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

Contact: Reyn Norman, General Counsel
(334) 241-4116

5/11/2012

 

 

 

 

[Notice issued May 11, 2012; Revised June 1, 2012]

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

·         Computer Audit Services

Contracts are contemplated to be awarded for the one-year of term October 1, 2012, through September 30, 2013. Responses to the RFP must be received not later than June 8, 2012, at 3:00 PM CDT. Each RFP is made up of four individual documents (three in the case of CPA services), as follows: The RFP, the basic contract contemplated (which is Exhibit “A” to the RFP), the confidentiality agreement for use of TeamMate® software (which is Exhibit “B”to the RFP for all but CPA services), and a Disclosure Statement. All four documents (three in the case of CPA services) must accompany any response.

Additional information is set forth in the attached files, each accessible in either Word or Adobe format, as indicated:

·         RFP for Professional Actuarial Services for Property and Casualty Insurance: Word| Adobe

Exhibit A, Form Contract for P&C Actuary: Adobe

Exhibit B, TeamMate®Confidentiality Agreement: Word | Adobe

·         RFP for Professional Actuarial Services for Life and Disability Insurance: Word | Adobe

Exhibit A, Form Contract for L&D Actuary: Adobe

Exhibit B, TeamMate®Confidentiality Agreement: Word | Adobe

 

 

·         RFP for Professional CPA Services: Word | Adobe

Exhibit A, Form Contract for CPA Services: Adobe

 

 

·         RFP for Professional Insurer Examination Services: Word | Adobe

Exhibit A, Form Contract for Insurer Examination Services: Adobe

Exhibit B, TeamMate®Confidentiality Agreement: Word | Adobe

 

 

·         RFP for Professional Insurer Market Conduct Examination Services: Word | Adobe

Exhibit A, Form Contract for Insurer Market Conduct Examination Services: Adobe

Exhibit B, TeamMate®Confidentiality Agreement: Word | Adobe

 

 

·         RFP for Professional Insurer Investments Examination Services: Word| Adobe

 

Exhibit A, Form Contract for Insurer Investments Examination Services: Adobe

Exhibit B, TeamMate®Confidentiality Agreement: Word | Adobe

·         RFP for Professional Computer Audit Services: Word | Adobe

Exhibit A, Form Contract for Computer Audit Services: Adobe

Exhibit B, TeamMate®Confidentiality Agreement: Word | Adobe

The Disclosure Statement 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> 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.

General questions applicable to multiple RFPs:

 

Question 1: What types of proof regarding the purchase of TeamMate® is acceptable? Can we provide proof by submitting a paid invoice?

Answer 1: A respondent should follow paragraph 2.3.6. as to evidence of TeamMate® license and experience.

Question 2: If selected, how many contracts may be awarded?

Answer 2: The Department plans to select two or three contractors for each service, but may not select any at all.

Question 3: If selected, can the contracted firm use subcontractors to perform any of the contracted services or must all services be completed by employees of the contracted firm only?

Answer 3: Even though the RFP states they are to be employees, we have historically allowed contractors to use subcontractors; however, the subcontractors must act under the direct supervision and responsibility of the contracted firm and must be listed by name, classification, etc., on the Pricing Form.

 

Questions applicable only to Insurer Investments Examination Services RFP:

 

Question 4: Please name the incumbent investments examination services contractors.

Answer 4: We currently have no contractor for investment examination services.

Question 5: How many times did the Department use the services of a contractor to conduct investment examinations during each of the 3 years ended September 30, 2011, 2010 and 2009?

Answer 5: None.

Question 6: What was the dollar amount incurred for investment examination services during each of the prior 3 years ended September 30, 2011, 2010 and 2009?

Answer 6: None.

Questions applicable only to Insurer Examination Services RFP:

 

Question 7: Please name the incumbent professional insurer examination services contractors.

Answer 7: Insurance Logic, Inc., INS Regulatory Insurance Services, Inc., Smith Little LLC.

Question 8: How many times did the Department use the services of a contractor to conduct insurer examinations during each of the 3 years ended September 30, 2011, 2010 and 2009?

Answer 8: This information is not readily available and even if available would not be indicative of use in the next fiscal year, but please see answer to Question 9 below.

Question 9: What was the dollar amount incurred for insurer examination services during each of the prior 3 years ended September 30, 2011, 2010 and 2009?

Answer 9: All of the requested information is not readily available and even if available would not be indicative of use in the next fiscal year; however, here are the amounts spent for Insurer Examination Services and Expenses in the Fiscal Years indicated:

FY 2010 (10/1/09-9/30/10)          $447,746

FY 2011 (10/1/10-9/30/11)          $5,470

FY 2012 (10/1/11-5/24/12)          $4,517

Question 10: How many insurers does the Department anticipate will be examined during the one year time period listed in the RFP?

Answer 10: We average about 2 examinations each year by contracted examiners. Some years there are more, some years there may be none at all.

Question 11: Will the Department accept proposals for only financial examination services or only market conduct examination services, or is the Department requiring a Respondent firm to propose on both types of examination services? If both, will the Department allow the use of subcontractors if under the direct supervision and responsibility of the Respondent firm?

Answer 11: As a rule, the Alabama DOI uses DOI staff examiners for all examinations. If we are unable to use DOI staff examiners, and if the insurer is being examined for its routine three-to-five year audit, we would expect the contracted examination firm to handle all aspects of the examination, including EDP, Market Conduct, and Actuarial. There are occasions when we will ask the contract examiner to only conduct parts of an examination, such as the EDP, Market Conduct, or Actuarial, thus the reason some services overlap among the RFPs.

Additionally, some contractors have offered to provide services for Market Conduct Examinations at a different rate than for Financial Examinations, thus the reason we request pricing for both. A proposal can be for either or both types of service; however, if the proposal is to only provide Market Conduct Examination Services, the response should be filed to the Market Conduct RFP.

As to use of subcontractors, please see the response to Question 3 above.