1989-130NO 89 - /30
AN ORDINANCE ACCEPTING THE PROPOSAL OF SUN FINANCIAL GROUP FOR LIFE AUTHORIZING INSURANCE
HE EXPENDITURE
THCOVERAGE EREFORE, FOR CITY
AND DECLARING AN EMPLOYS, EFFECTIE DATE
OF F
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the proposal of Sun Financial Group for life
insurance coverage for city employees, a copy of which is attached
hereto and incorporated by reference herein, is hereby accepted
SECTION II. That the City Council hereby authorizes the
expenditure of funds in the manner and amount as specified in the
agreement
SECTION III That this ordinance shall become effective
immediately upon its passage and approval 9
PASSED AND APPROVED this the /~9 day of L ~u(~X7~~''i~`~-' 1989
RAY ST P °NS, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY .Cl'/`YI92 ~L~ lC/ t
9/14/89
Sun
Financial
Group
SunLNOOON&WOMM
August 24, 1989
Nedra White
Personnel Specialist - Benefits
City of Denton
324 East McKinney
Denton, TX 76201
RE. RFP #1009
Life and AD&D
H 1 Nwrk m. A. CW ftatm ft W OfMO
erouPMOASOW 40LOUMM *m
suit im
Houston, Tom 77=
TM 2188310
I
We will continua the rates of 111.248 - Life and 111.04 - AND
Valid to 1/1/91-
401
Sh Id you have ny questions, please do not hesitate to
dt glv me a call.
r, ~i
Croup
CLU
/as
T BY Sun Financial Group , 8-14-89 , 4 34PM 171322568174CITY OF DENTON uA of 1
0 Sun
Financial
Group
5unkife of Canada and offiUsm
September 14, 1989
Via Facsimile 9/14/89
Nedra White
Personnel Specialist/benefits
City of Denton
Municipal Building
324 East McKinney
Denton. TX 75201
RE #84127 Group Life Coverage
H J Herrington Jr. CLU Houston GroupOMke
Group Manager 44OLCUMMA90M
Sump 1420
Houston Tozer 77002
Tel M3)296OW
FAX (799)22Sba17
0
Per your request we will be revising the policy anniversary
to be October 1
This change sl
I shell confirm
Harry
Group
make the rata change date to be February 1
February 1 date ASAP
/as
POLICY SPECIFICATIONS
Policy Number
Policyholder - City of Denton
Effective Date -
Policy Anniversaries - October 1, 1989
Premium Due Dates - The Effective Date and thereafter the
1st day of each month
Currency - United States Dollars
Insurance Benefits*
Employee Life
(for each $1,000
of insurance)
Accidental Death
and Dismemberment
(for each $1,000 of
insurance)
Monthly Premium Rates
Employees Dependents
(for each Employee) (for the insured
Dependent of each
Employee)
To Be Advised
To Be Advised
* for benefit details refer to appropriate Benefit Provision
means that the benefit is not in force
2714s
-1-
INDEX
Action Against Us
Assignments
Benefit Provisions
Accidental Death and Dismemberment Insurance - Employee
Life Insurance with Extended Death Benefit - Employee
Change in Beneficiary
Clerical or Mechanical Errors
Commencement of Insurance
Definitions
Due Proof
Entire Contract
Examinations
Experience Rating Refund
Facility of Payment
Gender
Governing Law
Grace Period
Incontestability
Individual Certificates
Individual Termination of
Insurance Data
Methods of Payment
Minimum Benefit Provision
Misstatement of Age
Notice of Claim
Payment of Benefits
Premium Ad3ustments
Premium Calculation
Premium Payments
Proof
Proof of Age
Proof of Claim
Insurance
Requirement
Termination of Benefits Provision(s)
Termination of Policy
Time of Payment
Workers' Compensation
Policy Addendum
Page
14
12
19
15
12
10
7
4
14
10
14
10
12
14
14
9
11
11
7
10
12
8
10
13
11
9
8
9
14
10
13
8
8
13
11
21
2714s
-2-
COMPLAINT NOTICE
Should any dispute arise about your premium or about a claim
that you have filed, contact the agent or write to the company
that issued the policy If the problem is not resolved, you may
also write the State Board of Insurance, Department C, 1110 San
Jacinto Street, Austin Texas 78786 This notice of complaint
procedure is for information only and does not become a part or
condition of this policy
2714s
-3-
DEFINITIONS
Employer The Policyholder
Employee A person classified
as a permanent fu
who is scheduled to
hours a week at the
of business or at
where the Employer
be
by the Employer
11-time employee
work at least 20
Employer's place
some other site
requires him to
Employment
Performance of work as an Employee
except that classification as an
individual employed on a basis
excluded above will be applied
toward completion of an Employee's
waiting period
Waiting Period
Nil
Actively at Work
An Employee is actively at work on
any day in which he performs all the
usual and customary duties of his
occupation at the Employer's place
of business or at some other site
where the Employer requires him to
be In the case of an Employee who
is not on a flexible schedule of
working hours, the Employee must
work for 6 hours or the scheduled
number of hours for that day,
whichever is longer In the case of
an Employee who is on a flexible
schedule, he must work the scheduled
number of hours for that day
An Employee is deemed Actively at
Work on a scheduled non-working day
if he was Actively at Work on the
immediately preceding scheduled
working day
Termination of Employment
Termination occurs on the last day
of the month in which a person
ceases to qualify as an Employee for
any reason
2714s
-4-
Definitions (Continued)
However, the Policyholder, acting in
accordance with rules which preclude
individual selection, may deem that
Employment continues
1 for the period of the Employee's
scheduled paid vacation, but not
exceeding 3 months,
2 unless otherwise provided by
law, for a period ending not
later than the last day of the
calendar month following the
month in which the Employee is
temporarily laid off or is
granted leave of absence for any
reason other than illness or
paid vacation, or
3 for a period ending not later
than 6 months (unless a longer
period is approved by us) during
which the Employee is absent
from work due to illness
Beneficiary
The person who is entitled to
receive death benefit proceeds as
they become due under this Policy
Illness
Bodily injury, sickness, disease,
pregnancy or mental infirmity
Pregnancy
Pregnancy, childbirth, miscarriage,
abortion and conditions which result
directly or indirectly from any of
these
Totally Disabled
Employee Life - An Employee is
totally disabled if he is wholly
prevented by illness from performing
any work for compensation or profit
or from following any gainful
occupation
Ceasing to be Actively at Work does
not, by itself, mean that an
Employee is Totally Disabled
Total Disability
The condition of being Totally
Disabled
2714s
-5-
Definitions (Continued)
Basic Earnings
The Employee's current salary or
wage from the Employer, excluding
any bonus, overtime or incentive pay
Riot
Unlawful assembly, civil commotion,
disorderly conduct and all other
forms of disturbance of the public
peace by three or more persons
assembled together
Participation in a Riot
Encouraging, promoting or taking
part in a Riot, whether by signs,
gestures, words or by distinctive
devices which identify the person
with the Riot
Plan Administrator
The person or organization
designated by the Policyholder to
maintain the records of the people
insured under the Policy
Office
Our office at One Sun-Life Executive
Park, Wellesley Hills, Massachusetts
02181
2714s
-6-
GENERAL PROVISIONS
Commencement of Insurance
Life Insurance An Employee is insured on the first
day that the Employee is Actively at
Work
An Employee who had converted his
Life Insurance under the Conversion
Privilege of this Policy will have
the Scheduled Amount of his
Insurance reduced by the amount of
any insurance remaining in force
under the individual policy issued
under the Conversion Privilege
An Employee
who
declines
for
religious or
other
reasons t
o be
insured by s
igning
a refusal
card,
is insured
on
the date
his
subsequent
written
request
for
insurance
and
evidence
of
insurability
are a
pproved by
Sun
Life
Commencement of Insurance
on Policy Amendment If an insured Employee is not
Actively at Work on full time on the
date the Policy is amended to
provide increased or additional
benefits, the Employee will be
insured for the increased or
additional benefits only when he is
again Actively at Work on full time
Individual Termination
of Insurance An
the
1
2
3
Employee ceases to be insured on
earliest of
termination occurs on the last
day of the month in which a
person ceases to qualify as an
Employee for any reason,
the end of the period for which
the last premium is paid to us
for the Employee's insurance, or
the date of termination of the
Policy
2714s
-7-
General Provisions (Continued)
Termination of Benefit
Provision We may terminate any Benefit
Provision on any Premium Due Date
because one or more of the Minimum
Benefit Provision Requirements is
not met We will give the
Policyholder 31 days' prior written
notice
Minimum Benefit Provision
Requirements
Requirement No 1 - At all times at
least 25 insured Employees
Requirement No 2 - 758 of the
Employees who have completed the
Waiting Period must be insured
Termination of Policy
This Policy will terminate
1 at the end of the applicable
Grace Period if, at that time,
any premium remains unpaid,
2 if the Policyholder gives us a
written notice that the Policy
is to be terminated The date
of such termination will be the
later of
a the date specified in the
notice, and
b the date we receive the
notice at our office, or
3 on the date all Benefit
Provisions are terminated
Premium Calculation The premium due on the Effective
Date and on each subsequent Premium
Due Date is the sum of the monthly
premiums for all insured Employees
based on our then current Monthly
Premium Rates The Monthly Premium
Rates shown in the Policy
Specifications are our current rates
on the Effective Date of this Policy
We may change the Monthly Premium
Rates after February 11 1991 The
change in rates can only be made
once in a policy year, unless the
terms of the Policy change For
2714s
-8-
General Provisions (Continued)
other than policy changes, we will
give the Policyholder 31 days' prior
written notice
Premium Adjustments
The additional premium for insurance
that increases or commences on a
date other than a Premium Due Date
is payable from the next Premium Due
Date
The premium for insurance that
decreases or cease on a date other
than a Premium Due Date is payable
until the next Premium Due Date
However, any change in premium due
to a policy change will take effect
on the date of change The
proportionate charge or refund will
be made on the next Premium Due Date
Premium Payments
Premiums are to be paid at our
office by the Policyholder on or
before the Premium Due Dates
We are not required to receive
payment of any premium other than in
one sum or from anyone other than
the Policyholder We are not
required to see
1 that any amounts referred to as
contributions by Employees are,
in fact, contributed by
Employees, or
2 that all or any amounts so
contributed by Employees are
applied to the payment of
premiums
Grace Period
If a premium, after the first
premium, is not paid by its Premium
Due Date, it may be paid by the
Policyholder within 31 days after
its Premium Due Date The Policy
continues in force during this grace
period If a premium is not paid by
the end of the grace period, this
Policy will terminate In any
event, premiums are payable for any
period of time during which the
Policy remains in force
2714s
-9-
General Provisions (Continued)
Experience Rating Refund
On each Policy Anniversary an
experience rating process is applied
to this Policy such amount, if any,
as we determine to be available as a
refund as a result of that process
We reserve the right to change the
basis of that process Any refund
is paid in cash to the Policyholder
Insurance Data The Employer is to provide us with
information about the Employees and
their benefits This information is
limited to that required for the
calculation of premiums and to
ensure that Policy terms are
fulfilled We reserve the right to
inspect pertinent records of the
Employer
Clerical or mechanical
Errors No clerical or mechanical error by
the Employer, the Plan Administrator
or by us will cause insurance
1 which should be in force, not to
commence,
2 which should continue, to cease,
3 which should not be in force, to
commence, or
4 which should cease, to continue
Misstatement of Age If the age of a person is misstated,
factors affecting his insurance will
be based on the true age Refunds
or charges will be made accordingly
Proof of Age We have the right to request proof
of age for any person insured or
entitled to benefits under this
Policy If proof is not provided,
benefits will not be paid Any
benefits which later becomes payable
will be based on the true age
Entire Contract Your entire contract with us
consists of the following
1 this Policy, and
2714s
-10-
General Provisions (Continued)
2 the Policyholder's Application,
a copy of which is attached, and
3 the applications, if any,
relating to persons insured
under the Policy
All statements made in the
applications will be deemed
representations and not warranties
No statement of any person may be
used in any contest unless it is
written and signed by him, and a
copy furnished to this or to his
Beneficiary
Only our President, Actuary,
Secretary or one of our Vice
Presidents can agree to change the
Policy or to waive any of its
provisions No change or waiver
will be valid unless endorsed on or
attached to the Policy No agent
has authority to change the Policy
or to waive any of its provisions
Incontestability
Except for non-payment of premiums,
the Policy will be incontestable
after it has been in force for a
period of two years from the
Effective Date No statement
relating to the insurability of any
person may be used in contesting the
validity of the person's insurance
after if has been in force for a
period of two years during his
lifetime, unless it is written and
signed by him
Individual Certificates
A certificate is issued by us to the
Policyholder for delivery to each
insured Employee The certificate
describes benefits payable and other
essential information
Workers' Compensation
This Policy does not replace or
affect any Workers' Compensation or
similar law
Payment of Benefits
Benefits payable upon the death of
an Employee are payable to the
Beneficiary living at the time
Unless otherwise specified, if more
2714s
-11-
General Provisions (Continued)
than one Beneficiary survives the
Employee, all surviving
Beneficiaries will share equally
If no Beneficiary is alive on the
date of the Employee's death,
payment will be made to the
Employee's estate
Benefits payable during the lifetime
of the Employee will be paid to the
Employee
The above is subject to the rights
of any assignee
Change in Beneficiary All nominations of Beneficiaries are
revocable unless otherwise stated by
the Employee in the form provided by
us No change will bind us unless
it is made in written form
satisfactory to us and filed with
the Plan Administrator The change
will then be effective as of the
date it was signed, but it will be
subject to any action taken before
it was received by us at our office
Assignments The insured person is permitted
under this Policy to assign all his
rights under the Policy Forms
signed by the insured person must be
received by us before payment is
made, otherwise the assignment is of
no effect
Methods of Payment In lieu of payment of Death Benefits
in one sum, another method of
payment may be elected The
available methods will be based on
the benefit options in the
individual policies then issued by
us at the time of such election
Facility of Payment If the Employee is not able to give
a valid release for benefit payments
then we may make payment up to
$5,000 The payment can be made to
any person we consider capable of
giving a valid release
2714s
-12-
General Provisions (Continued)
Time of Payment Benefits will be paid as soon as we
have received the required written
Proof of Claim, or, in the case of a
Death Benefit, when we have received
due Proof of death
Notice of Claim We must receive written notice of
claim within certain time limits
except for those arising from the
death of an insured The time
limits for such notices are set
forth in the respective Benefits
Provisions
The written notice is to be given to
us at our office If it can be
shown to us that the notice could
not be given within the application
period, then the notice must be
given as soon as reasonably possible
When we receive the notice of claim,
we will send forms for filing Proof
of Claim If these forms are not
sent to the Employee within 15 days
after we receive the notice of
claim, then written proof of the
nature and extent of loss given
within the time specified in the
Proof of Claim provision is deemed
to meet our requirements
Proof of Claim We must receive written proof of
claim within certain time limits
except for those arising from the
death of an insured The time
limits for such proofs are set forth
in the respective Benefits
Provisions
The proof, which must be
satisfactory to us, is to be given
to us at our office If it can be
shown that proof could not be given
within the applicable period, we
will not deny or reduce benefits
payable However, proof of claim
must be given within one year after
the date such proof is due unless
the Employee is legally incompetent
2714s
-13-
General Provisions (Continued)
Action Against Us
No legal action may be brought on
any claim earlier than 60 days after
a Proof of Claim is given No such
action may be brought later than
three years after the Proof of Claim
is required
Due Proof
Written due proof of death must be
given to us at our office before any
Death Benefit is payable
Examinations
We have the right to examine, at our
expense, any person for whom a claim
for benefit payment has been made
and to do so as often as we may
reasonably require
Gender
In the context of this Policy, the
use of "he," "his" and "him" refers
to both males and females
Proof
We may require proof in connection
with the terms of benefits of this
Policy If proof is required, we
must be provided with such evidence
satisfactory to us as we may
reasonable require under the
circumstances
Governing Law
This Policy is governed by the laws
of the jurisdiction where the
Application was signed
2714s
-14-
EMPLOYEE LIFE INSURANCE BENEFIT PROVISION
WITH EXTENDED DEATH BENEFIT
The amount of each Employee's Life Insurance Benefit is based on
the following schedule
Classification
AMOUNT OF INSURANCE
BEFORE
AGES 70
AGE 70
TO 74
A All Employees 1 x Annual
658 of
Salary
pre age
rounded
65
to next
coverage
highest
$1,000
B Directors & 2 x Annual
Executive Salary
Directors rounded
to next
highest
$1,000
AGE 75
TO 79
458 of
pre age
65
coverage
AGE 80
OR OVER
308 of
pre age
65
coverage
All Employees are eligible for $15,000 minimum coverage before
age 70
Change in Cover
Change in Amount of Insurance due to
- change in age will occur on the date of change
Cover Ceases
Coverage for an Employee under this Benefit Provision ceases on
the earliest of
- the applicable Individual Termination of Insurance date,
- the date this Benefit Provision terminates for the
Classification of Employees of which he is a member, or
the date the Employee ceases to be eligible for this
Benefit in accordance with the Classification shown in the
schedule
Death Benefit
If we receive Due Proof that an Employee dies while insured, we
will pay the Amount of Insurance in force on the Employee's date
of death
2714s
-15-
Employee Life Insurance Benefit Provision
With Extended Death Benefit (Continued)
If an Employee's Life Insurance Benefit is being continued under
the Extended Death Benefit, payment of the Amount of Insurance
is subject to the terms and conditions of the Extended Death
Benefit provision
Extended Death Benefit (Applicable to an Employee who becomes
Totally Disabled before age 60 or retirement, whichever is
earlier)
A Totally Disabled
if we receive due Notice and Proof of Claim that an Employee
becomes Totally Disabled while insured, the Amount of
Insurance continues from the date of Total Disability
without further payment of the Employee's Employee Life
Insurance premiums We will require Proof each year that
the Employee continues to be Totally Disabled
The Amount of Insurance is subject to Policy terms and
conditions in effect on the date such Total Disability
commenced, including subsequent reductions or termination
Such amount is reduced by the amount of any policy issued to
the Employee under the Conversion Privilege of this Policy
unless such policy is exchanged for a full refund of
premiums paid
B Time Limit for Notice and Proof of Claim
The time limit for due Notice an Proof of Claim is
- within 12 months after the Employee ceases to be
Actively at Work
C Termination of Extended Death Benefit
This Extended Death Benefit ends on the earliest of the
dates on which the Employee
1 ceases to be Totally Disabled,
2 fails to furnish due Proof that he continues to be
Totally Disabled, or
3 fails to submit to an Examination
D Amendment or Termination of Benefit Provision
An Employee's rights to continued benefits under this
Extended Death Benefit are determined on the date the Total
Disability commenced These rights are subject to the terms
of this Policy and will not be affected by subsequent
amendment or termination of this Benefit Provision
2714s
-16-
Employee Life Insurance Benefit Provision
With Extended Death Benefit (Continued)
Conversion Privilege
A Benefit
1 If all or part of an Employee's Amount of Insurance
ceases due to termination of
- Employment, or
- membership in the class(es) which qualify for such
insurance,
the Employee may apply for an individual policy on his
own life up to the amount that ceased
2 If an Employee's Amount of Insurance ceased due to
termination of
- this Provision, or
- any class of insured persons by an amendment to this
Provision, and
the Employee has been continuously insured for five or
more years under the Employee Life Insurance Benefit
Provision,
then the Employee may apply for an individual policy on
his own life The maximum amount of such policy will be
the lesser or
the amount which ceased, reduced by the Amount of
Insurance for which the Employee is eligible under any
group policy within 31 days after his Amount of
Insurance ceased, and
- $2,000
3 If the Amount of Insurance for an Employee under the
Extended Death Benefit ceases or reduces, the Employee
may apply for an individual policy as in the above as
applicable
4 The Employee will be issued such individual policy
without evidence of insurability
B Right
The right of conversion is subiect to the following
conditions
2714s
-17-
Employee Life Insurance Benefit Provision
With Extended Death Benefit (Continued)
1 written application must be made to us along with
payment of the first premium, within the 31 day period
(the 31 day conversion period) following the date the
insurance ceases or reduces in amount,
2 the policy may be any plan of life insurance, other than
term, then usually issued by us at the attained age and
amount requested, but without disability or other
supplemental benefits,
3 the premium will be the rate we usually charge for the
standard class of risk and age to which the Employee
belongs on the effective date of the individual policy,
and
4 the effective date of the individual policy will be the
day after the end of the 31 day conversion period
C Death Within 31 Days
If the Employee dies during the 31 day
Death Benefit will be paid The amount
is the amount eligible for conversion
conversion period, a
of the Death Benefit
2714s
-18-
EMPLOYEE ACCIDENTAL DEATH AND DISMEMBERMENT
INSURANCE BENEFIT PROVISION
The amount of each Employee's Accidental Death and Dismemberment
Insurance Benefit is based on the following schedule
Classification
AMOUNT OF INSURANCE
BEFORE
AGES 70
AGE 70
TO 74
A All Employees 1 x Annual
658 of
Salary
pre age
rounded
65
to next
coverage
highest
$1,000
B Directors & 2 x Annual
Executive Salary
Directors rounded
to next
highest
$1,000
AGE 75
TO 79
458 of
pre age
65
coverage
AGE 80
OR OVER
308 of
pre age
65
coverage
All Employees are eligible for $15,000 minimum coverage before
age 70
Change in Cover
Change in Amount of Insurance due to
- change in age will occur on the date of change
Cover Ceases
Coverage for an Employee under this Benefit Provision ceases on
the earliest of
- the applicable Individual Termination of Insurance date,
- the date this Benefit Provision terminates for the
Classification of Employees of which he is a member, or
- the date the Employee ceases to be eligible for this
Benefit in accordance with the Classification shown in the
schedule
2714s
-19-
Employee Accidental Death and Dismemberment
Insurance Benefit Provision (Continued)
Accidental Death and Dismemberment Benefits
If we received Due Proof or due Notice and Proof of Claim that
and Employee while insured
- dies from accidentally drowning, or
- sustains bodily injury by accidental means, which results
in loss of life, sight or limb within 365 days of the date
of such injury,
we will pay, subject to the Exclusions below, the following
percentage of the Amount of Insurance in force on such date for
such loss
- life - 100%
- sight of one eye - 50%
- one limb - 50%
- more than one loss
from any one accident - 100%
Loss of limb means severance of hand or foot at or above the
wrist or ankle joint Loss of sight must be total and
irrecoverable
Exclusions
Payment will not be made for a loss which is due to or results
f rom
- suicide while sane or insane, or intentionally
self-inflicted injuries,
- bodily or mental infirmity or disease of any kind, or
infection unless due to an accidental cut or wound,
- committing or attempting to commit an assault, felony or
other illegal act,
- war (declared or undeclared) or active duty in any armed
service during a time of war, or
Participation in a Riot, rebellion, or insurrection
Time Limit for Notice and Proof of Claim
If the loss is as a result of the Employee's death, then Due
Proof must be given
If the loss is other than death, then we must receive due Notice
and Proof of Claim within 12 months after the date of loss
2714s
-20-
POLICY ADDENDUM
- Life Only Coverage "Grandfathered" for eight retirees
Permanent part-time employee working a minimum of 20 hours per
week can elect coverage on a shared contribution basis
2714s
-21-
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