Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 200 - Insurance Solvency and Company Regulation › Chapter 1 - Financial Solvency and Accounting Standards › Section 20 CSR 200-1.110 - Qualifications of Actuary or Consulting Actuary

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment corrects a statutory
				  reference and removes unnecessary language.
PURPOSE: This rule describes the necessary
				  qualifications of an actuary signing and certifying the life and accident and
				  health annual statement of an insurer. This rule was adopted pursuant to the
				  provisions of section
				  374.045,
				  RSMo and implements section
				  376.350,
				  RSMo.
(1) Every life
				insurance company authorized to do business in this state files an annual
				statement. Missouri instructions for completing the life and accident and
				health annual statement blank require that these forms be signed and certified
				by a qualified actuary.
(2) For
				this purpose, a "qualified actuary" means a member in good standing of the
				American Academy of Actuaries.
(3)
				Scope. This rule applies to all reports, statements and other documents filed
				with the director or issued to the public in relation to the business of
				insurance.
(4) Restriction of
				Signing as an Actuary. No report, statement or document shall be filed with the
				director or issued to the public in relation to the business of insurance if it
				is signed by a person who represents him/herself in the instrument to be an
				actuary unless the person signing as an actuary is a qualified
				actuary.
(5) Actuarial
				Representation. No person in any representation made to the public or to the
				director in respect to any matter subject to this rule shall use the word
				actuary or actuarial to indicate a degree of professional competence unless the
				representation was prepared or approved by a qualified actuary.
(6) Annual Statements of Domestic Life
				Insurance Companies. Section
				376.350, RSMo
				prescribes the general form of the annual statement which must be filed with
				the director each year. The form which is required by the director is that
				which has been developed by the National Association of Insurance
				Commissioners. This form now includes a requirement relating to policy reserves
				and other actuarial items. The instructions for completion of the blank
				describe the content of this requirement. The items on which actuarial opinion
				is required are-
(A) Aggregate reserve for
				life policies and contracts (Exhibit 8);
(B) Aggregate reserve for accident and health
				policies (Exhibit 9);
(C) Net
				deferred and uncollected premiums; and
(D) Policy and Contract Claims-Liability End
				of Current Year (Exhibit 11, Part 1). The expanded actuarial opinion
				requirements with respect to life insurance company reserves has been designed
				with the intent to provide greater assurance that policyholders' benefits and
				shareholders' interests are being properly protected through adequate reserve
				practices. If the company does not employ an actuary on a staff or consulting
				basis, the department will use the verification made by the department's
				actuary or the consulting actuary to the department in lieu of that called for
				in the instructions. The necessary information and data to render an opinion
				must be provided by the company and the individual of the company responsible
				for this compilation must submit a statement to the department that the
				listings and summaries of policies in force and other information necessary to
				comply with these rules are complete and accurate to the best of his/her
				knowledge and belief. If the company intends to rely upon the verification by
				the department's actuary or consultant, it should so indicate in the space
				provided for certification.