Joyce Wilson Harley, Esq., Administrator
County of Essex
Hall of Records
465 Martin Luther King, Jr. Blvd , Rm. 510
Newark , NJ , 07102

Re: Commerce Banc Insurance Services, Inc.
Thomas F. Collins, Jr., Insurance Planning

Dear Ms. Wilson Harley:

CWA Local 1081 respectfully submits the following questions regarding Resolution #3, as submitted by the Administration to the Essex County Board of Chosen Freeholders In October 2006, to select "a firm to provide insurance broker services relative to the County's employment/retiree health benefits program" that resulted in the County's awarding Commerce Banc Insurance Services, Inc. a three-year contract to provide said services effective January 1, 2007:

  1. Inasmuch as the applicable memorandum written you of October 6, 2006 by Acting Director of Human Resources Alan Abramowitz states "The costs for the proposed services are paid by the insurance carriers in the form of a standard commission payment structure", and inasmuch as Mr. Abramowitz's memorandum also states that Oxford's commission in 2006 was "1% of total enrolled premiums for fully insured medical coverage" for a "$40,000 commission" and that Horizon's commission in 2006 was "5% of the first $1 million of premiums for fully insured medical and prescription coverage and 1% after the first $1 million of total premiums" for a "$248,000 commission", what is the percentage and anticipated monetary commission to be paid Commerce Banc Insurance Services, Inc. in 2007 "by the insurance providers from premiums collected from the County through the fully self-funded and prescription plans only"?

  2. Additionally, according to Mr. Abramowitz's memorandum, "Commerce Banc Insurance Services is partnering with Thomas F. Collins Insurance Planning, 40 Clinton Street, Suite 700 , Newark , NJ , a minority owned business, to assist with the servicing and marketing of the County's employee/retiree health benefits insurance programs". Please provide our Union a recounting of Mr. Collins' firm's specific role in the "servicing and marketing of the County's employee/retiree health benefits insurance programs", particularly to the members of CWA Local 1081.

Sincerely,

David H. Weiner, President, CWA Local 1081




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