Florida Administrative Code
69 - DEPARTMENT OF FINANCIAL SERVICES
69O - OIR - Insurance Regulation
Chapter 69O-138 - FINANCIAL EXAMINATIONS AND REQUIREMENTS
Section 69O-138.043 - General Requirements
Universal Citation: FL Admin Code R 69O-138.043
Current through Reg. 50, No. 187; September 24, 2024
(1) Submission of Statement of Actuarial Opinion.
(a)
Included on or attached to Page 1 of the annual statement for each year, shall
be the statement of an appointed actuary, entitled "Statement of Actuarial
Opinion," setting forth an opinion relating to reserves and related actuarial
items held in support of policies and contracts, in accordance with Rule
69O-138.046, F.A.C.
(b) Upon written request by the company, the
Office will, for good cause, grant an extension of the date for submission of
the statement of actuarial opinion. Good cause includes the occurrence of an
event or circumstance beyond the control of the company, which prevents
compliance and could not be reasonably remedied or foreseen by the
company.
(2) Qualified Actuary.
(a) The company shall give the
Office, prior to or concurrent with the filing of the first annual statement to
which this rule applies, written notice of the name, title (and, in the case of
a consulting actuary, the name of the firm) and manner of appointment or
retention of each person appointed or retained by the company as an appointed
actuary and shall state in such notice that the person meets the requirements
set forth in this paragraph (2)(b), below.
(b) Any appointed actuary will be considered
to be a "Qualified Actuary" if he or she:
1.
Is a member in good standing of the American Academy of Actuaries;
2. Is qualified to sign statements of
actuarial opinion for life and health insurance company annual statements in
accordance with the American Academy of Actuaries qualification standards for
actuaries signing such statements;
3. Is familiar with the valuation
requirements applicable to life and health insurance companies;
4. Has not been found by the Office (or if so
found has subsequently been reinstated as a qualified actuary), following
appropriate notice and hearing to have:
a.
Violated any provision of, or any obligation imposed by, the Insurance Code or
other state or federal law relating to insurance in the course of his or her
dealings as a qualified actuary;
b.
Been found guilty of or pleaded guilty or nolo contendere to fraudulent or
dishonest practices without regard to whether a judgment of conviction has been
entered by the court having jurisdiction in such case;
c. Demonstrated his or her incompetency, lack
of cooperation, or untrustworthiness to act as a qualified actuary;
d. Submitted to the Office during the past 5
years, pursuant to this part, an actuarial opinion or memorandum that the
Office rejected because it did not meet the provisions of this part including
standards set by the Actuarial Standards Board; or
e. Resigned or been removed as an appointed
actuary within the past 5 years as a result of acts or omissions indicated in
any adverse report on examination or as a result of failure to adhere to
generally acceptable actuarial standards; and,
5. Has not failed to notify the Office of any
action taken by any insurance supervisory official of any other state similar
to that under subparagraph (2)(b)4., above.
(c) Once notice is furnished, no further
notice is required with respect to this person provided the company shall give
the Office written notice in the event the actuary ceases to be appointed or
retained as an appointed actuary or to meet the requirements set forth in
paragraph 69O-138.043(2)(b),
F.A.C. Notice must be prior to or concurrent with the termination of the
actuary's appointment or retention, or upon discovery that the actuary no
longer meets the requirements set forth in paragraph
69O-138.043(2)(b),
F.A.C. All filings shall be submitted electronically to
http://www.floir.com/iportal.
(d)
If any person appointed or retained as an appointed actuary replaces a
previously appointed actuary, the notice shall so state and give the reasons
for replacement.
(3) Standards for Asset Adequacy Analysis. The asset adequacy analysis required by this part shall:
(a) Conform to the Standards
of Practice as promulgated from time to time by the Actuarial Standards Board
and on any additional standards under this part, which standards are to form
the basis of the statement of actuarial opinion in accordance with Rule
69O-138.046, F.A.C., of this
part; and,
(b) Be based on methods
of analysis deemed appropriate for such purposes by the Actuarial Standards
Board.
(4) Liabilities to be Covered.
(a) Under authority of subsection
(3), of the Standard Valuation Law, section
625.121, F.S., the statement of
actuarial opinion shall apply to all in-force business on the statement date
regardless of when or where issued, e.g., reserves of Exhibits 5, 6 and 7, and
claim liabilities in Exhibit 8, Part I of the Annual Statement, and equivalent
items in the separate account statement or statements.
(b) If the appointed actuary, as the result
of asset adequacy analysis, determines that a reserve shall be held in addition
to the aggregate reserve held by the company and calculated in accordance with
methods set forth in subsections 7, 11, 12, and 14 of the Standard Valuation
Law, the company shall establish the additional reserve.
(c) Additional reserves established under
paragraph (4)(b), above, and deemed not necessary in subsequent years may be
released. Any amounts released shall be disclosed in the actuarial opinion for
the applicable year. The release of such reserves will not be deemed an
adoption of a lower standard of valuation.
Rulemaking Authority 624.308(1), 625.121(3)(a) FS. Law Implemented 624.307(1), 624.316(1)(c), 624.424(1), 625.121(3) FS.
New 5-18-93, Amended 2-16-94, 1-23-03, Formerly 4-138.043, Amended 7-30-17.
Disclaimer: These regulations may not be the most recent version. Florida may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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