An Act Regarding Property and Casualty Insurance Actuarial Opinion of Reserves
Maine Legislature, Session 123, LD 1262
Committee: Insurance and Financial Services
Sponsors: CROCKETT, SULLIVAN, CANAVAN, PRIEST, TREAT

Legislative Document 
No. 1262 
H.P.890 
House of Representatives, March 8,2007 
An Act Regarding Property and Casualty Insurance Actuarial 
Opinion of Reserves 
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
Rule 204. 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative CROCKETT of Augusta. 
Cosponsored by Senator SULLIVAN of York and 
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1J7.7JldC~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CANAVAN of Waterville, PRIEST of Brunswick, TREAT of Farmingdale. 
PrnueU on ft'l.:yded paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24-A MRSA c. 11, sub-c. 2-A, as amended, is repealed. 
Sec. 2. 24-A MRS A c. 11, sub-c. 5 is enacted to read: 
SUBCHAPTER 5 
PROPERTY AND CASUALTY ACTUARIAL OPINION 
§991. Short title 
This Act may be known and cited as "the Property and Casualty Actuarial Opinion 
Act." 
§992. Definitions 
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings. 
1. Covered kinds of insurance. "Covered kinds of insurance" include: 
A. Casualty insurance as defined in section 707; and 
B. 
Property insurance as defined in section 705. Property insurance written bv 
domestic mutual assessment insurers pursuant to chapter 51 is not subj ect to the 
requirements of this subchapter. 
2. NAIC. "NAIC" means the National Association of Insurance Commissioners. 
3. Qualified actuary. "Qualified actuary" means a person who is a member of the 
American Academy of Actuaries who has obtained a designation either as a fellow or an 
associate in the Casualty Actuarial Society and, if an associate, has at least 5 years' 
experience in actuarial practice obtained in the covered kinds of insurance. 
§993. Actuarial opinion of reserves and supporting documentation 
1. Statement of actuarial opinion. Every property and casualty insurance company 
doing business for covered kinds of insurance in this State, unless otherwise exempted bv 
the domiciliary commissioner, shall annually submit the opinion of an appointed qualified 
actuary entitled "Statement of Actuarial Opinion." This opjniQ!1 must filed in ?ccordance 
with the appropriate NAIC property and casualty annu'!L"tatement instructions. 
2. Actuarial opinion summary. An actuarial opinion summary is required pursuant 
to this subsection. 
A. 
Every property and casualtv insurance company domiciled in this_~tate that is 
required to submit a statement of actuarial opinion shall annuallY submit an actuarial 
opinion summary, written by the company's appointe<LillLalified actuary. 
This 
actuarial opinion summary must be filed in accordance with the appropriate NAIC 
Pag.: I - 123LR0520(lH)-1 
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property and casualty annual statement instructions and must be considered as a 
document supporting the actuarial opinion required in subsection 1. 
B. A property and casualty insurance company licensed but not domiciled in this 
State shall provide an actuarial opinion summary upon request of the superintendent. 
3. Actuarial report and work papers. An actuarial report is required pursuant to 
this subsection. 
A. An actuarial report and underlying work papers as required by the appropriate 
NAIC property and casualty annual statement instructions must be prepared to 
support each actuarial opinion. 
B. 
If a property and casualty lllsurance company fails to provide a supporting 
actuarial report or work papers at the request of the superintendent or the 
superintendent determines that the supporting actuarial report or work papers 
provided by the company are otherwise unacceptable to the superintendent, the 
superintendent 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 actuarial 
report or work papers. 
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4. Liability. The appointed qualified actuary is not liable for damages to any person, 
other than the property and casualty insurance company and the superintendent, for any 
act, error, omission, decision or conduct with respect to the actuary's opinion, except in 
cases offraud or willful misconduct on the part of the actuary. 
§994. Confidentiality 
1. Statement of actuarial opinion. The statement of actuarial opinion under section 
must be provided with the annual statement under section 993 in accordance with the 
appropriate NAIC property and casualty annual statement instructions and must be 
treated as a public document. 
2. Documents in possession of bureau. The confidentiality of documents in the 
possession of the bureau is governed by this subsection. 
A. Documents, materials or other information in the possession or control of the 
bureau that are considered an actuarial report, work papers or actuarial opinion 
summary provided in support of the opinion, as described in section 993, and any 
oth~r material provided by the property and casualty insurance company to the 
superintendent in connection with the actuarial report, work papers or actuarial 
opinion summary are confidential by law and privileged, are not subject to freedom 
of access, are not subject to subpoena and are not subject to discovery or admissible 
in evidence in any private civil action. 
B. This subsection may not be construed to limit the superintendent's authority to 
release documents to the Actuarial Board for Counseling and Discipline or successor 
organization as long as the material is required for the purpose of professional 
disciplinary proceedings and the Actuarial Board for Counseling and Discipline 
establishes ---PLQcedures satisfactory to the superintendent for preserving the 
confidentialitv of the documents. This section may not be construed to limit the 
superintendent's authority to use the documents, materials or other information in 
furtherance of any regulatory or legal action brought as part of the superintendent's 
official duties. 
3. Testimony. Neither the superintendent nor any person who received documents, 
materials or other information while acting under the authority of the superintendent is 
permitted or required to testify in any private civil action concerning any confidential 
documents, materials or information subject to subsection 2. 
4. 
Sharing of documents. 
In order to assist in the performance of the 
superintendent's duties, the superintendent may: 
A. 
Share documents, materials or other information, including confidential and 
privileged documents, materials or information subject to subsection 2, with other 
state, federal and international regulatory agencies, with the NAIC and its affiliates 
and subsidiaries and with state, federal and international law enforcement authorities, 
as long as the recipient agrees to maintain the confidentiality and privileged status of 
the document, material or other information and has the legal authority to maintain 
confidentiality; 
B. Receive documents, materials or information, including otherwise confidential 
and privileged documents, materials or information, from the NAIC and its affiliates 
and subsidiaries and from regulatory and law enforcement officials of other foreign 
or domestic jurisdictions. 
The superintendent 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. Enter into agreements governing sharing and use of information consistent with 
this subsection and subsections 2 and 3. 
5. Waiver. No waiver of an applicable privilege or claim of confidentiality in the 
documents, materials or information may occur as a result of disclosure to the 
superintendent under this section or as a result of sharing as authorized in subsection 4. 
Sec. 3. Effective date. This Act takes effect January 1,2009. 
SUMMARY 
This bill amends the Maine Insurance Code by replacing the current prOVlSlons 
regarding property and casualty actuarial opinions on insurer reserves with the model 
legislation adopted by the National Association of Insurance Commissioners. The bill 
requires the filing of the statement of actuarial opinion, the actuarial report supporting the 
opinion and the actuarial opinion summary by domestic insurers, excluding domestic 
mutual property insurers. 
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