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 3.1607 - Description of Actuarial Memorandum Including an Asset Adequacy Analysis and Regulatory Asset Adequacy Issues Summary

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  General. Any actuarial memorandum required by the provisions of this subchapter
				  must be prepared in accordance with and subject to the provisions and
				  qualifications of paragraphs (1) - (5) of this subsection.
(1) In accordance with Insurance Code
				  §§
											425.054
				  -
				  425.057,
				  the appointed actuary must prepare a memorandum to the company describing the
				  analysis done in support of his or her opinion regarding the reserves under the
				  opinion. The memorandum must be made available for examination by the
				  commissioner upon the commissioner's request.
(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 §
											3.1604 of
				  this title (relating to Definitions), 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 as required by §
											3.1605 of
				  this title (relating to General Requirements), or the standards and
				  requirements of this subchapter, 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 must be paid by the company but will be directed and controlled by the
				  commissioner.
(4) The reviewing
				  actuary will 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 will be retained by the commissioner. The reviewing actuary may not be
				  an employee of a consulting firm involved with the preparation of any prior
				  memorandum or opinion for the insurer required by this subchapter for any one
				  of the current year or the preceding three years.
(5) In accordance with Insurance Code
				  §§
											425.054
				  -
				  425.057,
				  the appointed actuary must prepare a regulatory asset adequacy issues summary,
				  the contents of which are specified in subsection (c) of this section. Texas
				  domestic companies must submit the regulatory asset adequacy issues summary by
				  email to ActuarialDivision@tdi.texas.gov or by paper copy to the Texas
				  Department of Insurance, Financial Regulation Division, MC-FRD, P.O. Box 12030,
				  Austin, Texas 78711-2030 no later than March 15 of the year following the year
				  for which a statement of actuarial opinion based on asset adequacy is required.
				  Nondomestic companies must submit the regulatory asset adequacy issues summary
				  when requested by the commissioner.