Current through August, 2024
(a) Submission of
statement of actuarial opinion.
(1) There is
to be included on or attached to page one of the annual statement for each year
beginning with the year in which this chapter becomes effective 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 section
16-169-7.
(2) Upon written request
by the company, the commissioner may grant an extension of the date for
submission of the statement of actuarial opinion.
(b) Qualified actuary. A "qualified actuary"
is an individual who:
(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 commissioner
(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, chapter
431, HRS, or other law in the course
of the actuary's dealings as a qualified actuary;
(B) Been found guilty of fraudulent or
dishonest practices;
(C)
Demonstrated incompetency, lack of cooperation, or untrustworthiness to act as
a qualified actuary;
(D) Submitted
to the commissioner during the past five years, pursuant to this chapter, an
actuarial opinion or memorandum that the commissioner rejected because it did
not meet the provisions of this chapter including standards set by the
Actuarial Standards Board;
(E)
Resigned or been removed as an actuary within the past five 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 commissioner of any action taken by any commissioner of any other
state similar to that under paragraph (4).
(c) Appointed actuary. An "appointed actuary"
is a qualified actuary who is appointed or retained to prepare the statement of
actuarial opinion required by this chapter either directly by or by the
authority of the board of directors through an executive officer of the company
other than the qualified actuary. The company shall give the commissioner
timely 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
subsection (b). Once notice is furnished, no further notice is required with
respect to this person, provided that the company shall give the commissioner
timely 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
subsection (b). 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.
(d)
Standards for asset adequacy analysis. The asset adequacy analysis required by
this chapter:
(1) Shall conform to the
Standards of Practice as promulgated from time to time by the Actuarial
Standards Board and to any additional standards under this chapter, which
standards are to form the basis of the statement of actuarial opinion in
accordance with section 16-169-7; and
(2) Shall be based on methods of analysis as
are deemed appropriate for such purposes by the Actuarial Standards
Board.
(e) Liabilities
to be covered.
(1) Under authority of section
431:5-307(j),
HRS, 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 in
exhibits 8, 9, and 10, and claim liabilities in exhibit 11, part I, contained
in Appendix A, entitled "Reserves and Related Actuarial Items" effective
October 4, 1997 located at the end and made a part of this chapter, and
equivalent items in the separate account statement or statements.
(2) If the appointed actuary determines as
the result of asset adequacy analysis that a reserve should be held in addition
to the aggregate reserve held by the company and calculated in accordance with
methods set forth in sections
431:5-307(d), (e),
(h), and (i), HRS, the company shall
establish such additional reserve.
(3) Additional reserves established under
paragraph (2) [or (3)] and deemed not necessary in subsequent years may be
released. Any amounts released must be disclosed in the actuarial opinion for
the applicable year. The release of such reserves would not be deemed an
adoption of a lower standard of valuation.
