1989-054ORDINANCE NO~
AN ORDINANCE AUTHORIZING THE EXECUTION OF A CONTRACT BETWEEN THE
CITY OF DENTON AND NORTH AMERICAN LIFE ASSURANCE COMPANY FOR LONG
TERM DISABILITY COVERAGE, PROVIDING FOR THE EXPENDITURE OF FUNDS
THEREFOR, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, North American Life Insurance Company and the City
of Denton desires to enter into an agreement providing for long
term disability coverage, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Council, contingent upon the City
Attorney's approval of all contract documents, hereby approves and
authorizes the Mayor and City Secretary to execute and attest
respectively, the agreement between the City of Denton and North
American Life Assurance Company providing for long term disability
coverage, under the terms and conditions being contained in said
agreement which is attached hereto and made a part hereof
SECTION II That the City Council 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 appr al
PASSED AND APPROVED this the day of , 1989
RAY ST NS, YOR
ATTEST,
,
*EF R ~ A TERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
DEBRA A DRAYOVITCH, CITY ATTORNEY
BY ~v.e,
LONG TERM DISABILITY PLANS
NORTH AMERICAN LIFE ASSURANCE COMPANY
in cooperation with
BILL OSTROM
is pleased to present
THIS GROUP INSURANCE PROGRAM
specifically designed
for
CITY OF DENTON
NORTH AMERICAN LIFE
U 1-3-88
.11&t
IV
NORTH AMERICAN LIFE
FACTS ABOUT NORTH AMERICAN LIFE ASSURANCE COMPANY
North American Life Assurance Company commenced business in the U S
in 1898
The Company became mutual in 1931 Thus, it is wholly owned and
controlled by its policyholders and its main concern is to achieve
favorable results for its policyholders
All premiums collected in the U S are invested in U S securities
All claims are paid in U S currency
The Company has over FORTY BILLION dollars of insurance in force, plus
group annuities and segregated funds The Company's present assets
are over 3 5 BILLION DOLLARS
BEST'S RATING* "Based on our current opinion of the insurer's finan-
cial position and operating performance, we assign a Best's Rating of
A+ (Superior) "
* From the A M Best Company's Rating and Analysis of North
American Life Assurance Company
U 2-3-88
IVTI~
INFORMATION
GENERAL NORTH AMERICAN LIFE
ELIGIBILITY
All full-time, actively at work employees as defined by the Insurance
Schedule in this proposal are eligible
This proposal is based on the employer data submitted and our under-
standing of the nature of your work
Waiting periods may be elected, subject to specific underwriting
requirements applicable to number of lives to be insured
EVIDENCE OF INSURABILITY
May be requested on a contributory plan if employee does not complete
and sign an application card within 31 days of first becoming eligible
to enroll
Will be required if amount of insurance is in excess of the No
Evidence Limit for the plan
ENROLLMENT REQUIREMENT
Varies according to number of eligible lives and type of plan
OF AN EMPLOYEE'S COVERAGE
An employee's coverage will normally terminate when any of the follow-
ing events occur
a) employment terminates,
b) the policy terminates,
c) premium payments by the Employer cease,
d) employment terminates in an eligible classification,
e) the Insurance Schedule provides for termination
OTHER PROVISIONS
Any changes in the design of the plan or the employee data base may
necessitate a change in this proposal
This proposal is not a contract and the plan will be subject to the
terms and conditions of the policy, a copy of which is available on
request
This proposal is issued "errors and omissions excepted"
The benefits and premium rate basis are those currently in use They
are subject to change if application is made more than three months
after the date of this ro r for a plan with an effective date
more t an our months after the date of this proposal
U 3-3-88
MFT~
LONG TERM DISABILITY
NORTH AMERICAN LIFE
BENEFIT
The income benefit is payable to the employee as long as he remains
totally disabled after the benefit waiting period but not longer than
the maximum benefit period as stated in the Insurance Schedule
Benefit payments will be made for each monthly period thereafter
during which total disability existed
DISABILITY DEFINED (Own/Any Occupation)
Total Disability is, as a result of injury or sickness, the inability
of the employee to perform the material and substantial duties of his
own job duae benefisL ytSf~n erasd and" the next 24 months
T e 'a;p"f6yoe to,"perform the Alater-
i -a an a uties o any gainful occupation for which` he is
fitted based on education, training, or experience
The employee must be under the regular care
Illness the employee must be under the care
certified to practice as a Psychiatrist
Injury means an accidental bodily injury
within 90 days after the injury
of a ^-1e r37g&g.V,~?fied
With regard to Mental
of a Physician legally
which causes disability
Sickness means an organic disease Mental Illness is covered as a
sickness up to the limits specified in this proposal
RECURRENT DISABILITY
I°ia~~ ~,ad4sability during ,the benefit
wait r}g peic eU becosls ~Sabed again due to the same or related
cause as the prauious¢va~~ subsequent periods of disability
will be-conside~+ed akgFi i~ CS the first periodµof disability,
as long as the employes has not returned to full-time active work for
mesehart°Y3 days ~Tf°tota3-duri'Ttg the imt3al benefit waiting period
The returns to work will be counted in satisfying the benefit waiting
period After the benefit waiting period, a recurrence of+a dis-
ab"tl'ity, due.-to the same or related cause within 6 months of return to
full-time work will be considered a continuation of the previous
period of disability, provided that the employee has been continuously
insured with us
WAIVER OF PREMIUM
Premiums,wwli Qh.xfa11 due-during -continuing disability will be waived
oommene3mgwwith the first premium which falls due after benefits have
been payable for one month Until then, premium in respect of the
disabled employee continues to be payable
ULTD 1A-3-88
.AmOrk
LONG TERM DISABILITY NORTH AMERICAN LIFE
MENTAL ILLNESS (for groups of 100 lives or more)
A disability income benefit is payable if disability results from a
mental, nervous or emotional disease or disorder which requires
regular care of a Physician who is also certified to practice as a
Psychiatrist
EXCLUSIONS
B 'its Rft,wt, p&yab1& °if ttlsability results from
a) intentional self-inflicted injury,
6
bJ war, whether declared or not, or any related act,
c) participation in a riot or civil commotion,
d) committing or attempting to commit a felony or assault or
engaging in an illegal occupation,
e) medical or surgical care which is cosmetic in nature unless
required to restore tissue damaged by disease or accidental
bodily injury
ULTD 213-3-88
.W&+
LONG TERN DISABILITY
NORTH AMERICAN LIFE
PARTIAL DISABILITY BENEFIT (Standard)
F.= utMg, benefit a disabled employee must satisfy the definition of
t9taly_disability for the plan throughout the benefit waiting period
Should the disabled employee return to gainful employment after
satisfying the benefit waiting period, a partial disability benefit
will be paid equal to the gross income benefit reduced by
a) 507 of the pay from gainful employment, and
b) any amounts paid to the employee from the sources listed under
Non-Duplication of Benefits
The partial disability benefit so determined will be further reduced
to the extent that the sum of the benefit paid plus 1007 of the pay
from gainful employment plus any amounts paid to the employee from the
other sources of income listed under Non-Duplication of Benefits
exceeds 807 of the employee's pre-disability earnings
The partial disability benefit is payable to the end of the benefit
period as long as the disabled employee continues in gainful employ-
ment which is under the supervision of a physician and which is
acceptable to North American Life
ULTD 4A-3-88
LONG TERM DISABILITY NORTH AMERICAN LIFE
NON-DUPLICATION OF BENEFITS (Family Offset)
Full Offset (including dependent benefits)
The amoE1~ 1„~ pgjpple to the employee is the income
be ttFecTucadVby the following
a) an received as a salary continuation plan, or a sever-
oWancet"°~` 6rt'~he employer,
W 4 P
b) any benefits paid under
1) a i emVWVjAFurance , except benefits representing the
e FutibYs to the retirement plan,
2) wee P a plan,
for which the employer has paid any part of the cost, but
excluding any increases in these benefits after the employee
becomes totally disabled (a retirement plan does not include a
profit-sharing plan, a thrift plan, an individual retirement
account (IRA), a tax sheltered annuity (TSA), a stock ownership
plan, or a non-qualified plan of deferred compensation),
c) any benefits for which the employee and his dependents may be
reasonably c o~4bh+4?~tled under
1) a ,t pr,'w Compensation or {similar law,
2) th~~erf1 Social Security Act,
3) and federal, state, or provincial benefit plans,
but, a q .ng, costrof-living increases in these benefits after
LTD isrst payable,
d) any benefits payable under any plan sponsored by an organization
of which the employee is a member
ULTD 5A-3-88
ivir
LANG TERM DISABILITY NORTH AMERICAN LIFE
REPLACEMENT OF INSURANCE
This proposal assumes that North American Life has been informed of
all employees who will not be actively at work on the proposed effec-
tive date of the plan If complete information about these employees,
including the nature of any disability, has not been provided, North
American Life reserves the right to change this proposal once full
information has been disclosed
If this plan will replace another similar group plan which will be
cancelled the day prior to the effective date of this plan, an
employee who is not actively at work will be insured for the lesser
of
a)FeW«w+a3T~svredTM°" t&h~
b) tell($AVgt j "me.bmefft°vnder-this plan,
provided that the employee was insured under the former plan on the
last day it was in force and is not entitled to an extension of
insurance under that plan
Any benefit paid under this plan will be reduced by any benefit for
which the prior carrier is liable
ULTD 6-3-88
LONG TERM DISABILITY NVTI~
NORTH AMERICAN LIFE
MINIMUM INDEMNITY BENEFIT FOR SPECIFIC LOSS
If an injury results in any of the Specific Losses listed below within
365 days after the date of the injury, the Net Income Benefit will be
paid for at least the number of months shown below
Specific Loss Benefit Period
Both Hands
46
months
Both Feet
46
months
Sight of Both Eyes
46
months
One Hand and One Foot
46
months
One Hand and Sight of One Eye
46
months
One Foot and Sight of One Eye
46
months
One Arm or One Leg
36
months
One Hand or One Foot
23
months
Sight of One Eye
15
months
Minimum Indemnity Benefits will be paid for only one Specific Loss for
any one accident and the longest Benefit Period will apply
Loss of hand or foot means complete severance at or above wrist or
ankle joint
Loss of sight must be entire and irrecoverable
Loss of an arm or leg means complete severance through or above the
elbow or knee joint
.,U_ t La> el Fo 6~ -d#s "after "bha nnimum tndemnrty Sexid ff' °paymeliTts
start but before the Benefit Period ends, the balance of payments will
be made to the beneficiary or estate
l
ULTD 8-3-88
PLAN I
NORTH AMERICAN LIFE
iRUARY 3, 1988
ELIGIBILITY CLASS A - Office Clerical, Technical & Para-
Professional, Professional, Manage-
ment & Supervision, and Executive
Employees
CLASS B - Service Maintenance and Public
Safety Fire & Police Employees
EFFECTIVE DATE OF PLAN
MINIMUM EMPLOYMENT
MARCH 1, 1989
30 DAYS, OR CHOICE OF LONGER
PERIOD
ENROLLMENT REQUIREMENT
ELIMINATION PERIOD
MAXIMUM BENEFIT PERIOD
CLASS A -
CLASS B -
MONTHLY BENEFIT
SURVIVORS'S BENEFIT
PARTIAL DISABILITY BENEFIT
MINIMUM BENEFIT
MAXIMUM GUARANTEED BENEFIT
100% - EMPLOYER PAY ALL
90 DAYS
ACCIDENT AND/OR SICKNESS
TO AGE 70B*
ACCIDENT AND/OR SICKNESS TO
5B* YEARS
60% OF EARNINGS WITH FULL FAMILY
SOCIAL SECURITY OFFSET
0 MONTHS
N/A
$50
$2,500
NM~NM*~SEE~PAGE ryFOLLOWING ~COST ~SUMMARY ~{OPTION N'B-'}--------
COST INFORMATION
NUMBER OF LIVES 768
COVERED MONTHLY PAYROLL $1,499,877
COST $ 44 PER $100 OF COVERED PAYROLL
ESTIMATED MONTHLY PREMIUM $6,599 46
PLEASE NOTE This proposal expires thirty (30) days from
date of issue
Final rates will be based on final enrollment,
exact incomes, job titles and dates of birth
PLAN II
ELIGIBILITY
EFFECTIVE DATE OF PLAN
MINIMUM EMPLOYMENT
ENROLLMENT REQUIREMENT
ELIMINATION PERIOD
MAXIMUM BENEFIT PERIOD
MONTHLY BENEFIT
SURVIVORS'S BENEFIT
PARTIAL DISABILITY BENEFIT
MINIMUM BENEFIT
RTH AMERICAN LIFE
rflBRUARY 3, 1988
ALL ELIGIBLE EMPLOYEES
MARCH 1, 1989
30 DAYS, OR CHOICE OF LONGER
PERIOD
100% - EMPLOYER PAY ALL
90 DAYS
ACCIDENT AND/OR SICKNESS
TO AGE 70B*
60% OF EARNINGS WITH FULL FAMILY
SOCIAL SECURITY OFFSET
0 MONTHS
N/A
$50
MAXIMUM GUARANTEED BENEFIT $2,500
SHE PAGE FOLLOWING-COST SUMMARY (OPTION 'B
COST INFORMATION
NUMBER OF LIVES 768
COVERED MONTHLY PAYROLL $1,499,877
COST $ 56 PER $100 OF COVERED PAYROLL
ESTIMATED MONTHLY PREMIUM $8,399 31
PLEASE NOTE This proposal expires thirty (30) days from
date of issue
Final rates will be based on final enrollment,
exact incomes, job titles and dates of birth
AGE DISCRIMINATION EMPLOYMENT ACT
OPTION A
FOR AN EMPLOYEE WHO BECOMES DISABLED, DURATION OF BENEFITS WILL BE
ACCORDING TO THE FOLLOWING TABLE:
ATTAINED AGE
DURATION OF BENEFITS
60 or Less
61 to 64
65 to 67
68
69 or More
To age
5 year
To age
To the
age 70
1 Year
65
s
70
latter of
or one year
N Nry N N N N N N N N N N N N N Nry N N N N N N N N N N N N N N N N N N N N N N N N N N N N N NN N N N N N N N N NN N N N N N N N N N
OPTION B"
AGE AT DISABILITY
BENEFIT PERIOD
61 or Less
To
Age
65
62
3
1/2
Years
63
3
Years
64
2
1/2
Years
65
2
Years
66
1
3/4
Years
67
1
1/2
Years
68
1
1/4
Years
6Q or More
1
Year
NORTH AMERICAN LIFE ASSURANCE COMPANY
2302 Parklake Drive, N E , Suite 320
Atlanta, Georgia 30345
14041 Q39-8828
revised 2/88