Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69O - OIR - Insurance Regulation › Chapter 69O-149 - FILING OF FORMS AND RATES FOR LIFE/HEALTH INSURANCE › Section 69O-149.006 - Actuarial Memorandum

Current through Reg. 50, No. 138; July 16, 2024
(1) In order for a
				rate filing to be reviewed properly by the Office, the actuarial memorandum
				required by subparagraph
				69O-149.003(2)(b)
				4., F.A.C., shall contain the items listed in subsection (2), below, for a new
				product filing, a rate revision or justification of existing rates. Pricing
				assumptions shall reflect insurer experience to the degree credible, and
				industry experience where insurer experience is not credible, available or
				appropriate. Assumptions shall reflect what the insurer fully expects to occur,
				rather than assumptions developed primarily for rate filing purposes based on
				sound actuarial principles. All such items shall be adequately justified by
				supporting data. In reviewing these assumptions, the Office will use, as an
				initial point of reference, comparisons of the assumptions with those from
				similar products of the same insurer, similar products of other insurers and
				independent studies. If an insurer provides projections that differ from those
				historically experienced for similar coverage, it shall provide supporting data
				to justify how and why the projections will differ from the actual historical
				experience. Additional information will be required, if, given the particular
				facts and circumstances of the filing, the Office determines that the
				additional information is necessary to properly complete its review of the
				filing to determine if the benefits are reasonable in relation to the premiums
				charged. All filings reviewed under Rules
				69O-149.002 through
				69O-149.006, F.A.C., shall be
				reviewed in accordance with sound actuarial principles and, except where the
				context plainly does not involve an actuarial determination, all adverbs in
				these rules such as "properly" and "appropriately" shall be construed in light
				of those principles.
(2) Note that
				the numbers preceding the item names refer to the descriptions in subsection
				(3), below.
(a) Item 1. Scope &
				Purpose.
(b) Item 2. Benefit
				Description.
(c) Item 3.
				Renewability Clause.
(d) Item 4.
				Applicability.
(e) Item 5.
				Morbidity.
(f) Item 6.
				Mortality.
(g) Item 7.
				Persistency.
(h) Item 8.
				Expenses.
(i) Item 9. Marketing
				Method.
(j) Item 10.
				Underwriting.
(k) Item 11. Premium
				Classes.
(l) Item 12. Issue Age
				Range.
(m) Item 13. Area
				Factors.
(n) Item 14. Average
				Annual Premium.
(o) Item 15.
				Premium Modalization Rules.
(p)
				Item 16. Claim Liability and Reserves.
(q) Item 17. Active Life Reserves.
(r) Item 18. Trend Assumption - Medical and
				Insurance.
(s) Item 19. Minimum
				Loss Ratio.
(t) Item 20.
				Anticipated Loss Ratio.
(u) Item
				21. Distribution of Business.
(v)
				Item 22. Contingency & Risk Margins.
(w) Item 23. Experience - Past &
				Future.
(x) Item 24. Lifetime Loss
				Ratio.
(y) Item 25. History of Rate
				Adjustments.
(z) Item 26. Number of
				Policyholders.
(aa) Item 27.
				Proposed Effective Date.
(bb) Item
				28. Actuarial Certification.