Current through Supplement No. 394, October, 2024
1.
Submission of statement of actuarial opinion.
a. There must be included on or attached to
page one of the annual statement for each year beginning 1995 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
45-03-19-06.
b. Upon written request by the company, the
commissioner may grant an extension of the date for submission of the statement
of actuarial opinion.
2. A "qualified actuary" is an individual
who:
a. Is a member in good standing of the
American academy of actuaries;
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 the statements;
c. Is familiar with the valuation
requirements applicable to life and health insurance companies;
d. Has not been found by the commissioner, or
if so found, has subsequently been reinstated as a qualified actuary, following
appropriate notice and hearing to have:
(1)
Violated any provision of, or any obligation imposed by, the insurance law or
other law in the course of the actuary's dealings as a qualified actuary;
(2) Been found guilty of
fraudulent or dishonest practices;
(3) Demonstrated incompetency, lack of
cooperation, or untrustworthiness to act as a qualified actuary;
(4) Submitted to the commissioner during the
past five years, pursuant to this chapter, an actuarial opinion or memorandum
that the commissioner rejected because it did not meet the provisions of this
chapter, including standards set by the actuarial standards board; or
(5) 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 acceptable actuarial standards; and
e. Has not failed to notify the commissioner
of any action taken by any commissioner of any other state similar to that
under subdivision d.
3.
An "appointed actuary" is a qualified actuary who is appointed or retained to
prepare the statement of actuarial opinion required by this chapter, 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 commissioner timely written notice of the name and 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 subsection 2. Once notice is furnished, no further notice is
required with respect to that person, provided that the company gives the
commissioner 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 subsection 2. 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 asset adequacy analysis required by
this chapter:
a. Must conform to the
standards of practice as promulgated from time to time by the actuarial
standards board and on any additional standards under this chapter, which
standards are to form the basis of the statement of actuarial opinion in
accordance with this chapter; and
b. Must be based on methods of analysis as
are deemed appropriate for the purposes by the actuarial standards board.
5. Liabilities to be
covered.
a. Under authority of North Dakota
Century Code section 26.1-35-01.1, 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, for example, reserves of
exhibits 8, 9, and 10, and claim liabilities in exhibit 11, part 1 and
equivalent items in the separate account statement or statements.
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 North Dakota Century Code sections 26.1-35-02, 26.1-35-05,
26.1-35-06, 26.1-35-09, and 26.1-35-10, the company shall establish the
additional reserve.
c. Additional
reserves established under subdivision b 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 the reserves would not be
deemed an adoption of a lower standard of valuation.
General Authority: NDCC 26.1-35-01.1
Law Implemented: NDCC
26.1-35-01.1
