Utah Admin. Code R590-177-10 - Annual Certifications
(1) The board of
directors of each insurer shall appoint one or more illustration
actuaries.
(2) The illustration
actuary shall certify that:
(a) the
disciplined current scale used in any illustration conforms to the Actuarial
Standard of Practice No. 24, Compliance with the NAIC Life Insurance
Illustrations Model Regulation promulgated by the Actuarial Standards Board;
and
(b) the illustrated scale used
in an insurer-authorized illustration meets the requirements of this
rule.
(3) The
illustration actuary shall:
(a) be a member
in good standing of the American Academy of Actuaries;
(b) be familiar with the standard of practice
regarding life insurance policy illustrations;
(c) not have been found by the commissioner,
following appropriate notice and hearing, to have:
(i) violated any provision of, or any
obligation imposed by, the insurance law or other law in the course of dealings
as an illustration actuary;
(ii)
been found guilty of fraudulent or dishonest practices;
(iii) demonstrated incompetence, lack of
cooperation, or untrustworthiness to act as an illustration actuary;
or
(iv) resigned or been removed as
an illustration actuary within the past five years as a result of acts or
omissions indicated in any adverse report on examination or as a result of a
failure to adhere to generally acceptable actuarial
standards;
(d) notify the
commissioner of any action taken by a commissioner of another state similar to
that under Subsection (3)(c);
(e)
disclose in the annual certification whether, since the last certification, a
currently payable scale applicable for business issued within the previous five
years and within the scope of the certification has been reduced for a reason
other than a change in the experience factors underlying the disciplined
current scale;
(i) if a non-guaranteed
element illustrated for a new policy is not consistent with the illustration
for a similar in force policy, this shall be disclosed in the annual
certification; and
(ii) if a
non-guaranteed element illustrated for both a new and an in force policy is not
consistent with the non-guaranteed element being paid, charged, or credited to
the same or similar form, this shall be disclosed in the annual certification;
and
(f) disclose in the
annual certification the method used to allocate overhead expenses for all
illustrations:
(i) fully allocated
expenses;
(ii) marginal expenses;
or
(iii) a generally recognized
expense table based on fully allocated expenses representing a significant
portion of insurance companies and approved by the NAIC or by the
commissioner.
(4)
(a) The
illustration actuary shall file a certification with the insurer's board of
directors:
(i) annually for all policy forms
for which illustrations are used; and
(ii) before a policy form is
illustrated.
(b) If the
illustration actuary becomes aware of an error in a previous certification, the
illustration actuary shall promptly notify the insurer's board of directors and
the commissioner.
(5) If
an illustration actuary certify the scale for any policy form illustration the
insurer intends to use, the actuary shall promptly notify the insurer's board
of directors and the commissioner.
(6) An officer of the insurer, other than the
illustration actuary, shall certify annually:
(a) that the illustration formats meet the
requirements of this rule and that the scales used in any illustration are
scales certified by the illustration actuary; and
(b) that the company has provided each
producer and authorized representative information about the expense allocation
method used by the company in its illustrations and disclosed as required in
Subsection (3)(f).
(7)
The annual certification shall be:
(a)
completed each year by a date determined by the insurer;
(b) maintained by the insurer for a period of
five years; and
(c) available for
inspection by the commissioner.
(8) If an insurer changes the illustration
actuary responsible for any portion of the company's policy forms, the insurer
shall notify the commissioner and disclose the reason for the
change.
Notes
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