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 4.2807 - 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 Chapter
					 425, Subchapter B, concerning Standard Valuation Law, the appointed actuary
					 must prepare a memorandum to the company describing the analysis done in
					 support of the appointed actuary's 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 the appointed actuary's
					 own memorandum, memoranda prepared and signed by other actuaries who are
					 qualified within the meaning of §
												4.2804 of this title (relating to
					 Definitions), with respect to the areas covered in such memoranda, and so state
					 in the other actuaries' 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 §
												4.2805 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 Chapter 425, Subchapter B, 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 Financial Regulation
					 Division, MC: FRD, Texas Department of Insurance, 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.