California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 17 - Actuarial Opinion and Memorandum Regulation › Section 2580.6 - Description of Actuarial Memorandum Including an Asset Adequacy Analysis and Regulatory Asset Adequacy Issues Summary

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) General
(1) In accordance with Section
				  10489.15 of
				  the Insurance Code, 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.
(2) 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 Section
				  2580.4(b) of this
				  regulation, 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 is received within 60
				  calendar days of the date of mailing the request, 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 such 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 such reviewing actuary shall be retained by
				  the Commissioner; provided, however, that any information provided by the
				  Company to such 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 years.
(5) In accordance with Section
				  10489.15 of
				  the Insurance Code, the Appointed Actuary shall prepare a regulatory asset
				  adequacy issues summary, the contents of which are specified in Subsection
				  2580.6(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.