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Notice of Request for Proposals for Actuarial, Examination and CPA Services

Responses due no later than June 1, 2018 3:00PM CT

Contact: Reyn Norman, General Counsel

(334) 241-4116

5/1/2018

[Notice issued May 1, 2018; Revised May 7, 2018; Revised May 22, 2018]

The Alabama Department of Insurance (DOI) hereby gives notice of the issuance of Requests for Proposals (RFP) for qualified respondents to provide the DOI with the following professional services:

·       Property and Casualty Insurance Actuarial Services

·       Life and Disability Insurance Actuarial Services

·       Certified Public Accountant Services

·       Insurer Examination Services

·       Insurer Market Conduct Examination Services

·       Insurer Investments Examination Services

·       Insurer Automated Examination Services

Contracts are contemplated to be awarded for the one-year of term October 1, 2018, through September 30, 2019.  Responses to the RFP must be received not later than June 1, 2018, at 3:00 PM CDT.  Each response must include one original unredacted response in printed form plus one identical electronic copy in PDF format on either Compact Disc (CD or DVD) or USB drive.

The RFPs are listed in the State of Alabama Accounting and Resource System (STAARS).  You may learn about STAARS at http://vendors.alabama.gov/, and can register as a Vendor at https://procurement.staars.alabama.gov/webapp/PRDVSS1X1/AltSelfService.

Additional information is set forth in the attached files, each accessible in Adobe format:

  • RFP for Professional Actuarial Services for Property and Casualty Insurance: Adobe
  • RFP for Professional Actuarial Services for Life and Disability Insurance: Adobe
  • RFP for Professional CPA Services: Adobe 
  • RFP for Professional Insurer Examination Services: Adobe
  • RFP for Professional Insurer Market Conduct Examination Services: Adobe
  • RFP for Professional Insurer Investments Examination Services: Adobe
  • RFP for Professional Computer Audit Services: Adobe

Exhibit B, the TeamMate® Confidentiality Agreement, must be submitted with every proposal except for CPA.  A PDF copy is included above with each RFP.  An additional copy in Word format is accessible here: Word

State law requires a Disclosure Statement to be submitted with every proposal.  The form can be accessed from the Attorney General’s Web site at https://ago.alabama.gov/Form

For the procedures and forms for foreign corporations to qualify to do business in the State of Alabama, please visit the web page for the Alabama Secretary of State at http://sos.alabama.gov/

REVISIONS TO THIS NEWS RELEASE AND RESPONSES TO QUESTIONS WILL BE POSTED BELOW:

Question 1, regarding the Description of Services for Actuaries:

In RFP#ALDOI-2018-1 for Property and Casualty Insurance Actuarial Services, and also in RFP#ALDIO-2018-2 for Life and Disability Insurance Actuarial Services, the services described in Paragraphs 1.2.1.5, 1.2.1.6, and 1.2.1.7, appear to be more in line with services to be performed by an Insurance Examination firm, rather than an Actuarial firm.  If awarded a contract, would an actuarial firm be expected to provide these services?

Answer:  No.  These services are more appropriately included with examination services and should not have been included with the actuary services.  Please ignore the services listed in Paragraph 1.2.1.5, 1.2.1.6, and 1.2.1.7 in both RFP#ALDOI-2018-1 for Property and Casualty Insurance Actuarial Services, and RFP#ALDOI-2018-2 for Life and Disability Insurance Actuarial Services.  Likewise, in the sample contracts attached to both RFPs as Exhibit “A”, Paragraphs 2.1.5, 2.1.6, and 2.1.7 can be ignored and will be removed from any final contract to be offered in this regard.  We apologize for the confusion caused by this mistake.

Question 2, regarding the Description of Services for Insurer Examination services:

In RFP#ALDOI-2018-4 for Insurer Examination services for all types of insurers, the RFP addresses services which appear to be covered by the RFPs for other professional services, for example: Section 1.2.1.1 mentions market conduct examinations, Sections 1.2.1.2 and 1.2.1.4 seem to be actuarially driven, and Section 1.2.1.10 relates to automated insurer examination services.  To what extent, if any, do you want such services address in the Insurer Examination services proposal?

Answer:  It is anticipated that a firm contracted to perform Insurer Examination services will be able to provide services necessary to complete a full, five-year examination of any Alabama insurer.  A review of the insurer’s market conduct during the period under review will be expected.  An actuary is used to determine if the reserves are adequate.  A certain part of the examination will include a computer-based examination of certain aspects of the insurer’s records.  Thus, it may be said the RFP for Insurer Examination services includes all of the services included in the RFP for Market Conduct Examination services, Insurer Investments Examination services, Automated Insurer Examination services, and, as related to an examination, both P&C and L&D actuarial services.

Question 3, regarding the Qualifications for Insurer Examination services:

In RFP#ALDOI-2018-4 for Insurer Examination services for all types of insurers, Section 1.3.7 under Qualifications requires a “demonstrated knowledge of Title XXVII of the federal Public Health Service Act and its implementing regulations.  Can you provide additional information concerning the scope of work you envision the contract examination firms providing relating to this act and regulations?

Answer:  It is anticipated that a firm contracted to perform Insurance Examination services will be able to provide all services necessary to complete a full, five-year examination of any Alabama insurer.  Thus, in the case of an insurer providing health insurance subject to federal law, the examiner should demonstrate knowledge of the applicable federal law and regulations.

Question 4, regarding the Proposal Content - Pricing format for Insurer Examination services:

In RFP#ALDOI-2018-4 for Insurer Examination services for all types of insurers, Section 2.3.8, Pricing Format under Proposal Content, after “Individual Classification” it includes “Actuarial Examiner.”  For financial examinations, are you looking for actuarial services pricing here, or are you looking for the pricing for an actuarial examiner who understands actuarial issues and executes testing of the data used by the actuaries?

Answer:  Section 2.3.8 of the RFP for Insurer Examination Services, entitled “Pricing-format,” a proposal should list an hourly rate for each employee classification in general, followed by a list of each individual who will be providing the services, with employee classifications, certifications, and hourly rates indicated.  The classifications indicated are representative based on prior contracts.  An actuary is used is used in a financial examination to determine if the reserves are adequate.  Please feel free to substitute employee classifications as appropriate to your firm.  This should include whatever title or classification is used to indicate the person providing actuarial services relative to an examination.

Question 5, regarding the Qualifications for Life and Disability Actuarial services:

In RFP#ALDOI-2018-2 for Life and Disability Actuarial services, Section 1.3.2 under Qualifications requires a “demonstrated knowledge and experience in using ACL and TeamMate® software, and Section 2.3.6 under Proposal Contents - TeamMate® license and experience, it requires a proposal to include a copy of the respondent’s current TeamMate® license.  As a part of our proposal, we will commit, at our expense, to obtain a license for that software if our proposal is successful, and we will also undertake any and all necessary training of our staff.  However, we will be unable to provide a copy of a current license with our proposal.  Will our proposal be rejected as non-responsive if we reply as indicated?

Answer:  Section 5.7 of the RFP for Life and Disability Actuarial services permits the DOI, to waive minor deviations from the requirements expressed in the RFP.  If it should turn out that no proposals are received from potential contractors with this qualification, it is possible we would be willing to consider waiving this deviation; however, it has been our experience that there are many firms available which already have this qualification.  The DOI is under fairly strict accreditation requirements to prepare and maintain examination workpapers.  If a contractor cannot use the TeamMate® software, then DOI staff would have to go back and enter the workpapers into the system, which is something we wish to avoid.