Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Actuarial Opinion and Memorandum Under Standard Valuation Law › Section R. 500.996 - Description of actuarial memorandum including asset adequacy analysis and regulatory asset adequacy issues summary

Current through Vol. 24-12, July 15, 2024
Rule 6.
(1) All of
				the following apply:
(a) In accordance with
				Section 830a 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. The memorandum shall be made available for
				examination by the commissioner upon his or her request but shall be returned
				to the company after 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
				R
				500.994(2) with respect to the areas
				covered in such memoranda, and so stated 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 rule, 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 rule. 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 rule for any 1 of the current year or
				the preceding 3 years.
(e) In
				accordance with Section 830a of the Standard Valuation Law, the appointed
				actuary shall prepare a regulatory asset adequacy issues summary, the contents
				of which are specified in R 500.996(3). The regulatory asset adequacy issues
				summary shall be submitted not 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 confidential to
				the same extent and under the same conditions as the actuarial
				memorandum.