Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-105 - Notification of an opinion in error; amended opinion

Current through Register Vol. 40, No. 24, July 15, 2024
A. The insurer required to furnish an
				actuarial opinion shall require its appointed actuary to notify its Board of
				Directors or its audit committee, in writing, within five business days after
				any determination by the appointed actuary that the opinion or other valuation
				submitted to the domiciliary commissioner was in error as a result of reliance
				on data or other information, other than assumptions, that, as of the balance
				sheet date, was factually incorrect. The opinion shall be considered to be in
				error if the opinion would not have been issued or would have been materially
				altered had the correct data or other information been used. The opinion shall
				not be considered in error if it would have been materially altered or not
				issued solely because of data or information concerning events subsequent to
				the balance sheet date or because actual results differ from those
				projected.
B. Notification shall be
				required when a determination prescribed by this section is made between the
				issuance of the opinion and the balance sheet date for which the next opinion
				will be issued. The notification shall include a summary of such findings and
				an amended opinion.
C. An insurer
				that is notified pursuant to subsections A or B of this section shall forward a
				copy of the summary and amended opinion to the domiciliary commissioner within
				five business days of receipt of such report and shall provide the appointed
				actuary making the notification with notice of the transmittal and a copy of
				the summary and amended opinion being furnished to the domiciliary
				commissioner. If the appointed actuary fails to receive the notice and
				prescribed copies within the five-business-day period referred to in the
				previous sentence, that appointed actuary shall notify the domiciliary
				commissioner within the next five business days that the submitted opinion
				should no longer be relied.
D. If
				the actuary learns that the data or other information relied upon was factually
				incorrect, but cannot determine what, if any, changes are needed in the
				statement of opinion, the actuary and the company shall undertake as quickly as
				is reasonably practicable those procedures necessary for the actuary to make
				the determination described in subsection A of this section. If the insurer
				does not provide the necessary data corrections and other support, including
				financial support, within 10 business days, the actuary shall proceed to notify
				the domiciliary commissioner in accordance with provisions in subsection C of
				this section.
E. No qualified
				actuary shall be liable in any manner to any person for any statement made
				pursuant to this section if the statement is made in a good faith effort to
				comply with this section.
Statutory Authority
§§ 12.1-13, 38.2-223, and 38.2-3127.1 of the
					 Code of Virginia.