for the Covered Person's vehicle and/or other personal belongings; 6. Initial transport by ambulance following a Covered Medical Emergency occurring in the United States; 7. services incurred while serving in the armed forces of any country; 8. services required or obtained in any location which,due to war, insurrection,natural disaster or other reasons, is not reasonably accessible to our designated service provider,unless approved in advance by us; 9. claim payments that are illegal under applicable law; 10. expenses which are paid or payable under any workers'compensation law; 11. Medical care or services scheduled for your or your doctor's convenience which are not considered an emergency. Except for the above this rider does not change the Policy or Certificate to which it is attached. LIFE INSURANCE COMPANY OF NORTH AMERICA Matthew G.Manders,President GA-00-2230c.00 27 RECEIPT ACKNOWLEDGEMENT FORM LIFE INSURANCE COMPANY OF NORTH AMERICA Philadelphia,PA 19192-2235 We, City of Kent,whose main office address is Kent,WA,hereby approve and accept the terms of Group Policy Number OK 969625 issued by the LIFE INSURANCE COMPANY OF NORTH AMERICA. We acknowledge that benefits will be provided in accordance with the terms and provisions of the policy, which will be the sole contract under which benefits are paid. This form is to be signed. Sign: . ..... _^"''s Date Title: City of Kent TL-008890 �.✓� Jig � O T Agenda Item: Consent Calendar - 7H TO: City Council DATE: November 21, 2017 SUBJECT: Contract Renewals for Medical, Dental, Vision, Basic Life, Voluntary Life, and Long Term Disability Insurance - Authorize MOTION: Authorize the Mayor to approve renewal of the City's contracts for medical, vision, and dental benefits with Premera, Vision Service Plan (VSP), and Delta Dental for three years, and Kaiser Permanente (formerly Group Health) for one year, and to approve switching from Standard Insurance to Cigna for a new 3-year contract for Basic Life, Voluntary Life, and Long Term Disability insurance, subject to approval of final terms and conditions by the Human Resources Director and the City Attorney. SUMMARY: The City of Kent contracts with Premera Blue Cross, Delta Dental of Washington and Vision Service Plan, to be third party administrators to process medical, dental, and vision claims, and provide access to their networks of doctors, hospitals, dentists, optometrists and ophthalmologists. The City is self-insured for these programs and wires funds to cover the weekly claims cost for medical, prescription, dental, and vision expenses. The City also contracts with Kaiser Permanente for the City's insured health maintenance organization. After conducting separate request for proposal processes for each of these services, staff recommends renewal of these contracts with the current vendors. After holding a request for proposal process, and discussions with the City's Healthcare Board, staff recommends a move from our current vendor for long-term disability services and basic life, AD&D and voluntary life insurance to Cigna. Although all core contract terms have been resolved with these providers, the City and the providers are still in the process of winding up final contract language. These vendors also have their own lengthy internal approval process, so authorization is sought now to get approval for next year's budget cycle. EXHIBITS: Memo to the Operations Committee RECOMMENDED BY: Operations Committee YEA: Boyce, Ralph, Thomas NAY: N/A BUDGET IMPACTS: Premera - $1,345,000 for a three year contract; Delta Dental - $165,330 for a three year contract; Vision Service Plan - $56,100 for a three year contract; Kaiser Permanente - $420,000 for a one year contract; and Cigna - $705,000 for a three year contract. This page intentionally left blank. �I HUMAN RESOURCES DEPARTMENT F4ENT Marty Fisher, Director Phone: 253-856-5270 Fax: 253-856-6270 Address: 400 West Gowe Kent, WA 98032-5895 DATE: November 7, 2017 TO: Operations Committee FROM: Laura Horea, HR Benefits Manager SUBJECT: Medical, Dental, Vision, Basic Life, Voluntary Life, and Long Term Disability Insurance Vendor Contracts SUMMARY: The Benefits Division of the Human Resources Department conducted separate Request for Proposal processes for 1) Medical, dental, and vision insurance, and 2) Basic Life and Accidental Death & Dismemberment (AD&D), Voluntary Life and Long Term Disability insurance between April and August 2017. All bids were reviewed by the Human Resources Director, the Benefits Manager, and discussed with members of the City's Healthcare Board. Medical, dental, and vision insurance bids were received from Premera, Aetna, HMA, Regence, Kaiser Permanente (formerly Group Health), Delta Dental, and Vision Service Plan (VSP). United Healthcare declined participation. Our current providers, Premera, Delta Dental, and VSP are recommended to renew for additional three-year contracts and Kaiser Permanente for a one-year renewal, based on the strength of their plans, overall costs, customer service, discounts, and overall administration and billing accuracy. Basic Life and AD&D, Voluntary Life and Long Term Disability insurance bids were received from our current vendor, Standard Insurance, and also from Cigna and Mutual of Omaha. The recommendation is to move from our current vendor, Standard Insurance, to Cigna for long-term disability services, basic life insurance, AD&D, and employee and dependent voluntary life insurance for the following reasons: • Savings of approximately $100k per year in each of the three years of the proposed new contract; and • Increase in employee basic life insurance coverage from 1 x salary up to $50,000 to 1 x salary up to $150,000. Employees will have the opportunity to purchase additional voluntary life insurance for themselves and their family members at a significantly lower rate than is available through Standard. Staff has received excellent feedback regarding Cigna from current customers about their billing accuracy, systems, overall administration, and customer service. Locally the City of Kirkland just moved to Cigna for these services. All other contract features are identical to our current offering from Standard. I REQUEST FOR MAYOR'S SIGNATURE *+ KtNT Print on Cherry-Colored Paper Routing Information: (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Approved by Director_ Originator: Laura Horea Phone (Originator): 253.856.5290 Date Sent: 4/16/18 Date Required: 4/19/18 Return Signed Document to: Laura Horea Contract Termination Date: 12/31/2020 VENDOR NAME: Date Finance Notified: CIGNA (Only required on contracts 09/28/17 $20,000 and over or on any Grant) DATE OF COUNCIL APPROVAL: 11/21/17 Date Risk Manager Notified:09/28/17 (Required on Non City Standard Contracts/Agreements) Has this Document been Specificall Account Number: Authorized in the Budget? YES NO ................a_ Brief Explanation of Document: CIGNA contract - covers Basic Life, Basic AD&D, Voluntary Life and Long Term Disability -- EC B Received: �1f'�' Routed Through The Law Department s area to be completed by th aw Department) � � � � � , f � �� � �p Approval of Law Dept,: t f( Law De et. Comments: Date Forw2 q': Shaded Areas To Be Comp 1eted, iofstraition Sta f f` Received: and r, f�x' � Recommendations and Comments: os .Disposition) per y p `Date Returned: - ry e, wmm ocmmmn mFuae 9F my^.ww Amm iv.wem