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 95.6 - Required opinions
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 95.6
Current through Register Vol. 46, No. 39, September 25, 2024
(a) General.
Every company doing business in this State shall annually submit the opinion of an appointed actuary as provided for by this part. The type of opinion submitted shall be determined by the provisions set forth in this section and shall be in accordance with the applicable provisions of this Part.
(b) Company categories.
For purposes of this Part, companies shall be classified as follows based on their admitted assets as of the end of the calendar year for which the actuarial opinion is applicable:
(1) category A shall consist of those
companies whose admitted assets do not exceed $20 million;
(2) category B shall consist of those
companies whose admitted assets exceed $20 million but do not exceed $100
million;
(3) category C shall
consist of those companies whose admitted assets exceed $100 million but do not
exceed $500 million;
(4) category D
shall consist of those companies whose admitted assets exceed $500
million.
(c) Exemption eligibility tests.
(1)
Any category A company that, for any year beginning with the year in which this
Part becomes effective, meets all of the following criteria shall be eligible
for exemption from submission of a statement of actuarial opinion in accordance
with section
95.8 of this Part for the year in
which these criteria are met. The ratios in subparagraphs (i), (ii) and (iii)
of this paragraph shall be calculated based on amounts as of the end of the
calendar year for which the actuarial opinion is applicable.
(i) the ratio of the sum of capital and
surplus to the total admitted assets is at least equal to.10;
(ii) the ratio of the sum of the reserves and
liabilities for annuities and deposits to the total admitted assets is less
than.30;
(iii) the ratio of the
book value of the noninvestment grade bonds to the sum of capital and surplus
is less than.50; and
(iv) the
examiner team for the NAIC has not designated the company as a first priority
company in any of the two calendar years coincident with and immediately
preceding the calendar year end for which the actuarial opinion is applicable,
or a second priority company in each of the two calendar years coincident with
and immediately preceding the calendar year end for which the actuarial opinion
is applicable, or the company has resolved the first or second priority status
to the satisfaction of the insurance regulator of the state of domicile and
such insurance regulator has so notified the chair of the NAIC Life and Health
Actuarial Task Force and the NAIC Staff and Support Office.
Note: when the examiner team in the spring of a calendar year
designates a priority, such designation is generally based on the preceding
year. For example, to determine whether an actuarial opinion and memorandum is
required for the 1994 year end under this test, the actuary should look at the
examiner designation made in 1993 and 1994 generally based on the 1992 and 1993
year end data.
(2) Any
category B company that, for any year beginning with the year in which this
Part becomes effective, meets all of the following criteria shall be eligible
for exemption from submission of a statement of actuarial opinion in accordance
with section
95.8 of this Part for the year in
which the criteria are met. The ratios in subparagraphs (i), (ii) and (iii) of
this paragraph shall be calculated based on amounts as of the end of the
calendar year for which the actuarial opinion is applicable.
(i) the ratio of the sum of capital and
surplus to the sum of total admitted assets is at least equal to.07;
(ii) the ratio of the sum of the reserves and
liabilities for annuities and deposits to the total admitted assets is less
than.40;
(iii) the ratio of the
book value of the noninvestment grade bonds to the sum of capital and surplus
is less than.50; and
(iv) the
examiner team for the NAIC has not designated the company as a first priority
company in any of the two calendar years coincident with and immediately
preceding the calendar year end for which the actuarial opinion is applicable,
or a second priority company in each of the two calendar years coincident with
and immediately preceding the calendar year end for which the actuarial opinion
is applicable, or the company has resolved the first or second priority status
to the satisfaction of the insurance regulator of the state of domicile and
such insurance regulator has so notified the chair of the NAIC Life and Health
Actuarial Task Force and the NAIC Staff and Support Office.
Note: When the examiner team in the spring of a calendar year
designates a priority, such designation is generally based on the preceding
year. For example, to determine whether an actuarial opinion and memorandum is
required for the 1994 year end under this test, the actuary should look at the
examiner designation made in 1993 and 1994 generally based on the 1992 and 1993
year end data.
(3) Any
category A or category B company that meets all the criteria set forth in
paragraph (1) or (2) of this subdivision, whichever is applicable, is exempted
from submission of a statement of actuarial opinion in accordance with section
95.8 of this Part.
(4) Any category A or category B company
that, for any year beginning with the year in which this Part becomes
effective, is not exempted under paragraph (3) of this subdivision shall be
required to submit a statement of actuarial opinion in accordance with section
95.8 of this Part for the year for
which it is not exempt.
(5) Any
category C company that, after submitting an opinion in accordance with section
95.8 of this Part, meets all of
the following criteria shall not be required, unless required in accordance
with paragraph (6) of this subdivision, to submit a statement of actuarial
opinion in accordance with section
95.8 of this Part more frequently
than every third year. Any category C company which fails to meet all of the
following criteria for any year shall submit a statement of actuarial opinion
in accordance with section
95.8 of this Part for that year.
The ratios in subparagraphs (i), (ii) and (iii) of this paragraph shall be
calculated based on amounts as of the end of the calendar year for which the
actuarial opinion is applicable.
(i) the
ratio of the sum of capitol and surplus to the total admitted assets is at
least equal to.05;
(ii) the ratio
of the sum of the reserves and liabilities for annuities and deposits to the
total admitted assets is less than.50;
(iii) the ratio of the book value of the
noninvestment grade bonds to the sum of the capital and surplus is less
than.50; and
(iv) the examiner team
for the NAIC has not designated the company as a first priority company in any
of the two calendar years coincident with and immediately preceding the
calendar year end for which the actuarial opinion is applicable, or a second
priority company in each of the two calendar years coincident with and
immediately preceding the calendar year end for which the actuarial opinion is
applicable, or the company has resolved the first or second priority status to
the satisfaction of the insurance regulator of the state of domicile and such
insurance regulator has so notified the chair of the NAIC Life and Actuarial
Task Force and the NAIC Staff and Support Office. Note: when
the examiner team in the spring of a calendar year designates a priority, such
designation is generally based on the preceding year. For example, to determine
whether an actuarial opinion and memorandum is required for the 1994 year end
under this test, the actuary should look at the examiner designation made in
1993 and 1994 generally based on the 1992 and 1993 year end data.
(6) Any company which is not
required by this section to submit a statement of actuarial opinion in
accordance with section
95.8 of this Part for any year,
shall submit a statement of actuarial opinion in accordance with section
95.7 of this Part for that year
unless as provided for by section
95.3(c) of this
Part the superintendent requires a statement of actuarial opinion in accordance
with section
95.8 of this Part.
(d) Large companies.
Every category D company shall submit a statement of actuarial opinion in accordance with section 95.8 of this Part for each year beginning with the year in which this Part becomes effective.
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