Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-112 - ACTUARIAL OPINION AND MEMORANDUM › Section 482-1-112-.07 - Description Of Actuarial Memorandum Including An Asset Adequacy Analysis And Regulatory Asset Adequacy Issues Summary

Current through Register Vol. 42, No. 9, June 28, 2024
(1) General.
(a) In accordance with of Section
			 27-36A-4,
Code of Ala.
			 1975
, the appointed actuary shall prepare a memorandum to the
			 company describing the analysis done in support of his or her opinion regarding
			 the reserves. The memorandum shall be made available for examination by the
			 Commissioner upon his or her request but shall be returned to the company after
			 such examination and shall not be considered a record of the insurance
			 department or subject to automatic filing with the Commissioner.
(b) In preparing the memorandum, the
			 appointed actuary may rely on, and include as a part of his or her own
			 memorandum, memoranda prepared and signed by other actuaries who are qualified
			 within the meaning of paragraph (2) of Rule
			 482-1-112-.05, with respect to
			 the areas covered in such memoranda, and so state in their memoranda.
(c) 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.
(d) 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, however, 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 the statute
			 governing this chapter. 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 (3) years.
(e) In accordance with of Section
			 27-36A-4, the appointed actuary
			 shall prepare a regulatory asset adequacy issues summary, the contents of which
			 are specified in Paragraph (3) below. The regulatory asset adequacy issues
			 summary will 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.
			 The regulatory asset adequacy issues summary is to be kept confidential to the
			 same extent and under the same conditions as the actuarial
			 memorandum.