Current through Register Vol. 50, No. 9, September 20, 2024
A. Submission of
Statement of Actuarial Opinion
1. There is to
be included on or attached to Page 1 of the annual statement for each year
beginning with the year in which this regulation 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
§2111 of this regulation.
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, the insurance law or other law in the course of his or
her dealings as a qualified actuary;
b. been found guilty of fraudulent or
dishonest practices;
c.
demonstrated his or her 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
regulation, an actuarial opinion or memorandum that the commissioner rejected
because it did not meet the provisions of this regulation including standards
set by the Actuarial Standards Board; or
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 above.
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 regulation, 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 the 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 regulation:
1. shall conform to the
Standards of Practice as promulgated from time to time by the Actuarial
Standards Board and on any additional standards under this regulation, which
standards are to form the basis of the statement of actuarial opinion in
accordance with this regulation; and
2. shall be based on methods of analysis as
are deemed appropriate for such purposes by the Actuarial Standards
Board;
3. shall comply with the
commissioner's specific method of actuarial analysis when the commissioner has
specified a method of actuarial analysis to be in effect for a particular
company. When a conflict exists between a commissioner specified method of
actuarial analysis and the standards of Paragraphs 1 and 2, the commissioner's
specific method of actuarial analysis prevails.
E. Liabilities to be Covered
1. Under authority of
R.S.
22:752, the statement of actuarial opinion
shall apply to all in force business on the statement date, whether directly
issued or assumed, regardless of when or where issued, e.g., reserves of
Exhibits 5, 6 and 7, and claim liabilities in Exhibit 8, Part I 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 the Standard Valuation Law, the company shall establish
the additional reserve.
3.
Additional reserves established under Paragraph 2 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 would not be deemed an adoption of a lower standard of
valuation.
AUTHORITY NOTE:
Promulgated in accordance with
