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Notice of Requests for Proposals

Actuarial Services, CPA Services, Insurer Examination Services, and Computer Audit Services

Contact: Reyn Norman, General Counsel



6/22/2006

[Notice revised June 23, 2006]

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 Actuarial Services
  • Life and Disability Actuarial Services
  • Certified Public Accountant Services
  • Insurer Examination Services
  • Computer Audit Services [RFP revised 6/16/2006]

Contracts are contemplated to be awarded for the term October 1, 2006, through September 30, 2007. Responses to the RFP must be received not later than June 30, 2006, 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, 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, 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 Examiner Services: Adobe

    Exhibit B, Confidentiality Agreement: Word | Adobe

  • RFP for Professional Computer Audit Services [revised 6/16/2006]: Word | Adobe

    Exhibit A, Form Contract for Computer Audit Services: Adobe

    Exhibit B, 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/ag_items.cfm?Item=70

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. The direct link to the page regarding foreign corporations is http://www.sos.state.al.us/business/forqual.htm.

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.

  • All RFPs – Regarding Current Contractors.

    Question: What firms are currently under contract with the DOI to provide the services covered by the RFPs and how long have they provided services to the DOI?

    Answer: The following table provides the requested information:

    ContractorServiceYears
    Actuarial Resources CorporationL&D Actuaryover 5
    Carr Riggs & Ingram, LLCCPAover 5
    Examination Resources LLCExaminer2
    Insurance Logic, Inc. Examinerover 5
    Kerper and Bowron, LLCP&C Actuary3
    Latta, Langston & DyerL&D Actuary5
    Marsh & AssociatesL&D Actuary1
    Merlinos & Associates, Inc. P&C Actuaryover 5
    Preferred Ins. Capital Consultants, LLCP&C Actuary1
    Taylor Chandler LLCCPA3
    Taylor-Walker & Associates, Inc. P&C Actuary
    L&D Actuary
    over 5
    Wilson, Price, Barranco, Blankenship & Billingsley, P.C.CPA5

  • All RFPs – Regarding Scope of Work.

    Question: Has the scope of work changed since the previous RFP was issued?

    Answer: No.


  • All RFPs (except CPA) – Regarding TeamMate® License.

    Question: Must a respondent be a licensed user of TeamMate®? Will the DOI automatically reject a proposal if the respondent is not licensed?

    Answer: All of the RFPs except for CPA services require the respondent to be not only licensed to use TeamMate® but also already familiar with how to use the software. The contractor is expected to purchase the software at its own expense.


  • All RFPs (except CPA) – Regarding TeamMate® License.

    Question: We received a letter stating we purchased TeamMate® from PWC but we have not received an “official” license. Will the letter from PWC be sufficient?

    Answer: Yes.


  • Computer Audit RFP – Regarding Qualifications

    Question: The qualifications of the Computer Audit specialist appears to be the same as those found in the Insurance Examiner RFP. For instance, are you only accepting proposals from Computer Audit firms with a CFE on staff?

    Answer: No. Thank you for pointing out our mistake. This is the first year we have included Computer Audit Services as a separate RFP. We have revised the RFP for Computer Audit Services to remove the requirement of having the CFE designation.

  • Computer Audit RFP – Regarding Duties

    Question: Under the specific duties of a contractor, Section 2.2.2.3 states, “Properly interface the Department’s software package (if available) with the insurer’s system.” Can you clarify this statement – do you want us to implement systems?

    Answer: We expect the contractor to have the software and expertise available to audit any company's computer system.

  • Computer Audit RFP – Regarding Duties

    Question: Under the specific duties of a contractor, Section 2.2.2.4 states “Determine the specific needs of the examiners and arrange for production of the required computer printouts.” Please clarify this statement – are we to work with the financial and market conduct examiners and provide them information that they need for the examination?

    Answer: The contractor will work with the financial and market conduct examiners and provide them information that they need for the examination of the insurer's computer system. The contractor should be familiar with and use the Information Systems Questionnaire (ISQ) as found in the NAIC Examiners' Handbook and be able to find the deficiencies and security issues in the insurer's computer system as well as to prepare reports about their findings.

  • Computer Audit RFP – Regarding Duties

    Question: Under the specific duties of a contractor, Section 2.2.2.5 states “Remain available to the examiners throughout the examination for consultation on computer-related problems.” Please clarify what your expectation is for us and what type of computer-related problem consulting is expected.

    Answer: The contractor will work with the financial and market conduct examiners and provide them information that they need for the examination of the insurer's computer system. The contractor should be familiar with and use the Information Systems Questionnaire (ISQ) as found in the NAIC Examiners' Handbook and be able to find the deficiencies and security issues in the insurer's computer system as well as to prepare reports about their findings.

  • All RFPs – Regarding Current Contractors.

    Question: Please provide information on the current Contractor(s) (amount paid, contract provisions, etc).

    Answer: A list of the current contractors is provided above in response to another similar question. The contracts currently in use are substantially similar to those posted for use next year. We respectfully decline to provide the amount paid to the current contractors.

  • All RFPs – Regarding Market Conduct Examinations.

    Question: Please estimate the amount of work to be completed on-site?

    Answer: Approximate amount of time should be in range of 10 to 25% of total time involved in examination.

  • All RFPs – Regarding Market Conduct Examinations.

    Question: The pricing form requires a breakdown of market conduct per hour charges. Please expand on services required for the market conduct examinations?

    Answer: Examiners will be primarily auditing for market rate adequacy and compliance with filed rates. The examinations will be conducted in accordance with the NAIC Market Conduct Examiner’s Handbook.

  • All RFPs – Regarding Market Conduct Examinations.

    Question: Please provide information on the company(ies) known or expected to be reviewed. Name, lines of business, liabilities, etc.

    Answer: Typically, the Alabama DOI examines Alabama-domiciled insurance companies. We also have authority to examine foreign insurers, which authority is exercised from time to time. We respectfully decline to provide the names of specific companies expected to be examined during the next year.

  • All RFPs – Regarding Market Conduct Examinations.

    Question: Will the Contractor assist the State in monitoring all domestic insurers or only those insurers that the State determines might be financially troubled?

    Answer: The contractor will only examine companies specifically assigned by the DOI, which could include any insurer, not just those experiencing financial difficulties.

  • All RFPs – Regarding Contractor’s Liability.

    Question: Would State sovereign immunity cover the contractor doing this work?

    Answer: No.

  • All RFPs – Regarding Contractor’s Liability and Contract Provisions.

    Question: Our current practice is to include what we consider to be standard risk management provisions in our contracts. We request that the following provisions are included in our contract. [requested language omitted]

    Answer: The standard contract used by the DOI is included with the RFP. No deviation is contemplated to accommodate the requested language.

  • All RFPs – Regarding TeamMate® Software.

    Question: What version of TeamMate is the DOI currently using?

    Answer: The Alabama DOI is currently using TeamMate® Version 7.1.

  • All RFPs – Regarding Conflicts.

    Question: For both RFPs, for Certified Public Accountant Services and Professional Insurer Examination Services, 2.4.1 states the Respondent must submit to the DOI a detailed disclosure of any conflict or potential conflicts of interest. Can the DOI provide a list of companies that will be examined under this RFP in order for the respondents to run a proper conflict check?

    Answer: At the time a company examination is to be performed, the DOI will obtain the appropriate conflicts checks. No list of companies will be provided at this time. However, you already represent Alabama-domiciled companies and other insurance companies that are licensed in Alabama, those are potential conflicts and should be disclosed in the response to the RFP.

  • All RFPs – Regarding Conflicts.

    Question: If you cannot provide us with a list of companies for a conflict check, would the following language be an acceptable response? “Upon the potential assignment of a specific examination, we will perform a conflict check of the company and affiliates, verifying with our headquarters, each office and each employee that no conflict of interest exists with the company(ies) involved. During the course of the examination if we are made aware of a conflict of interest, we will notify the DOI immediately of the conflict.”

    Answer: At the time a company examination is to be performed, the DOI will obtain the appropriate conflicts checks. No list of companies will be provided at this time. However, you already represent Alabama-domiciled companies and other insurance companies that are licensed in Alabama, those are potential conflicts and should be disclosed in the response to the RFP.

  • CPA RFP – Regarding Qualifications.

    Question: For the Certified Public Accounting Services RFP, does the responding firm have to be a certified public accounting firm or can a firm that is not a certified public accounting firm respond if they meet all the general qualifications in Section 2.1.1 and can provide the services listed in Section 2.2?

    Answer: For purposes of our RFP, a “certified public accounting firm” merely refers to a firm that has certified public accountants on staff. If your firm meets the general qualifications set out in Section 2.1.1, then by this definition your firm qualifies.