Current through 2024-38, September 18, 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 rule 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
6 of this rule.
(2) Upon written request by the company, the
Superintendent 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 Superintendent (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 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 Superintendent during the past five (5) years, pursuant to
this rule, an actuarial opinion or memorandum that the Superintendent rejected
because it did not meet the provisions of this rule including standards set by
the Actuarial Standards Board;
(e)
Resigned or been removed as an actuary within the past five (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 Superintendent 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 rule; 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 Superintendent 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 Superintendent 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 rule:
(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 rule, which standards are to form the
basis of the statement of actuarial opinion in accordance with this rule;
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 Title
24-A M.R.S.A.
Section952-A, 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 8, 9 and 10, and claim liabilities in Exhibit II, 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 Title
24-A M.R.S.A.
Sections954,
957, and
957-A,
the company shall establish the additional reserve.
(3) Additional reserves established under
Paragraphs (2) above 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.
