Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 132.00 - Actuarial Opinion And Memorandum Regulation › Section 132.07 - Description of Actuarial Memorandum Including an Asset Adequacy Analysis and Regulatory Asset Adequacy Issues Summary

Current through Register 1525, July 5, 2024
(1)
General.
(a) In
			 accordance with M.G.L. c. 175, § 9B, 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
			 211 CMR
			 132.05(2), 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 memorandum is not provided within 30
			 days of 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
			 211 CMR 132.00, 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
			 211 CMR 132.00. 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
			 211 CMR 132.00 for any one
			 of the current year or the preceding three years.
(e) In accordance with M.G.L. c. 175, §
			 9B, the appointed actuary shall prepare a regulatory asset adequacy issues
			 summary, the contents of which are specified in 211 CMR 132.07(3). The
			 regulatory asset adequacy issues summary will be submitted no later than March
			 15th 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.