S.D. Admin. R. 20:06:37:29

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:06:37:29 - Contents of statement of actuarial opinion based on asset adequacy analysis

The statement of actuarial opinion based on an asset adequacy analysis submitted in accordance with this section consists of the following:

(1) A paragraph identifying the appointed actuary and the actuary's qualifications (see § 20:06:37:31);

(2) A scope paragraph identifying the subjects on which an opinion is to be expressed and describing the scope of the appointed actuary's work, including a tabulation delineating the reserves and related actuarial items which have been analyzed for asset adequacy and the method of analysis (see § 20:06:37:32) and identifying the reserves and related actuarial items covered by the opinion which have not been analyzed;

(3) A reliance paragraph describing those areas, if any, where the appointed actuary has deferred to other experts in developing data, procedures or assumptions, e.g., anticipated cash flows from currently owned assets, including variation in cash flows according to economic scenarios (see § 20:06:37:33). supported by a statement of each such expert in the form prescribed by § 20:06:37:39;

(4) An opinion paragraph expressing the appointed actuary's opinion about the adequacy of the supporting assets to mature the liabilities (see § 20:06:37:36); and

(5) One or more additional paragraphs as needed in individual company cases, as follows:

(a) If the appointed actuary considers it necessary to state a qualification of the opinion;

(b) If the appointed actuary must disclose an inconsistency between the method of analysis or basis of asset allocation used at the prior opinion date, and that used for this opinion;

(c) If the appointed actuary must disclose whether additional reserves of the prior opinion date are released as of this opinion date, and the extent of the release;

(d) If the appointed actuary chooses to add a paragraph briefly describing the assumptions which form the basis for the actuarial opinion.

S.D. Admin. R. 20:06:37:29

23 SDR 236, effective 7/16/1997; 34 SDR 297, effective 6/2/2008.

General Authority: SDCL 58-26-46, 58-26-47, 58-26-50.

Law Implemented: SDCL 58-26-46, 58-26-47, 58-26-50.