STATE OF NEW MEXICO OFFICE OF SUPERINTENDENT OF INSURANCE OSI Paperless, Electronic Web-based Environment Project – Phase 1 for eDocket, Case Management, Capture/Scan Project Certification – Implementation Phase Presented to PCC: May 21, 2014

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Introduction – Stakeholders John G. Franchini, Superintendent of Insurance Jolene M. Gonzales, Chief Administrative Officer Alan Seeley, Acting Deputy Superintendent Bryan Maestas, Chief Financial Officer David P. Barton, General Counsel Larry Padilla, IT Specialist Project Director - Nanda Kumar, Chief Information Officer Project Manager / Business Analyst, Rand Tilton, CSW – full-time Business Analyst / Records Management, Jane Hamlet, CSW – part- time

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Background ‘The Office of Superintendent of Insurance (OSI) was created on July 1, 2013 pursuant to the passage of Constitutional Amendment 4 during the 2012 General Election and the subsequent enactment of House Bill 45 (Laws of 2013, Chapter 74) from the 1st Session of the 51st Legislature. These actions removed the insurance regulatory function from the Public Regulation Commission (where it was housed as the “Insurance Division”) and placed it in a newly-created adjunct state agency entitled the “Office of Superintendent of Insurance.” The enabling legislation also created an Insurance Nominating Committee to appoint the Superintendent of Insurance.’ 1  ‘The staff and physical location of the OSI have remained essentially the same as they were while in the Insurance Division of the PRC. The incumbent Superintendent of Insurance under the PRC, John Franchini, was subsequently appointed by the Insurance Nominating Committee to retain his role as Superintendent. As mentioned in its Vision Statement, the OSI currently has the following broad initiatives: Initiative 1: Migrate the eDocket process from the PRC system to an independent OSI owned system. Initiative 2: Replace the Agency’s dysfunctional legacy system (IDEAL) with the fully functional system promulgated by the National Association of Insurance Commissioners (SBS).’ From the OSI FY 15 Strategic Plan

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project OSI Paperless, Web-Based Project Phase 1 Objectives. Configure, install, and implement the migration of the eDocket system from the PRC system to an independent OSI owned system. The OSI docketing process maintains all OSI legal documentation relating to the insurance code. Examples would be violations, complaints, investigation, or insurance code rule or statute change. The docketing process scans, indexes, stores and manages all incoming legal documentation and active and inactive records generated by the OSI. The document or package of documents or records is termed a case or docket. Configure, install, and implement a desktop Case Management process that provides access to all the software functions including eDocket, business workflow and document control functionality. This Case Management system will be used primarily by the OSI legal staff to retrieve, modify, analyze, and manage the disposition of all legal insurance code dockets and cases. Examples would be court or legal decisions, violations, complaints, investigation, or insurance code rule or statute change. Configure, install, and implement the process to capture/scan/file/retrieve all the paper historical insurance records, files, and documents currently stored in boxes for the OSI Bureaus and Business Units. Indexed, scanned, and filed per specific bureau requirements, the documents can be retrieved for all OSI business needs for these Bureaus. Financial Audit Agents Company Patient Compensation Fund Examinations Other Bureaus and Business units as identified

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Technical Benefits for OSI: Hardware, software and equipment is solely owned and maintained by OSI, no longer co-mingled with PRC. Host servers and scanning equipment at OSI in the PERA Building. Improve hardware performance. Infrastructure configuration is scalable. Compliant scripting tool used to build rules-based workflow functionality. Allow programmatic access to all data elements and objects, as well as to components such as COM, ODBC, ADO and SMTP Provide functionality for single, batch and package mode scanning Provides image processing, bar code recognition, and file importing Provides maximum control over the final appearance of difficult-to-scan documents and mixed-quality documents

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Business Benefits for OSI: Ability to notify users of case initiation and case modification; Add date and time stamp to each new case; Capability to revise report formats. Improve ability to manage scanning process; rescan skipped pages or poorly scanned pages into the proper location in a scanned file without the need to rescan the whole file; Notify user of stalled workflow. Add notification of records retention schedule. View, Organize and Interact with documents, images, and content within multiple business processes and business groups Support cross Bureau collaboration through comprehensive workflow, version control, annotation, and secure digital signatures Strengthen compliance through records and information management functionality Manage user privileges according to defined administrative levels, specific to each manager Comply with SRCA (State Records Center and Archives) management and imaging system plan

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Project Progress Initiation and Planning Phases complete As-Is and To-Be Business processes defined. Project Management Plan up to date. Technical Architecture Review Approval received. Software Purchase Order complete and software received. Hardware Purchase Order in signature approval loop. Configuration Vendor Contract in signature approval loop. IV&V Contract in signature approval loop. SRCA Records Management compliant

Proposed Major Deliverable Schedule and Performance Measure Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Proposed Major Deliverable Schedule and Performance Measure Proposed Major Deliverable Schedule and Performance Measures Major Project Deliverable Schedule Due Date Project Phase Procure Project Manager/Business Analyst Sept. 9, 2013 Initiation Project Certification, Project Charter Oct. 23, 2013 eDocket and Case Management Business Process Mapping Feb. 28, 2014 Planning Capture/Scan/File/Retrieve Business Process Mapping March 14, 2014 eDocket, Case Mgmt, Capture/Scan Hardware & Software Procurement May 16, 2014 IV&V Contract May 23, 2014 eDocket Deploy Aug 29, 2014 Implementation Case Management Deploy Sept 12, 2014 Capture/Scan Deploy: Financial Audit Bureau Jan 9, 2015 Capture/Scan Deploy: Agents Bureau April 10, 2015 Capture/Scan Deploy: Company Bureau May 22, 2015 Capture/Scan Deploy: Patients Compensation Fund and Examinations Bureau July 24, 2015 Major Project Deliverable Performance Measures All deliverables above (with exception of HW/SW procurement and IV&V contract) are measured as completed and accurate by completion of the deliverables in the contract Scopes of Work and approved by the Executive Steering Committee. The procurements are completed when approved through signature loop.

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Appropriation History Fiscal Year 2013 Amount: $590,000 Funding Source: Laws 2012, Chapter 19, Section 7. (The appropriation is from assessments authorized by Section 59A-6-1.1 NMSA 1978 for an insurance division licensing and revenue accounting system) Fiscal Year 2014 Amount: $1,250,000 Funding Source: Laws 2013, Chapter 227, Section 7. (The appropriation is from the insurance operations fund.) Total Appropriated Funds $1,840,000

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Certification History June 2012 Amount: $100,000 Funding Source: Laws 2012, Chapter 19, Section 7. (The appropriation is from assessments authorized by Section 59A-6-1.1 NMSA 1978 for an insurance division licensing and revenue accounting system) October 2013 Amount: $490,000 May 21, 2014 (this request) Amount: $750,000 Funding Source: Laws 2013, Chapter 227, Section 7. (The appropriation is from the insurance operations fund.)

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Total Cost of Ownership Total Cost of Ownership: OSI Paperless, Web-Based Environment Project through FY 18 Rev 5/7/2014   Description FY14 FY15 FY16 FY17 FY18 Professional Services Project Management $104,000.00 $175,000.00 $88,000.00 $0.00 Implement eDocket $197,343.31 Implement Case Management $120,000.00 Implement Capture/Scan Financial Audit $50,000.00 Implement Capture/Scan Agents Implement Capture/Scan Company Implement Capture/Scan PCF & Examinations Temporary Staff: Document Scan $109,000.00 IV&V $18,596.60 $14,124.00 $7,062.00 Software Perceptive $85,836.39 Visio, MS Project, Acrobat $11,998.38 Hardware Server/Storage $87,554.52 Server/Storage Installation $11,360.00 Operations Perceptive Software Maintenance $15,708.20 $17,279.00 Scanner Maintenance $3,000.00 Other Contingency (SBS Integration, Future SW upgrade, Maintenance, SAN, Licenses, scanning HW) $100,000.00 $150,000.00 $102,026.40 Total $532,397.40 $736,832.20 $356,403.00 $214,367.40 Total Project Costs $1,840,000.00

Office of Superintendent of Insurance Paperless, Electronic Web-based Environment Project Requesting Approval for Project Implementation Phase Certification and Release of Funds in the Amount of $750,000.00 Thank you.