• Consumers


  • Producers/Agents


  • Companies


Notice of Request for Proposals

Consulting Actuarial Services

Contact: Kathleen Healey, Associate Counsel

334-241-4117

8/19/2009

[Notice issued August 20, 2009]

The Alabama Department of Insurance (DOI) hereby gives notice of the issuance of Requests for Proposals (RFP) for qualified respondents provide the DOI with highly technical consulting actuarial services.

Contracts are contemplated to be awarded for a twenty-two (22) month term. Contract award dates would be through the period ending September 30, 2011. Responses to the RFP must be received not later than September 21, 2009, at 3:00 PM CDT. The RFP is made up of three individual documents: The RFP, the basic contract contemplated (which is Exhibit “A” to the RFP), and a Disclosure Statement. All three documents 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 Consulting Actuarial Services: Word | Adobe

    Exhibit A, Form Contract for Consulting Actuary: 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/.

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

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

Question 1: Does the State’s sovereign immunity cover the contractor doing work under this contract?
Answer: No.

Question 2: Can any of the provisions of the standard state contract be modified by the selected bidder?
Answer: No.

Question 3: Is this RFP a replacement to the RFPs for actuarial services issued on May 1, 2009?
Answer: No. This is a new RFP for highly technical consulting actuary services. No firms provide the services covered by the RFP at the present time. These services would be available to assist the Commissioner in developing policy on actuarial concerns, beyond that available from staff. These services are explained in detail in sections 2.2.1 through 2.2.4 of the RFP, on page 10. The services in 2.2.5 and 2.2.6 relate to development of policy and procedures, rather than performance of such procedures.

Question 4: What will be the criteria for determining which firm will receive assignments from the Alabama DOI (e.g. Conflict will be the number one criteria, billing rate will be the number two criteria, etc.)
Answer:  The criteria is summarized in the RFP on page 2 (reproduced here). Greater detail is provided on pages 7 and 8:
Evaluation of Responses: 
 Criteria Weight
 Experience and Qualifications: 55 points
 Knowledge of Alabama Market: 10 points
 Cost: 25 points
 Clarity of Response: 10 points
 Total: 100 points

Question 5: How many firms will be selected to be part of the pool?
Answer:  This will be determined after reviewing responses.

Question 6: Section 3.28 mentions that the respondent may be required to be on-site at the Alabama DOI.  In the past, to what extent was the work performed completed on-site at the insurance company being reviewed and/or the Alabama DOI’s office?
Answer:  In assisting the Commissioner in the development of policy, respondent may need to be on-site.  If assistance is required with other agencies or the Legislature, respondent may need to be on-site.

The following questions are variations on Question 3 and have the same response.

Question 7: Our company has experience as statisticians. Would that qualify us as “a pool of qualified respondents” as outlined in the RFP?
Answer: No.  This is a new RFP for highly technical consulting actuary services.  No firms provide the services covered by the RFP at the present time.  These services would be available to assist the Commissioner in developing policy on actuarial concerns, beyond that available from staff.  These services are explained in detail in sections 2.2.1 through 2.2.4 of the RFP, on page 10.  The services in 2.2.5 and 2.2.6 relate to development of policy and procedures, rather than performance of such procedures.

Question 8: What firms are currently under contract with the DOI to provide the services covered by the RFP and how long have they provided services to the DOI?
Answer: This is a new RFP for highly technical consulting actuary services.  No firms provide the services covered by the RFP at the present time.  These services would be available to assist the Commissioner in developing policy on actuarial concerns, beyond that available from staff.  These services are explained in detail in sections 2.2.1 through 2.2.4 of the RFP, on page 10.  The services in 2.2.5 and 2.2.6 relate to development of policy and procedures, rather than performance of such procedures.

Question 9:
1. Please provide an estimate of the distribution of work by rate filing reviews, financial examinations, and other activities.
2. To what extent does the work under this contract need to be done on site at the insurance company and/or at DOI?
3. How many financial examinations requiring actuarial services were performed in each of the last three SFYs?
Answer: This is a new RFP for highly technical consulting actuary services.  No firms provide the services covered by the RFP at the present time.  These services would be available to assist the Commissioner in developing policy on actuarial concerns, beyond that available from staff.  These services are explained in detail in sections 2.2.1 through 2.2.4 of the RFP, on page 10.  The services in 2.2.5 and 2.2.6 relate to development of policy and procedures, rather than performance of such procedures.

Question 10:
1. How many hours have been incurred by each Contractor?
2. What have total annual fees been for each contractor for each of the two prior years? (separated into services and expenses, if possible)
3. How many Life & Disability rate filings have been reviewed?
4. How many Life & Disability financial examination reviews have been completed?
Answer: This is a new RFP for highly technical consulting actuary services.  No firms provide the services covered by the RFP at the present time.  These services would be available to assist the Commissioner in developing policy on actuarial concerns, beyond that available from staff.  These services are explained in detail in sections 2.2.1 through 2.2.4 of the RFP, on page 10.  The services in 2.2.5 and 2.2.6 relate to development of policy and procedures, rather than performance of such procedures.

Question 11: What percentage of the work is Life/Annuity related vs. Disability related?
Answer: This is a new RFP for highly technical consulting actuary services.  No firms provide the services covered by the RFP at the present time.  These services would be available to assist the Commissioner in developing policy on actuarial concerns, beyond that available from staff.  These services are explained in detail in sections 2.2.1 through 2.2.4 of the RFP, on page 10.  The services in 2.2.5 and 2.2.6 relate to development of policy and procedures, rather than performance of such procedures.

Question 12: What percentage of work hours are financial examination reviews vs. rate filing review?
Answer: This is a new RFP for highly technical consulting actuary services.  No firms provide the services covered by the RFP at the present time.  These services would be available to assist the Commissioner in developing policy on actuarial concerns, beyond that available from staff.  These services are explained in detail in sections 2.2.1 through 2.2.4 of the RFP, on page 10.  The services in 2.2.5 and 2.2.6 relate to development of policy and procedures, rather than performance of such procedures.