KPC/KEDC Insurance BidsPresented by:

Melinda N Lewis, PICKIndependent Insurance Consultant

Are Schools Required to bid?Under Model

Procurement Code: YES per OAG 82-170

“We must conclude the intent of the General Assembly was that under the Model Procurement Code such insurance contracts are to be subject to competitive sealed bidding”

KRS 424.260“We do not believe this

section requires insurance to be competitively bid. The Court of Appeals has interpreted this provision to not include insurance. ... However, we believe competitive bidding should be seriously considered if the school district will benefit by such procurement procedure being exercised”

Cost vs. CoverageBEWARE! With the exit of KSBIT, there will be many

companies vying for your businessTake Advantage of the KPC bid. BOE’s only have to fill

out 1 application (or Bid Specs) to get multiple quotes.Use the Bid Specs & Checklists to compare coverageDon’t fall into the Trap of Cheaper Bids are Good Bids.

The Board will end up paying for it in the end.Watch out for “Fly By Night Companies”

Check ReferencesAdditional Services OfferedHow long have they been doing Business in KY

Stay TRUE to the Bid ProcessAgents & Companies spend a lot of time on

getting these bids together.All Agents get your information at the same

time so they all have a fair shot at getting your quote.

Agent of Record Letters (AOR’s) If you grant an AOR, or solicit external quotes,

it demeans the Bid Process. External Quotes

Please don’t Go through Bid Process if you are going to solicit External Quotes

PICK Consulting Services Pre BidAs required by Department of Insurance

KEDC/KPC bid out consulting services.My services provided by KEDC include:

To review and make changes to Bid Specifications.

Answer questions from Schools and Agents that KEDC doesn’t feel they have the knowledge to answer.

Oversee the Bid process as a whole.

PICK Services Post BidIf your district would like help analyzing your bid, this

will need to be contracted separately.Please engage the Services of Consultant (myself or

someone else) if you have any questions.An Independent Consultant can tell you the pros & cons of

bids and negotiate with these companies on your behalf.These can range from

Analyze All Required Coverages are included in BidCompanies/Agents who have bid are reputableAssure any special programs (or circumstances) are coveredWork with Individual Bidders to get the best possible policy,

for the best cost.

Q &A