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HomeMy WebLinkAbout1997-031 McCreary Corp. Admin. Service Agreement• • • RESOLUTION NO. 31-97 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND VILLAGE CLERK TO ENTER INTO AN ADMINISTRATION CONTRACT FOR SERVICES WITH McCREARY CORPORATION ATTACHED AS EXHIBIT "A", WHICH AGREEMENT PROVIDES THAT McCREARY CORPORATION SHALL FURNISH ADMINISTRATIVE AND CLAIM SERVICES FOR MEDICAL EXPENSE BENEFITS, LIFE INSURANCE AND REINSURANCE UNDER THE EMPLOYEE BENEFIT PLAN OF THE VILLAGE; AND, PROVIDING FOR AN EFFECTIVE DATE. BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA: Section 1. The Village Council of the Village of North Palm Beach, Florida, does hereby approve the Administration Contract for Services with McCreary Corporation attached as Exhibit which Agreement is for the purpose of providing that McCreary Corporation shall furnish administrative and claim services for medical expense benefits, life insurance and reinsurance under the Employee Benefit Plan of the Village. Section 2. The Mayor and Village Clerk are hereby authorized and directed to execute the Administration Contract for Services set forth in Exhibit "A" attached for and on behalf of the Village of North Palm Beach. Section 3. This Resolution shall take effect immediately • upon its adoption. PASSED AND ADOPTED THIS 22nd DAY OF MAY, 1997. (Village Seal) ATTEST: • Qt\_,\\ MAYOR ADMINISTRATION CONTRACT FOR_SERVICES THIS AGREEMENT, made and entered into this22ndday of MAY _ 1997 by and among the VILLAGE OF NORTH PALM BEACH hereinafter referred to as the "VILLAGE" and McCREARY CORPORATION hereinafter referred to as "ADMINISTRATOR". WITNESSETH; WHEREAS, the VILLAGE is providing an Employee Benefit Plan, hereinafter referred to as the "Plan", for its eligible employees and their eligible dependents who participate, hereinafter referred to as "members", which include the employees, and the employees dependents and the retired employees and dependents of the VILLAGE. WHEREAS, the VILLAGE wishes the ADMINISTRATOR to provide administrative and claim services concerning the employee benefits under the Plan; and WHEREAS, the ADMINISTRATOR covenants that it has the expertise and ability to provide administrative and claims services concerning the Medical Expense Benefits, Life Insurance and Reinsurance under the Plan. NOW, THEREFORE, in consideration of the mutual benefits and obligations of the parties hereunder, the parties agree as follows: 1. pURPOSF. 1.1 It is the VILLAGE'S intention to provide Medical Expense and Life Insurance Benefits for members as provided in the VILLAGE'S benefit booklet which is attached hereto and made a part of this agreement as Exhibit "A". The ADMINISTRATOR shall provide administrative and claim services on behalf of the VILLAGE in accordance with the provisions of this agreement and any amendments thereto. 2. SERVICES TO BE PERFORMED 2.1 The ADMINISTRATOR shall provide and be responsible for the following services: (a) Development and preparation of announcement material acceptable to the VILLAGE detailing the Medical Expense and Life Insurance Benefits provided by the VILLAGE for the benefit of members. 1 of 5 • • • (b) Review, in accordance with local standard review procedures of reasonable and customary, medical and life claims on the Plan made by members. (c) Payment of claims on behalf of the VILLAGE directly to the members, or, on receipt of proper assignments, to the providers of the medical service. (d) Coordinate claim payments directly with other plans and/or insurance carriers under Coordination of Benefits provisions. (e) Direct correspondence with providers, whenever applicable, to obtain necessary additional information for proper claims handling. (f) Provide a monthly listing of claims paid by the ADMINISTRATOR allowing the VILLAGE to identify the amount of benefit payments and the claimants to whom benefits were paid. (g) Make available lists of all vouchers and claim drafts issued pursuant to this agreement for examination by the VILLAGE upon demand. (h) Make available copies of all fmancial reports regarding the account for examination by the VILLAGE upon demand. (i) Obtain an IBNR study performed by an Independent Actuary at the end of each twelve month period on the payments of claims and administrative services, as required by the State of Florida. 3. FEES 3.1 The ADMINISTRATOR shall receive the following fee for administration of the Plan. Administration Charge: Thirteen dollars and no cents ($13.00) per employee per month, including Claims Administration and other services as described. This fee shall be guaranteed with a four percent (4%) annual increase. 3.2 Any cost related to an actuarial study of the Employee Benefit Plan will be the expense of the VILLAGE. 4. J ARTY ITV 4.1 In the event any premium taxes or other taxes in lieu thereof are assessed or charged against the VILLAGE for any amounts paid or received under this agreement, the VILLAGE at their option, may instruct the ADMINISTRATOR to contest such assessments. 4.2 The ADMINISTRATOR shall obtain and maintain Fiduciary Liability Coverage or a bond with a corporation authorized to do a surety business in the State of Florida in an amount not less than $1,000,000. 2 of 5 • • • 4.3 The ADMINISTRATOR shall perform administrative and claims adjusting services in a professional manner. The ADMINISTRATOR may rely upon information on employee and dependent eligibility for benefits provided by the VILLAGE in providing claims adjusting services and the ADMINISTRATOR shall not be liable for errors made due to incorrect information provided by the VILLAGE. The ADMINISTRATOR shall be liable for damage caused by a breach of this contract 4.4 The VILLAGE is providing an Employee Medical and Life Plan for its eligible employees, retired employees and their families. Accordingly, the ADMINISTRATOR shall be reimbursed by the Trust Account for all benefits properly paid by the ADMINISTRATOR. Payments by the VILLAGE to the ADMINISTRATOR will be made in accordance with the procedures set forth for a VILLAGE self insurance program as found in Florida Statutes. 4.5 The VILLAGE is solely responsible to members for the payment of any Medical Expense Benefits the VILLAGE has agreed to provide. Should a claim dispute arise, the ADMINISTRATOR shall issue or withhold payment in accordance with standard claim payment procedures. The VILLAGE shall defend and hold harmless the ADMINISTRATOR from and against all suits, actions, damages, cost, charges or expenses (including attorney's fees) which may result by reason of its refusal to pay or settle any claims to the satisfaction of members, which claim is processed in accordance with standard claim payment procedures. 4.6 Life Insurance of the covered employee shall be provided by a Life Insurance policy and shall be administered in accordance with the terms of such policy. Since the Life Insurance is not self insured; the ADMINISTRATOR is acting as the agent for the VILLAGE with respect to this policy. 5. TERMS OF AGREEMENT 5.1 This agreement shall be effective from 7-1-97 until terminated by any party as provided herein. The VILLAGE may, at any time after 6-30-98, cancel this agreement by giving the ADMINISTRATOR ninety (90) days written notice of such cancellation in which event this agreement shall terminate at the expiration of such ninety (90) days. Upon termination, the ADMINISTRATOR will continue to provide claims adjusting services on behalf of the VILLAGE for those covered expenses which were incurred but not reported prior to the termination date of this agreement. If the ADMINISTRATOR continues to provide claim service after termination of this agreement (for a period not to exceed twelve (12) months); the ADMINISTRATOR shall receive a monthly fee for the first three months equal to the fee for the three months immediately prior to cancellation. If the ADMINIS 1'RATOR pays no such "run out" claims, there will be no fee. Benefits will be provided only to the extent that amounts are available from the Trust Account to reimburse covered expenses. 6. THIRD PARTY BENEFICIARIES 6.1 There are no third party beneficiaries of this agreement, either intended or implied. 3 of 5 • • • 7. INDEMNIFICATION 7.1 The ADMINISTRATOR agrees to indemnify, defend and hold the VILLAGE harmless: (a) for any penalty or fine the VILLAGE shall suffer that is solely the fault of the ADMINISTRATOR; (b) for any claim payment or premium payment that is made in error provided the amount paid in error is not recoverable through normal procedures and provided it was within the ADMINISTRATOR'S ability to discover the error using a standard of care reasonable under the circumstances; (c) for any claims resulting from errors, omissions or negligence on the part of the ADMINISTRATOR unless the actions of the ADMINISTRATOR were taken at the direction of the 'VILLAGE or as the result of the VILLAGE'S negligence. 7.2 The VILLAGE agrees to indemnify, defend and hold the ADMINISTRATOR harmless: (a) for any and all claims that arise out of this contract in the event of an adverse result or judgment, if the ADMINISTRATOR is not guilty of error that could have been discovered using a standard of care reasonable under the circumstances. (b) for any action resulting from the ADMINISTRATOR acting at the direction of the VILLAGE in the event the ADMINISTRATOR becomes liable to any third parties; (c) for any action resulting from a cause of action involving a claim covered under the VILLAGE'S insurance program where the ADMINISTRATOR is providing the services specified under this contract. 7.3 Both parties acknowledge that the VILLAGE is the final authority in the administration of this program. 7.4 Both parties acknowledge that neither the VILLAGE nor the ADMINISTRATOR have the authority or capacity to affect or force the settlement of a claim by any Insurance Company providing benefits as a part of the VILLAGE'S Employee Benefit Plan. 8. MISCELLANEOUS 8.1 Any modifications of this agreement shall not be binding on any party unless the modification be in writing and signed by all of the parties. 8.2 This agreement shall be construed in accordance with the laws of the State of Florida. 4 of 5 8.3 Each paragraph and provision of this agreement is severable from the agreement and if one provision or parts thereof is declared invalid, the remaining provisions shall nevertheless remain in full force and effect. 8.4 Whenever written notice is required under the terms of this agreement, it shall be delivered either in person or by registered mail to the appropriate party. Notice by registered mail shall be addressed as follows: ADMINISTRATOR: Attention: William T. McCreary, President McCreary Corporation 700 Central Parkway Stuart, FL 34994 Attention: Village Manager Village of North Palm Beach 501 U.S. Highway One North Palm Beach, FL 33408 8.5 The provisions of this agreement supersede any prior agreements or understandings to the contrary. 8.6 No party hereto shall have the right to assign this agreement without the written consent of all other patties. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals this 72nA day of MAY , 1997 VILLAGE OF NORTH PALM BEACH BY: McCREARY CORPORATION (4 BY: William T. McCreary, Pre • 5 of 5