Md. Code Regs. 31.05.01.02

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.05.01.02 - Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Actuarial opinion" means the opinion of an appointed actuary regarding the adequacy of reserves and related actuarial items based on an asset adequacy analysis in accordance with:

(a) Regulation .05 of this chapter; and

(b) Applicable actuarial standards of practice.

(2) "Actuarial Standards Board" means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice.

(3) "Annual statement" means the statement required in accordance with the provisions of Insurance Article, §§ 4-116 and 8-444, Annotated Code of Maryland, to be filed by the company with the Commissioner annually.

(4) "Appointed actuary" means an individual who is appointed or retained in accordance with the requirements set forth in Regulation .03B of this chapter to provide the actuarial opinion and supporting memorandum required by Insurance Article, § 5-201, Annotated Code of Maryland.

(5) "Asset adequacy analysis" means an analysis:

(a) That meets the standards and other requirements referred to in Regulation .03C of this chapter; and

(b) Which may take many forms, including, but not limited to, cash flow testing, sensitivity testing, or applications of risk theory.

(6) "Company" means a life insurance company or a fraternal benefit society:

(a) Authorized to do business in this State; or

(b) Authorized to reinsure life insurance, annuities, or accident and health business in this State.

(7) "Qualified actuary" means an individual who:

(a) Is a member in good standing of the American Academy of Actuaries;

(b) Is qualified to sign statements of actuarial opinion for life and health insurance company annual statements in accordance with the American Academy of Actuaries qualification standards for actuaries signing these statements;

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

(d) Has not failed to notify the Commissioner of any adverse action taken by the insurance regulatory authority of any state similar to that in §B(7)(e)(i)-(v) of this regulation; and

(e) Has not been found by the Commissioner (or if so found has subsequently been reinstated as a qualified actuary), following appropriate notice and hearing, to have:

(i) Violated any provision of, or any obligation imposed by, the insurance law or other law in the course of the actuary's dealings as a qualified actuary;

(ii) Been found guilty of fraudulent or dishonest practices;

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

(iv) Submitted to the Commissioner during the past 5 years an actuarial opinion or memorandum pursuant to Regulations .05 and .06 of this chapter that the Commissioner rejected because it did not meet the provisions of these regulations, including standards set by the Actuarial Standards Board; or

(v) Resigned or been removed as an actuary within the past 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.

Md. Code Regs. 31.05.01.02

Regulations .02 adopted as an emergency provision effective October 26, 1993 (20:23 Md. R. 1799); adopted permanently effective January 31, 1994 (21:2 Md. R. 98)
Regulations .02 adopted as an emergency provision effective March 13, 2009 (36:8 Md. R. 592); adopted permanently effective June 1, 2009 (36:11 Md. R. 787)