Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0680 - Description of Actuarial Memorandum Including an Asset Adequacy Analysis and Regulatory Asset Adequacy Summary

Current through Register Vol. 63, No. 7, July 1, 2024
(1) General provisions. The following general
			 provisions apply to actuarial memoranda that include an asset adequacy
			 analysis:
(a) In accordance with ORS
			 733.304 (Standard Valuation
			 Law), the appointed actuary shall prepare a memorandum to the Company
			 describing the analysis done in support of the appointed actuary's opinion
			 regarding the reserves under an opinion pursuant to OAR 836-0310-670. The
			 memorandum must be made available for examination by the Director upon request
			 of the Director but shall be returned to the company after such examination and
			 not be filed with the Department;
(b) 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 OAR 836-031-0640(2), with respect to the areas
			 covered in such memoranda, and so state in their memoranda;
(c) If the Director requests a memorandum and
			 no such memorandum exists or if the Director finds that the analysis described
			 in the memorandum fails to meet the standards of the Actuarial Standards Board
			 or the standards and requirements of OAR 836-031-0600  to 836-031-0690, the
			 Director 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 Director;
(d) 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
			 Director. However, 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 Director 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 Director pursuant to the Standard Valuation Law. 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
			 OAR 836-031-0600  to 836-031-0690  for any one of the current year or the
			 preceding three years.
(e) In
			 accordance with ORS 733.304, the appointed actuary
			 shall prepare a regulatory asset adequacy issues summary, the contents of which
			 are specified in section (3) of this rule. All companies domiciled in Oregon
			 shall submit the regulatory asset adequacy issues summary no later than March
			 15 of the year following the year for which a statement of actuarial opinion
			 based on asset adequacy is required. For all other companies, the memorandum
			 must be made available for examination by the Director upon request of the
			 Director. The regulatory asset adequacy issues summary is to be kept
			 confidential to the same extent and under the same conditions as the actuarial
			 memorandum.