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

Contact: Reyn Norman, General Counsel
(334) 269-3550

5/15/2015

 

[Notice issued May 15, 2015]

 

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, 2015, through September 30, 2016.  Responses to the RFP must be received not later than June 16, 2015, at 3:00 PM CDT.  Each response must contain an original and three identical copies of the proposal. 

     

    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 the following address: http://www.ago.state.al.us/Page-Vendor-Disclosure-Statement-Information-and-Instructions

     

    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://www.sos.state.al.us/

     

    For additional information, please send an E-Mail request to Reyn.Norman@insurance.alabama.gov

     

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

     

    Listed below are questions pertaining to RFP#ALDOI-2015-02 - Actuarial Services for Life & Disability Insurance

    1. Who are the current service providers for life and health actuarial services?

    Answer:  For Fiscal Year 2014-2015 we have contracts for Life and Disability Actuarial services with Harland A. Dyer, d/b/a Latta, Langston & Dyer, and with Actuarial Group, Inc., d/b/a AGI Services, d/b/a AGI.

    2. How many examinations (financial or market conduct) are expected to be awarded to each service provider?

    Answer:  Assignments to contract examiners are made on an as-needed basis when employee examiners are not available.

    3. Section 1.3.5 requests experience with “detail data testing to confirm the integrity of an actuarial database” – does this refer to testing of the underlying policyholder data?  If the firm typically provides this service through a combined team of actuaries (to identify the important data elements) and data specialists (who are more efficient for data testing), is that acceptable?  Is it preferred that the actuaries actually test the data, even though they may be higher cost resources?

    Answer:  Examiners usually conduct data testing to confirm the integrity of the actuarial database.  The actuary is expected to confirm the assumptions and reasonableness of the actuarially computed reserves based upon standards of the actuarial profession.

    Listed below is a question pertaining to RFP#ALDOI-2015-05 - Market Conduct Examination Services.

    Section 4.1 states the following:

    The total amount invoiced by Contractor for all Services and Expenses during the operation of this contract shall not exceed $_______, subject to the availability of State funds.  If, during the Term, the amount available for funding of this Contract in any one fiscal year is reduced by legislative action, proration, or other action of State government beyond the control of the Department, the maximum amount payable under this Contract in the fiscal year will be adjusted accordingly.

    This statement suggests that we may be subject to budget reductions based on the state’s budget.  If the DOI’s budget is reduced, it will reduce the fees we are able to collect regardless of an approved budget.  That being the case, will we be required finish the exam without collecting the balance?

    Answer:  A contractor will be paid for work done under a contract at our direction.  The maximum amount payable under a contract may have to be adjusted during the year for the reasons indicated.  To date, this has never happened in the context of a Department of Insurance examination, but this language is required in all state contracts.

    Listed below are questions pertaining to RFP#ALDOI-2015-06 - Insurer Investments Examination Services.

    1) How many investment examinations were performed in the prior contract period? Please provide estimated number of hours and fees.  

    Answer:  All investment examinations performed during the current year have been conducted by employee examiners as a part of complete financial examinations.  No estimate of hours and fees for time attributable to investments examinations is available.

    2) Were any of the prior period investment examinations conducted solely as it relates to categories 1.2.5 and 1.2.6 of the section 1.2 in the RFP?  

    Answer:  No

    3) Please clarify section 1.3 part 1.3.1. Are the submission requirements stating that in order for a firm to qualify, its proposed examination team needs to have at least one of each of the following credentials – CFA, CFE and CPA?  

    Answer:  Yes.