Captive Actuarial Examinations of Insurance Companies

The Michigan Department of Insurance and Financial Services is requesting proposals for captive actuarial examinations of insurance companies under RFP 260000002052, with proposals due June 15, 2026 at 5:00 p.m. EST. Written questions are due May 28, 2026 with answers posted by June 4, 2026. No pre-proposal meeting is scheduled.

This is a pre-qualification pool solicitation: the State will establish a roster of qualified contractors and issue individual Statements of Work for specific examinations as needed, with an anticipated average of two to six examinations per year across 27 currently licensed Michigan captive insurance companies. Contractors must be Fellows or Associates of the Casualty Actuarial Society (FCAS/ACAS) for property and casualty entities or the Society of Actuaries (FSA/ASA) for life and health entities. Key personnel require State pre-approval. The State imposes strict independence requirements: contractors may not maintain financial or contractual relationships with examined entities for two years prior to, during, and two years following contract performance. A 20% subcontracting preference to Michigan-based Geographically Disadvantaged Business Enterprises (GDBE) applies when subcontracting exceeds 20% of deliverables.

Contractors must complete individual examinations within timeframes specified in project-specific SOWs and deliver final reports within 14 calendar days after finalization, with all activities completed within five months from examination start. Hourly rates submitted in the proposal must be firm for the contract term, though adjustments based on documented cost changes may be negotiated with mutual agreement. Pricing is established on a project-by-project basis; submitted rates must include travel costs. Liquidated damages of $5,000 plus $100 per day apply for late or improper completion. Unauthorized removal of key personnel triggers credits up to $50,000 per individual.

The contract term runs from November 1, 2026 through October 31, 2029, with up to three additional two-year renewal periods at State discretion. Contractors must maintain Commercial General Liability of $1 million per occurrence, Umbrella or Excess Liability of $5 million per occurrence, and Professional Liability/Errors and Omissions of $3 million. Evaluation assigns equal weight (25 points each) to Product Quality, Service Capabilities, Delivery Capabilities, and the Vendor Questions Worksheet; proposals require a minimum of 80 technical points for pricing review. The State Administrative Board must approve all contracts valued at $250,000 or more. Proposals become public records immediately upon receipt by the State.