Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 21 - TRADE PRACTICES › Subchapter N - LIFE INSURANCE ILLUSTRATIONS › Section 21.2211 - Annual Certification

Current through Reg. 49, No. 28; July 12, 2024
(a) Insurer to
				  appoint illustration actuary. The board of directors of each insurer shall
				  appoint one or more illustration actuaries.
(b) Actuary certification. The illustration
				  actuary shall certify that the disciplined current scale used in illustrations
				  is in conformity with the Actuarial Standard of Practice for Compliance with
				  the NAIC Model Regulation on Life Insurance Illustrations promulgated by the
				  Actuarial Standards Board, and that the illustrated scales used in
				  insurer-authorized illustrations meet the requirements of this
				  Subchapter.
(c) Illustration
				  actuary qualifications and disclosures. The illustration actuary shall:
(1) be a member in good standing of the
				  American Academy of Actuaries;
(2)
				  be familiar with the standard of practice regarding life insurance policy
				  illustrations;
(3) not have been
				  found by the commissioner, following appropriate notice and hearing to have:
(A) violated any provision of, or any
				  obligation imposed by, the insurance law or other law in the course of his or
				  her dealings as an illustration actuary;
(B) been found guilty of fraudulent or
				  dishonest practices;
(C)
				  demonstrated his or her incompetence, lack of cooperation, or untrustworthiness
				  to act as an illustration actuary; or
(D) resigned or been removed as an
				  illustration 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 a
				  failure to adhere to generally acceptable actuarial standards;
(4) not fail to notify the
				  commissioner of any action taken by a commissioner of another state similar to
				  that under paragraph (3) of this subsection;
(5) disclose in the annual certification
				  whether, since the last certification, a currently payable scale applicable for
				  business issued within the previous five years and within the scope of the
				  certification has been reduced for reasons other than changes in the experience
				  factors underlying the disciplined current scale. If non-guaranteed elements
				  illustrated for new policies are not consistent with those illustrated for
				  similar in-force policies, this must be disclosed in the annual certification.
				  If non-guaranteed elements illustrated for both new and in-force policies are
				  not consistent with the non-guaranteed elements actually being paid, charged or
				  credited to the same or similar forms, this must be disclosed in the annual
				  certification; and
(6) disclose in
				  the annual certification the method used to allocate overhead expenses for all
				  illustrations:
(A) fully allocated
				  expenses;
(B) marginal expenses;
				  or
(C) a generally recognized
				  expense table based on fully allocated expenses representing a significant
				  portion of insurance companies and approved by the National Association of
				  Insurance Commissioners or by the commissioner.