28 Tex. Admin. Code § 4.2805 - General Requirements
(a) Submission of
statement of actuarial opinion. Any statement of actuarial opinion required by
this subchapter must be submitted in accordance with paragraphs (1) and (2) of
this subsection.
(1) There is to be included
on or attached to page one of the annual statement for each year beginning with
the year in which this subchapter 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 §
4.2806 of this title (relating to
Statement of Actuarial Opinion Based on an 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)
Appointment of actuary. The company must 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 must state in the notice
that the person is a qualified actuary. Once notice is furnished, no further
notice is required with respect to this person, 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 for a
qualified actuary. If any person appointed or retained as an appointed actuary
replaces a previously appointed actuary, the notice must so state and give the
reasons for replacement.
(c)
Standards for asset adequacy analysis. The asset adequacy analysis required by
this subchapter must:
(1) conform to the
Standards of Practice as promulgated from time to time by the Actuarial
Standards Board and any additional standards set forth in this subchapter,
which standards are to form the basis of the statement of actuarial opinion in
accordance with this subchapter; and
(2) be based on methods of analysis as are
deemed appropriate for such purposes by the Actuarial Standards
Board.
(d) Liabilities to
be covered. The liabilities to be covered will be in accordance with paragraphs
(1) - (3) of this subsection.
(1) Under
authority of Insurance Code §
425.054, concerning
Actuarial Opinion of Reserves Issued Before Operative Date of Valuation Manual,
the statement of actuarial opinion applies to all in-force business on the
statement date, whether directly issued or assumed, regardless of when or where
issued; for example, annual statement reserves in Exhibits 5, 6, and 7, and
claim liabilities in Exhibit 8, 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 Insurance Code §§
425.064, concerning
Commissioners Reserve Valuation Method For Life Insurance and Endowment
Benefits; 425.065, concerning Commissioners Annuity Reserve Valuation Method
For Annuity and Pure Endowment Benefits; 425.068, concerning Reserve
Computation: Gross Premium Charged Less Than Valuation Net Premium; and
425.069, concerning Reserve Computation: Indeterminate Premium Plans and
Certain Other Plans; and other applicable Insurance Code provisions, the
company must establish the additional reserve.
(3) Additional reserves established under
paragraph (2) of this subsection and deemed not necessary in subsequent years
may be released. Any amounts released must 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.
Notes
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.