Connecticut Administrative Code › Title 38a - Insurance Department › 78 - Connecticut Standard Valuation Law Actuarial Opinion and Memorandum › Section 38a-78-9 - Description of an actuarial memorandum including an asset adequacy analysis and a regulatory asset adequacy issues summary

Current through July 10, 2024
(a)
General
.
(1) In accordance with subsection (b) of
			 section
			 38a-78
			 of the Standard Valuation Law, the appointed actuary shall prepare a memorandum
			 to the company describing the analysis done in support of his or her opinion
			 regarding the reserves under an opinion pursuant to section
			 38a-78-7
			 the Regulations of Connecticut State Agencies. 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 subsection (b) of section
			 38a-78-5 of
			 the Regulations of Connecticut State Agencies 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 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 section, 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 section
			 38a-78
			 of the general statutes. 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 section
			 38a-78-5 of
			 the Regulations of the Connecticut State Agencies for any one of the current
			 year or the preceding three years.
(5) In accordance with subsection (b) of
			 section
			 38a-78
			 of the Standard Valuation Law, the appointed actuary shall prepare a regulatory
			 asset adequacy issues summary, the contents of which are specified in
			 subsection (c) of this section. The regulatory asset adequacy issues summary
			 shall 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 shall be kept confidential to the same
			 extent and under the same conditions as the actuarial memorandum.