2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 103 - Life Insurance Policies and Annuity Contracts › § 3791c. Actuarial opinion of reserves

§ 3791c. Actuarial opinion of reserves
(a) Actuarial Opinion of Reserves after the Operative Date of the Valuation Manual; General. Every company with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this State and subject to regulation by the Commissioner shall annually 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 will prescribe the specifics of this opinion, including any items deemed to be necessary to its scope.
(b) Actuarial analysis of reserves and assets supporting reserves. Every company 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, shall also annually include in the opinion required by subsection (a) of this section, 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 company 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 company’s obligations under the policies and contracts, including the benefits under and expenses associated with the policies and contracts.
(c)(1) Requirements for opinions subject to this section. Each opinion required by this section, in a form and substance as specified in the Valuation Manual, and acceptable to the Commissioner, shall be prepared to support each actuarial opinion.
(2) If the company 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 company 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 company to review the opinion and the basis for the opinion and prepare the supporting memorandum required by the Commissioner.
(d)(1) Requirement for all opinions subject to this section. Every opinion shall be in form and substance as specified in the Valuation Manual and acceptable to the Commissioner.
(2) The opinion shall 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 shall apply to all policies and contracts subject to subsection (b) of this section, plus other actuarial liabilities as may be specified in the Valuation Manual.
(4) The opinion shall be based on standards adopted from time to time by the Actuarial Standards Board or its successor, 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 company, the Commissioner may accept the opinion filed by that company with the insurance supervisory official of another state if the Commissioner determines that the opinion reasonably meets the requirements applicable to a company domiciled in this State.
(6) Except in cases of fraud or willful misconduct, the appointed actuary shall not be liable for damages to any person, other than the company 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 company or the appointed actuary shall be defined in rules adopted by the Commissioner. (Added 2015, No. 63, § 1, eff. June 17, 2015.)