Section 681B.221 - Regulatory asset adequacy issues summary: Contents1. The regulatory asset adequacy issues summary required pursuant to NAC 681B.215 must include, without limitation: (a) Descriptions of the scenarios tested, including, without limitation, whether those scenarios are stochastic or deterministic and the sensitivity testing done relative to those scenarios. If negative ending surplus results under certain tests in the aggregate, the description of those tests must include the amount of additional reserve as of the valuation date which, if held, would eliminate the negative aggregate surplus values. For the purposes of this paragraph, ending surplus values must be determined by: (1) Extending the projection period until the in-force and associated assets and liabilities at the end of the projection period are immaterial; or(2) Adjusting the surplus amount at the end of the projection period by an amount that appropriately estimates the value that can reasonably be expected to arise from the assets and liabilities remaining in force.(b) A discussion of the extent to which the appointed actuary uses assumptions in the current asset adequacy analysis that are materially different than the assumptions used in the previous asset adequacy analysis.(c) The amount of reserves and the identity of the product lines that had been subjected to asset adequacy analysis in the previous opinion but were not subjected to analysis in the current opinion.(d) Comments on any interim results that were of significant concern to the appointed actuary, such as the impact of an insufficiency of assets to support the payment of benefits and expenses or the establishment of statutory reserves during one or more interim periods.(e) The methods used by the actuary to recognize the impact of reinsurance on the insurer's cash flows, including both assets and liabilities, under each of the scenarios tested.(f) An explanation of whether the actuary is satisfied that all options, whether explicit or embedded, in any asset or liability, including, but not limited to, those affecting cash flows embedded in fixed income securities and equity-like features in any investments, have been appropriately considered in the asset adequacy analysis.2. The regulatory asset adequacy issues summary must contain the name of the insurer for which the summary is prepared and must be signed and dated by the appointed actuary rendering the actuarial opinion.Nev. Admin. Code § 681B.221
Added to NAC by Comm'r of Insurance by R146-12, eff. 10-4-2013