Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter Q - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 3.1604 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this
					 subchapter, shall have the following meanings, unless the context clearly
					 indicates otherwise.
(1) AVR--Asset
				  valuation reserve.
(2) Actuarial
				  opinion--The opinion of an appointed actuary regarding the adequacy of the
				  reserves and related actuarial items based on an asset adequacy analysis in
				  accordance with §
										3.1606
				  of this title (relating to Statement of Actuarial Opinion Based on an Asset
				  Adequacy Analysis) and with applicable Actuarial Standards of
				  Practice.
(3) Actuarial Standards
				  Board--The board established by the American Academy of Actuaries to develop
				  and promulgate standards of actuarial practice.
(4) Annual statement--That financial
				  statement as of December 31st of the preceding year required to be filed
				  annually by the company with the Texas Department of Insurance.
(5) Appointed actuary--A qualified actuary
				  who is appointed or retained to prepare the statement of actuarial opinion
				  required by this subchapter, either directly by or by the authority of the
				  board of directors through an executive officer of the company other than the
				  qualified actuary.
(6) Asset
				  adequacy analysis--An analysis that meets the standards and other requirements
				  referred to in §
										3.1605(c)
				  of this title (relating to General Requirements).
(7) Company--A life insurance company or
				  reinsurer subject to the provisions of this subchapter which includes a
				  stipulated premium insurance company insuring or assuming risk for coverages
				  under Insurance Code §
										884.307
				  or §
										884.402.
(8) IMR--Interest maintenance
				  reserve.
(9) Qualified actuary--An
				  individual who:
(A) is a member in good
				  standing of the American Academy of Actuaries;
(B) is qualified to sign statements of
				  actuarial opinion for life and health insurance company annual statements in
				  accordance with the American Academy of Actuaries qualification standards for
				  actuaries signing such statements;
(C) is familiar with the valuation
				  requirements applicable to life and health insurance companies;
(D) has not been found by the commissioner
				  (or if so found has subsequently been reinstated as a qualified actuary),
				  following appropriate notice and opportunity for hearing, to have:
(i) violated any provision of, or any
				  obligation imposed by, the Insurance Code or other law in the course of his or
				  her dealings as a qualified actuary;
(ii) been found guilty of fraudulent or
				  dishonest practices;
(iii)
				  demonstrated his or her incompetency, lack of cooperation, or untrustworthiness
				  to act as a qualified actuary;
(iv)
				  submitted to the commissioner during the past five years, pursuant to this
				  subchapter, an actuarial opinion or memorandum that the commissioner rejected
				  because it did not meet the provisions of this subchapter including standards
				  set by the Actuarial Standards Board; or
(v) resigned or been removed as an actuary
				  within the past five years as a result of acts or omissions indicated in any
				  adverse report on examination or as a result of failure to adhere to generally
				  acceptable actuarial standards; and
(E) has not failed to notify the commissioner
				  of any action taken by any commissioner of any other state similar to that
				  under subparagraph (D) of this paragraph.