Specifications include, but are not limited to: Property, Inland Marine and Equipment Breakdown Insurance a) The rates/premium quoted must be total and final, and must include all losses, loss adjustments, reinsurance, broker commissions, other company expenses, standard acquisition expenses, expense factors, premium taxes, and surplus lines fees (if applicable). As the District is a tax-exempt entity, it is exempt from federal excise and state sales tax and state premium tax; therefore, no tax except out-of-state surplus lines tax and stamping fees may be included in this RFP. b) The District prefers that the rates be guaranteed for a three-year period with an option to extend up to two additional years. Rates can be adjusted annually, subject to losses, but the District must be provided with a detailed formula that will be followed for the annual premium renewals and subject to a maximum increase from the prior year. Provisions for 2nd and 3rd year renewals must be provided with the submission. Failure to obtain a three-year policy guarantee as listed above with acceptable renewal terms and conditions may require the annual marketing of this program. c) Automatic coverage for at least 120 days is required on newly acquired locations. d) Errors and omission coverage for locations that through error or unintentional omission are not included in the policies' schedule of locations must be provided. e) Joint loss agreement should be added if Machinery is with a different carrier. f) Proposals shall be firm and effective until coverage is bound. Rejection or withdrawal after the offer is accepted shall constitute a breach of contract.
