Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 1 - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 4.2804 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this
						subchapter, 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
					 §
											4.2806 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 §
											4.2805(c) of this
					 title (relating to General Requirements).
(7) Company--A life insurance company or
					 reinsurer subject to the provisions of this subchapter including a stipulated
					 premium insurance company insuring or assuming risk for coverages under
					 Insurance Code §
											884.307, concerning
					 Issuance of Annuity Contract, or §884.402, concerning Additional
					 Coverage.
(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 their
					 dealings as a qualified actuary;
(ii) been found guilty of fraudulent or
					 dishonest practices;
(iii)
					 demonstrated their incompetency, lack of cooperation, or untrustworthiness to
					 act as a qualified actuary;
(iv)
					 submitted to the commissioner during the past five years, under 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.