Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-74 - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Rule 120-2-74-.07 - Description of Actuarial Memorandum Including an Asset Adequacy and Regulatory Asset Adequacy Issues

Current through Rules and Regulations filed through June 27, 2024
(1) General.
(a) In accordance with O.C.G.A. §
										33-10-13(b.1), 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
				120-2-74-.05(2) of
				this regulation, 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 regulation, 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 regulation. 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
				regulation for any one of the current year or the preceding three (3)
				years.
(e) In accordance with
				O.C.G.A. §
										33-10-13(b.1), the appointed
				actuary shall prepare a regulatory asset adequacy issues summary, the contents
				of which are specified in Subsection C. 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.