20-696.03. Statement of actuarial opinion based on an asset adequacy analysis

A. The statement of actuarial opinion submitted pursuant to this section consists of:

1. A paragraph identifying the appointed actuary and the actuary's qualifications pursuant to section 20-696.02, subsection B.

2. A scope paragraph that identifies the subjects on which an opinion is to be expressed, that describes the scope of the appointed actuary's work, including a table of reserves and related actuarial items that have been analyzed for asset adequacy and the method of analysis, and that identifies the reserves and related actuarial items covered by the opinion that have not been analyzed for asset adequacy.

3. A reliance paragraph that describes those areas, if any, in which the appointed actuary who issues the opinion pursuant to this section has deferred to other experts to develop data, procedures or assumptions and that is supported by a statement of each expert in the form prescribed by the director.

4. An opinion paragraph expressing the appointed actuary's opinion with respect to the adequacy of the supporting assets to mature the liabilities.

5. One or more additional paragraphs as required in individual company cases as follows:

(a) The appointed actuary considers it necessary to state a qualification of the appointed actuary's opinion.

(b) The appointed actuary must disclose an inconsistency in the method of analysis or basis of asset allocation used at the prior opinion date with that used for this opinion.

(c) The appointed actuary must disclose whether additional reserves as of the prior opinion date are released as of this opinion date and the extent of the release.

(d) The appointed actuary chooses to add a paragraph briefly describing the assumptions that form the basis for the actuarial opinion.

B. If the appointed actuary is unable to form an opinion, the appointed actuary shall refuse to issue a statement of actuarial opinion. If the appointed actuary s opinion is adverse or qualified, the appointed actuary shall issue an adverse or qualified actuarial opinion explicitly stating the reasons for the opinion.

C. If the appointed actuary relies on the certification of others on matters concerning the accuracy or completeness of any data underlying the actuarial opinion or the appropriateness of any other information used by the appointed actuary in forming the actuarial opinion, the actuarial opinion should indicate the persons the actuary is relying on and a precise identification of the items that are subject to reliance. In addition, the persons on whom the appointed actuary relies shall provide a certification that precisely identifies the items on which the person is providing information and a statement as to the accuracy, completeness or reasonableness, as applicable, of the items. This certification shall include the signature, title, company, address and telephone number of the person who is rendering the certification and the date on which it is signed.