31 Pa. Code § 84b.5 - General requirements
(a)
Submission of statement of actuarial opinion.
(1) A company shall include on or attach to
Page 1 of the annual statement for each year, 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 §
84b.8 (relating to statement of
actuarial opinion based on 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)
Qualified actuary requirements. 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 these 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 done one or more of the
following:
(i) Violated any provision of, or
any obligation imposed by, the insurance laws or other law in the course of the
individual's dealings as a qualified actuary.
(ii) Been found guilty of fraudulent or
dishonest practices.
(iii)
Demonstrated incompetency, lack of cooperation or untrustworthiness to act as a
qualified actuary.
(iv) Submitted
to the Commissioner during the past 5 years, under this chapter, an actuarial
opinion or memorandum that the Commissioner rejected because it did not meet
the provisions of this chapter including standards set by the Actuarial
Standards Board.
(v) Resigned or
been removed as an actuary within the past 5 years as a result of acts or
omissions indicated in an adverse report on examination or as a result of
failure to adhere to generally acceptable actuarial standards.
(5) Has not failed to notify the
Commissioner of any action taken by the insurance regulatory authority of
another state similar to that under paragraph (4).
(c)
Appointed actuary
notification. The company shall give the Commissioner written notice
of the name, title-and, in the case of a consulting actuary, the name of the
firm-and the 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 in subsection (b). Once notice is
furnished, no further notice is required with respect to this person, but the
company shall give the Commissioner written notice if the actuary ceases to be
appointed or retained as an appointed actuary or to meet the requirements in
subsection (b). The notice of the appointment or termination of the appointment
shall be provided to the Commissioner by the date of the appointment or
termination of the appointment. The notice of termination must disclose the
reasons for termination. Additionally, the terminated actuary shall furnish to
the Commissioner and to the company a description of valuation reserve issues
that the actuary considered as material at the time of termination or a
statement that no material issues exist. The description must include issues
concerning valuation requirements, reserve adequacy, asset adequacy analysis
assumptions or methodology and internal controls on the valuation
system.
(d)
Standards for
asset adequacy analysis. The asset adequacy analysis required by this
chapter must:
(1) Conform to the Standards of
Practice as promulgated from time to time by the Actuarial Standards Board and
to additional standards under this chapter, which standards are to form the
basis of the statement of actuarial opinion in accordance with §
84b.8.
(2) Be based on methods of analysis deemed
appropriate for these purposes by the Actuarial Standards
Board.
(e)
Liabilities to be covered.
(1) Under the authority of section
301(g)(5)(B) of the act (40 P. S. §
71(g)(5)(B)), the statement
of actuarial opinion must apply to reserves and related actuarial items
associated with all in force business on the statement date, whether directly
issued or assumed, regardless of when or where issued (for example, aggregate
reserve for insurance and annuity contracts, liability for deposit-type
contracts, liability for contract claims 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 in sections 301(b), (c) and (e), 301.1(a) and 303 of the act
(40
P. S. §§
71(b), (c),
(e),
71.1(a) and 73), the company
shall establish such additional reserve.
(3) Additional reserves established under
paragraph (2) and deemed not necessary in subsequent years may be released.
Amounts released shall be disclosed in the actuarial opinion for the applicable
year. The rationale for the release of reserves shall be described in the
memorandum. The release of these reserves would not be deemed an adoption of a
lower standard of valuation.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.