31A-17-503. Actuarial opinion of reserves.
(1) This section becomes operative on December 31, 1993.
(2) General: Every life insurance company doing business in this state shall annually
submit the opinion of a qualified actuary as to whether the reserves and related actuarial items
held in support of the policies and contracts specified by the commissioner by rule are computed
appropriately, are based on assumptions which satisfy contractual provisions, are consistent with
prior reported amounts, and comply with applicable laws of this state. The commissioner by rule
shall define the specifics of this opinion and add any other items considered to be necessary to its
scope.
(3) Actuarial analysis of reserves and assets supporting reserves:
(a) Every life insurance company, except as exempted by or pursuant to rule, shall also
annually include in the opinion required by Subsection (2), an opinion of the same qualified
actuary as to whether the reserves and related actuarial items held in support of the policies and
contracts specified by the commissioner by rule, when considered in light of the assets held by
the company with respect to the reserves and related actuarial items, including but not limited to
the investment earnings on the assets and the considerations anticipated to be received and
retained under the policies and contracts, make adequate provision for the company's obligations
under the policies and contracts, including but not limited to the benefits under the expenses
associated with the policies and contracts.
(b) The commissioner may provide by rule for a transition period for establishing any
higher reserves which the qualified actuary may consider necessary in order to render the opinion
required by this section.
(4) Requirement for opinion under Subsection (3): Each opinion required by Subsection
(3) shall be governed by the following provisions:
(a) A memorandum, in form and substance acceptable to the commissioner as specified
by rule, shall be prepared to support each actuarial opinion.
(b) If the insurance company fails to provide a supporting memorandum at the request of
the commissioner within a period specified by rule or the commissioner determines that the
supporting memorandum provided by the insurance company fails to meet the standards
prescribed by the rule or is otherwise unacceptable to the commissioner, the commissioner may
engage a qualified actuary at the expense of the company to review the opinion and the basis for
the opinion and prepare such supporting memorandum as is required by the commissioner.
(5) Requirement for all opinions: Every opinion shall be governed by the following
provisions:
(a) The opinion shall be submitted with the annual statement reflecting the valuation of
the reserve liabilities for each year ending on or after December 31, 1993.
(b) The opinion shall apply to all business in force including individual and group health
insurance plans, in form and substance acceptable to the commissioner as specified by rule.
(c) The opinion shall be based on standards adopted from time to time by the Actuarial
Standards Board and on such additional standards as the commissioner may by rule prescribe.
(d) In the case of an opinion required to be submitted by a foreign or alien company, the
commissioner may accept the opinion filed by that company with the insurance supervisory
official of another state if the commissioner determines that the opinion reasonably meets the
requirements applicable to a company domiciled in this state.
(e) For the purposes of this section, "qualified actuary" means a member in good
standing of the American Academy of Actuaries who meets the requirements set forth by
department rule.
(f) Except in cases of fraud or willful misconduct, the qualified actuary is not liable for
damages to any person, other than the insurance company and the commissioner, for any act,
error, omission, decision, or conduct with respect to the actuary's opinion.
(g) Disciplinary action by the commissioner against the company or the qualified actuary
shall be defined in rules by the commissioner.
(h) Any memorandum in support of the opinion, and any other material provided by the
company to the commissioner in connection therewith, are considered protected records under
Section 63G-2-305 and may not be made public and are not subject to subpoena under
Subsection 63G-2-202(7), other than for the purpose of defending an action seeking damages
from any person by reason of any action required by this section or rules promulgated under this
section. However, the memorandum or other material may otherwise be released by the
commissioner (i) with the written consent of the company or (ii) to the American Academy of
Actuaries upon request stating that the memorandum or other material is required for the purpose
of professional disciplinary proceedings and setting forth procedures satisfactory to the
commissioner for preserving the confidentiality of the memorandum or other material. Once any
portion of the confidential memorandum is cited in its marketing or is cited before any
governmental agency other than the department or is released to the news media, all portions of
the memorandum are no longer confidential.
Amended by Chapter 382, 2008 General Session
Download Code Section Zipped WordPerfect 31A17_050300.ZIP 4,312 Bytes
Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page
Last revised: Thursday, May 28, 2009