Current through Register 1531, September 27, 2024
(1)
Submission of Statement of Actuarial Opinion.
(a) There is to be included on or attached to
Page 1 of the annual statement for each year beginning with the year in which
211 CMR 132.00 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
211
CMR 132.06;
(b) Upon written request by the company, the
Commissioner may grant an extension of the date for submission of the statement
of actuarial opinion.
(2)
Qualified
Actuary. A "qualified actuary" is an individual who:
(a) Is a member in good standing of the
American Academy of Actuaries;
(b)
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;
(c) Is familiar with
the valuation requirements applicable to life and health insurance
companies;
(d) 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:
1. 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;
2. Been found guilty of fraudulent or
dishonest practices;
3.
Demonstrated his or her incompetency, lack of cooperation, or untrustworthiness
to act as a qualified actuary;
4.
Submitted to the Commissioner during the past five years, pursuant to
211 CMR 132.00, an actuarial
opinion or memorandum that the Commissioner rejected because it did not meet
the provisions of 211 CMR 132.000 including standards set by the Actuarial
Standards Board; or
5. 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
(e) Has not failed to notify the
Commissioner of any action taken by any Commissioner of any other state similar
to that under 211 CMR 132.05(2)(d).
(3)
Appointed
Actuary. An "appointed actuary" is a qualified actuary who is
appointed or retained to prepare the Statement of Actuarial Opinion required by
211 CMR 132.00 by the board
of directors either directly or 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 211 CMR
132.05(2). 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 211 CMR
132.05(2). 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.
(4)
Standards for Asset Adequacy Analysis. The asset
adequacy analysis required by
211 CMR 132.00:
(a) Shall conform to the Standards of
Practice as promulgated by the Actuarial Standards Board and to any additional
standards under
211 CMR 132.00, which
standards are to form the basis of the statement of actuarial opinion in
accordance with
211
CMR 132.06; and
(b) Shall be based on methods of analysis as
are deemed appropriate for such purposes by the Actuarial Standards
Board.
(5)
Liabilities to be Covered.
(a) Under authority M.G.L. c. 175, § 9B,
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 11, Part 1 and equivalent items in the separate account
statement or statements.
(b) 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 M.G.L. c. 175, §
9B, the company shall establish the additional reserve.
(c) Additional reserves established under 211
CMR 132.05(5)(b) 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.
