(1) The board of
directors of each insurer shall appoint one or more illustration
actuaries.
(2) The illustration
actuary shall certify that the disciplined current scale used in illustrations
is in conformity with the Actuarial Standard of Practice for Compliance with
the NAIC Model Regulation on Life Insurance Illustrations promulgated by the
Actuarial Standards Board, and that the illustrated scales used in
insurer-authorized illustrations meet the requirements of
211
CMR 28.00.
(3) The illustration actuary shall:
(a) Be a member in good standing of the
American Academy of Actuaries
(b)
Be familiar with the standard of practice regarding life insurance policy
illustrations
(c) Not have been
found by the commissioner, 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 an illustration actuary;
2. Been found guilty of fraudulent or
dishonest practices;
3.
Demonstrated his or her incompetence, lack of cooperation, or untrustworthiness
to act as an illustration actuary; or
4. Resigned or been removed as an
illustration 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 a
failure to adhere to generally acceptable actuarial standards.
(d) Not fail to notify the
commissioner of any action taken by a commissioner of another state similar to
that under 211 CMR 28.11(3)(c).
(e)
Disclose in the annual certification whether, since the last certification, a
currently payable scale applicable for business issued within the previous five
years and within the scope of the certification has been reduced for reasons
other than changes in the experience factors underlying the disciplined current
scale. If nonguaranteed elements illustrated for new policies are not
consistent with those illustrated for similar in force policies, this must be
disclosed in the annual certification. If nonguaranteed elements illustrated
for both new and in force policies are not consistent with the nonguaranteed
elements actually being paid, charged or credited to the same or similar forms,
this must be disclosed in the annual certification; and
(f) Disclose in the annual certification the
method used to allocate overhead expenses for all illustrations:
1. Fully allocated expenses;
2. Marginal expenses; or
3. A generally recognized expense table based
on fully allocated expenses representing a significant portion of insurance
companies and approved by the commissioner.
(4)
(a) The
illustration actuary shall file a certification with the board and with the
commissioner:
1. Annually for all policy
forms for which illustrations are used
2. Before a new policy form is
illustrated
(b) If an
error in a previous certification is discovered, the illustration actuary shall
notify the board of directors of the insurer and the commissioner
promptly.
(5) If an
illustration actuary is unable to certify the scale for any policy form
illustration the insurer intends to use, the actuary shall notify the board of
directors of the insurer and the commissioner promptly of his or her inability
to certify.
(6) A responsible
officer of the insurer, other than the illustration actuary, shall certify
annually:
(a) That the illustration formats
meet the requirements of
211
CMR 28.00 and that the scales used in
insurer-authorized illustrations are those scales certified by the illustration
actuary.
(b) That the company has
provided its agents with information about the expense allocation method used
by the company in its illustrations and disclosed as required in 211 CMR
28.11(3)(f).
(7) The
annual certifications shall be provided to the commissioner each year by a date
determined by the insurer.
(8) If
an insurer changes the illustration actuary responsible for all or a portion of
the company's policy forms, the insurer shall notify the commissioner of that
fact promptly and disclose the reason for the change .
