S.D. Admin. R. 20:06:37:40
In accordance with SDCL 58-26-46 to 58-26-55, inclusive, the appointed actuary shall prepare a memorandum to the company describing the analysis done in support of the actuary's opinion regarding the reserves under §§ 20:06:37:29 to 20:06:37:39, inclusive. The memorandum must be made available for examination by the director upon the request of the director. The director shall return the memorandum to the company after examining it. The memorandum is not considered a record of the insurance division or subject to automatic filing with the director.
In preparing the memorandum, the appointed actuary may rely on, and include as a part of the actuary's own memorandum, memoranda prepared and signed by other actuaries who are qualified within the meaning of § 20:06:37:05 regarding the areas covered in the memoranda and who so state in their memoranda.
If the director requests a memorandum and no such memorandum exists or if the director finds that the analysis described in the memorandum fails to meet the standards of the Actuarial Standards Board or the standards and requirements of this chapter, the director may designate a qualified actuary to review the opinion and prepare a supporting memorandum. The reasonable and necessary expense of the independent review must be paid by the company but is directed and controlled by the director.
The reviewing actuary has the same status as an examiner for purposes of obtaining data from the company, and the work papers and documentation of the reviewing actuary are retained by the director. However, any information provided by the company to the reviewing actuary and included in the work papers is considered to be material provided by the company to the director and must be kept confidential to the same extent as prescribed by SDCL chapter 58-3 for other material provided by the company to the director. The reviewing actuary may not be an employee of a consulting firm involved with the preparation of any prior memorandum or opinion for the insurer pursuant to this chapter for either the current year or any of the preceding three years.
In accordance with SDCL 58-26-46 to 58-26-55, inclusive, the appointed actuary shall prepare a regulatory asset adequacy issues summary, the contents of which are specified in § 20:06:37:41.01. The regulatory asset adequacy issues summary shall be submitted no later than March 15 of the year following the year for which a statement of actuarial opinion based on asset adequacy is required. The regulatory asset adequacy issues summary is to be kept confidential to the same extent and under the same conditions as the actuarial memorandum.
S.D. Admin. R. 20:06:37:40
General Authority: SDCL 58-26-49.
Law Implemented: SDCL 58-26-46, 58-26-47.