Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-90 - Description of actuarial memorandum issued for an asset adequacy analysis and regulatory asset adequacy issues summary

Current through Register Vol. 40, No. 24, July 15, 2024
A. The following general provisions shall
				apply with respect to the preparation and submission of the asset adequacy
				memorandum required by § 38.2-1367 of the Code of Virginia.
1. In accordance with § 38.2-1367 of the
				Code of Virginia, the appointed actuary shall prepare a memorandum to the
				company describing the analysis done in support of his opinion regarding the
				reserves. The memorandum shall be made available for examination by the
				commission upon its request but shall be returned to the company after such
				examination and shall not be considered a record of the Bureau of Insurance or
				subject to automatic filing with the commission.
2. In preparing the memorandum, the appointed
				actuary may rely on, and include as a part of his memorandum, memoranda
				prepared and signed by other actuaries who are qualified within the meaning of
				14VAC5-310-50 B, with respect to
				the areas covered in such memoranda, and so state in their memoranda.
3. If the commission requests a memorandum
				and no such memorandum exists or if the commission 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 chapter, the
				commission 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 commission.
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
				commission; 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 commission 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 commission pursuant to the statute governing this chapter.
				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 chapter for any one of the current year or the preceding three
				years.
5. In accordance with §
				38.2-1367 of the Code of Virginia, the appointed actuary shall prepare a
				regulatory asset adequacy issues summary, the contents of which are specified
				in subsection C of this section. The regulatory asset adequacy issues summary
				shall 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.