§ 26.1-35-12 — Requirements of a principle-based valuation

(1) Requirements for the format of reports to the commissioner under
subdivision c of subsection 2 of section 26.1-35-12 and which must include
information necessary to determine if the valuation is appropriate and in
compliance with this chapter;
(2) Assumptions must be prescribed for risks over which the insurer does not
have significant control or influence; and
(3) Procedures for corporate governance and oversight of the actuarial function,
and a process for appropriate waiver or modification of such procedures.
d. For policies not subject to a principle-based valuation under section 26.1-35-12,
the minimum valuation standard must:
(1) Be consistent with the minimum standard of valuation before the operative
date of the valuation manual; or
(2) Develop reserves that quantify the benefits and guarantees, and the
funding, associated with the contracts and their risks at a level of
conservatism that reflects conditions that include unfavorable events that
have a reasonable probability of occurring.
e. Other requirements, including those relating to reserve methods, models for
measuring risk, generation of economic scenarios, assumptions, margins, use of
insurer experience, risk measurement, disclosure, certifications, reports, actuarial
opinions and memorandums, transition rules, and internal controls.
f. The data and form of the data required under section 26.1-35-13, with whom the
data must be submitted, and may specify other requirements including data
analyses and reporting of analyses.
4. In the absence of a specific valuation requirement or if a specific valuation requirement
in the valuation manual is not, in the opinion of the commissioner, in compliance with
this chapter, with respect to such requirements, the insurer shall comply with minimum
valuation standards prescribed by the commissioner by rule.
5. The commissioner may employ or contract with a qualified actuary, at the expense of
the insurer, to perform an actuarial examination of the insurer and opine on the
appropriateness of any reserve assumption or method used by the insurer, or to
review and opine on an insurer's compliance with any requirement set forth in this
chapter. The commissioner may rely upon the opinion regarding provisions contained
within this chapter, of a qualified actuary engaged by the commissioner of another
state, district, or territory of the United States.
6. The commissioner may require an insurer to change any assumption or method that,
in the opinion of the commissioner, is necessary in order to comply with the

requirements of the valuation manual or this chapter; and the insurer shall adjust the
reserves as required by the commissioner. The commissioner may take other
disciplinary action as permitted under this title.