New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter B - Life Insurers
Part 95 - REGULATIONS GOVERNING AN ACTUARIAL OPINION AND MEMORANDUM
Section 95.5 - General requirements
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 95.5
Current through Register Vol. 46, No. 39, September 25, 2024
(a) Submission of statement of actuarial opinion for page 1 of annual statement.
(1) 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 Part 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 section
95.8 of this Part; provided,
however, that any company exempted pursuant to section
95.6 or section
95.11 of this Part from submitting
a statement of actuarial opinion in accordance with section
95.8 of this Part shall include or
attach to page 1 of the annual statement a statement of actuarial opinion
rendered by an appointed actuary in accordance with section
95.7 or section
95.11 of this Part.
(2) If in the previous year a company
provided a statement of actuarial opinion in accordance with section
95.7 of this Part, and in the
current year fails the exemption criteria of section
95.6(c)(1), (2) or
(5) of this Part (whichever is applicable)
and is required to again provide an actuarial opinion in accordance with
section 95.8 of this Part, the statement
of actuarial opinion in accordance with section
95.8 of this Part shall not be
required until August 1st following the date of the annual statement. In this
instance, the company shall provide a statement of actuarial opinion in
accordance with section
95.7 of this Part with appropriate
qualification noting the intent to subsequently provide a statement of
actuarial opinion in accordance with section
95.8 of this Part.
(3) In the case of a statement of actuarial
opinion required to be submitted by a foreign or alien company, the
superintendent may accept the statement of actuarial opinion filed by such
company with the insurance supervisory regulator of a state accredited by the
NAIC if the superintendent determines that the opinion reasonably meets the
requirements applicable to a company domiciled in this State.
(4) Upon written request by the company, the
superintendent may grant an extension of the date for submission of the
statement of actuarial opinion.
(5)
If the superintendent requires more information, the company shall comply with
requests for such information. Failure of the appointed actuary to furnish
within 30 days of the date of request either:
(i) the requested information; or
(ii) an explanation of why preparation of
such information may take longer, together with the expected date of
submission, shall be considered as "lack of cooperation" and may subject the
insurer to a penalty.
(6) Any company requesting any exception from
or waiver of any of the requirements of this Part, or that is required to file
any statement or memorandum pursuant to section 95.9 or
95.11 of this Part, shall submit
such request, statement or memorandum to the superintendent on or before the
time it files its annual statement with the superintendent pursuant to section
307 of the
Insurance Law, attention of:
Life Bureau, Actuarial Valuation Unit
New York State Department of Financial Services
One Commerce Plaza
Albany, NY 12257
(b) Annual submission to Actuarial Valuation Unit.
Each company subject to this Part shall submit to the superintendent, attention of the Life Bureau, Actuarial Valuation Unit, each year on or before it files its annual statement with the superintendent pursuant to section 307 of the Insurance Law:
(1) a copy of the
actuarial opinion, clearly noting whether it is in accordance with section
95.7, 95.8 or
95.11 of this Part; and
(2) a copy of the actuarial memorandum for a
section 95.8 actuarial opinion;
or
(3) if not required to submit
the memorandum in accordance with section
95.9(a)(1) of
this Part, a statement noting the basis for such exemption along with a copy of
a letter of approval for the prior year's memorandum from the regulator of the
accredited state; or
(4) a request
for a waiver of the filing deadline along with reasons for such
request.
(c) An actuarial opinion and memorandum and any supporting documentation will be a record of the superintendent available for public inspection and copying except as provided in section 95.9(d) of this Part. At the time of submission of an actuarial opinion and memorandum or at time of submission of any subsequent supporting documentation, however, a company may, in accordance with section 241.6 of this Title, request the superintendent to except from disclosure any nonpublic information contained in the actuarial memorandum or subsequent supporting documentation respectively in accordance with section 4217 (e)(4)(H) of the Insurance Law. Each page covered by such request should be clearly marked "Confidentiality Requested."
(d) Qualified actuary.
A qualified actuary is an individual who either:
(1)
(i) is a member in good standing of the
American Academy of Actuaries; and
(ii) 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; and
(iii) is a fellow by examination of either
the Society of Actuaries or the Institute of Actuaries and states that he or
she is familiar with current valuation guidelines of the American Academy of
Actuaries and the current valuation procedures in the State of New York,
including those involving cash flow projections of assets and liabilities;
and
(iv) has not been found by the
superintendent (or if so found has subsequently been reinstated as a qualified
actuary), following appropriate notice and hearing to have:
(a) violated any provision of, or any
obligation imposed by, the Insurance Law of this State or any other state or
other law in the course of his or her dealings as a qualified actuary;
or
(b) been found guilty of
fraudulent or dishonest practices; or
(c) demonstrated his or her incompetency,
lack of cooperation, or untrustworthiness to act as a qualified actuary;
or
(d) submitted to the
superintendent over the past five years, pursuant to this Part, an actuarial
opinion or memorandum that the superintendent rejected because it did not meet
the provisions of this Part or standards of practice and/or compliance
guidelines set by the Actuarial Standards Board; or
(e) 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
accepted actuarial standards; and
(v) has not failed to notify the
superintendent of any action taken by the insurance regulator of any other
state similar to that under subparagraph (iv) of this paragraph; or
(2) meets the requirements of
subparagraphs (1)(i), (ii), (iv) and (v) of this subdivision and is so
designated in writing by the superintendent after written application to the
superintendent providing evidence of his or her actuarial knowledge and
experience in the valuation of life insurance company annual statement
liabilities.
(e) Appointed actuary.
An appointed actuary is a qualified actuary who is appointed or retained to prepare the statement of actuarial opinion required by this Part; either directly by the board of directors or by the authority of the board of directors through an executive officer of the company.
(1) The company shall give
the superintendent 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 certify in such notice that the person meets the requirements
set forth in subdivision (d) of this section.
(2) Once notice is furnished, no further
notice is required with respect to such person, provided that the company shall
give the superintendent 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 subdivision (d) of this section.
(3) 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.
(4) The person appointed or retained as an
appointed actuary shall consult with the company's previously appointed
actuary, if only to determine if there are any reasons not to accept the
appointment. If there are any such reasons, either the situation should be
rectified to such person's satisfaction or the appointment should not be
accepted.
(f) Standards for asset adequacy analysis.
The asset adequacy analysis required by this Part:
(1) shall conform to section
4217
(e)(3) of the Insurance Law and to any
additional standards under this Part, which standards are to form the basis of
the statement of actuarial opinion in accordance with section
95.8 of this Part;
(2) shall be based on such methods of
analysis as are deemed appropriate for such purposes by the Actuarial Standards
Board; and
(3) shall meet the
requirements of the Insurance Law.
(g) Liabilities to be covered.
(1) The statement of actuarial opinion shall
apply to all in force business on the statement date regardless of when or
where issued, e.g., reserves in exhibits 8, 9 and 10, and
claim liabilities in exhibit 11, Part 1, and equivalent items in the separate
account statement or statements.
(2) 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 section
4217 of the
Insurance Law and applicable regulations, the company shall establish such
additional reserve.
(3) For years
ending prior to December 31, 1996, the company may, with respect to products
other than annuities or single premium life products, in lieu of establishing
the full amount of the additional reserve in the annual statement for that
year, set up an additional reserve in an amount not less than the following:
December 31, 1994: The additional reserve divided by three.
December 31, 1995: Two times the additional reserve divided by three.
(4) Additional
reserves established under paragraph (2) or (3) of this subdivision 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 such
reserves shall not be deemed an adoption of a lower standard of
valuation.
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