375.1524. 1. The board of directors of each insurer shall appoint oneor more illustration actuaries.
2. The illustration actuary shall certify that the disciplined currentscale used in illustrations is in conformity with the actuarial standard ofpractice for compliance with the NAIC model regulation of life insuranceillustrations promulgated by the actuarial standards board, and that theillustrated scales used in insurer-authorized illustrations meet therequirements of sections 375.1500 to 375.1527.
3. The illustration actuary shall:
(1) Be a member in good standing of the American Academy of Actuaries;
(2) Be familiar with the standard of practice regarding life insurancepolicy illustrations;
(3) Not have been found by the director of the department of insurance,financial institutions and professional registration, following appropriatenotice and hearing to have:
(a) Violated any provision of, or any obligation imposed by, theinsurance law or other law in the course of his or her dealings as anillustration actuary;
(b) Been found guilty of fraudulent or dishonest practices;
(c) Demonstrated his or her incompetence, lack of cooperation, oruntrustworthiness to act as an illustration actuary; or
(d) Resigned or been removed as an illustration actuary within the pastfive years as a result of acts or omissions indicated in any adverse report onexamination or as a result of a failure to adhere to generally acceptableactuarial standards;
(4) Not fail to notify the director of the department of insurance,financial institutions and professional registration of any action taken by acommissioner or director of insurance of another state similar to thatpursuant to subdivision (3) of this subsection;
(5) Disclose in the annual certification whether, since the lastcertification, a currently payable scale applicable for business issued withinthe previous five years and within the scope of the certification has beenreduced for reasons other than changes in the experience factors underlyingthe disciplined current scale. If nonguaranteed elements illustrated for newpolicies are not consistent with those illustrated for similar in-forcepolicies, this shall be disclosed in the annual certification. Ifnonguaranteed elements illustrated for both new and in-force policies are notconsistent with the nonguaranteed elements actually being paid, charged orcredited to the same or similar forms, this shall be disclosed in the annualcertification; and
(6) Disclose in the annual certification the method used to allocateoverhead expenses for all illustrations:
(a) Fully allocated expenses;
(b) Marginal expenses; or
(c) A generally recognized expense table based on fully allocatedexpenses representing a significant portion of insurance companies andapproved by the director of the department of insurance, financialinstitutions and professional registration.
4. (1) The illustration actuary shall file a certification with theboard and with the director of the department of insurance, financialinstitutions and professional registration:
(a) Annually for all policy forms for which illustrations are used; and
(b) Before a new policy form is illustrated.
(2) If an error in a previous certification is discovered, theillustration actuary shall notify the board of directors of the insurer andthe director of the department of insurance, financial institutions andprofessional registration promptly.
5. If an illustration actuary is unable to certify the scale for anypolicy form illustration the insurer intends to use, the actuary shall notifythe board of directors of the insurer and the director of the department ofinsurance, financial institutions and professional registration promptly ofhis or her inability to certify.
6. A responsible officer of the insurer, other than the illustrationactuary, shall certify annually:
(1) That the illustration formats meet the requirements of sections375.1500 to 375.1527 and that the scales used in insurer-authorizedillustrations are those scales certified by the illustration actuary; and
(2) That the company has provided its agents with information about theexpense allocation method used by the company in its illustrations anddisclosed as required in subdivision (6) of subsection 3 of this section.
7. The annual certifications shall be provided to the director of thedepartment of insurance, financial institutions and professional registrationeach year by a date determined by the insurer.
8. If an insurer changes the illustration actuary responsible for all ora portion of the company's policy forms, the insurer shall notify the directorof the department of insurance, financial institutions and professionalregistration of that fact promptly and disclose the reason for the change.
375.1524. 1. The board of directors of each insurer shall appoint oneor more illustration actuaries.
2. The illustration actuary shall certify that the disciplined currentscale used in illustrations is in conformity with the actuarial standard ofpractice for compliance with the NAIC model regulation of life insuranceillustrations promulgated by the actuarial standards board, and that theillustrated scales used in insurer-authorized illustrations meet therequirements of sections 375.1500 to 375.1527.
3. The illustration actuary shall:
(1) Be a member in good standing of the American Academy of Actuaries;
(2) Be familiar with the standard of practice regarding life insurancepolicy illustrations;
(3) Not have been found by the director of the department of insurance,financial institutions and professional registration, following appropriatenotice and hearing to have:
(a) Violated any provision of, or any obligation imposed by, theinsurance law or other law in the course of his or her dealings as anillustration actuary;
(b) Been found guilty of fraudulent or dishonest practices;
(c) Demonstrated his or her incompetence, lack of cooperation, oruntrustworthiness to act as an illustration actuary; or
(d) Resigned or been removed as an illustration actuary within the pastfive years as a result of acts or omissions indicated in any adverse report onexamination or as a result of a failure to adhere to generally acceptableactuarial standards;
(4) Not fail to notify the director of the department of insurance,financial institutions and professional registration of any action taken by acommissioner or director of insurance of another state similar to thatpursuant to subdivision (3) of this subsection;
(5) Disclose in the annual certification whether, since the lastcertification, a currently payable scale applicable for business issued withinthe previous five years and within the scope of the certification has beenreduced for reasons other than changes in the experience factors underlyingthe disciplined current scale. If nonguaranteed elements illustrated for newpolicies are not consistent with those illustrated for similar in-forcepolicies, this shall be disclosed in the annual certification. Ifnonguaranteed elements illustrated for both new and in-force policies are notconsistent with the nonguaranteed elements actually being paid, charged orcredited to the same or similar forms, this shall be disclosed in the annualcertification; and
(6) Disclose in the annual certification the method used to allocateoverhead expenses for all illustrations:
(a) Fully allocated expenses;
(b) Marginal expenses; or
(c) A generally recognized expense table based on fully allocatedexpenses representing a significant portion of insurance companies andapproved by the director of the department of insurance, financialinstitutions and professional registration.
4. (1) The illustration actuary shall file a certification with theboard and with the director of the department of insurance, financialinstitutions and professional registration:
(a) Annually for all policy forms for which illustrations are used; and
(b) Before a new policy form is illustrated.
(2) If an error in a previous certification is discovered, theillustration actuary shall notify the board of directors of the insurer andthe director of the department of insurance, financial institutions andprofessional registration promptly.
5. If an illustration actuary is unable to certify the scale for anypolicy form illustration the insurer intends to use, the actuary shall notifythe board of directors of the insurer and the director of the department ofinsurance, financial institutions and professional registration promptly ofhis or her inability to certify.
6. A responsible officer of the insurer, other than the illustrationactuary, shall certify annually:
(1) That the illustration formats meet the requirements of sections375.1500 to 375.1527 and that the scales used in insurer-authorizedillustrations are those scales certified by the illustration actuary; and
(2) That the company has provided its agents with information about theexpense allocation method used by the company in its illustrations anddisclosed as required in subdivision (6) of subsection 3 of this section.
7. The annual certifications shall be provided to the director of thedepartment of insurance, financial institutions and professional registrationeach year by a date determined by the insurer.
8. If an insurer changes the illustration actuary responsible for all ora portion of the company's policy forms, the insurer shall notify the directorof the department of insurance, financial institutions and professionalregistration of that fact promptly and disclose the reason for the change.
375.1524. 1. The board of directors of each insurer shall appoint oneor more illustration actuaries.
2. The illustration actuary shall certify that the disciplined currentscale used in illustrations is in conformity with the actuarial standard ofpractice for compliance with the NAIC model regulation of life insuranceillustrations promulgated by the actuarial standards board, and that theillustrated scales used in insurer-authorized illustrations meet therequirements of sections 375.1500 to 375.1527.
3. The illustration actuary shall:
(1) Be a member in good standing of the American Academy of Actuaries;
(2) Be familiar with the standard of practice regarding life insurancepolicy illustrations;
(3) Not have been found by the director of the department of insurance,financial institutions and professional registration, following appropriatenotice and hearing to have:
(a) Violated any provision of, or any obligation imposed by, theinsurance law or other law in the course of his or her dealings as anillustration actuary;
(b) Been found guilty of fraudulent or dishonest practices;
(c) Demonstrated his or her incompetence, lack of cooperation, oruntrustworthiness to act as an illustration actuary; or
(d) Resigned or been removed as an illustration actuary within the pastfive years as a result of acts or omissions indicated in any adverse report onexamination or as a result of a failure to adhere to generally acceptableactuarial standards;
(4) Not fail to notify the director of the department of insurance,financial institutions and professional registration of any action taken by acommissioner or director of insurance of another state similar to thatpursuant to subdivision (3) of this subsection;
(5) Disclose in the annual certification whether, since the lastcertification, a currently payable scale applicable for business issued withinthe previous five years and within the scope of the certification has beenreduced for reasons other than changes in the experience factors underlyingthe disciplined current scale. If nonguaranteed elements illustrated for newpolicies are not consistent with those illustrated for similar in-forcepolicies, this shall be disclosed in the annual certification. Ifnonguaranteed elements illustrated for both new and in-force policies are notconsistent with the nonguaranteed elements actually being paid, charged orcredited to the same or similar forms, this shall be disclosed in the annualcertification; and
(6) Disclose in the annual certification the method used to allocateoverhead expenses for all illustrations:
(a) Fully allocated expenses;
(b) Marginal expenses; or
(c) A generally recognized expense table based on fully allocatedexpenses representing a significant portion of insurance companies andapproved by the director of the department of insurance, financialinstitutions and professional registration.
4. (1) The illustration actuary shall file a certification with theboard and with the director of the department of insurance, financialinstitutions and professional registration:
(a) Annually for all policy forms for which illustrations are used; and
(b) Before a new policy form is illustrated.
(2) If an error in a previous certification is discovered, theillustration actuary shall notify the board of directors of the insurer andthe director of the department of insurance, financial institutions andprofessional registration promptly.
5. If an illustration actuary is unable to certify the scale for anypolicy form illustration the insurer intends to use, the actuary shall notifythe board of directors of the insurer and the director of the department ofinsurance, financial institutions and professional registration promptly ofhis or her inability to certify.
6. A responsible officer of the insurer, other than the illustrationactuary, shall certify annually:
(1) That the illustration formats meet the requirements of sections375.1500 to 375.1527 and that the scales used in insurer-authorizedillustrations are those scales certified by the illustration actuary; and
(2) That the company has provided its agents with information about theexpense allocation method used by the company in its illustrations anddisclosed as required in subdivision (6) of subsection 3 of this section.
7. The annual certifications shall be provided to the director of thedepartment of insurance, financial institutions and professional registrationeach year by a date determined by the insurer.
8. If an insurer changes the illustration actuary responsible for all ora portion of the company's policy forms, the insurer shall notify the directorof the department of insurance, financial institutions and professionalregistration of that fact promptly and disclose the reason for the change.
