Section 4.2805 - General Requirements(a) Submission of statement of actuarial opinion. Any statement of actuarial opinion required by this subchapter must be submitted in accordance with paragraphs (1) and (2) of this subsection.(1) There is to be included on or attached to page one of the annual statement for each year beginning with the year in which this subchapter becomes effective the statement of an appointed actuary, entitled "Statement of Actuarial Opinion," setting forth an opinion relating to reserves and related actuarial items held in support of policies and contracts, in accordance with § 4.2806 of this title (relating to Statement of Actuarial Opinion Based on an Asset Adequacy Analysis).(2) Upon written request by the company, the commissioner may grant an extension of the date for submission of the statement of actuarial opinion.(b) Appointment of actuary. The company must give the commissioner timely written notice 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 and must state in the notice that the person is a qualified actuary. Once notice is furnished, no further notice is required with respect to this person, provided that the company gives the commissioner timely written notice in the event the actuary ceases to be appointed or retained as an appointed actuary or to meet the requirements for a qualified actuary. If any person appointed or retained as an appointed actuary replaces a previously appointed actuary, the notice must so state and give the reasons for replacement.(c) Standards for asset adequacy analysis. The asset adequacy analysis required by this subchapter must:(1) conform to the Standards of Practice as promulgated from time to time by the Actuarial Standards Board and any additional standards set forth in this subchapter, which standards are to form the basis of the statement of actuarial opinion in accordance with this subchapter; and(2) be based on methods of analysis as are deemed appropriate for such purposes by the Actuarial Standards Board.(d) Liabilities to be covered. The liabilities to be covered will be in accordance with paragraphs (1) - (3) of this subsection. (1) Under authority of Insurance Code § 425.054, concerning Actuarial Opinion of Reserves Issued Before Operative Date of Valuation Manual, the statement of actuarial opinion applies to all in-force business on the statement date, whether directly issued or assumed, regardless of when or where issued; for example, annual statement reserves in Exhibits 5, 6, and 7, and claim liabilities in Exhibit 8, Part 1 and equivalent items in the separate account statement or statements.(2) If the appointed actuary determines as the result of asset adequacy analysis that a reserve should be held in addition to the aggregate reserve held by the company and calculated in accordance with methods set forth in Insurance Code §§ 425.064, concerning Commissioners Reserve Valuation Method For Life Insurance and Endowment Benefits; 425.065, concerning Commissioners Annuity Reserve Valuation Method For Annuity and Pure Endowment Benefits; 425.068, concerning Reserve Computation: Gross Premium Charged Less Than Valuation Net Premium; and 425.069, concerning Reserve Computation: Indeterminate Premium Plans and Certain Other Plans; and other applicable Insurance Code provisions, the company must establish the additional reserve.(3) Additional reserves established under paragraph (2) of this subsection and deemed not necessary in subsequent years may be released. Any amounts released must be disclosed in the actuarial opinion for the applicable year. The release of such reserves would not be deemed an adoption of a lower standard of valuation.28 Tex. Admin. Code § 4.2805
Adopted by Texas Register, Volume 49, Number 03, January 19, 2024, TexReg 0263, eff. 1/24/2024