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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