§ 26-6-209 — Valuation manual for policies and contracts; amendments to manual; rules on minimum valuation standards; actuarial examinations

Wyoming § 26-6-209

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 6: ASSETS AND LIABILITIES

Text

(a) For policies or contracts issued on or after the
operative date of the valuation manual, the standard prescribed
in the valuation manual is the minimum standard of valuation
required under W.S. 26-6-202(e), except as provided under
subsection (e) or (g) of this section.
(b) The operative date of the valuation manual is January
1, 2017.
(c) Unless an amendment in the valuation manual specifies
a later effective date, amendments to the valuation manual shall
be effective on January 1 following the date when all of the
following have occurred:
(i) The change to the valuation manual has been
adopted by the NAIC by an affirmative vote representing:
(A) At least three-fourths (3/4) of the members
of the NAIC voting, but not less than a majority of the total
membership; and
(B) Members of the NAIC representing
jurisdictions totaling greater than seventy-five percent (75%)
of the direct premiums written as reported in the following
annual statements most recently available prior to the vote in
subparagraph (A) of this paragraph:
(I) Life, accident and health annual
statements;
(II) Health annual statements; or
(III) Fraternal annual statements.
(d) The valuation manual shall specify all of the
following:
(i) Minimum valuation standards for and definitions
of the policies or contracts subject to W.S. 26-6-202(e). The
minimum valuation standards shall be:
(A) The commissioner's reserve valuation method
for life insurance contracts, other than annuity contracts,
subject to W.S. 26-6-202(e);
(B) The commissioner's reserve valuation method
for annuity contracts subject to W.S. 26-6-202(e); and
(C) Minimum reserves for all other policies or
contracts subject to W.S. 26-6-202(e).
(ii) Which policies or contracts or types thereof are
subject to the requirements of a principle based valuation under
W.S. 26-6-210(a) and the minimum valuation standards consistent
with those requirements;
(iii) For policies and contracts subject to a
principle based valuation under W.S. 26-6-210:
(A) Requirements for the format of reports to
the commissioner under W.S. 26-6-210(b)(iii), which shall
include information necessary to determine if the valuation is
appropriate and in compliance with this article;
(B) Assumptions for risks over which the insurer
does not have significant control or influence;
(C) Procedures for corporate governance and
actuarial function oversight and a process for appropriate
waiver or modification of the procedures.
(iv) For policies and contracts not subject to a
principle based valuation under W.S. 26-6-210, the minimum
valuation standard shall either:
(A) Be consistent with the minimum standard of
valuation prior to the operative date of the valuation manual;
or
(B) Require reserves that quantify the benefits,
guarantees, funding and risks associated with the policies or
contracts at a level of conservatism that reflects conditions
including unfavorable events with a reasonable probability of
occurring.
(v) The experience data required under W.S. 26-6-211
including reporting and any data analysis requirements; and
(vi) Any other requirement including those relating
to reserve methods, models for measuring risk, generation of
economic scenarios, assumptions, margins, use of company
experience, risk measurement, disclosure, certifications,
reports, actuarial opinions and memoranda, transition rules and
internal controls.
(e) In the absence of a specific valuation requirement or
if a specific valuation requirement in the valuation manual is
not in the commissioner's opinion in compliance with this
article, the insurer shall comply with minimum valuation
standards prescribed by the commissioner by rule or regulation.
(f) The commissioner may, at the expense of the insurer,
engage, employ or contract a qualified actuary 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 article. The commissioner may
rely upon the opinion of a qualified actuary engaged by the
commissioner of another state, district or territory of the
United States regarding provisions contained within this
article.
(g) The commissioner may require an insurer to change any
assumption or method that in the commissioner's opinion is
necessary to comply with the requirements of the valuation
manual or this article. An insurer shall adjust the reserves as
required by the commissioner. The commissioner may take other
disciplinary action as permitted pursuant to W.S. 26-1-107.