Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter V - Actuarial Opinion and Memorandum Regulation › Section Ins 50.79 - Description of the actuarial memorandum including an asset adequacy analysis and regulatory asset adequacy issues summary

Current through June 24, 2024
(1) GENERAL.
(a) In accordance with subch. IV and ch. 623,
				Stats., the appointed actuary shall prepare a memorandum to the company
				describing the analysis done in support of his or her opinion regarding the
				reserves under a s.
				Ins
				50.78 opinion. 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 subject to
				automatic filing with the commissioner.
(b) 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 s.
				Ins
				50.75(2), with respect to the areas
				covered in such memoranda, and so state in their memoranda.
(c) 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 subchapter, 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.
(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 the statute
				governing this subchapter and as permitted by s.
				601.465,
				Stats. 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 subchapter for any one of the current year or the
				preceding three years.
(e) In
				accordance with subch. IV and ch. 623, Stats., the appointed actuary shall
				prepare a regulatory asset adequacy issues summary, the contents of which are
				specified in sub. (3). 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.
(f) An insurer licensed but not domiciled in
				this state shall provide the office of the commissioner of insurance a
				regulatory asset adequacy issues summary described under par. (e) upon
				request.