New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 6 - ACTUARIAL OPINIONS AND MEMORANDA › Section 13.2.6.10 - DESCRIPTION OF ACTUARIAL MEMORANDUM INCLUDING ASSET ADEQUACY ANALYSIS AND REGULATORY ASSET ADEQUACY ISSUES SUMMARY

Current through Register Vol. 35, No. 13, July 16, 2024
A.
General.
(1) In accordance with Section 59A-8-7 NMSA
				1978, 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
				superintendent 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 superintendent.
(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 Subsection B of 13.2.6.8 NMAC, with respect to the areas
				covered in such memoranda, and so state in their memoranda.
(3) If the superintendent requests a
				memorandum and no such memorandum exists or if the superintendent 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
				superintendent 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 superintendent.
(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
				superintendent; 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 superintendent 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 superintendent 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 one of the current year
				or the preceding three (3) years.
(5) In accordance with Section 59A-8-7 NMSA
				1978, the appointed actuary shall prepare a regulatory asset adequacy issues
				summary, the contents of which are specified in Subsection C of this section.
				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.