Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.09 - LIFE AND HEALTH ACUTARIAL OPINION AND MEMORANDUM RULE › Section 18.07.09.023 - ALTERNATE OPTION

Current through August 31, 2023
01.
Standard
			 Valuation Law
. The Standard Valuation Law broadly authorizes the
			 Director to accept a foreign insurer's valuation that meets the requirements
			 for an Idaho-domiciled.company. As an alternative to meeting the minimum
			 aggregate amounts for Idaho, the Director may make one (1) or more of these
			 approaches available to the opining actuary: (4-6-23)
a. A statement that the reserves "meet the
			 requirements of the insurance laws and regulations of the State of [state of
			 domicile] and the formal written standards and conditions of this state for
			 filing an opinion based on the law of the state of domicile." If the Director
			 chooses to allow this alternative, a formal written list of standards and
			 conditions will be made available. If a company chooses to use this
			 alternative, the standards and conditions in effect on July 1 of a calendar
			 year will apply to statements for that calendar year, and they will remain in
			 effect until they are revised or revoked. If no list is available, this
			 alternative is not available. (4-6-23)
b. A statement that the reserves "meet the
			 requirements of the insurance laws and regulations of the State of [state of
			 domicile] and I have verified that the company's request to file an opinion
			 based on the law of the state of domicile has been approved and that any
			 conditions prescribed by the Director for approval of that request have been
			 met." If the Director chooses to allow this alternative, a formal written
			 statement of such allowance will be issued no later than March 31 of the year
			 it is first effective. It will remain valid until rescinded or modified by the
			 Director. The rescission or modifications will be issued no later than March 31
			 of the year they are first effective. After that statement has issued, if a
			 company chooses to use this alternative, the company will file a request to do
			 so, along with justification for its use, no later than April 30 of the year of
			 the opinion to be filed. The request is deemed approved on October 1 of that
			 year if the Director has not denied it. (4-6-23)
c. A statement that the reserves "meet the
			 requirements of the insurance laws and regulations of the State of [state of
			 domicile] and I have submitted the prescribed comparison as specified by this
			 state." (4-6-23)
i. If the Director chooses to
			 allow this alternative, a formal written list of products (to be added to the
			 table in Item (ii) below) for which the prescribed comparison will be provided
			 will be published. If a company chooses to use this alternative, the list in
			 effect on July 1 of a calendar year will apply to statements for that calendar
			 year, and it will remain in effect until revised or revoked. If no list is
			 available, this alternative is not available. (4-6-23)
ii. If a company desires to use this
			 alternative, the appointed actuary will provide a comparison of the gross
			 nationwide reserves held to the gross nationwide reserves that would be held
			 under NAIC codification standards. Gross nationwide reserves are the total
			 reserves calculated for the total company in force business directly sold and
			 assumed, indifferent to the state in which the risk resides, without reduction
			 for reinsurance ceded. The information provided will be at least:
(1)
Product Type
(2)
Death Benefit or Account Value
(3)
Reserves Held
(4)
Codification Reserves
(5)
Codification Standard
(4-6-23)
iii. The information listed will include all
			 products identified by either the state of filing or any other states
			 subscribing to this alternative. (4-6-23)
iv. If there is no codification standard for
			 the type of product or risk in force, or if the codification standard does not
			 directly address the type of product or risk in force, the appointed actuary
			 will detail the specific method and assumptions used to determine the reserves
			 held. (4-6-23)
v. The comparison
			 provided by the company is to be kept confidential to the same extent and under
			 the same conditions as the actuarial memorandum. (4-6-23)
d. Notwithstanding the above, the Director
			 may reject an opinion based on the laws and regulations of the state of
			 domicile and require an opinion based on Idaho law. If a company does not
			 provide the opinion within sixty (60) days of the request or such other time
			 period set by the Director after consulting with the company, the Director may
			 hire an independent actuary at the company's expense to prepare and file the
			 opinion. (4-6-23)