Current through September 17, 2024
005.01 Submission
of Statement of Actuarial Opinion
005.01(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 this regulation 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 006 of this
regulation.
005.01(B) Upon written
request by the company, the Director may grant an extension of the date for
submission of the statement of actuarial opinion.
005.02 Qualified Actuary
A "qualified actuary" is an individual who:
005.02(A) Is a member in good standing of the
American Academy of Actuaries;
005.02(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;
005.02(C) Is familiar with the valuation
requirements applicable to life and health insurance companies;
005.02(D) Has not been found by the Director
(or if so found has subsequently been reinstated as a qualified actuary),
following appropriate notice and hearing to have:
005.02(D)(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;
005.02(D)(2) Been found guilty of fraudulent
or dishonest practices;
005.02(D)(3) Demonstrated his or her
incompetency, lack of cooperation, or untrustworthiness to act as a qualified
actuary;
005.02(D)(4) Submitted to
the Director during the past five (5) years, pursuant to this regulation, an
actuarial opinion or memorandum that the Director rejected because it did not
meet the provisions of this regulation including standards set by the Actuarial
Standards Board; or
005.02(D)(5)
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
005.02(E) Has not
failed to notify the Director of any action taken by any Director of any other
state similar to that under 005.02(D)above.
005.03 Appointed Actuary
An "appointed actuary" is a qualified actuary who is
appointed or retained to prepare the Statement of Actuarial Opinion required by
this regulation, 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 Director 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 005.02. Once notice is furnished, no
further notice is required with respect to this person, provided that the
company shall give the Director 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
005.02. 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.
005.04 Standards for Asset Adequacy Analysis
The asset adequacy analysis required by this
regulation:
005.04(A) 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 regulation, which
standards are to form the basis of the statement of actuarial opinion in
accordance with this regulation; and
005.04(B) Shall be based on methods of
analysis as are deemed appropriate for such purposes by the Actuarial Standards
Board.
005.05
Liabilities to be Covered
005.05(A) Under
authority of §
44-420
through §
44-427,
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 5, 6 and 7, and claim liabilities in Exhibit
8, Part 1 and equivalent items in the separate account statement or
statements.
005.05(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 law, §§
44-403
and
44-404,
the company shall establish the additional reserve.
005.05(C) Additional reserves established
under
005.05(B)above
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.
