Current through Register Vol. XLI, No. 38, September 20, 2024
4.1.
Submission of Statement of Actuarial Opinion.
The annual statement shall include on or attached to page 1, 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 6 of this rule. Upon
written request by the company, the Commissioner may grant an extension of the date
for submission of the statement of actuarial opinion.
4.2. A "qualified actuary" is an individual who:
4.2.a. Is a member in good standing of the
American Academy of Actuaries;
4.2.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 such statements;
4.2.c. Is familiar with the valuation requirements
applicable to life and health insurance companies;
4.2.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:
4.2.d.1.
Violated any provision of, or any obligation imposed by, the insurance law or other
law in the course of his or her dealings as a qualified actuary;
4.2.d.2. Been found guilty of fraudulent or
dishonest practices;
4.2.d.3.
Demonstrated his or her incompetency, lack of cooperation, or untrustworthiness to
act as a qualified actuary;
4.2.d.4.
Submitted to the Commissioner during the past five (5) years, pursuant to this rule,
an actuarial opinion or memorandum that the Commissioner rejected because it did not
meet the provisions of this rule including standards set by the Actuarial Standards
Board; or
4.2.d.5. Resigned or been
removed as an actuary within the past five (5) 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
4.2.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) of this subsection.
4.3. "Appointed actuary" is a qualified actuary
who is appointed or retained, either directly by or by the authority of the board of
directors through an executive officer of the company other than the qualified
actuary, to prepare the statement of actuarial opinion required by this rule. The
company shall 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 shall state in the notice that the person meets the requirements set
forth in subsection 4.2 of this rule. Once the company furnishes notice, no further
notice is required with respect to this appointed actuary, 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 for in
subsection 4.2 of this rule. If any person appointed or retained as an appointed
actuary replaces a previously appointed actuary, the notice shall state that fact
and give the reasons for replacement.
4.4. Standards for Asset Adequacy Analysis. The
asset adequacy analysis required by this rule:
4.4.a. Shall conform to the standards of practice
as promulgated from time to time by the Actuarial Standards Board and on any
additional standards under this rule, the standards are to form the basis of the
statement of actuarial opinion in accordance with this rule; and
4.4.b. Shall be based on methods of analysis as
are considered appropriate for such purposes by the Actuarial Standards
Board.
4.5. Liabilities to be
Covered.
4.5.a. Under authority of the Standard
Valuation Law, W. Va. Code §
33-7-9(c),
the statement of actuarial opinion applies to all in force business on the statement
date regardless of when or where issued, e.g., reserves of Exhibits 8, 9, and 10,
and claim liabilities in Exhibit 11, Part I and equivalent items in the separate
account statement or statements.
4.5.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 the Standard Valuation Law, W.
Va. Code §§
33-7-9(g), (h), (k), (l) and
(m), the company shall establish the additional
reserve.
4.5.c. Additional reserves
established under subdivision b of this subsection and determined 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 the reserves would not be
considered an adoption of a lower standard of valuation.
