A. Submission of
Statement of Actuarial Opinion
1. There is to
be included on or attached to Page 1 of the annual statement for each year
beginning with the year in which this regulation 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 Section 6 of this
regulation.
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. Qualified Actuary. 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 commissioner (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, the Insurance Law or other law in the course of his or
her dealings as a qualified actuary;
b. Been found guilty of fraudulent or
dishonest practices;
c.
Demonstrated his or her incompetency, lack of cooperation, or untrustworthiness
to act as a qualified actuary;
d.
Submitted to the commissioner during the past five (5) years, pursuant to this
regulation, an actuarial opinion or memorandum that the commissioner rejected
because it did not meet the provisions of this regulation including standards
set by the Actuarial Standards Board; or
e. 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
5. Has not failed to notify the commissioner
of any action taken by any commissioner of any other state similar to that
under Paragraph (4) above.
C. Appointed Actuary
An "appointed actuary" is a qualified actuary who is
appointed or retained to prepare the Statement of Actuarial Opinion required by
this regulation, 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, 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 B. Once notice is
furnished, no further notice is required with respect to this person, provided
that the company shall give the commissioner timely written notice in the event
the actuary pleases to be appointed or retained as an appointed actuary or to
meet the requirements set forth in Subsection 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. Standards for Asset Adequacy Analysis
The asset adequacy analysis required by this
regulation:
1Shall conform to the
Standards of Practice as promulgated from time to time by the Actuarial
Standards Board and on any additional standards under this regulation, which
standards are to form the basis of the statement of actuarial opinion in
accordance with this regulation; and
2. Shall be based on methods of analysis as
are deemed appropriate for such purposes by the Actuarial Standards
Board.
E. Liabilities to
be Covered
1. Under authority of
Miss. Code Ann
§
83-7-23,
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 of Exhibits 8, 9 and 10, and claim liabilities in
Exhibit 11, 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 the Standard Valuation Law,
the company shall establish the additional reserve.
3. Additional reserves established under
Paragraph (2) above 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 no be deemed an
adoption of a lower standard of valuation.
