Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 2 - Division of Insurance › Chapter 21 - Insurer - Financial › Article 8 - Actuarial Opinion and Memorandum › 3 AAC 21.835 - Memorandum to support a statement of actuarial opinion

Current through May 31, 2024
(a) An appointed
				  actuary shall prepare a memorandum that describes the analysis done in support
				  of the actuary's opinion regarding the reserves covered in an actuarial opinion
				  prepared under
				  3 AAC 21.830. The memorandum must be made available for
				  examination upon request of the director. The director will return the
				  memorandum to the company after examination.
(b) In preparing a memorandum under this
				  section, an appointed actuary may rely upon, and include as a part of the
				  memorandum, a memorandum previously prepared and signed by another appointed or
				  qualified actuary regarding the area that is being relied upon in the current
				  memorandum.
(c) The qualified
				  actuary engaged by the director under
				  AS
				  21.18.110(r) may not be an
				  employee of a consulting firm involved in the preparation of any prior
				  actuarial opinion or memorandum for the company in the previous four years. Any
				  information provided by the company to the actuary engaged by the director is
				  subject to the confidentiality requirements of
				  AS
				  21.18.110(s).
(d) An appointed actuary shall prepare a
				  regulatory asset adequacy issues summary in compliance with (e) of this
				  section. A company shall submit the regulatory asset adequacy issues summary to
				  the director upon request, and the director will hold the regulatory asset
				  adequacy issues summary confidential subject to the confidentiality
				  requirements of
				  AS
				  21.18.110(s).
(e) A memorandum prepared under this section
				  must demonstrate that the analysis has been done according to the actuarial
				  standards of practice adopted by the Actuarial Standards Board as required by
				  AS
				  21.18.110(n) and the
				  requirements under
				  3 AAC 21.800 -
				  3 AAC 21.845 and must provide the following:
(1) information about reserves that includes
(A) product descriptions, including market
				  description, underwriting, and other aspects of a risk profile, and the
				  specific risks that the appointed actuary considers significant;
(B) the source of liability in
				  force;
(C) the reserve method and
				  basis;
(D) the investment
				  reserves;
(E) the reinsurance
				  arrangements;
(F) identification of
(i) any explicit or implied guarantees made
				  by the general account in support of benefits provided through a separate
				  account or under a separate account policy or contract; and
(ii) the methods used by the appointed
				  actuary to provide for the guarantees in the asset adequacy analysis;
				  and
(G) documentation of
				  assumptions to test reserves for
(i) base and
				  excess lapse rates;
(ii) interest
				  crediting rate strategy;
(iii)
				  mortality;
(iv) policyholder
				  dividend strategy;
(v) competitor
				  or market interest rate;
(vi)
				  annuitization rates;
(vii)
				  commissions and expenses; and
(viii) morbidity;