Nevada Administrative Code
Chapter 681B - Insurance: Assets and Liabilities
LIFE INSURANCE: ANNUAL OPINIONS AND SUPPORTING MEMORANDA OF QUALIFIED ACTUARIES
Section 681B.221 - Regulatory asset adequacy issues summary: Contents
Universal Citation: NV Admin Code 681B.221
Current through February 27, 2024
1. The regulatory asset adequacy issues summary required pursuant to NAC 681B.215 must include, without limitation:
(a) Descriptions of the scenarios tested,
including, without limitation, whether those scenarios are stochastic or
deterministic and the sensitivity testing done relative to those scenarios. If
negative ending surplus results under certain tests in the aggregate, the
description of those tests must include the amount of additional reserve as of
the valuation date which, if held, would eliminate the negative aggregate
surplus values. For the purposes of this paragraph, ending surplus values must
be determined by:
(1) Extending the
projection period until the in-force and associated assets and liabilities at
the end of the projection period are immaterial; or
(2) Adjusting the surplus amount at the end
of the projection period by an amount that appropriately estimates the value
that can reasonably be expected to arise from the assets and liabilities
remaining in force.
(b)
A discussion of the extent to which the appointed actuary uses assumptions in
the current asset adequacy analysis that are materially different than the
assumptions used in the previous asset adequacy analysis.
(c) The amount of reserves and the identity
of the product lines that had been subjected to asset adequacy analysis in the
previous opinion but were not subjected to analysis in the current
opinion.
(d) Comments on any
interim results that were of significant concern to the appointed actuary, such
as the impact of an insufficiency of assets to support the payment of benefits
and expenses or the establishment of statutory reserves during one or more
interim periods.
(e) The methods
used by the actuary to recognize the impact of reinsurance on the insurer's
cash flows, including both assets and liabilities, under each of the scenarios
tested.
(f) An explanation of
whether the actuary is satisfied that all options, whether explicit or
embedded, in any asset or liability, including, but not limited to, those
affecting cash flows embedded in fixed income securities and equity-like
features in any investments, have been appropriately considered in the asset
adequacy analysis.
2. The regulatory asset adequacy issues summary must contain the name of the insurer for which the summary is prepared and must be signed and dated by the appointed actuary rendering the actuarial opinion.
Added to NAC by Comm'r of Insurance by R146-12, eff. 10-4-2013
NRS 679B.130, 681B.230
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