A.The board of directors of each insurer shall appoint one or more illustration actuaries.
B.The illustration actuary shall certify that the disciplined current scale that is used in illustrations conforms with the actuarial standard of practice for compliance with the national association of insurance commissioners model regulation on life insurance illustrations that is adopted by the actuarial standards board and that the illustrated scales used in insurer authorized illustrations meet the requirements of this article.
C.The illustration actuary shall:
1.Be a member in good standing of the American academy of actuaries.
2.Be familiar with the standard of practice regarding life insurance policy illustrations.
3.After notice and a hearing, not have been found by the director t
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A. The board of directors of each insurer shall appoint one or more illustration actuaries.
B. The illustration actuary shall certify that the disciplined current scale that is used in illustrations conforms with the actuarial standard of practice for compliance with the national association of insurance commissioners model regulation on life insurance illustrations that is adopted by the actuarial standards board and that the illustrated scales used in insurer authorized illustrations meet the requirements of this article.
C. The illustration actuary shall:
1. Be a member in good standing of the American academy of actuaries.
2. Be familiar with the standard of practice regarding life insurance policy illustrations.
3. After notice and a hearing, not have been found by the director to have:
(a) Violated any provision of, or any obligation imposed by, this title or any other law in the course of the individual's dealings as an illustration actuary.
(b) Been found guilty of fraudulent or dishonest practices.
(c) Demonstrated incompetence, lack of cooperation or untrustworthiness to act as an illustration actuary.
(d) Resigned or been removed as an illustration actuary within the previous 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.
4. Notify the director of any action taken by the insurance director of another state for acts similar to those listed in paragraph 3 of this subsection.
5. Disclose the following in the annual certification, as applicable:
(a) Since the last annual certification, whether a currently payable scale applicable for business issued within the previous five years and within the scope of the certification was reduced for reasons other than changes in the experience factors underlying the disciplined current scale.
(b) If nonguaranteed elements illustrated for new policies are not consistent with those illustrated for similar in-force policies.
(c) If nonguaranteed elements illustrated for both new and in-force policies are inconsistent with the nonguaranteed elements actually being paid, charged or credited to the same or similar forms.
6. Disclose in the annual certification the method that is used to allocate overhead expenses for all illustrations as being one of the following:
(a) Fully allocated expenses.
(b) Marginal expenses.
(c) A generally recognized expense table that is based on fully allocated expenses representing a significant portion of insurance companies and that is approved by the director.
D. The illustration actuary shall file the annual certification with the board of directors of the insurer and with the director as follows:
1. Annually for all policy forms for which illustrations are used.
2. Before a new policy form is illustrated.
E. The illustration actuary shall promptly notify the board of directors and the director if an error is found in previous certification.
F. If an illustration actuary is unable to certify the scale for any policy form illustration that the insurer intends to use, the illustration actuary shall notify the board of directors of the insurer and the director promptly of the illustration actuary's inability to certify.
G. A responsible officer of the insurer, other than the illustration actuary, shall certify annually both of the following:
1. That the illustration formats meet the requirements of this article and that the scales used in insurer-authorized illustrations are those scales that have been certified by the illustration actuary.
2. That the company has provided its agents with information about the expense allocation method used in its illustrations as disclosed in subsection C, paragraph 6 of this section.
H. The annual certifications shall be provided to the director each year by the date determined by the director.
I. If an insurer changes the illustration actuary who is responsible for all or a portion of the company's policy forms, the insurer shall notify the director of the change promptly as well as the reason for the change.