Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 200 - Insurance Solvency and Company Regulation
Chapter 1 - Financial Solvency and Accounting Standards
Section 20 CSR 200-1.115 - Actuarial Opinions of Reserves of Life and Health Insurance Policies, Annuities and Pure Endowment Contracts
Universal Citation: 20 MO Code of State Regs 200-1.115
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule effectuates or aids in the interpretation of sections 376.370, 376.380 and 376.390, RSMo.
(1) Actuarial Opinion Required.
(A) Every life insurance company
doing business in this state annually shall submit the opinion of a qualified
actuary as to whether the reserves and related actuarial items held in support
of the company's policies and contracts are computed appropriate-l y, are based
on assumptions which satisfy contractual provisions, are consistent with prior
reported amounts and comply with applicable laws of this state.
(B) The opinion shall be submitted with the
annual statement reflecting the valuation of those reserve liabilities for each
year ending on or after December 31, 1992.
(C) The opinion shall apply to all business
in force including individual and group health insurance plans.
(D) The opinion shall be based on standards
adopted from time-to-time by the Actuarial Standards Board.
(E) In the case of an opinion required to be
submitted by a foreign or alien company, the director may accept the opinion
filed by that company with the insurance supervisory official of another state
if the director determines that the opinion reasonably meets the requirements
applicable to a company domiciled in this state.
(F) For the purposes of this section,
qualified actuary means a member in good standing of the American Academy of
Actuaries who meets the requirements set forth in those rules.
(G) Except in cases of fraud or willful
misconduct, the qualified actuary shall not be liable for damages to any person
(other than the insurance company and the director) for any act, error,
omission, decision or conduct with respect to the actuary's opinion.
(H) Disciplinary action by the director
against the company or the qualified actuary shall include any actions
authorized by the insurance laws of this state and as to the qualified actuary,
refusal to accept future opinions.
(I) A memorandum, in form and substance
acceptable to the director, shall be prepared to support each actuarial
opinion.
(J) If the insurance
company fails to provide a supporting memorandum at the request of the director
within thirty (30) days of that request, or the director determines that the
supporting memorandum provided by the insurance company fails to meet the
standards prescribed by this rule, or is otherwise unacceptable to the
director, the director may engage a qualified actuary at the expense of the
company to review the opinion and the basis for the opinion and prepare the
supporting memorandum as is required by the director.
(K) Any memorandum in support of the opinion,
and any other material provided by the company to the director in connection
with the opinion shall be kept confidential by the director and shall not be
made public and shall not be subject to subpoena, other than for the purpose of
defending an action seeking damages from any person by reason of any action
required by this rule; provided, that the memorandum or other material may
otherwise be released by the director-a) with the written consent of the
company or b) to the American Academy of Actuaries upon request stating that
the memorandum or other material is required for the purpose of professional
disciplinary proceedings and setting forth procedures satisfactory to the
director for preserving the confidentiality of the memorandum or other
material. Once any portion of the confidential memorandum is cited by the
company in its marketing, or is cited before any governmental agency other than
a state insurance department, or is released by the company to the news media,
all portions of the confidential memorandum shall no longer be
confidential.
(2) Matching Assets to Liabilities.
(A) Annually
every life insurance company, except as may be exempted by or pursuant to this
rule, also shall include in the opinion required by subsection (1)(A) of this
rule, an opinion of the same qualified actuary as to whether the reserves and
related actuarial items held in support of the policies and contracts specified
by the director by this rule, when considered in light of the assets held by
the company with respect to the reserves and related actuarial items,
including, but not limited to, the investment earnings on the assets and the
considerations anticipated to be received and retained under the policies and
contracts, make adequate provision for the company's obligations under the
policies and contracts including, but not limited to, the benefits under and
expenses associated with the policies and contracts.
(B) The director, on a case-by-case basis,
may provide for a transition period for establishing any higher reserves which
the qualified actuary may deem necessary in order to render the opinion
required by this section.
*Original authority: 374.045.1(3), RSMo 1967, amended 1993.
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