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Board awards McAllen ISD property and casualty insurance to Montalvo Insurance Group after two bids
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Summary
Trustees approved a one-year award (with renewals possible) for property and casualty insurance to Montalvo Insurance Group; board also authorized HR to execute necessary application documents.
The McAllen Independent School District Board of Trustees on Tuesday approved a one-year award (with options to renew) for the district’s property and casualty insurance to Montalvo Insurance Group, after staff described two competitive proposals for property coverage and a single proposal for casualty lines.
Why it matters: insurance limits and deductibles determine the district’s financial exposure for property, wind and other major-loss events. Trustees asked whether the district is carrying adequate limits and heard that market conditions have previously constrained available coverage.
What administrators said Andres Silva, Director of Employee Benefits and Risk Management, told trustees the district currently insures roughly $700 million in building and contents values. He said the market has limited available limits in recent years, with higher deductibles and lower limits. For this solicitation the district received two property proposals — one renewing current coverage levels at lower cost and another offering higher limits at greater expense. Based on the scoring methodology that balanced price, limits, and vendor qualifications, staff recommended Montalvo Insurance Group as the top-ranked proposer for property lines and for casualty lines (the casualty solicitation produced a single qualified proposal).
Board action Trustees passed two related motions: first to award Request for Proposal 2025-1035 to Montalvo Insurance Group for property and casualty coverage for an initial one-year term effective June 1, 2025 (with optional renewals), and second to authorize the chief human-resources officer to execute required application and binding documents. Both motions passed unanimously.
Trustee questions and context Trustees asked whether state or district rules set minimum coverage thresholds; risk staff replied there is no statutory minimum and districts must balance coverage limits, deductibles and budget. Silva said the district previously accepted lower limits because of marketplace constraints and that the recommended award provides appropriate coverage given current market options.
Ending Board-approved authorization allows the district to bind coverage with the awarded vendor and finalize policy documents.
