31 Pa. Code § 118a.4 - General requirements for domestic insurers
(a) The following requirements apply to a
request by a domestic insurer for the Commissioner's approval of an individual
under subparagraph (i)(C) of the definition of "qualified actuary" in §
118a.2 (relating to definitions):
(1) The domestic insurer shall file the
request with the Department at least 90 days prior to the filing of the
domestic insurer's annual financial statement.
(2) Requests filed under paragraph (1) must
contain the following:
(i) A properly
completed biographical affidavit in the form adopted by the NAIC. The NAIC
biographical affidavit form is available on the Department's web site at
www.insurance.pa.gov or upon request
from the Department.
(ii) A list of
the loss reserve opinions for property or casualty insurance, or both, issued
by the individual in the past 3 years.
(iii) Other information that the Commissioner
in the Commissioner's discretion may require to determine the individual's
qualifications. The Department will provide the domestic insurer with a written
request for the information, describing the type of information required and
why the information is needed.
(b) The appointed actuary shall annually
provide the domestic insurer's board of directors with the statement of
actuarial opinion and actuary opinion summary, and the receipt of these
documents shall be recorded in the meeting minutes of the board of
directors.
(c) If an actuary who
was the appointed actuary for the immediately preceding filed statement of
actuarial opinion is replaced by an action of the domestic insurer's board of
directors, the domestic insurer shall:
(1)
Notify the Department in writing within 5 business days of the board's
action.
(2) Provide the Department
with a separate written notice within 10 business days of providing notice
under paragraph (1) stating whether, in the 24 months preceding the appointed
actuary's replacement, there were any disagreements with the former appointed
actuary relating to the content of the statement of actuarial opinion,
actuarial opinion summary, actuarial report or underlying workpapers on matters
of the risk of material adverse deviation, required disclosures, scope,
procedure, or data quality. The disagreements required to be reported include
both those resolved to the former appointed actuary's satisfaction and those
not resolved to the former appointed actuary's satisfaction. The notice must
include a written letter addressed to the domestic insurer by the former
appointed actuary stating whether the appointed actuary agrees with the
statements in the domestic insurer's notice and, if not, stating the reasons
why the appointed actuary does not agree.
(d) The domestic insurer shall require its
appointed actuary to notify the domestic insurer's board of directors or audit
committee in writing within 5 business days after a determination by the
appointed actuary that the statement of actuarial opinion or actuarial opinion
summary filed with the Department was in error if:
(1) The error is as a result of reliance on
data or other information (other than assumptions) that, as of the balance
sheet date, were factually incorrect.
(2) The determination is made between the
date the statement of actuarial opinion is issued and the balance sheet date
for which the next statement of actuarial opinion will be issued.
(3) The statement of actuarial opinion or
actuarial opinion summary would not have been issued or would have been
materially altered had the correct data or other information been used; except
that the statement of actuarial opinion or actuarial opinion summary will not
be considered to be in error if it would not have been issued or would have
been materially altered solely because of data or information concerning events
subsequent to the balance sheet date or because actual results differ from
those projected.
(e)
Notification provided by an appointed actuary to a domestic insurer under
subsection (d) must include a summary of the appointed actuary's findings and
an amended statement of actuarial opinion and actuarial opinion summary. The
domestic insurer shall forward a copy of the summary and amended statement of
actuarial opinion and actuarial opinion summary to the Commissioner within 5
business days of receipt and provide the appointed actuary with a copy of the
information forwarded to the Commissioner. If the appointed actuary does not
receive a copy of the information forwarded to the Commissioner within the 5
business day period, the appointed actuary shall provide the Commissioner with
the information within the next 5 business days, including a statement whether
the Department should rely upon the statement of actuarial opinion or actuarial
opinion summary filed under this chapter.
(f) If an appointed actuary learns that data
or other information relied upon in rendering a statement of actuarial opinion
or actuarial opinion summary under this chapter were factually incorrect, but
the appointed actuary cannot immediately determine what, if any, changes are
needed in the statement of actuarial opinion or actuarial opinion summary, the
appointed actuary and the domestic insurer shall take the actions necessary for
the appointed actuary to make the determination. If the domestic insurer does
not provide the necessary data corrections and other support (including
financial support) within 10 business days, the appointed actuary should
provide the Commissioner with notice of the situation within the next 5
business days.
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