North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0300 - ACTUARIAL OPINION AND MEMORANDUM › Section 11F .0307 - ACTUARIAL MEMORANDUM WITH ASSET ADEQUACY ANALYSIS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) General:
(1) In accordance with
				  G.S.
				  58-58-50(i) and (j), 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
				  opinion prescribed by Rule .0306 of this Section. The memorandum shall be made
				  available for examination by the Commissioner upon request and shall be
				  returned to the company after the examination and shall not be subject to
				  automatic filing with the Commissioner.
(2) 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 Rule .0303(b) of this Section, with respect to the areas
				  covered in such memoranda, and so state in their memoranda.
(3) 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 Board or the
				  standards and requirements of this Section, the Commissioner shall 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.
(4)
				  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 under
				  G.S.
				  58-58-50(j). The reviewing
				  actuary shall not be an employee of a consulting firm involved with the
				  preparation of any prior memorandum or opinion for the company under this
				  Section for any one of the current year or the preceding three years.
(5) In accordance with
				  G.S.
				  58-58-50(j), the appointed
				  actuary shall prepare a regulatory asset adequacy issues summary, the contents
				  of which are specified in Paragraph (c) of this Rule. The regulatory asset
				  adequacy issues summary shall 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 shall be
				  kept confidential to the same extent and under the same conditions as the
				  actuarial memorandum.