Agenda - 09-21-2004-5f - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 21, 2004 Action Agenda Item No. SUBJECT: Employee Life Insurance for 2005 DEPARTMENT: Personnel PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Elaine Holmes, Personnel Director Extension 2550 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider an increase in rates for employee grouup life insurance effective January 1, 2005. BACKGROUND: The County's employee group insurance program is a fully insured plan through Group Insurance Services, Inc., a wholly owned subsidiary of Blue Cross and Blue Shield of North Carolina. Group Insurance Services, Inc. is underwritten, by Medical Life Insurance Company, Inc. Group Insurance Services provides Life Insurance, Dependent Life Insurance, and Accidental Death and Dismemberment Insurance for the employees of Orange County. Permanent employees are insured for an amount equivalent to: • Life Insurance -Annual Salary times one (rounded to the next higher $1,000) to a maximum of $50,000 • Accidental Death and Dismemberment Insurance -Annual Salary times one (rounded to the next higher $1,000) to a maximum of $50,000 In addition, an employee may purchase dependent life insurance that covers a spouse and dependent children for $5,000 except a dependent child under six months of age is covered for $500. Following its annual review of the Orange County group and claims experience, Group Insurance Services has proposed an approximate 12 percent rate increase effective January 1, 2005. Group Insurance Services advises that the increase arises from the changing composition of the Orange County workforce and recent claims experience. In examining the