NAIC - Annual Membership Dues FY26

The Illinois Department of Insurance is pursuing a sole source procurement for annual membership dues with the National Association of Insurance Commissioners (NAIC) for the fiscal year period of May 1, 2026, through April 30, 2027. This procurement is categorized as a new sole source award with a one-time purchase structure and no renewal options specified in the current documentation, though historical records indicate a pattern of annual renewals dating back to fiscal year 2019. The service being procured is organizational membership with NAIC, the only nationally recognized accreditation authority for state insurance regulators in the United States, with all 50 states, the District of Columbia, and Puerto Rico currently accredited under its program. The contract value for fiscal year 2026 is $110,800, representing a slight decrease of $538 from the prior year's cost of $111,338. The membership dues are assessed through a standardized and transparent assessment methodology applied uniformly across all member jurisdictions, calculated based on Illinois' proportional share of national premium volume written by domiciled insurers, including major carriers such as Allstate and State Farm. Beyond membership dues, the procurement includes ancillary benefits consisting of approximately 50 percent discounts on Teammate software licenses and associated training resources used by the Department's regulators. The deadline for interested parties to submit written comments or requests for a public hearing is 4:00 p.m. on March 13, 2026, with a scheduled sole source hearing on March 18, 2026, at 2:00 p.m. via WebEx.

This procurement is designated as a sole source award with no set-asides or restrictions on organizational types, as NAIC is determined to be the only entity capable of providing the required services due to its unique role as the sole nationally recognized accreditation authority for state insurance regulators. The incumbent vendor is the National Association of Insurance Commissioners, which has maintained a continuous contractual relationship with the State of Illinois, with documented annual membership costs ranging from $86,309 to $111,338 over the seven fiscal years preceding this procurement. The sole source determination emphasizes that NAIC membership fees are not subject to negotiation and are established through the organization's standardized assessment methodology. Funding is provided through state appropriated funds, and the Department has determined the pricing to be fair and reasonable based on NAIC's uniform assessment approach across all member jurisdictions. The justification for the sole source award stresses that continued NAIC accreditation is essential for maintaining regulatory reciprocity among states, protecting approximately 300,000 insurance-related jobs in Illinois, and avoiding the substantial staffing and operational costs that would result from independent examination and regulation of approximately 1,000 foreign insurers currently operating within the state. The sole source determination was approved by the State Purchasing Officer on March 2, 2026, and authorized by the Comptroller's Office on March 18, 2026.