Idaho Admin. Code r. 18.07.09.021

Current through September 2, 2024

Section 18.07.09.021 - GENERAL REQUIREMENTS

01.Submitting Statement of Actuarial Opinion.

a. For each year, starting with the year in which this rule takes effect, the annual statement's first page will include or attach the statement of an appointed actuary, entitled "Statement of Actuarial Opinion," setting forth an opinion on reserves and related actuarial items held in support of policies and contracts, per Section 022.

b. Upon written request by the company, the Director may grant an extension to submit the statement of actuarial opinion.

02.Qualified Actuary. An individual who:

a. Is a member in good standing of the American Academy of Actuaries; and

b. Is qualified to sign statements of actuarial opinion for life and health insurance company annual statements per the American Academy of Actuaries qualification standards; and

c. Is familiar with the valuation requirements applicable to life and health insurance companies; and

d. Has not been found by the Director (or if so found has later been reinstated as a qualified actuary), after appropriate notice and hearing, to have;

i. Violated any provision of, or any obligation imposed by any law in the course of their dealings as a qualified actuary; or

ii. Been found guilty of fraudulent or dishonest practices; or

iii. Demonstrated incompetency, lack of cooperation, or untrustworthiness to act as a qualified actuary; or

iv. Filed with the Director during the past five (5) years, pursuant to this rule, an actuarial opinion or memorandum that the Director rejected because it violated this rule, including standards set by the Actuarial Standards Board; or

v. Resigned, or been removed as an actuary, within the past five (5) years because of acts or omissions indicated in any adverse report on examination or as a result not adhering to generally accepted actuarial standards; and

e. Has not failed to notify the Director of any action taken by any Director of any other state similar to that under Paragraph 021.02.d.

03.Appointed Actuary. A qualified actuary who is appointed or retained to prepare the Statement of Actuarial Opinion prescribed by this rule; either directly by or by the authority of the board of directors through an executive officer of the company. The company will timely notify the Director in writing 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. The notice will state that the person meets the requirements of Subsection 021.02. The company will timely notify the Director if the actuary ceases to be appointed or retained as an appointed actuary or to meet the requirements of Subsection 021.02. If any person appointed or retained as an appointed actuary replaces a previously appointed actuary, the notice will so state and give the reasons for replacement.

04.Standards for Asset Adequacy Analysis. The asset adequacy analysis prescribed by this rule:

a. Will conform to the standards of practice promulgated by the Actuarial Standards Board and to any additional standards under this rule, which standards are to form the basis of the statement of actuarial opinion per Section 021; and

b. Will be based on methods of analysis as are deemed appropriate for such purposes by the Actuarial Standards Board.

05.Liabilities to Be Covered.

a. Under authority of Section 41-612(12), Idaho Code, the statement of actuarial opinion will apply to all in force business on the statement date regardless of when or where issued, e.g., Aggregate Reserve for Life Contracts, Aggregate Reserve for Accident and Health Contracts, reserves for Deposit Type Contracts, and Claims for Life and Health Contracts as reported in Exhibits of the annual statement, and equivalent items in the separate account statement or statements of the annual statement.

b. If the appointed actuary determines from asset adequacy analysis that the company should hold a reserve in addition to the company's aggregate reserve and calculated as described in Section 41-612(12), Idaho Code, the company will establish such additional reserve.

c. Additional reserves established under this Subsection and deemed unnecessary in later years may be released. Released amounts need to be disclosed in the actuarial opinion for the applicable year. The Director will not deem the release of such reserves to reflect a lower standard of valuation.

Idaho Admin. Code r. 18.07.09.021

Effective April 6, 2023