Current through Reg. 50, No. 13; March 28, 2025
(a) Submission
of statement of actuarial opinion. Any statement of actuarial opinion required
by this subchapter must be submitted in accordance with paragraphs (1) and (2)
of this subsection.
(1) There is to be
included on or attached to page one of the annual statement for each year
beginning with the year in which this subchapter 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 §
3.1606 of this title (relating to
Statement of Actuarial Opinion Based on an Asset Adequacy Analysis).
(2) Upon written request by the company, the
commissioner may grant an extension of the date for submission of the statement
of actuarial opinion.
(b) Appointment of actuary. The company must
give the commissioner 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 must state in the notice that the person is a qualified
actuary. Once notice is furnished, no further notice is required with respect
to this 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 for a qualified actuary. If any
person appointed or retained as an appointed actuary replaces a previously
appointed actuary, the notice must so state and give the reasons for
replacement.
(c) Standards for
asset adequacy analysis. The asset adequacy analysis required by this
subchapter must:
(1) conform to the Standards
of Practice as promulgated from time to time by the Actuarial Standards Board
and any additional standards set forth in this subchapter, which standards are
to form the basis of the statement of actuarial opinion in accordance with this
subchapter; and
(2) be based on
methods of analysis as are deemed appropriate for such purposes by the
Actuarial Standards Board.
(d) Liabilities to be covered. The
liabilities to be covered will be in accordance with paragraphs (1) - (3) of
this subsection.
(1) Under authority of
Insurance Code §
425.054, the statement
of actuarial opinion applies to all in-force business on the statement date,
whether directly issued or assumed, regardless of when or where issued, for
example, annual statement reserves in Exhibits 5, 6, and 7, and claim
liabilities in Exhibit 8, 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 Insurance Code
§§
425.064,
425.065,
425.068, and
425.069, and other
applicable Insurance Code provisions, the company must establish the additional
reserve.
(3) Additional reserves
established under paragraph (2) of this subsection 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 would
not be deemed an adoption of a lower standard of valuation.
