West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-41 - Actuarial Opinion And Memorandum Rule › Section 114-41-6 - Description of Actuarial Memorandum Including an Asset Adequacy Analysis and Regulatory Asset Adequacy Issues Summary

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1.
				General.
6.1.a. In accordance with the Standard
				Valuation Law, W. Va. Code §
										33-7-9(c),
				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 company
				shall make the memorandum available for examination by the Commissioner upon his or
				her request but shall be returned to the company after the examination and shall not
				be considered a record of the Insurance Commissioner or subject to automatic filing
				with the Commissioner.
6.1.b. In
				preparing the memorandum, the appointed actuary may rely on, and include as part of
				his or her own memorandum, memoranda prepared and signed by other actuaries who are
				qualified within the meaning of subsection 4.2 of this rule, with respect to the
				areas covered in the memoranda, and so stated in their memoranda.
6.1.c. If the Commissioner requests a memorandum
				and no 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 rule, 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.
6.1.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 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 W. Va.
				Code §
										33-2-9(1)(4).
				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
				rule for anyone of the current year of the preceding three (3) years.
6.1.e. In accordance with W. Va. Code §
										33-7-9(c),
				the appointed actuary shall prepare a regulatory asset adequacy issues summary, the
				contents of which are specified in subsection 6.3 of this section. 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.