Oklahoma Administrative Code › Title 365 - Insurance Department › Chapter 10 - Life, Accident and Health › Subchapter 5 - Minimum Standards; Contract Guidelines › Part 17 - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 365:10-5-177 - Description of actuarial memorandum including an asset adequacy analysis

Current through Vol. 41, No. 20, July 1, 2024
(a)
General.
(1) In accordance with Section 4061 of the
				  Oklahoma Insurance Code, 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 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.
(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
				  365:10-5-173(b)
				  of this regulation, 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 Actuarial Standards Board or the standards and
				  requirements of this regulation, 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.
(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 pursuant to the statute governing this regulation. 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
				  regulation for any one of the current year or the preceding three (3)
				  years.
(5) In accordance with
				  Section 4061 of the Oklahoma Insurance Code, the appointed actuary shall
				  prepare a regulatory asset adequacy issues summary, the contents of which are
				  specified in Subsection (c). The regulatory asset adequacy issues summary will
				  be submitted to the company's domestic regulator 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.