§ 27-1-12.8-23 — Annual submission of appointed actuary opinion; supporting memorandum; requirements

Indiana § 27-1-12.8-23

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

Text

(a) This section applies on and after the
operative date of the Valuation Manual.
(b) A company with outstanding life insurance contracts, accident
and sickness insurance contracts, or deposit-type contracts in Indiana
that is subject to regulation by the commissioner shall:
(1) annually submit the opinion of the appointed actuary
concerning whether the reserves and related actuarial items held
in support of the contracts:
(A) are computed appropriately;
(B) are based on assumptions that satisfy contractual
provisions;
(C) are consistent with previously reported amounts; and
(D) comply with applicable Indiana law;
according to the specific requirements prescribed by the
Valuation Manual; and
(2) except as exempted in the Valuation Manual, annually submit
the opinion of the appointed actuary concerning whether the
reserves and related actuarial items held in support of the
contracts specified in the Valuation Manual, when considered
with the assets held by the company with respect to the reserves
and related actuarial items including the:
(A) investment earnings on the assets; and
(B) considerations anticipated to be received and retained under
the contracts;
make adequate provision for the company's obligations, including
benefits under, expenses associated with, and any other
obligations under the contracts.
(c) The following requirements apply to an opinion required by
subsection (b)(2):
(1) A memorandum, in form and substance as specified in the
Valuation Manual and acceptable to the commissioner, 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 in the
Valuation Manual; or
(B) the commissioner determines that the supporting
memorandum provided by the company fails to meet the
standards prescribed by the Valuation Manual or is otherwise
unacceptable to the commissioner;
the commissioner may engage a qualified actuary at the expense
of the company to review the opinion and the basis for the opinion
and prepare the supporting memorandum required by the
commissioner.
(d) The following requirements apply to an opinion prepared under
subsection (b)(1) or (b)(2):
(1) The opinion must be in form and substance as specified in the
Valuation Manual and acceptable to the commissioner.
(2) The opinion must be submitted with the annual statement
reflecting the valuation of the reserves for each year ending on or
after the operative date of the Valuation Manual.
(3) The opinion must apply to all contracts subject to subsection
(b)(2) plus other actuarial liabilities specified in the Valuation
Manual.
(4) The opinion must be based on:
(A) standards adopted by the Actuarial Standards Board; and
(B) additional standards prescribed in the Valuation Manual.
(5) 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 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.
(6) Except in cases of fraud or willful misconduct, the appointed
actuary is not liable for damages to a person other than the
company and the commissioner for any act, error, omission,
decision, or conduct with respect to the appointed actuary's
opinion.
(7) Disciplinary action by the commissioner against the company
or the appointed actuary must be defined in rules adopted by the
commissioner under IC 4-22-2.

Legislative History

As added by P.L.276-2013, SEC.10. Amended by P.L.124-2018, SEC.24.