1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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.

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

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

11. 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 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

12. 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 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.)

13. 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

14. 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.