§ 27-1-12.8-21 — Annual submission of qualified actuary opinion; requirements

Indiana § 27-1-12.8-21

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 12.8: Standard Valuation Law

Text

(a) This section applies before the
operative date of the valuation manual.
(b) A company doing business in Indiana shall annually submit to
the department the opinion of a qualified actuary concerning whether
the reserves and related actuarial items held by the company in support
of the contracts specified by the commissioner in rules adopted under
IC 4-22-2:
(1) are computed appropriately;
(2) are based on assumptions that satisfy contractual provisions;
(3) are consistent with previously reported amounts; and
(4) comply with applicable laws of the state.
(c) The commissioner shall adopt rules under IC 4-22-2 to
implement this section. The rules adopted by the commissioner:
(1) must specify the information to be included in an actuary's
opinion submitted under this section;
(2) may require the inclusion in the opinion of other items of
information that the commissioner considers necessary to the
scope of the opinion; and
(3) must provide for disciplinary action against a company or a
qualified actuary that violates this section.
(d) Unless exempted by a rule adopted by the commissioner under
IC 4-22-2, a company doing business in Indiana shall include with the
actuary's opinion submitted under subsection (b) an opinion by the
same qualified actuary stating whether the reserves and related
actuarial items held by the company in support of the contracts
specified by the commissioner in rules adopted under IC 4-22-2 make
adequate provision for the obligations of the company under the
contracts, including:
(1) the benefits under;
(2) the expenses associated with; and
(3) any other obligations under;
the contracts of the company. In making the determination required
under this subsection, the qualified actuary shall consider the assets
held by the company with respect to reserves and related actuarial
items, including investment earnings on the assets and the
considerations anticipated to be received and retained under the
contracts.
(e) The commissioner, in rules adopted under IC 4-22-2, may
provide for a transition period to establish higher reserves considered
necessary by the qualified actuary to render the opinion required by this
section.
(f) The following requirements apply to an actuary's opinion
required by subsection (d):
(1) A memorandum that meets all requirements established by the
commissioner in rules adopted under IC 4-22-2 concerning form
and content must be prepared to support each actuarial opinion.
(2) If:
(A) the company fails to provide a supporting memorandum at
the request of the commissioner within a period specified by
rules adopted by the commissioner under IC 4-22-2; or
(B) the commissioner determines that the supporting
memorandum provided by the company does not meet the
standards set forth in rules adopted by the commissioner under
IC 4-22-2 or is otherwise unacceptable to the commissioner;
the commissioner, at the expense of the company, may engage a
qualified actuary to review the opinion and the basis for the
opinion and to prepare the supporting memorandum required by
the commissioner.
(g) The following apply to an actuarial opinion submitted under this
section:
(1) The opinion must:
(A) be submitted with the annual statement of the company;
and
(B) reflect the valuation of reserves for each year ending after
December 31, 1994.
(2) The opinion must:
(A) apply to all business in force, including individual and
group accident and sickness insurance contracts; and
(B) meet all requirements concerning form and content
established by the commissioner in rules adopted under IC 4-22-2.
(3) The opinion must be based on:
(A) standards adopted by the Actuarial Standards Board; and
(B) additional standards prescribed by the commissioner in
rules adopted under IC 4-22-2.
(4) In the case of an opinion required to be submitted by a foreign
or alien company, the commissioner may accept the opinion filed
by the foreign or alien company with the insurance supervisory
official of another state if the commissioner determines that the
opinion reasonably meets the requirements applicable to a
company domiciled in Indiana.
(h) Except in cases of fraud or willful misconduct, a qualified
actuary who provides an opinion required by this section is not liable
for damages to a person other than:
(1) the company for which the opinion is offered; and
(2) the commissioner;
for any act, error, omission, decision, or conduct with respect to the
actuary's opinion.

Legislative History

As added by P.L.276-2013, SEC.10.