RFP Event 225 Administrative Document.docx

STATE OF IDAHO

DIVISION OF PURCHASING

FOR THE

Department of Insurance

REQUEST FOR PROPOSAL

Actuarial Services

RFP Event 225

TABLE OF CONTENTS

RFP ADMINISTRATIVE INFORMATION

RFP Title:

Actuarial Services

RFP Project Description:

Actuarial examination and review services for the Idaho Department of Insurance

RFP Lead:

Thayne Pearson, Purchasing Officer Idaho Division of Purchasing 650 W. State St. Room 100 Thayne.pearson@adm.idaho.gov 208-332-1605

Submit electronically via IPRO:

Electronic Submission:

IPRO POWERED BY LUMA LOGIN

Pre-Proposal Conference Date/Time:

Pre-Proposal Conference Location:

Monday, January 22, 2023, 9:00am Mountain Time

Virtual via Microsoft Teams

Deadline to Receive Questions:

See IPRO Header Document

RFP Closing Date:

See IPRO Header Document

Public Opening Date:

See IPRO Header Document

Initial Term of Contract and Renewals:

Three (3) years. Upon mutual, written agreement, the Contract may be renewed, extended, or amended. The anticipated total Contract term is five (5) years.

THE ADMINISTRATIVE FEE DETAILED IN PARAGRAPH 5 OF THE STATE’S STANDARD CONTRACT TERMS AND CONDITIONS WILL NOT APPLY TO THE CONTRACT(S) THAT RESULT FROM THIS SOLICITATION.

OVERVIEW

1.1. Purpose

The Division of Purchasing (DOP), on behalf of the Idaho Department of Insurance (IDOI), is seeking qualified individuals or firms to conduct actuarial examinations or insurance rate reviews of insurance companies or other regulated entities on behalf of the IDOI pursuant to Idaho law, the National Association of Insurance Commissioners (NAIC) Financial Condition Examiner’s Handbook, and the IDOI examination procedures. Specifically, “for the purpose of determining [a regulated entity’s] financial condition, ability to fulfill and manner of fulfillment of its obligations, the nature of its operations, and compliance with the law…” Idaho Code (I.C.) § 41-219(1).

THIS RFP MAY RESULT IN THE AWARD OF CONTRACTS TO MULTIPLE OFFERORS AS DETERMINED BY IDOI AND IN THE BEST INTEREST OF THE STATE.

1.2. Background Information

IDOI is a regulatory agency created to regulate the business of insurance in Idaho. State regulation of Idaho's insurance business began in 1901 and in 1961 the present Department of Insurance was created. When the Executive branch of state government was reorganized in 1974, IDOI became one of twenty (20) major departments of the Executive branch. The director of the department is appointed by the Governor and is subject to confirmation by the state senate.

The State of Idaho is part of the U.S. insurance regulatory framework which is a highly coordinated, state-based national system designed to protect policyholders and to serve the greater public interest through the effective regulation of the U.S. insurance marketplace. Through the NAIC, U.S. insurance regulators establish national standards and best practices, conduct peer reviews, and coordinate their regulatory oversight to better protect the interests of consumers while ensuring a strong, viable insurance marketplace. U.S. insurance regulators also participate in the International Association of Insurance Supervisors (IAIS) along with the NAIC by participating in major standard setting initiatives, including working with fellow regulators from around the world to better supervise cross-border insurers, identifying systemic risk in the insurance sector, and creating international best practices.

IDOI is comprised of several Bureaus, with each including its own area of emphasis or expertise. Amongst these is the Company Activities Bureau and the Market Oversight Bureau for which this Contractor is being sought to support.

1.3. Resulting Contract

If the State awards a contract from this Solicitation, it will do so by issuing a Contract document from the State’s eProcurement system, IPRO, which will be an acceptance of the successful offer. The Contract will be comprised of that contract document; this RFP, including any incorporated documents; the successful Proposal, including any clarifications requested by the state of Idaho (State); and an artifact formalizing any requirements agreed upon through contract discussions or negotiations, if applicable.

The following documents are incorporated into this RFP as if set out in their entirety, whether or not they are attached in IPRO:

· Solicitation Instructions for Vendor

· Standard Contract Terms and Conditions

· Idaho Code Title 41 and Idaho Administrative Code (“IDAPA”) 18

· The National Association of Insurance Commissioners (NAIC) Financial Condition Examiner’s Handbook, Accounting Practices and Procedures Manual, and Market Regulation Handbook

· The Actuarial Standards of Practice (ASOP’s) as set by the Actuarial Standards Board

If not attached in IPRO, the documents may be found on the “Information for Vendors” page of DOP’s website, www.purchasing.idaho.gov. If multiple versions of any of these documents are available on the website, the version in effect on the day the RFP was issued shall apply.

2.

QUESTIONS

2.1. Restrictions on Communications

From the issue date of this RFP, until a contract is awarded, or the RFP is cancelled, vendors are prohibited from communications regarding this RFP with the IDOI staff, evaluation committee members, or other associated individuals, except the Division of Purchasing.

2.2. Pre-Proposal Conference

A non-mandatory pre-proposal conference will be held at the location and time as indicated in Section 1, page 1 of this RFP. This will be your opportunity to ask questions, in person, with the IDOI staff. All parties interested are invited to participate either by attending the conference or by an established call-in number. Those choosing to participate must pre-register to receive phone conferencing and meeting details by submitting the completed Attachment 1 - Pre-Proposal Conference Registration Form via email to the RFP Lead. Parties interested are asked to register by Friday, January 19, 2023, by 5:00pm MST. Any oral answers given by the State during the pre-proposal conference are unofficial and will not be binding on the State. Conference attendance is at the participant’s own expense.

2.3. Questions

2.3.1. This solicitation is issued via the State’s e-Procurement system, IPRO (IPRO POWERED BY LUMA LOGIN) . The RFP Lead is the only contact for this Solicitation. All correspondence must be in writing. In the event that it becomes necessary to revise any part of this RFP, amendments will be posted at IPRO. It is the responsibility of parties interested in this RFP to monitor IPRO for any updates or amendments. Any oral interpretations or clarifications of this RFP must not be relied upon. All changes to this RFP will be in writing and must be posted to IPRO to be valid.

2.3.2. Questions or other correspondence must be submitted in writing to the RFP Lead (see contact information in the RFP Administrative Information, page 1). QUESTIONS MUST BE RECEIVED BY 11:59:59 P.M. MOUNTAIN TIME ON THE DATE LISTED IN THE RFP ADMINISTRATIVE INFORMATION.

2.3.3. Written questions must be submitted using Attachment 2 - Offeror Questions. Official answers to all written questions will be posted on IPRO as an amendment to this RFP.

2.4. Vendor Proposed Modifications and Exceptions to Requirements, Terms, and Conditions

2.4.1. Vendors must submit any proposed modifications to the requirements, terms, or conditions of the RFP on Attachment 2 - Offeror Questions prior to the deadline to submit questions. Questions regarding these requirements must contain the following:

· The rationale for the specific requirement being unacceptable to the party submitting the question (define the deficiency).

· Recommended verbiage for the State’s consideration that is consistent in content, context, and form with the State’s requirement that is being questioned.

· Explanation of how the State’s acceptance of the recommended verbiage is fair and equitable to both the State and to the party submitting the question.

2.4.2. In the event that a Proposal contains modifications or exceptions to any Solicitation requirements, terms, or conditions which are not addressed during the question and answer period, they must be identified and submitted on Attachment 3 - Modification and Exception Form and must contain the same information outlined in Section 2.3.1, above. The State will not consider any modifications or exceptions that are not identified specifically on Attachment 3.

2.4.3. The State has sole discretion to determine if the modifications or exceptions submitted by an Offeror would result in a material change or otherwise threaten the integrity of the procurement process. See Appendix A - Idaho Terms and Conditions Background and Limitations. Pursuant to IDAPA 38.05.01.084.e, the State may only negotiate non-material modifications or exceptions. Modifications or exceptions which the State determines to be material, or which otherwise threaten the integrity of the procurement process, will not be accepted or negotiated. In the event that the Offeror has conditioned its Proposal on the State’s acceptance or negotiation of its proposed modifications or exceptions, and the modifications or exceptions are deemed material, the Offeror will be given the opportunity to retract the proposed modifications or exceptions from its Proposal. Failure to do so will result in the Offeror’s Proposal being found non-responsive, after which it will receive no further consideration.

2.4.4. Non-material modifications or exceptions may be discussed with the apparent successful Offeror, at the discretion of the State; however, the State shall have the right to reject any and all such modifications and/or exceptions, or to call an end to such discussions, and to instruct the Offeror to amend its Proposal and remove the modifications and/or exceptions. Failure to do so may result in the State finding the Proposal non-responsive.

2.4.5. Except as otherwise provided within the Solicitation, the State will not consider modifications or exceptions to the requirements, terms, or conditions which are proposed after the RFP Closing Date

INSTRUCTIONS FOR SUBMISSION OF PROPOSAL

3.

3.1. General Instructions

3.1.1. Proposals must be submitted electronically. Except as otherwise addressed in this solicitation, all submission materials must be submitted at the same time. If multiple submissions are received, only the latest timely submission will be considered.

3.1.2. Alternate proposals are not allowed.

3.1.3. All electronic files must be in Microsoft Word or Excel format; the only exception is for financials, brochures, or other information only available in an alternate format.

3.1.4. It is mandatory to submit your Proposal electronically via IPRO, all Offerors participating in this Solicitation must establish an account in the IPRO system, as it is necessary in order to process and/or award the resulting Contract(s). Establishing an account is free and only takes a few minutes.

3.2. Trade Secrets

Paragraph 28 of the Solicitation Instructions to Vendors describes trade secrets to “include a formula, pattern, compilation, program, computer program, device, method, technique or process that derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by other persons and is subject to the efforts that are reasonable under the circumstances to maintain its secrecy.” In addition to marking each page of the document with a trade secret notation (as applicable; and as provided in Paragraph 28 of the Solicitation Instructions to Vendors), Offerors must also:

3.2.1. Identify with particularity the precise text, illustration, or other information contained within each page marked “trade secret” (it is not sufficient to simply mark the entire page). The specific information you deem “trade secret” within each noted page must be highlighted, italicized, identified by asterisks, contained within a text border, or otherwise clearly delineated from other text/information and specifically identified as a “trade secret.”

3.2.2. Provide a separate document entitled “List of Redacted Trade Secret Information” which provides a succinct list of all trade secret information noted in your Proposal; listed in the order it appears in your submittal documents, identified by Page #, Section #/Paragraph #, Title of Section/Paragraph, specific portions of text/illustrations; or in a manner otherwise sufficient to allow the State’s procurement personnel to determine the precise text/material subject to the notation. Additionally, this list must identify with each notation the specific basis for your position that the material be treated as exempt from disclosure and how the exempting the material complies with the Public Records Law.

3.2.3. Submit a redacted copy of the Proposal with all trade secret information removed or blacked out. The redacted copy must be submitted electronically, with the word “redacted” in the file name, whether the Proposal is submitted manually or electronically.

3.3. Electronic Submission

3.3.1. Electronically submitted Proposals must be submitted through IPRO, at IPRO POWERED BY LUMA LOGIN. When submitting through IPRO, enter your Cost in IPRO as “$0,” and UPLOAD YOUR TECHNICAL PROPOSAL, SEPARATE COST PROPOSAL, AND ALL OTHER REQUIRED SUBMITTAL ITEMS. Remember to submit an additional redacted version of the proposal if you have identified trade secrets.

3.3.2. Vendors are strongly encouraged to begin the process of submitting the response far enough in advance of the End Time to allow for resolution of technical difficulties. Be advised that the state is not responsible for a Vendor’s failure to timely submit a responsive submission due to any technical or technological difficulties. See IDAPA 38.05.01.61.02.

3.3.3. Submitting via IPRO, be advised that the Offeror for Proposal evaluation and award purposes is the entity profile under which the Proposal is submitted in IPRO, which must be the same legal entity presented in the uploaded response materials. If the entity identified on the state supplied Signature Page differs from the entity under which you submit your Proposal in IPRO, the information provided on the Signature Page prevails.

3.3.4. Offerors are further advised to upload response materials with descriptive file names, organized and consolidated in a manner which allows evaluators to efficiently navigate the Offeror’s response; as the State will print uploaded documents for evaluation in the manner received via IPRO.

PROPOSAL FORMAT

1.

2.

3.

4.

These instructions describe the format to be used when submitting a Proposal. The format is designed to ensure a complete submission of information necessary for an equitable analysis and evaluation of submitted Proposals. There is no intent to limit the content of Proposals.

4.1. Table of Contents

Include a table of contents in the Technical Proposal identifying the contents of each section, including page numbers of major Sections.

4.2. Format

Proposals shall follow the numerical order of this RFP beginning with Section 6 and continuing through the end of the applicable RFP Attachments, including all mandatory submission items detailed in Section 6 and identified throughout the RFP. Proposal sections and subsections must be identified with the corresponding numbers and headings used in this RFP. In your response, restate the RFP section and/or Section, followed with your response.

Offerors are encouraged to use a different color font, bold text, italics, or other indicator to clearly distinguish the RFP section from the Offeror’s response. Except for brochures, financials, work samples, or other similar submission items, all electronic Proposals must be submitted in Microsoft Word or Excel, and must not be locked. Offerors are strongly cautioned against including website links or imbedded documents in the Proposal; the State will not be responsible for the RFP Lead or any evaluator’s failure to consider information outside of or imbedded in the Proposal.

4.3. Evaluation Codes

(M) Mandatory Response - failure to respond to any (M) section, or to comply with any mandatory specification or requirement, will render Offeror’s Proposal non-responsive and no further evaluation will occur.

(ME) Mandatory and Evaluated Response - failure to respond to any (ME) section, or to comply with any mandatory specification or requirement in an (ME) section, will render Offeror’s Proposal non-responsive and no further evaluation will occur. Offeror must respond to these sections as directed; points will be awarded based on predetermined criteria.

(E) Evaluated Response - a response is desired and will be evaluated. If Offeror cannot meet the requirement, or chooses not to respond for any reason, zero (0) points will be awarded for the section. If Offeror responds, points will be awarded based on predetermined criteria.

Note: Offerors are directed to IDAPA 38.05.01.074.03.a, as well as IDAPA 38.05.01.091.05, which allow the designated State official to waive minor informalities as well as minor deviations. The State also reserves the right to seek clarification on any (M), (ME), or (E) requirement.

PROPOSAL REVIEW, EVALUATION, AND AWARD

5.

5.1. Overview

The objective of the State in soliciting and evaluating Proposals is to ensure the selection of a firm or individual that will produce the best possible results for the funds expended.

5.1.1. All Proposals will be reviewed first to ensure that they meet the Mandatory Submission Requirements of the RFP as addressed in Sections noted with an (M) or (ME). Any Proposal(s) not meeting the Mandatory Submission Requirements will be found non-responsive.

5.1.2. Evaluation Criteria

Technical Proposal:

1.

2.

3.

4.

5.

5.1.

5.2. Technical Proposal

5.2.1. The Technical Proposal will be reviewed first on a “pass” or “fail” basis to determine compliance with those requirements listed in the RFP with an (M) or (ME). All Proposals which are determined by the State, in its sole discretion, to be responsive in this regard will continue in the evaluation process outlined in this Section.

5.2.2. The Technical Proposal will be evaluated and scored utilizing one (1) or more Technical Proposal Evaluation Committee(s).

5.2.3. The scores for the Technical Proposal will be normalized as follows: The Technical Proposal with the highest raw technical score will receive all available Technical Points: 600 points. Other Proposals will be assigned a portion of the maximum available Technical Points, using the formula:

600 X raw score of technical Proposal being evaluated highest raw technical score.

5.3. Cost Proposal

5.3.1. The Cost Proposal will only be opened and evaluated for Offerors who receive the top four (4) technical scores.

5.3.2. The scores for the Cost Proposal will be normalized as follows: The cost evaluation will be based on the lowest Total Cost (lowest Average Fully-Burdened Hourly Rate, Contract Years 1 through 3). The Proposal with the lowest overall Total Cost proposed will receive all available Cost Points: 400 points. Other Proposals will be assigned a portion of the maximum available Cost Points using the formula:

400 X lowest overall Total Cost overall Total Cost being evaluated.

5.4. Responsibility

Pursuant to IDAPA 38.05.01.081, the RFP Lead may, in the State’s sole discretion, require the apparent high point Offeror to provide documentation to demonstrate its responsibility. The RFP Lead may request documentation including, but not limited to: credit or financial reports, and references. Failure to provide requested documentation may result in the Offeror being deemed non-responsible. Nothing herein shall prevent the State from using other means to determine Offeror’s responsibility.

5.5. Award

Award of Contract will be made to the responsive, responsible Offeror(s) whose Proposal receives the highest number of total normalized points. The State reserves the right to award multiple contracts from this RFP, in the best interest of the State, as determined by the Administrator of the Division of Purchasing. I.C. §67-9211. If multiple awards are made, IDOI will utilize the Contracts in accordance with I.C.§67-9211(3).

MANDATORY SUBMISSION REQUIREMENTS

The technical proposal begins with the mandatory items identified in this list and the following sections. NOTE: THIS CHECKLIST IS PROVIDED AS A COURTESY ONLY; OFFERORS ARE RESPONSIBLE FOR SUBMITTING ALL MANDATORY SECTIONS, ATTACHMENTS, SUBMITTAL ITEMS, ETC., REGARDLESS OF WHETHER THEY ARE IDENTIFIED IN THIS LIST.

☐ (M) Signature Page: All Proposals must be submitted with a state supplied Signature Page, attached separately in IPRO

☐ (M) Cover Form: Complete, sign, and submit Attachment 4, Cover Form.

☐ (M) Acknowledgement of Amendments: If the RFP is amended, the Offeror must acknowledge each amendment with a signature on the acknowledgement form provided with each amendment. Failure to return a signed copy of each amendment acknowledgement form with the Proposal may result in the Proposal being found non-responsive. See IDAPA 38.05.01.52.

☐ Section 7: Provide response to all (M) and (ME) sections.

☐ Section 8: Provide response to all (M) and (ME) sections, and any other required submittal items for each individual listed under 8.1 Project Lead or 8.2 Key Personnel including but not limited to:

· Resumes,

· Copies of current certifications and licenses,

· List of states for whom the Key Personnel have performed actuarial examinations or reviews within the last three (3) years.

☐ Section 9: Provide response to all (M) and (ME) sections, and any other required submittal items.

☐ (ME) Cost Proposal: Provide your cost information on the form provided in Attachment 5, Cost Proposal. Submit the Cost Proposal in a separately uploaded file or separately sealed envelope.

☐ Redacted copy of Technical Proposal and list of Trade Secret redactions, as detailed in Section 3.2.

☐ Review the required types and levels of insurance—these are mandatory requirements. If you do not already have the required types and levels of insurance, you are strongly encouraged to contact your insurance representative to find out if you will be able to obtain the required insurance. (The Offeror should not purchase additional insurance in reliance of being awarded a contract). If you are awarded a Contract, failure to provide proof of the required insurance will be grounds for termination of the Contract.

BUSINESS INFORMATION

6.

7.

7.1. (ME) Business Profile Provide a profile of your business including Offeror’s business history, description of current service area, and customer base.

7.2. (ME) Experience Describe in detail your knowledge and experience in providing services similar to those required in this RFP. For each type of experience listed below, describe the length, depth, and nature of experience for each person listed in Section 8.1 Project Lead, and 8.2 Key Personnel and Qualifications. All persons listed in Sections 8.1 and 8.2 must meet all (ME) requirements below.

7.2.1. Required Experience – Five (5) years of risk-focused examination experience with a minimum of five (5) participations in full scope examinations completed within the last five (5) years with adherence to the most current changes in the NAIC Financial Condition Examiner’s Handbook and the Market Regulation Handbook.

7.2.2. Required Experience- Three (3) years of experience using TeamMate e-workpaper software, Excel, and Word.

7.2.3. Required Experience- Completion of twenty (20) hours of actuarial training annually for the past five (5) years, related to the performance of risk focused examination of an insurance company.

7.2.4. Desired Experience- Experience working alone and independently on assigned portions of the examinations and being self-motivated and self-directed.

7.2.5. Desired Experience – Some experience with Idaho Insurance Code or similar.

7.2.6. Desired Experience- Consistent employment within the industry over the last five (5) years. Describe specific employment projects.

7.2.7. Desired Experience – Three (3) years of experience with Audit Command Language (ACL) or similar.

7.3. (M) Organizational Chart Provide a copy of your organizational chart, including detail of any relationships with parent and subsidiary organizations.

7.4. (ME) Demonstrated Success Provide two (2) examples demonstrating previous success with actuarial services.

7.5. (E) Customer Satisfaction Over the last ten (10) years, approximately what percentage of customers have chosen to remain with your company when given an option (e.g. exercising option renewals, extending agreements, selecting your company again upon re-solicitation, etc.)

7.6. References

Provide contact information for at least three (3) references. See Section 5.5.

ORGANIZATION AND STAFFING

Describe your qualifications to successfully complete the requirements of the RFP by providing a detailed response to the following:

8.

8.1. (ME) Project Lead Identify the person who will be the dedicated Project Lead if Offeror is awarded a contract. Provide a description of the proposed Project Lead’s experience and qualifications. You may submit a resume in response to this section.

8.2. (ME) Key Personnel and Qualifications

8.2.1. Provide a list of examination actuaries to be used in the fulfillment of this Contract, to include all pertinent contact information.

8.2.2. Provide resumes and copies of current certifications or licenses (as required in Section 8.3) for employees who will be directly providing services under the Contract. For positions that are not filled, a position description (including requisite qualifications/experience) must be provided.

8.2.3. Provide a list of all states for which Key Personnel (See Section 8.2.1, above) have performed actuarial examinations within the last three (3) years. The State reserves the right to contact any party for whom Offeror or Key Personnel have performed work.

8.3. (M) Credentials Each examination actuary assigned to examine a health insurance company must be a Fellow of the Society of Actuaries (FSA) or a Member of the American Academy of Actuaries (MAAA), with experience in health or life reserving, depending on company assignment. Examination Actuaries assigned to examine a property and casualty insurance company must be a Fellow (or Associate) of the Casualty Actuarial Society (FCAS/ACAS).

8.4. (ME) Subcontractors Subcontractors will not be allowed unless approved in writing by IDOI. If you intend to utilize subcontractors, describe the extent to which they will be used to comply with contract requirements, and provide resumes and credentials as required under Sections 8.2 and 8.3 for any subcontractors to be utilized in the fulfillment of this RFP. Include each position providing service and provide a detailed description of how the subcontractors are anticipated to be involved under the Contract. Include a description of how the Offeror will ensure all subcontractors and their employees will meet all Scope of Work requirements. Offerors must disclose the location of the subcontractor’s business office and the location(s) of where the actual work will be performed. If the Offeror utilizes any entity other than the entity submitting the Proposal to provide any of the services required by this RFP, the relationship between the two (2) entities is considered that of a contractor-subcontractor for the purpose of this Section, regardless of whether a relationship is based on an actual written contract between the two.

8.4.1. If you do not intend to utilize subcontractors, provide a statement affirming you do not intend to utilize subcontractors to comply with contract requirements.

NOTE: The information provided for subcontractors, if any, will be evaluated along with the Key Personnel and Qualifications Section 8.2 and 8.3 above.

8.5. (ME) Range of Services.

Specify all ranges of actuarial services you or your firm may provide to IDOI. Proposals must specify the range of professional and examination services that the Offeror is qualified to provide and will provide if awarded the Contract.

8.6.

SCOPE OF WORK

All sections of the Scope of Work are required contract services. Use this Proposal outline as part of your response to the RFP. Keep in mind, the evaluators will be scoring your Proposal based on the methodologies proposed and the completeness of the response to each item listed below. You must describe in detail how you will meet each requirement marked (M) or (ME) below. Include personnel, proposed timelines, methodologies, and any pertinent information that will be required from the Agency in order to achieve full compliance with all tasks and deliverables. By submitting a response to this RFP, you are affirming that you will meet all Scope of Work requirements.

Scope of Work Definitions 9.1

9.1.1 Limited Scope/Target Examinations: Examinations that are narrowly focused on a specific area or areas of an insurer (or other regulated entity), such as a particular key activity or process.

9.1.2 Work: All assignments made by the IDOI to the Contractor. This includes, but is not limited to:

9.1.2.1 Risk-focused actuarial examination work performed in accordance with Section 41-219(1), Idaho Code and the NAIC Financial Condition Examiner’s Handbook, the NAIC Accounting Practices and Procedures Manual, the NAIC Market Regulation Handbook, and the applicable actuarial standards of practice.

9.1.2.2 Limited Scope/Target Examinations.

9.1.2.3 Examinations of self-funded health benefit plans in accordance with Chapters 40 or 41, Title 41, Idaho Code.

9.1.2.4 Examinations of other non-insurer entities regulated by Idaho Code (e.g. Idaho Petroleum Clean Water Trust Fund, etc.).

9.1.2.5 Rate Review.

9.1.2.6 Special purpose assignments as deemed appropriate by the IDOI.

(ME) General Financial Examination Requirements Contractor must provide actuarial work for financial examinations of Idaho domestic insurance companies or self-funded health benefit plans in addition to market conduct examinations as well as rate reviews. Considering the requirements below, for financial examinations of insurers and examinations of self-funded health benefit plans, describe in detail how the examination actuary(s) assigned to perform the examinations will:

9.2

9.2.1 Conduct the actuarial examination planning: conducting, assisting, or participating in corporate governance interviews, fieldwork (including preparing and reviewing work papers), document findings in TeamMate, and actuarial report writing.

9.2.2 Perform and complete the actuarial portion and other assigned areas of the examinations in accordance with the NAIC Financial Condition Examiner’s Handbook, the NAIC Market Regulation Handbook, the applicable actuarial standards of practice, Idaho Code and examination accreditation standards established by the NAIC.

9.2.3 Collaborate with the Examiner-in-Charge and other participating examiners. As an examination actuary, Contractor must coordinate and maintain communication with IDOI management, the company, IT examiners and the Examiner-in-Charge.

9.2.4 For the financial examination of an insurer, the examination actuary shall perform the following risk focused examination procedures in accordance with the then current NAIC Financial Condition Examiner’s Handbook and the NAIC Market Regulation Handbook. The Contractor shall, at a minimum:

9.2.4.1 Utilize the necessary planning information gathered by the field examiners to understand the nature of the company’s business and operation. This may include communication with the IDOI financial analyst to gain an understanding of the company information available to the Department. Discuss risks and concerns highlighted in the Insurer Profile Summary as well as the company’s financial condition and operating results since the last examination. Ascertain the reasons for unusual trends, abnormal ratios and transactions that are not easily discernible that could affect reserving or rating. Document a summary of significant risks in actuarial perspective pertaining to:

9.2.4.1.1 Appropriateness/adequacy of reinsurance program,

9.2.4.1.2 Product design, pricing policy, and rate adequacy,

9.2.4.1.3 Reserve data,

9.2.4.1.4 Reserve adequacy, and

9.2.4.1.5 Capital Management and risk appetite

9.2.4.2 Submit the summary of significant risks to the Examiner-in-Charge for further review on the examination. Utilize Exhibit CC while in the process of identifying risks.

9.2.4.3 Obtain copies or relevant information available to IDOI as deemed necessary to aid in the identification of significant risks and document in TeamMate.

9.2.4.4 Use company information already available to IDOI to gain an understanding of company activities and determine what additional information is necessary to assist in the examination planning. Develop customized information requests to obtain additional information from the company to assist in exam planning as necessary.

9.2.4.5 Arrange a meeting with the appointed actuary to review the objectives and scope of the actuary’s work and to obtain an understanding of the methods and assumptions used in establishing the actuarially determined asset or liability. Consider the following in accordance with the NAIC Financial Examiner’s Handbook, compliance with Idaho laws, rules, and policies and the applicable actuarial standards of practice:

9.2.4.5.1 Materiality and risks associated with the accounts,

9.2.4.5.2 Actuaries’ professional qualifications, reputation and relationship with the company officers and the board of directors,

9.2.4.5.3 Changes in methodology or assumptions from the prior examinations,

9.2.4.5.4 Actuaries’ interaction with internal and external auditors, and

9.2.4.5.5 Any changes to the reserving platform since prior examination.

9.2.4.6 Assess the effects of external environmental conditions and factors. Focus on conditions that affect reserving, rate adequacy, loss ratio, expense ratio, claim volume, and other relevant factors.

9.2.4.7 Understand the corporate governance structure and determine how it affects reserving and underwriting, strategic direction and policy implementation. Review corporate governance assessment by other members of the examination team and determine if any of their observations and assessments affect risk management at an actuarial perspective.

9.2.4.8 Consider prospective risks based on preliminary review of the company’s information. Utilize Exhibit DD to determine whether all relevant critical risk categories have been included/considered on a risk matrix.

9.2.4.9 Document company internal controls/risk mitigations targeting the identified risks, test the controls.

9.2.4.10 Assess internal controls and risk mitigations to determine if further testing is necessary. Have the planned substantive tests approved by the Chief Examiner or the Deputy Chief Examiner. Perform approved substantive tests and determine adequacy, appropriateness, and reasonableness of reserves.

9.2.4.11 Note weaknesses to internal controls/risk mitigations and other exceptions as a result of control testing and substantive testing and create an exception memorandum with recommendations to be submitted to the Deputy Chief Examiner.

9.2.5 For examination of a self-funded health benefit plan (plan), the examination actuary shall perform, at a minimum, the following procedures:

9.2.5.1 Utilize the necessary planning information gathered by the field examiners to understand the nature of the plan’s business and operations. This may include meeting with the IDOI f to gain an understanding of the plan information available to the Department. Discuss risks and concerns highlighted in the quarterly and year-end memoranda as well as the plan’s financial condition and operating results since the last examination. Document a summary of significant risks in actuarial perspective pertaining to:

9.2.5.1.1 Appropriateness/adequacy of stop loss program

9.2.5.1.2 Product design, contribution policy, and contribution adequacy

9.2.5.1.3 Reserve data

9.2.5.1.4 Reserve adequacy

9.2.5.2 Obtain copies or relevant information available to the Department as deemed necessary to aid in the identification of significant risks and document in TeamMate.

9.2.5.3 Review appropriateness of quarterly reserve adjustments and methodology used.

9.2.5.4 Conduct test of reserve underlying data, methodologies, and calculations.

9.2.5.5 Review plan’s compliance to statutory reserving requirements.

9.2.5.6 Review actuarial opinions for all the years under examination including the reasonableness of plan’s methodologies for determining the IBNP liability.

9.2.5.7 Determine appropriateness of reported claims settlement expenses.

9.2.5.8 Produce an actuarial examination report containing a clear and concise summary of the plan’s actuarial practices and procedures, examination methodologies applied, examination findings and recommendations, which may be submitted at the conclusion of the examination actuary’s assigned procedures.

Offerors must use the prompts below for their response to Section 9.2:

· Describe in detail how the examination actuary(s) likely to be assigned to perform the examinations will be available for occasional special assignments, including target exams.

· Describe in detail how the examination actuary(s) likely to be assigned to perform the examinations will provide testimony before an adjudicatory body in relation to actuarial examinations as determined necessary by IDOI.

· Describe in detail how the examination actuary(s) likely to be assigned to perform the examinations are able to perform the actuarial portion and other assigned related areas of the examinations timely without sacrificing quality. Include techniques used to mitigate possible delays in the examination process.

· Describe in detail how the examination actuary(s) likely to be assigned to perform the examinations will perform the actuarial part of the financial examination using the risk-focused approach.

· Describe in detail how the examination actuary(s) likely to be assigned to perform the examinations will inform the Department of any conflicts of interests towards the examination of an insurance company or self-funded plan.

Equipment and Materials 9.3

9.3.1 The Contractor shall provide any tools, equipment, supplies, transportation, and materials that are necessary to perform and render all services required by the Contract.

9.3.2 The Contractor shall maintain the following software and conduct the following procedures to protect the integrity and confidentiality of examination data and e-workpapers as contemplated in Idaho Code § 41-227(10), and shall allow IDOI IT staff to review the Contractor’s computer system for compliance:

9.3.2.1 After the Contract is awarded, the Contractor must possess or obtain and maintain a license for TeamMate e-workpaper software (IDOI will contact NAIC to authorize Contractor purchase of TeamMate, if necessary);

9.3.2.2 A firewall;

9.3.2.3 Anti-spyware/malware software;

9.3.2.4 Anti-virus protection software;

9.3.2.5 Maintain current updates to computer operating system

9.3.2.6 Make a daily back-up copy of the examination work product;

9.3.2.7 Provide password protection;

9.3.2.8 Provide whole-disk encryption for laptop; and

9.3.2.9 Ability to remotely wipe the laptop files as soon as notice of loss is submitted by the field examiner.

9.3.3 The Contractor shall maintain access to current copies of the Idaho Insurance Code, Idaho insurance rules and bulletins, and all other Idaho-specific reference authority relevant to each assignment performed by the Contractor. The Contractor shall also maintain access to an up-to-date copy of the NAIC Financial Condition Examiner’s Handbook, NAIC Market Regulation Handbook NAIC Annual Statement Instructions and Accounting Practices & Procedures Manual while performing assignments under the Contract.

Assignment of Work and Deliverables There is no guarantee of any minimum amount of Work that will be assigned under the Contract(s). Individual projects or tasks will be assigned to the Contractor(s) by the IDOI Deputy Chief Examiner or Chief Examiner based upon the anticipated needs of IDOI. Services will be non-exclusive, meaning IDOI will assign work among multiple Contractors in accordance with the provisions of Idaho Code § 67-9211(3), and may assign a single examination to more than one Contractor, if determined to be appropriate or necessary by IDOI in its sole discretion.

Reports and Deliverables 9.4 9.5

9.5.1 The Contractor must provide all reports as identified in Appendix C, Reports.

9.5.2 Upon completion of an assignment under the Contract, or at such other time as determined by IDOI, the Contractor shall submit to IDOI a written actuarial report for self-funded plan examinations. Such report shall be in a form acceptable to IDOI.

9.5.3 The Contractor will provide testimony concerning assignments performed under the Contract, and will provide such supporting information as is determined necessary by IDOI or by the court in providing such testimony.

9.5.4 The Contractor will provide the Examiner-in-charge and the IDOI management with regular written reports and oral reports regarding examinations in progress every two (2) weeks.

9.5.5 Any reports, studies, photographs, negatives, or other documents or drawings prepared by the Contractor in the performance of its obligations under the Contract are owned by, and are intended for the exclusive use of, IDOI; shall be held confidential and not be disclosed to any person without the prior written consent of IDOI; and shall be the exclusive property of IDOI, both during the performance of assignments under this Contract and upon completion, termination or cancellation of the Contract. The Contractor shall hold all communications with IDOI pursuant to the Contract confidential and shall not disclose those communications to anyone outside IDOI, unless upon IDOI’s prior written direction. The Contractor shall not disclose, use, or cause any such materials or information to be used for any purpose, other than in relation to the performance of the Contractor’s obligations under the Contract, without the prior written consent of IDOI.

9.5.6 Any and all reports, analyses, work papers, and data, whether statistical or otherwise, that are in process or have been completed by the Contractor pursuant to the Contract, whether or not transmitted to IDOI, shall be the property of IDOI for such uses as it shall deem appropriate, and shall not be disclosed to any person outside IDOI without the prior written consent of IDOI. Except as may be required by applicable law, and then only upon timely prior notice to and approval by IDOI, the Contractor shall maintain strict confidence concerning all matters and services contemplated in the Contract. Such confidentiality obligation shall survive termination of the Contract.

9.5.7 The books, records, documents, and work product of the Contractor shall be subject to inspection, examination, and audit by IDOI, the Idaho Attorney General or his Deputy, and the State Legislative Auditor at any time during normal business hours throughout the duration of the Contract, and prior to the finalization of any report prepared by the Contractor pursuant thereto. At the time any report prepared pursuant to the Contract shall become final, all materials described herein shall be transferred by the Contractor to IDOI.

ATTACHMENT 1 – PRE-PROPOSAL CONFERENCE REGISTRATION FORM

RFP Event 225 Actuarial Services

Actuarial Services

Oral Information: Questions concerning an RFP must be directed in writing to the RFP Lead in the time period prescribed in the RFP document. Vendors are cautioned against relying on any verbal information, and do so at the Vendor’s sole risk. The RFP may only be amended by written documentation posted to the state’s eProcurement System, IPRO.

Potential Offerors choosing to participate in the Pre-Proposal Conference must pre-register by submitting this completed form, via e-mail, to the RFP Lead at Thayne.pearson@adm.idaho.gov. After the RFP Lead receives your form and the registration deadline passes, you will be provided with phone conferencing and meeting details. Please indicate in the appropriate column if your attendance will be by phone. Attendees are asked to register for the Pre-Proposal Conference no later than 5:00pm, Mountain Time, Friday January 19,2023.

PLEASE PRINT:

ATTACHMENT 2 – OFFEROR QUESTIONS

Instructions:

DO NOT IDENTIFY YOUR NAME OR YOUR COMPANY’S NAME OR PRODUCT NAMES OF INTELLECTUAL PROPERTY IN YOUR QUESTIONS.

ADD ROWS BY HITTING THE TAB KEY WHILE WITHIN THE TABLE AND WITHIN THE FINAL ROW.

The following instructions must be followed when submitting questions using the question format on the following page.

1. DO NOT CHANGE THE FORMAT OR FONT. Do not bold your questions or change the color of the font.

1. Enter the RFP section number that the question is for in the “RFP Section” field (column 2). If the question is a general question not related to a specific RFP section, enter “General” in column 2. If the question is in regards to a State Term and Condition or a Special Term and Condition, state the clause number in column 2. If the question is in regard to an attachment, enter the attachment identifier (example “Attachment 1”) in the “RFP Section” (column 2), and the attachment page number in the “RFP page” field (column 3).

1. Do not enter text in the “Response” field (column 5). This is for the State’s use only.

1. Once completed, this form is to be e-mailed per the instructions in the RFP. The e-mail subject line is to state the RFP number followed by “Questions.” DO NOT SUBMIT QUESTIONS VIA IPRO.

ATTACHMENT 3 – MODIFICATION AND EXCEPTION FORM

Instructions: Complete this form and submit with your RFP submittal if you are proposing modifications or taking exception to any of the requirements, terms, or conditions included in the RFP, including any documents incorporated by reference (such as the Standard Contract Terms and Conditions.) See RFP Section 2.4 for a full explanation of the process surrounding vendor-proposed modifications and exceptions.

Offerors must specifically address any and all proposed modifications and exceptions. Blanket requests to negotiate requirements, terms, or conditions will not be considered. Offerors must provide an explanation as to why the requirement, term, or condition should be considered non-material. Offeror must also provide a reason for the proposed modification or alternative language, specifically addressing the issues itemized in RFP Section 2.4.1.

The determination of materiality will be made at the State’s sole discretion. Non-material modifications or exceptions may be negotiated with the apparent successful Offeror, at the discretion of the State, and as otherwise provided in RFP Section 2.4.4.

ATTACHMENT 4 – COVER FORM

(M) Attachment 4, Cover Form must be completed, signed, and submitted with your Proposal. Failure to complete and submit this form may result in your Proposal being deemed non-responsive.

Instructions: The Technical Proposal must include a signed copy of this cover form. Copy and paste this form onto your company letterhead, or include the following information: Offeror’s company name, mailing address, phone number, fax number, e-mail address, and name of Offeror’s authorized signer. The cover form must include the RFP Number and Title and must be signed by an individual authorized to commit the Offeror to the contents of the Proposal.

☐ Limited Liability Corporation (LLC) ☐ Limited Liability Partnership ☐Sole Proprietorship ☐ Other (specify)

Offeror’s Tax Identification Number

EIN:

Offeror’s DUNS Number

DUNS:

Is Offeror a legal entity with the legal right to contract?

☐ Yes ☐ No

Other than modifications/exceptions identified on Attachment 3, in compliance with Section 2.4 of this RFP, does Offeror accept, and is Offeror willing to comply with, the requirements of this RFP and attachments, including but not limited to those identified in Section 1.4 and the Special Terms and Conditions in Appendix?

☐ Yes ☐ No

Is Offeror in compliance with applicable equal employment regulations?

☐ Yes ☐ No

Does Offeror affirm that it has not employed any company or person other than a bone fide employee working solely for the Offeror or a company regularly employed as its marketing agent, to solicit or secure the Contract, and that it has not paid or agreed to pay any company or person, other than a bone fide employee working solely for the Offeror or a company regularly employed by the Offeror as its marketing agent, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award of the Contract.?

☐ Yes ☐ No

Does Offeror understand and agree that for breach or violation of the…