Section 760 IAC 1-57-5 - General requirementsAuthority: IC 27-1-12.8-21
Affected: IC 27-1-12-10
Sec. 5.
(a) Requirements for the submission of statement of actuarial opinion shall be as follows:(1) A statement entitled "Statement of Actuarial Opinion" that meets the requirements of section 8 of this rule and is rendered by an appointed actuary shall be included on or attached to page 1 of the annual statement of any company.(2) The commissioner may grant an extension of the date for submission of the statement of actuarial opinion upon written request by a company.(b) As used in this section, "qualified actuary" means an individual who:(1) is a member in good standing of the American Academy of Actuaries;(2) is qualified to sign a statement of actuarial opinion for any life or health insurance company annual statement in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements;(3) is familiar with the valuation requirements applicable to life and health insurance companies;(4) has not been found by the commissioner (or, if so found, has been subsequently reinstated as a qualified actuary), following appropriate notice and hearing, to have: (A) violated any provision of, or any obligation imposed by, IC 27 or other law in the course of his or her dealings as a qualified actuary;(B) been found guilty of fraudulent or dishonest practices;(C) demonstrated his or her incompetency, lack of cooperation, or untrustworthiness to act as a qualified actuary;(D) submitted to the commissioner during the past five (5) years, pursuant to this rule, an actuarial opinion or memorandum that the commissioner rejected because it did not meet the provisions of this rule including standards set by the Actuarial Standards Board; or(E) resigned or been removed as an actuary within the past five (5) years as a result of acts or omissions indicated in any adverse report on examination or as a result of failure to adhere to generally acceptable actuarial standards; and(5) has not failed to notify the commissioner of any action similar to that described in subdivision (4) taken by any insurance supervisory regulator of any other state.(c) As used in this rule, "appointed actuary" means a qualified actuary who is appointed or retained to prepare the statement of actuarial opinion required by IC 27-1-12-10.1[IC 27-1-12-10.1 was repealed by P.L. 276-2013, SECTION 6, effective July 1, 2013.] and this rule, either directly by a company or by the authority of the board of directors through an executive officer of a company. Notice requirements shall be as follows:(1) A company shall give the commissioner timely written notice of the name, title (and, in the case of a consulting actuary, the name of the firm), and manner of appointment or retention of each person appointed or retained by the company as an appointed actuary and shall state in such notice that the person meets the requirements in subsection (b).(2) A company shall give the commissioner timely notice in the event an appointed actuary ceases to be appointed or retained as an appointed actuary or to meet the requirements set forth in subsection (b).(3) If any person appointed or retained as an appointed actuary replaces a previously appointed actuary, the notice shall so state and give the reasons for replacement.(d) The asset adequacy analysis required by this rule shall:(1) conform to the standards of practice promulgated by the Actuarial Standards Board and any additional standards under this rule, which standards are to form the basis of the statement of actuarial opinion in accordance with section 8 of this rule; and(2) be based on methods of analysis deemed appropriate for such purposes by the Actuarial Standards Board.(e) Liabilities to be covered shall be as follows:(1) Pursuant to IC 27-1-12-10.1[IC 27-1-12-10.1 was repealed by P.L. 276-2013, SECTION 6, effective July 1, 2013.], the statement of actuarial opinion shall apply to all in force business on the annual statement date regardless of when or where issued.(2) If the appointed actuary determines as the result of asset adequacy analysis that a reserve should be held in addition to the aggregate reserve held by the company and calculated in accordance with the methods set forth in IC 27-1-12-10[IC 27-1-1210 was repealed by P.L. 276-2013, SECTION 5, effective July 1, 2013.], the company shall establish such additional reserve. (3) Any additional reserve established under subdivision (2) and deemed not necessary in any subsequent year may be released. Any amount released must be disclosed in the actuarial opinion for the applicable year. The release of such reserves shall not be deemed an adoption of a lower standard of valuation.Department of Insurance; 760 IAC 1-57-5; filed May 16, 1997, 9:30 a.m.: 20 IR 2779; filed Oct 6, 2003, 5:15 p.m.: 27 IR 506, eff Dec 31, 2003; readopted filed Nov 24, 2009, 9:35 a.m.: 20091223-IR-760090791RFAReadopted filed 11/20/2015, 9:25 a.m.: 20151216-IR-760150341RFAReadopted filed 11/15/2021, 8:32 a.m.: 20211215-IR-760210419RFA