This text of Wyoming § 26-6-210 (Principle based valuation; requirements) is published on Counsel Stack Legal Research, covering Wyoming primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)An insurer shall establish reserves using a principle
based valuation that meets all of the following conditions for
policies or contracts issued on or after the operative date of
the valuation manual as specified in the valuation manual:
(i)Quantifies 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 during the
lifetime of the contracts. For policies or contracts with
significant tail risk, reflects conditions appropriately adverse
to quantify the tail risk;
(ii)Incorporates assumptions, risk analysis methods
and financial models and management techniques that are
consistent with those utilized within the insurer's overall ri
Free access — add to your briefcase to read the full text and ask questions with AI
(a) An insurer shall establish reserves using a principle
based valuation that meets all of the following conditions for
policies or contracts issued on or after the operative date of
the valuation manual as specified in the valuation manual:
(i) Quantifies 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 during the
lifetime of the contracts. For policies or contracts with
significant tail risk, reflects conditions appropriately adverse
to quantify the tail risk;
(ii) Incorporates assumptions, risk analysis methods
and financial models and management techniques that are
consistent with those utilized within the insurer's overall risk
assessment process, while recognizing potential differences in
financial reporting structures and any prescribed assumptions or
methods;
(iii) Incorporates assumptions derived in one (1) of
the following manners:
(A) Assumptions prescribed in the valuation
manual;
(B) For assumptions not prescribed in the
valuation manual, assumptions that:
(I) Use the insurer's available experience,
to the extent it is relevant and statistically credible; or
(II) To the extent that company data on
experience is not available, relevant or statistically credible,
use other relevant, statistically credible experience.
(iv) Provides margins for uncertainty including
adverse deviation and estimation error such that the greater the
uncertainty the greater the margin and resulting reserve.
(b) An insurer using a principle based valuation for one
(1) or more policies or contracts subject to this section as
specified in the valuation manual shall:
(i) Establish procedures for corporate governance and
oversight of the actuarial valuation function consistent with
those described in the valuation manual;
(ii) Provide to the commissioner and the insurer's
board of directors an annual certification of the effectiveness
of the internal controls with respect to the principle based
valuation. The controls shall be designed to assure all material
risks inherent in the liabilities and associated assets subject
to the valuation are included in the valuation and valuations
are made in accordance with the valuation manual. The
certification shall be based on the controls in place as of the
end of the preceding calendar year;
(iii) Develop, and file with the commissioner upon
the commissioner's request, a principle based valuation report
that complies with standards prescribed in the valuation manual.
(c) A principle based valuation may include a prescribed
formulaic reserve component.