[HISTORY: Adopted by the Common Council of the City of Beverly as indicated in article histories. Amendments noted where applicable.]
[Adopted 11-26-2013 by Ord. No. 2013-9]
As used in this article, the following terms shall have the meanings indicated:
INSURANCE
Includes the purchase of insurance coverages, alternatives to insurance such as self-insurance programs, as well as participation in a joint self-insurance fund, risk management program or related services provided by a contracting unit insurance group, or participation in an insurance fund established by a local unit pursuant to N.J.S.A. 40A:10-6, or a joint insurance fund established pursuant to N.J.S.A. 40A:10-36 et seq.
INSURANCE CONSULTING SERVICES
Includes all services associated with procuring, evaluating and administering insurance, including but not limited to brokerage, risk management or administrative services, and claims processing or administration services, including such services provided by a contracting unit insurance group, or an insurance fund established by a local unit pursuant to N.J.S.A. 40A:10-6, or a joint insurance fund established pursuant to N.J.S.A. 40A:10-36 et seq.
Prior to entering into any contract to obtain insurance or insurance consulting services, the City shall secure full and open competition among insurers, and insurance consulting service providers, for the City's business. The City is hereby authorized and directed to use the competitive contracting process set forth in N.J.S.A. 40A:11-4.3, 40A:11-4.4 and 40A:11-4.5 to secure such competition, except to the extent this article requires additional measures to better ensure maximum competition and fairness to all interested parties.
This open competition shall provide that at least 60 days, but not more than 120 days, prior to the contract commencement date; the City shall advertise in the newspapers authorized to print legal notices for the Municipality, and in a newspaper circulated in at least five counties in the state, and on the City's website, a request for proposals to provide insurance and insurance consulting services. The notice shall advise the reader that details of the City's insurance requirement are available from the Municipal Clerk on request and shall include the phone number of the Clerk.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
The request for proposals shall be designed and drafted by the Administrator, or his designee, and shall set forth such detailed information as may be required for all proposers to understand and possess equal information concerning the City's insurance or insurance consulting services needs, including the current terms of, and fees or premiums paid for, such coverages or services, current coverages, loss experience and anticipated or desirable needs with respect to the relevant coverages or services sought. All requests for proposal information, including claims, expense and loss data, shall be made available to all proposers in both written and electronic format.
At no time during the proposal solicitation process shall any official or employee of the City, or any officer, employee or representative of any provider of insurance consulting services to the City, convey information, including price, to any potential proposer which could confer an unfair advantage upon that proposer over any other potential proposer.
A provider of insurance consulting services to the City shall be compensated for its services to or on behalf of the City solely by the City. Compensation shall be set on a fixed fee or hourly basis, or on such other common and readily comparable basis applicable to all proposers and set forth in the request for proposal documents, provided that compensation shall not be determined as a percentage of premium costs.
No provider of insurance or of insurance consulting services to the City shall pay to any insurance consulting service provider to the City, or to any other third party, any form of compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, in consideration of obtaining the City's insurance or insurance consulting business.
No provider of insurance consulting services to the City shall accept any form of compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, from any provider of insurance, other insurance service provider, or any other third party, in consideration of obtaining or servicing the City's insurance or insurance consulting business.
Any person or entity proposing to provide insurance or insurance consulting services to the City shall certify in its proposal that it shall neither pay nor accept any form of compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, in consideration of obtaining or servicing the City's insurance or insurance consulting business from any party other than the City.
Any person or entity selected to provide insurance or insurance consulting services to the City shall certify, at least annually and prior to any renewal of its contract, that it has not paid nor accepted any form of compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, in consideration of obtaining or servicing the City's insurance or insurance consulting business from any party other than the City.
Any provider of insurance consulting service that assists the City in soliciting, evaluating, or selecting any provider of insurance or other insurance consulting services to the City shall disclose to the City the aggregate compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, it has received in each of the prior three years from each provider of insurance or insurance consulting services solicited or evaluated by the City. Such disclosure shall be made as soon as practicable, but in no event later than the date of the evaluation report recommending an award by the governing body.
The request for proposals for any insurance or insurance consulting services for the City shall clearly establish the compensation restrictions and the certification and disclosure requirements established by this article as mandatory, nonwaivable terms, the violation of which shall be grounds for:
A. 
Terminating any contract resulting therefrom; and
B. 
Requiring the insurer or insurance service provider to disgorge to the public entity any compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, paid or received in violation of this article, and a commensurate reduction in premiums to be paid by the public entity for the affected coverage(s) in the future.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
Whenever soliciting quotations for insurance coverage, the Administrator or his designee shall obtain at least three quotations and shall submit the request for proposals to at least one joint insurance fund and, with respect to health insurance, to the State Health Benefits Plan, at the same time it is published, and shall determine if the SHBP and/or joint insurance fund can provide the same or similar coverages. The evaluation report shall include an analysis and discussion of the availability, terms and price of comparable coverage from such joint insurance fund and the SHBP as part of its award recommendation.