Current through Register Vol. 41, No. 3, September 23, 2024
A. The following requirements apply to all
companies submitting a statement of actuarial opinion in compliance with §
38.2-1367 of the Code of Virginia.
1. There
is to be included on or attached to page 1 of the annual statement for each
year ending on or after December 31, 1992, 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
14VAC5-310-80.
2. Upon written request by the company, the
commission may grant an extension of the date for submission of the statement
of actuarial opinion.
B.
A "qualified actuary" is an individual who:
1.
Is a member in good standing of the American Academy of Actuaries;
2. 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;
3. Is familiar with the valuation
requirements applicable to life and health insurance companies;
4. Has not been found by the commission (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 Title 38.2 of the Code
of Virginia or other law in the course of his dealings as a qualified
actuary;
b. Been found guilty of
fraudulent or dishonest practices;
c. Demonstrated his incompetency, lack of
cooperation, or untrustworthiness to act as a qualified actuary;
d. Submitted to the commission during the
past five years, pursuant to this chapter, an actuarial opinion or memorandum
that the commission rejected because it did not meet the provisions of this
chapter, including standards 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
acceptable actuarial standards; and
5. Has not failed to notify the commission of
any action taken by the commissioner of any other state similar to that under
subdivision 4 of this subsection.
C. 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 commission 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 state in such notice
that the person meets the requirements set forth in
14VAC5-310-50 B. Once notice is
furnished, no further notice is required with respect to this person, provided
that the company shall give the commission 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
14VAC5-310-50 B. 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.
D. The asset adequacy
analysis required by this chapter shall:
1.
Conform to the Actuarial 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
2. Be based on methods of analysis as are
deemed appropriate for such purposes by the Actuarial Standards
Board.
E. Liabilities
shall be covered in conformity with the following:
1. Under authority of § 38.2-1367 of the
Code of Virginia, 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 (e.g., reserves reportable for 2002 in
Exhibits 5, 5A, 6, and 7 of the NAIC annual statement for life insurers; claim
liabilities reported in Exhibit 8 (2002) in Part I of the life insurer's annual
statement, and equivalent items in any separate account statement, or other
annual financial statements filed pursuant to § 38.2-1300, 38.2-1301 or
38.2-4126 of the Code of Virginia).
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 § 38.2-1311, 38.2-3923, 38.2-4010, 38.2-4011, or
§ 38.2-4125 of the Code of Virginia; Article 10 (§ 38.2-1365 et seq.)
of Chapter 13 of Title 38.2 of the Code of Virginia; a rule or regulation of
the commission applicable to the company; or any additional or further guidance
provided by the NAIC Accounting Practices and Procedures Manual, whether in a
Statement of Statutory Accounting Principle or in an actuarial guideline or
other appendix, the company shall establish the additional reserve.
3. Additional reserves established under
subdivision 2 of this subsection and deemed not necessary in subsequent years
may be released. Any amounts released shall 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.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
the Code of Virginia.
