REQUEST FOR PROPOSAL

Municipality of Red Lake Employee Benefits Program

Reply from Western Financial Group Insurance Solutions

777 Portage Avenue, Winnipeg, MB R3G 0N3

1-800-665-8990

www.westernfgis.ca

July 30, 2012

TABLE OF CONTENTS

Section 1: Introduction .............................................................................................. Page 3

Section 2: Experience ................................................................................................ Page 4

Section 3: Work Plan ................................................................................................. Page 5

Section 4: Project Cost .............................................................................................. Page 15

Section 5: Appendices ............................................................................................... Page 16

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SECTION 1: INTRODUCTION

At Western Financial Group Insurance Solutions we pride ourselves on prompt, accurate and

friendly customer service while administering flexible and cost-effective Employee Benefits

Programs designed to meet the group insurance needs of your organization. Our knowledgeable

employees are committed to providing superior quality of service to thousands of people across

Canada. We work one-on-one with plan members to assist them in administering their employee

benefits plan more efficiently. We currently provide a diverse range of financial protection products

and administrative services for more than 1,300 group client. We are in constant communication

with various insurers in the performance of our business to ensure you are getting the best product

at the best possible value. Western Financial Group Insurance Solutions is always looking for new

ways to service our clients better. We encourage suggestions from our plan members, because we

understand that the customer is the most important aspect of any business.

At Western Financial Group Insurance Solutions, we are committed to our clients. We strive to

achieve solutions to the insurance needs of the individual, and we understand that not every

individual’s needs are the same. Our Employee Benefits Programs are designed with this in mind.

Our insured clients rely on the long-term rate stability of our group programs. With this in mind,

Western Financial Group Insurance Solutions has developed the TotalGUARD Employee Benefits

Program. As the owner of a small business, you can provide a benefits package that could make a

big difference to you and your staff, without breaking your budget. The TotalGUARD program offers

a range of services and solutions to give you financial peace of mind. In addition, offering benefits

to your staff will help attract and retain employees. At Western Financial Group Insurance Solutions

we offer innovative, quality products that are essential for any successful group insurance plan.

In our review of the Request for Proposal – Employee Benefits Program, we have concluded that

there will be no deviations from the Municipalities requirements as outlined in the scope of work.

We fully understand the intentions of this exercise and are confident we will exceed the

Municipalities expectations.

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SECTION 2: EXPERIENCE

In preparing for the Request for Proposal – Employee Benefits Program, we have identified four key

individuals who will be responsible for managing the Municipality of Red Lake’s account. Below is a

list of our project team members:

Grant Ostir – President, Western Financial Group Insurance Solutions

Scott Stewart – Vice President, Employee Benefits

Nolan Friesen – Manager, Employee Benefits Sales

Stephen Redmond – Manager, Employee Benefits Service Centre

Please see Section 5: Appendices for list of corporate clients, corporate history and project

manager resumes.

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SECTION 3: WORK PLAN

Western Financial Group Insurance Solutions specializes in helping small and medium sized groups

establish a more stable and cost effective way of offering employee benefits to their staff. As per

the criteria of the SCOPE OF WORK, we will be able to satisfy or exceed the requirements of the

Municipality of Red Lake as follows:

A. More cost efficient program:

• As discussed, due to TotalGUARD’s pooled concept and strength in numbers, financial

efficiencies are created and passed on to our clients. The transition to TotalGUARD

will be a financially positive and proactive change for The Municipality of Red Lake.

• Western Financial Group Insurance Solutions does not partner with third party

brokers or benefits consultants. This allows us to keep the administrative expense of

TotalGUARD low and ensure that more of your premium dollars go towards your

group’s claims, and less towards overhead costs.

B. Enhanced service and administration:

• Addition of a Pay-Direct Drug Card: TotalGUARD provides each of your employees

with a pay direct drug card that pays for prescription drug purchases electronically at

the point of sale. There is no deductible or added charge for this service. Plan

members will no longer have to pay for drugs out of pocket, submit a paper claim

and wait for reimbursement. We find that employees appreciate this feature as it

allows them to improve their personal cash flow. Since 75% to 85% of health claims

typically come from drugs, this benefit is highly recognized by staff.

• At Group Insurance Solutions, we are set up to provide great service in all provinces

across Canada. The Sobeys program is a prime example of our servicing and

administrative capabilities. Presently we are able to provide service and support to

over 500 Sobeys stores across the country. In addition, we administer several other

programs for groups such as the Canadian Veterinary Association, the Canadian

Rental Association and for multiple hotel associations across the country.

• Associations endorse Group Insurance Solutions to their membership because of our

track record of efficient claims payment, excellent customer service and our long

term commitment to our clients. At Group Insurance Solutions, we take pride in

delivering excellent service to all of our clients and realize that the customer is the

most important part of our business. You can rest assured knowing that we can

provide a consistent level of service to your business.

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• Online Administration: The TotalGUARD Online Administration site is a secure,

internet-based resource that provides our clients with the option to conveniently

perform administrative functions online. Plan administrators have the ability to

efficiently perform employee additions, terminations, and salary changes. They also

have access to employee information, employee certificates, policy and benefits

information, previous invoices, administration forms, and much more.

C. Greater rate stability:

• TotalGUARD provides organizations like yours with strength in numbers and a

greater spread of risk by being pooled with over 1,300 other small/medium size

groups across Canada. The claims of our pooled program consisting of thousands of

employees are far more predictable than the claims of a small to medium size group.

In addition, there is substantially more premium to offset larger claims that your

group may experience. We adjudicate renewals according to the claims experience of

the entire pool, rather than the claims of your individual firm.

• Under your current format you are exposed to a high degree of risk. As seen in the

past, when claims are more than expected, the insurance company will raise your

rates by whatever amount is necessary in order to make their desired level of profit.

When your claims are less than expected, nothing says they have to give you

anything back proportionally. This creates a very frustrating situation for many

organizations and employees, as they are not able to budget for the ongoing costs of

their plan. As a result, they are forced to pay hefty increases at renewal.

D. Equivalent or improved coverage:

• Currently the Municipality of Red Lake has five classes of coverage in place, they are

as follows:

1) Employees of Red Lake Library

2) Hourly and Union Employees

3) Mayor and Council

4) Salaried Employees

5) Seasonal Employees

• As per the 5 plan comparisons below, we are proposing the equivalent level of

coverage that is currently in place with Great-West Life with the following 3

enhancements for each class:

1) Enhance out of country coverage to 90 consecutive days with an annual

maximum of $5,000,000/Calendar Year from the current 60 day maximum.

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2) Remove the current $25/Individual $50/Family deductable from Dental Care.

All classes of coverage will only have a deductable for Drug coverage.

3) Provide each certificate holder and their dependents with Pay-Direct Drug

Cards. All plan members will no longer have to pay out of pocket for expenses

covered under the plan and wait for reimbursement, nor will they have to fill

out claim forms.

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Summary of Competitive Advantages:

• TotalGUARD is administratively more cost efficient through the strength in numbers

of our pool.

• Financial savings are realized by removing the commission of local broker currently

servicing your account.

• Better customer service – upon joining TotalGUARD, we will assign a Customer

Service Representative to be the point of contact for all the Municipalities inquires.

This individual is licensed with the Financial Services Commission of Ontario and will

be an expert on your groups plan.

• The Municipality of Red Lake will enjoy long term rate stability by being placed into

our pool.

• Through the addition of Pay-Direct Drug Cards, staff will no longer need to pay out of

pocket and wait to be reimbursed, nor will they have to fill out claim forms.

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SECTION 4: PROJECT COST

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SECTION 5: APPENDICES

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References available upon request

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Corporate Clients:

Alberta Hotel & Lodging Association

The AHLA is a member-driven organization that represents the interests of more than 850

hotels, motels and campgrounds across the province. Since 1922, their association has

provided a common voice to important issues that affect Alberta’s tourism and hospitality

industry.

Alliance of Beverage Licensees

The industry advocate for issues affecting pubs, bars and independent liquor stores

throughout British Columbia. ABLE communicates and consults with government, monitors

and reports on industry issues and trends, and provides resources to help members build

and grow their businesses.

Associated Grocers

Committed to providing exceptional and innovative service to the Independent Retail Grocer

in Western Canada. They pledge ongoing support to the growth and development of a

profitable partnership with the independent customers they serve.

Association of Manitoba Municipalities

The association identifies and addresses the needs and concerns of its members in order to

achieve strong and effective municipal government.

British Columbia Hotel Association

The BCHA is an advocate and spokesperson for the interests of the Hotel Industry

throughout British Columbia. The BCHA has approximately 600 hotel members and 200

associate members, representing an industry with revenue in excess of $3.2 billion.

Canadian Rental Association

For more than 40 years, the CRA has been an essential resource for Canadian rental

businesses to achieve the ideal mix … from the right rental equipment at the right price to

effective customer service, marketing and employee training.

Canadian Veterinary Medical Association

The association is committed to excellence within the profession and to the well-being of

animals. It promotes public awareness of the contribution of animals and veterinarians to

society, establishing priorities for veterinary medicine in Canada.

The Inland Terminal Association of Canada

The Inland Terminal Association of Canada (ITAC), founded in 1995, was organized to

promote the common interests and goals of modern, efficient high throughput inland

terminals. ITAC grain handling facilities are the realization of dreams for farmers, who

through their own initiative, innovation and capital, sought to make grain handling on the

prairies more competitive, reliable and cost effective.

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Manitoba Hotel Association

The objective of the association is to bring about a closer acquaintance between those

engaged within the hotel business in Manitoba.

The Manitoba School Boards Association

A voluntary organization of public school boards in Manitoba. Its purpose is to ensure

quality public school education for Manitoba students through effective, locally elected

boards of trustees.

Mega Group

Owned and operated by independent retail members from the Atlantic to the nationwide or

coast to coast Pacific. Their purpose is to help members achieve greater profitability and

sales through volume purchasing, marketing support and related programs.

Ontario Restaurant Hotel & Motel Association

They are the largest provincial hospitality Association in Canada. With over 4,000 members,

representing more than 11,000 establishments across the province, the ORHMA is uniquely

positioned to represent the issues that most impact their members’ business.

Saskatchewan Hotel & Hospitality Association

Their purpose is to strive to build and strengthen relationships within the accommodation

and hospitality industry through programs and services that will provide growth for

members and service to customers.

Sobeys

A diversified food distributor committed to growth in all their market segments by

consistently exceeding customer expectations through the strength of their dedicated

employees.

TruServ Canada

They have been a leader in the hardware industry for decades. Retailers get the advantage

of more than 100 years of industry experience and strength in numbers.

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