Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.65 - Actuarial Opinions › Rule 6.6.6509 - DESCRIPTION OF ACTUARIAL MEMORANDUM INCLUDING AN ASSET ADEQUACY ANALYSIS AND REGULATORY ASSET ADEQUACY ISSUES SUMMARY

Current through Register Vol. 13, July 5, 2024
(1) In
				accordance with
				33-2-407(5) and
				(6), and
				33-7-118(2), MCA,
				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
				ARM 6.6.6508 opinion. 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.
(a) 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 ARM
				6.6.6505(2), with
				respect to the areas covered in such memoranda, and so state in their
				memoranda.
(b) 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 these
				rules, 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.
(c) 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 these rules. 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 these rules for any one of the current year
				or the preceding three years.
(d)
				In accordance with
				33-2-407(5), MCA,
				the appointed actuary shall prepare a regulatory asset adequacy issues summary,
				the contents of which are specified in (3)(a) through (3)(f). The regulatory
				asset adequacy issues summary will 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 is to
				be kept confidential to the same extent and under the same conditions as the
				actuarial memorandum.