Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 9 - Actuarial Opinion and Memorandum (230-RICR-20-45-9) › Section 230-RICR-20-45-9.7 - Description of Actuarial Memorandum Including an Asset Adequacy Analysis

Current through June 14, 2024
A. General
1. In accordance with R.I. Gen. Laws §
											27-4.5-3, the appointed actuary
				  shall prepare a memorandum to the company describing the analysis done in
				  support of his or her opinion regarding the reserves. The memorandum shall be
				  made available for examination by the Commissioner upon his or her request but
				  shall be returned to the company after such examination and shall not be
				  considered a record of the insurance department or subject to automatic filing
				  with the Commissioner.
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 §
											9.5(B)   of this Part,
				  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 or the standards and requirements of this
				  Regulation, 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 shall be paid by the
				  company but shall be directed and controlled by the Commissioner.
4. 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
				  Commissioner; provided, however, that 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 Commissioner 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 Commissioner pursuant to the statute
				  governing this Regulation. 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 this Regulation for any one of the current
				  year or the preceding three (3) years.
5. In accordance with R.I. Gen. Laws §
											27-4.5-3, the appointed actuary
				  shall prepare a regulatory asset adequacy issues summary, the contents of which
				  are specified in §
											9.7(C)   of this Part. The regulatory asset adequacy
				  issues summary will be submitted no later than March 15 of the year following
				  the year for which a statement of actuarial opinion based on asset adequacy is
				  required. The regulatory asset adequacy issues summary is to be kept
				  confidential to the same extent and under the same conditions as the actuarial
				  memorandum.