Connecticut Administrative Code › Title 38a - Insurance Department › 459 - Synthetic Guaranteed Investment Contracts › Separate Accounts Funding Guaranteed Minimum Benefits Under Group Contracts › Section 38a-459-17 - Actuarial opinion and memorandum

Current through July 10, 2024
(a) An insurance
				company that maintains any separate accounts governed by sections
				38a-459-10
				to
				38a-459-20,
				inclusive, of the Regulations of Connecticut State Agencies shall submit an
				actuarial opinion rendered by the valuation actuary to the insurance
				commissioner annually by March 1 showing the status of the accounts as of the
				preceding December 31. The actuarial opinion shall be supported by a
				confidential actuarial memorandum prepared by the valuation actuary rendering
				the opinion. The valuation actuary may be either the appointed actuary of the
				insurance company or, alternatively, a qualified actuary designated by the
				appointed actuary to be the valuation actuary for the purpose of sections
				38a-459-10
				to
				38a-459-20,
				inclusive, of the Regulations of Connecticut State Agencies.
(b) The actuarial memorandum required by
				subsection (a) of this section is a memorandum as set forth in subdivision (3)
				of section
				38a-78(c)
				of the Connecticut General Statutes. The actuarial memorandum may include any
				matter required by section
				38a-78
				of the Connecticut General Statutes and is subject to the confidentiality
				protections of subdivision (7) of section
				38a-78(c)
				of the Connecticut General Statutes.
(c) The actuarial memorandum in support of
				the opinion, and any other material provided by the insurance company to the
				insurance commissioner in connection therewith, is deemed to be confidential to
				the same extent, and under the same conditions, as the actuarial memorandum
				required by section
				38a-78
				of the Connecticut General Statutes.
(d) The actuarial memorandum shall be made
				available for examination by the insurance commissioner upon the commissioner's
				request, but shall be returned to the insurance company after an examination
				and shall not be considered a record of the insurance department or subject to
				automatic filing with the insurance commissioner.
(e) Except in cases of fraud or willful
				misconduct, the valuation actuary shall not be liable for damages to any person
				(other than the insurance company or the insurance commissioner) for any act,
				error, omission, decision, or conduct with respect to the actuary's
				opinion.
(f) The statement of
				actuarial opinion, submitted pursuant to subsection (a) of this section, shall
				cover the applicable points set forth in sections
				38a-78-1 to
				38a-78-9,
				inclusive, of the Regulations of Connecticut State Agencies and at a minimum
				consist of:
(1) A paragraph identifying the
				valuation actuary and the valuation actuary's qualifications;
(2) A scope paragraph identifying the
				subjects on which the opinion is to be expressed and describing the scope of
				the valuation actuary's work;
(3) A
				reliance paragraph describing those areas, if any, where the valuation actuary
				deferred to other experts in developing data, procedures, or assumptions (e.g.,
				data, procedures or assumptions regarding anticipated cash flows from currently
				owned assets, including variation in cash flows according to economic
				scenarios), supported by a statement of each expert in the form prescribed by
				section
				38a-78-7
				of the Regulations of Connecticut State Agencies; and
(4) An opinion paragraph expressing the
				valuation actuary's opinion that, after taking into account any risk charge
				payable from the separate account assets and the amount of any reserve
				liability of the general account and amounts held in any supplemental account
				with respect to the asset maintenance requirement, the account assets make
				adequate provision for the contract liabilities.
(5) The opinion shall also state:
(A) That the level of risk charges, if any,
				payable to the general account was appropriate in view of such factors as the
				nature of the guaranteed contract liabilities and losses experienced in
				connection with account contracts, and other pricing factors;
(B) That after taking account of any reserve
				liability of the general account and amounts held in any supplemental account
				with respect to the asset maintenance requirement, the amount of the account
				assets satisfied the asset maintenance requirement;
(C) That the fixed-income asset portfolio
				conformed to, and justified, the rates used to discount contract liabilities
				for valuation pursuant to section
				38a-459-14(f)
				of the Regulations of Connecticut State Agencies, if applicable; and
(D) Whether any rates utilized, pursuant to
				section
				38a-459-14(f)
				of the Regulations of Connecticut State Agencies, to discount guaranteed
				contract liabilities and other items applicable to the separate account or any
				supplemental account were modified from the rate or rates described in the plan
				of operations filed pursuant to section
				38a-459-12
				of the Regulations of Connecticut State Agencies.
(6) One or more additional paragraphs may be
				needed in individual insurance company cases as follows:
(A) If the valuation actuary considers it
				necessary to state a qualification of his opinion;
(B) If the valuation actuary has to disclose
				an inconsistency in the method of analysis used at the prior opinion date with
				that used for this opinion; or
(C)
				If the valuation actuary chooses to add a paragraph briefly describing the
				assumptions which form the basis of the actuarial opinion.