1. The following apply to the actuarial opinions issued before the operative date of the
valuation manual:
a. Every life insurer doing business in this state shall annually submit the opinion of
a qualified actuary as to whether the reserves and related actuarial items held in
support of the policies and contracts specified by the commissioner by rule are
computed appropriately, are based on assumptions which satisfy contractual
provisions, are consistent with prior reported amounts, and comply with
applicable laws of this state. The commissioner by rule shall define the specifics
of this opinion and add any other items deemed to be necessary to its scope.
b. Actuarial analysis of reserves and assets supporting such reserves.
(1)Every life insurer, except as exempted by or pursuant to rul
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1. The following apply to the actuarial opinions issued before the operative date of the
valuation manual:
a. Every life insurer doing business in this state shall annually submit the opinion of
a qualified actuary as to whether the reserves and related actuarial items held in
support of the policies and contracts specified by the commissioner by rule are
computed appropriately, are based on assumptions which satisfy contractual
provisions, are consistent with prior reported amounts, and comply with
applicable laws of this state. The commissioner by rule shall define the specifics
of this opinion and add any other items deemed to be necessary to its scope.
b. Actuarial analysis of reserves and assets supporting such reserves.
(1) Every life insurer, except as exempted by or pursuant to rule, shall also
annually include in the opinion required by subsection 1, an opinion of the
same qualified actuary as to whether the reserves and related actuarial
items held in support of the policies and contracts specified by the
commissioner by rule, when considered in light of the assets held by the
insurer with respect to the reserves and related actuarial items, including the
investment earnings on the assets and the considerations anticipated to be
received and retained under the policies and contracts, make adequate
provision for the insurer's obligations under the policies and contracts,
including the benefits under and expenses associated with the policies and
contracts.
(2) The commissioner may provide by rule for a transition period for
establishing any higher reserves which the qualified actuary may deem
necessary in order to render the opinion required by this section.
c. Requirement for opinion under subdivision b. Each opinion required by
subdivision b must be governed by the following provisions:
(1) A memorandum, in form and substance acceptable to the commissioner as
specified by rule, must be prepared to support each actuarial opinion.
(2) If the insurer fails to provide a supporting memorandum at the request of the
commissioner within a period specified by rule or the commissioner
determines that the supporting memorandum provided by the insurer fails to
meet the standards prescribed by rule or is otherwise unacceptable to the
commissioner, the commissioner may engage a qualified actuary at the
expense of the insurer to review the opinion and the basis for the opinion
and prepare the supporting memorandum required by the commissioner.
d. Requirement for all opinions subject to subsection 1. Every opinion subject to
subsection 1 must be governed by the following provisions:
(1) The opinion must be submitted with the annual statement reflecting the
valuation of such reserve liabilities for each year ending on or after
December 31, 1994.
(2) The opinion must apply to all business in force, including individual and
group health insurance plans, in form and substance acceptable to the
commissioner as specified by rule.
(3) The opinion must be based on standards adopted from time to time by the
actuarial standards board and on such additional standards as the
commissioner may by rule prescribe.
(4) In the case of an opinion required to be submitted by a foreign or alien
insurer, the commissioner may accept the opinion filed by that insurer with
the insurance supervisory official of another state if the commissioner
determines that the opinion reasonably meets the requirements applicable
to an insurer domiciled in this state.
(5) For the purposes of this section, "qualified actuary" means a member in
good standing of the American academy of actuaries who meets the
requirements set forth in the rule.
(6) Except in cases of fraud or willful misconduct, the qualified actuary is not
liable for damages to any person, other than the insurer and the
commissioner, for any act, error, omission, decision, or conduct with respect
to the actuary's opinion.
(7) Disciplinary action by the commissioner against the insurer or the qualified
actuary must be defined in rules by the commissioner.
(8) Except as provided in paragraphs 12, 13, and 14, documents, materials, or
other information in the possession or control of the insurance department
that are a memorandum in support of the opinion, and any other material
provided by the insurer to the commissioner in connection with the
memorandum, are confidential records not subject to section 44-04-18 and
are privileged, are not subject to subpoena, and are not subject to discovery
or admissible in evidence in any private civil action. However, the
commissioner may use the documents, materials, or other information in the
furtherance of any regulatory or legal action brought as a part of the
commissioner's official duties.
(9) Neither the commissioner nor any person who received documents,
materials, or other information while acting under the authority of the
commissioner is permitted or required to testify in any private civil action
concerning any confidential documents, materials, or information subject to
paragraph 8.
(10) In order to assist in the performance of the commissioner's duties, the
commissioner:
(a) May share documents, materials, or other information including the
confidential and privileged documents, materials, or information
subject to paragraph 8 with other state, federal, and international
regulatory agencies; with the national association of insurance
commissioners and its affiliates and subsidiaries; and with state,
federal, and international law enforcement authorities, if the recipient
agrees to maintain the confidentiality and privileged status of the
document, material, or other information;
(b) May receive documents, materials, or information, including otherwise
confidential and privileged documents, materials, or information, from
the national association of insurance commissioners and its affiliates
and subsidiaries, and from regulatory and law enforcement officials of
other foreign or domestic jurisdictions, and shall maintain as
confidential or privileged any document, material, or information
received with notice or the understanding that it is confidential or
privileged under the laws of the jurisdiction that is the source of the
document, material, or information; and
(c) May enter agreements governing sharing and use of information
consistent with paragraphs 8, 9, and 10.
(11) A waiver of any applicable privilege or claim of confidentiality in the
documents, materials, or information may not occur as a result of disclosure
to the commissioner under this section or as a result of sharing as
authorized in paragraph 10.
(12) A memorandum in support of the opinion, and any other material provided
by the insurer to the commissioner in connection with the memorandum,
may be subject to subpoena for the purpose of defending an action seeking
damages from the actuary submitting the memorandum by reason of an
action required by this section or by rules adopted under this section.
(13) The memorandum or other material may otherwise be released by the
commissioner with the written consent of the insurer or to the American
academy of actuaries upon request stating that the memorandum or other
material is required for the purpose of professional disciplinary proceedings
and setting forth procedures satisfactory to the commissioner for preserving
the confidentiality of the memorandum or other material.
(14) Once any portion of the confidential memorandum is cited by the insurer in
its marketing or is cited before any governmental agency other than a state
insurance department or is released by the insurer to the news media, all
portions of the confidential memorandum are no longer confidential.
2. The following apply to actuarial opinions of reserves issued after the operative date of
the valuation manual:
a. Every insurer with outstanding life insurance contracts, accident and health
insurance contracts, or deposit-type contracts in this state and subject to
regulation by the commissioner annually shall submit the opinion of the appointed
actuary as to whether the reserves and related actuarial items held in support of
the policies and contracts are computed appropriately, are based on assumptions
that satisfy contractual provisions, are consistent with prior reported amounts,
and comply with applicable laws of this state. The valuation manual prescribes
the specifics of this opinion, including any items deemed to be necessary to its
scope.
b. Every insurer with outstanding life insurance contracts, accident and health
insurance contracts, or deposit-type contracts in this state and subject to
regulation by the commissioner, except as exempted in the valuation manual,
also annually shall include in the opinion required by subdivision a an opinion of
the same appointed actuary as to whether the reserves and related actuarial
items held in support of the policies and contracts specified in the valuation
manual, when considered in light of the assets held by the insurer with respect to
the reserves and related actuarial items, including the investment earnings on the
assets and the considerations anticipated to be received and retained under the
policies and contracts, make adequate provision for the insurer's obligations
under the policies and contracts, including the benefits under and expenses
associated with the policies and contracts.
c. Each opinion required by this subsection is governed by the following provisions:
(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 the insurer fails to provide a supporting memorandum at the request of the
commissioner within a period specified in the valuation manual or the
commissioner determines that the supporting memorandum provided by the
insurer 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 insurer to review the
opinion and the basis for the opinion and prepare the supporting
memorandum required by the commissioner.
d. Under this subsection, every opinion is governed by the following provisions:
(1) The opinion must be in a 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 such reserve liabilities for each year ending on or after the
operative date of the valuation manual.
(3) The opinion must apply to all policies and contracts subject to subdivision b,
plus other actuarial liabilities as may be specified in the valuation manual.
(4) The opinion must be based on standards adopted by the actuarial standards
board or its successor and approved by the commissioner and on such
additional standards as may be prescribed in the valuation manual.
(5) In the case of an opinion required to be submitted by a foreign or alien
insurer, the commissioner may accept the opinion filed by that insurer with
the insurance supervisory official of another state if the commissioner
determines that the opinion reasonably meets the requirements applicable
to an insurer domiciled in this state.
(6) Except in cases of fraud or willful misconduct, the appointed actuary is not
liable for damages to any person, other than the insurer 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 insurer or the appointed
actuary must be defined in rules adopted by the commissioner.