Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 169 - ACTUARIAL OPINION AND MEMORANDUM › Subchapter 1 - INSURANCE COMPANIES, MUTUAL BENEFIT SOCIETIES, AND FRATERNAL BENEFIT SOCIETIES AUTHORIZED AS LIFE INSURERS › Section 16-169-8 - Description of actuarial memorandum including an asset adequacy analysis and regulatory asset adequacy issues summary

Current through June, 2024
(a) General.
(1) In accordance with section
				431:5-307(j),
				HRS, the appointed actuary shall prepare a memorandum to the company describing
				the analysis done in support of the actuary's opinion regarding the reserves.
				The memorandum shall be made available for examination by the commissioner upon
				the commissioner's request but shall be returned to the company after such
				examination and shall not be considered a record of the insurance division or
				subject to automatic filing with the commissioner.
(2) In preparing the memorandum, the
				appointed actuary may rely on, and include as a part of the actuary's own
				memorandum, memoranda prepared and signed by other actuaries who are qualified
				within the meaning of section 16-169-4(b), with respect to the areas covered in
				such memoranda, and so state in their memoranda.
(3) If the commissioner requests a memorandum
				and no such memorandum exists or if the commissioner finds that the analysis
				described in the memorandum fails to meet the standards of the Actuarial
				Standards Board or the standards and requirements of this chapter, the
				commissioner may designate a qualified actuary to review the opinion and
				prepare such supporting memorandum as is required for review. The reasonable
				and necessary expense of the independent review shall be paid by the company
				but shall be directed and controlled by the commissioner.
(4) The reviewing actuary shall have the same
				status as an examiner for purposes of obtaining data from the company and the
				work papers and documentation of the reviewing actuary shall be retained by the
				commissioner; provided that any information provided by the company to the
				reviewing actuary and included in the work papers shall be considered as
				material provided by the company to the commissioner and shall be kept
				confidential to the same extent as is prescribed by law with respect to other
				material provided by the company to the commissioner pursuant to chapter
				431, HRS. The reviewing actuary shall
				not be an employee of a consulting firm involved with the preparation of any
				prior memorandum or opinion for the insurer pursuant to this chapter for any
				one of the current year or the preceding three years.
(5) In accordance with section
				431:5-307,
				HRS, the appointed actuary shall prepare a regulatory asset adequacy issues
				summary, the contents of which are specified in subsection (c). Companies
				domiciled in Hawaii shall submit the regulatory asset adequacy issues summary
				shall be submitted no later than March 15 of the year following the year for
				which a statement of actuarial opinion based on asset adequacy is required.
				Foreign companies are not required to submit the regulatory asset adequacy
				issues summary annually, however, the summary shall be made available for
				examination by the commissioner upon request. The regulatory asset adequacy
				issues summary is to be kept confidential to the same extent and under the same
				conditions as the actuarial memorandum.