North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-19 - Actuarial Opinion and Memorandum Regulation › Section 45-03-19-07 - Description of actuarial memorandum including an asset adequacy analysis and regulatory asset adequacy issues summary

Current through Supplement No. 393, July, 2024
1. General.
a. In accordance with North Dakota Century
				Code section 26.1-35-01.1, the appointed actuary shall prepare a memorandum to
				the company describing the analysis done in support of the opinion regarding
				the reserves. The memorandum must be made available for examination by the
				commissioner upon the commissioner's request but must be returned to the
				company after the examination and may 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 the appointed
				actuary's own memorandum, memoranda prepared and signed by other actuaries who
				are qualified within the meaning of subsection 2 of section
				45-03-19-03, with respect to the
				areas covered in the memoranda, and so state in their memoranda.
c. If the commissioner requests a memorandum
				and no 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 chapter, the
				commissioner may designate a qualified actuary to review the opinion and
				prepare the supporting memorandum as is required for review. The reasonable and
				necessary expense of the independent review must be paid by the company but
				must 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
				workpapers 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 workpapers must be considered as
				material provided by the company to the commissioner and must 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 chapter. The reviewing actuary may not be an employee of a
				consulting firm, or have been personally involved, with the preparation of any
				prior memorandum or opinion for the insurer pursuant to this chapter for any
				one of the current year or the preceding three years.
e. In accordance with North Dakota Century
				Code section 26.1-35-01.1, the appointed actuary shall prepare a regulatory
				asset adequacy issues summary, the contents of which are specified in
				subsection 3. The regulatory asset adequacy issues summary will be submitted no
				later than March fifteenth 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.