Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 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 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 part
2711.0230.
B. Upon written request by the company, the
commissioner may grant an extension of the date for submission of the Statement
of Actuarial Opinion.
Subp.
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 the
individual's dealings as a qualified actuary;
(2) been found guilty of fraudulent or
dishonest practices;
(3)
demonstrated the individual's incompetency, lack of cooperation, or
untrustworthiness to act as a qualified actuary;
(4) 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; 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 item D.
Subp. 3.
Appointed actuary.
An appointed actuary is a qualified actuary who is appointed or
retained by the board of directors to prepare the Statement of Actuarial
Opinion required by this chapter. The company shall give the commissioner
timely written notice of the name and title 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 in subpart
2. In the case of a
consulting actuary, the company shall include the name of the firm in the
notice. Once notice is furnished, no further notice is required with respect to
this person, provided that the company gives 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 in subpart
2. If any person appointed or
retained as an appointed actuary replaces a previously appointed actuary, the
notice must so state and give the reasons for replacement.
Subp. 4.
Standards for asset adequacy
analysis.
The asset adequacy analysis required by this chapter:
A. must conform to the Standards of Practice
as adopted from time to time by the Actuarial Standards Board and on any
additional standards under this chapter, which standards are to form the basis
of the Statement of Actuarial Opinion in accordance with this chapter;
and
B. must be based on methods of
analysis as are deemed appropriate for such purposes by the Actuarial Standards
Board.
Subp. 5.
Liabilities to be covered.
A.
Under authority of Minnesota Statutes, section
61A.25,
subdivision 2a, the Statement of Actuarial Opinion applies to all in force
business on the statement date, whether directly issued or assumed, regardless
of when or where issued. For example, reserves of Exhibits 5, 6, and 7, and
claim liabilities in Exhibit 8, 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 in Minnesota Statutes,
section
61A.25,
the company shall establish the additional reserve.
C. Additional reserves established under item
B 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 reserves would not be deemed an adoption of a lower standard of
valuation.
Statutory Authority: MS s
45.023;
61A.25
