State Codes and Statutes

Statutes > Vermont > Title-08 > Chapter-101 > 3577

§ 3577. Requirements for actuarial opinions

(a) Each licensed insurance company shall include on or attached to its annual statement submitted under section 3561 of this title a statement of a qualified actuary, entitled "statement of actuarial opinion," setting forth an opinion on life and health policy and claim reserves and an opinion on property and casualty loss and loss adjustment expenses reserves.

(b) The "statement of actuarial opinion" shall conform to the Standards of Practice promulgated by the Actuarial Standards Board of the American Academy of Actuaries, the standards of the Casualty Actuarial Society, and such additional standards as the commissioner may establish by rule. The commissioner by rule shall establish minimum standards applicable to the valuation of health disability, sickness and accident plans.

(c) Opinions required by this section shall apply to all business in force, and shall be stated in form and in substance acceptable to the commissioner as prescribed by rule.

(d) In the case of life insurance companies doing business in this state, the opinion shall state 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, comply with applicable laws of this state, and comply with such further standards as the commissioner may establish by rule.

(e) Every life insurance company shall annually include in the opinion required by this section 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 and expenses associated with the policies and contracts.

(f) 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.

(g) The commissioner may provide by rule for a transition period for establishing any higher reserves which the qualified actuary may deem necessary in order to render the opinion required by this section.

(h) In the case of life and health insurance companies, "qualified actuary" is an individual who:

(1) is a member of good standing of the American Academy of Actuaries;

(2) is qualified to sign statements of actuarial opinion for life and health insurance company annual statements in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements; and

(3) is familiar with the valuation requirements applicable to life and health insurance companies.

(i) In the case of property and casualty insurance companies, "qualified actuary" is an individual who:

(1) is a member of good standing of the Casualty Actuarial Society;

(2) is qualified to sign statements of actuarial opinion for property and casualty insurance company annual statements in accordance with the Casualty Actuarial Society qualification standards for actuaries signing such statements; and

(3) is familiar with the valuation requirements applicable to property and casualty insurance companies.

(j) The commissioner, after notice and administrative hearing, may disqualify an actuary who has:

(1) violated any provision of, or any obligation imposed by, the insurance law or other law in the course of his or her dealings as a qualified actuary; or

(2) been found guilty of fraudulent or dishonest practices; or

(3) demonstrated his or her incompetency, lack of cooperation, or unethical behavior to act as a qualified actuary; or

(4) submitted to the commissioner during the past five years an actuarial opinion or memorandum that the commissioner rejected because it did not meet the provisions of this section or the standards set by the Actuarial Standards Board or the Casualty Actuarial Society; or

(5) resigned or been removed as an actuary within the past five years as a result of acts or omissions indicated in any adverse report on examination or as a result of failure to adhere to generally acceptable actuarial standards; or

(6) has failed to notify the commissioner of any action taken by any commissioner of any other state similar to that under this subsection.

(k) Upon written application of any insurer, the commissioner may, in his or her discretion, grant an exemption from compliance with this section if the commissioner finds, upon review of the application, that compliance with this rule would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specified period or periods. (Added 1991, No. 249 (Adj. Sess.), § 9.)

State Codes and Statutes

Statutes > Vermont > Title-08 > Chapter-101 > 3577

§ 3577. Requirements for actuarial opinions

(a) Each licensed insurance company shall include on or attached to its annual statement submitted under section 3561 of this title a statement of a qualified actuary, entitled "statement of actuarial opinion," setting forth an opinion on life and health policy and claim reserves and an opinion on property and casualty loss and loss adjustment expenses reserves.

(b) The "statement of actuarial opinion" shall conform to the Standards of Practice promulgated by the Actuarial Standards Board of the American Academy of Actuaries, the standards of the Casualty Actuarial Society, and such additional standards as the commissioner may establish by rule. The commissioner by rule shall establish minimum standards applicable to the valuation of health disability, sickness and accident plans.

(c) Opinions required by this section shall apply to all business in force, and shall be stated in form and in substance acceptable to the commissioner as prescribed by rule.

(d) In the case of life insurance companies doing business in this state, the opinion shall state 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, comply with applicable laws of this state, and comply with such further standards as the commissioner may establish by rule.

(e) Every life insurance company shall annually include in the opinion required by this section 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 and expenses associated with the policies and contracts.

(f) 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.

(g) The commissioner may provide by rule for a transition period for establishing any higher reserves which the qualified actuary may deem necessary in order to render the opinion required by this section.

(h) In the case of life and health insurance companies, "qualified actuary" is an individual who:

(1) is a member of good standing of the American Academy of Actuaries;

(2) is qualified to sign statements of actuarial opinion for life and health insurance company annual statements in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements; and

(3) is familiar with the valuation requirements applicable to life and health insurance companies.

(i) In the case of property and casualty insurance companies, "qualified actuary" is an individual who:

(1) is a member of good standing of the Casualty Actuarial Society;

(2) is qualified to sign statements of actuarial opinion for property and casualty insurance company annual statements in accordance with the Casualty Actuarial Society qualification standards for actuaries signing such statements; and

(3) is familiar with the valuation requirements applicable to property and casualty insurance companies.

(j) The commissioner, after notice and administrative hearing, may disqualify an actuary who has:

(1) violated any provision of, or any obligation imposed by, the insurance law or other law in the course of his or her dealings as a qualified actuary; or

(2) been found guilty of fraudulent or dishonest practices; or

(3) demonstrated his or her incompetency, lack of cooperation, or unethical behavior to act as a qualified actuary; or

(4) submitted to the commissioner during the past five years an actuarial opinion or memorandum that the commissioner rejected because it did not meet the provisions of this section or the standards set by the Actuarial Standards Board or the Casualty Actuarial Society; or

(5) resigned or been removed as an actuary within the past five years as a result of acts or omissions indicated in any adverse report on examination or as a result of failure to adhere to generally acceptable actuarial standards; or

(6) has failed to notify the commissioner of any action taken by any commissioner of any other state similar to that under this subsection.

(k) Upon written application of any insurer, the commissioner may, in his or her discretion, grant an exemption from compliance with this section if the commissioner finds, upon review of the application, that compliance with this rule would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specified period or periods. (Added 1991, No. 249 (Adj. Sess.), § 9.)


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Statutes > Vermont > Title-08 > Chapter-101 > 3577

§ 3577. Requirements for actuarial opinions

(a) Each licensed insurance company shall include on or attached to its annual statement submitted under section 3561 of this title a statement of a qualified actuary, entitled "statement of actuarial opinion," setting forth an opinion on life and health policy and claim reserves and an opinion on property and casualty loss and loss adjustment expenses reserves.

(b) The "statement of actuarial opinion" shall conform to the Standards of Practice promulgated by the Actuarial Standards Board of the American Academy of Actuaries, the standards of the Casualty Actuarial Society, and such additional standards as the commissioner may establish by rule. The commissioner by rule shall establish minimum standards applicable to the valuation of health disability, sickness and accident plans.

(c) Opinions required by this section shall apply to all business in force, and shall be stated in form and in substance acceptable to the commissioner as prescribed by rule.

(d) In the case of life insurance companies doing business in this state, the opinion shall state 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, comply with applicable laws of this state, and comply with such further standards as the commissioner may establish by rule.

(e) Every life insurance company shall annually include in the opinion required by this section 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 and expenses associated with the policies and contracts.

(f) 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.

(g) The commissioner may provide by rule for a transition period for establishing any higher reserves which the qualified actuary may deem necessary in order to render the opinion required by this section.

(h) In the case of life and health insurance companies, "qualified actuary" is an individual who:

(1) is a member of good standing of the American Academy of Actuaries;

(2) is qualified to sign statements of actuarial opinion for life and health insurance company annual statements in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements; and

(3) is familiar with the valuation requirements applicable to life and health insurance companies.

(i) In the case of property and casualty insurance companies, "qualified actuary" is an individual who:

(1) is a member of good standing of the Casualty Actuarial Society;

(2) is qualified to sign statements of actuarial opinion for property and casualty insurance company annual statements in accordance with the Casualty Actuarial Society qualification standards for actuaries signing such statements; and

(3) is familiar with the valuation requirements applicable to property and casualty insurance companies.

(j) The commissioner, after notice and administrative hearing, may disqualify an actuary who has:

(1) violated any provision of, or any obligation imposed by, the insurance law or other law in the course of his or her dealings as a qualified actuary; or

(2) been found guilty of fraudulent or dishonest practices; or

(3) demonstrated his or her incompetency, lack of cooperation, or unethical behavior to act as a qualified actuary; or

(4) submitted to the commissioner during the past five years an actuarial opinion or memorandum that the commissioner rejected because it did not meet the provisions of this section or the standards set by the Actuarial Standards Board or the Casualty Actuarial Society; or

(5) resigned or been removed as an actuary within the past five years as a result of acts or omissions indicated in any adverse report on examination or as a result of failure to adhere to generally acceptable actuarial standards; or

(6) has failed to notify the commissioner of any action taken by any commissioner of any other state similar to that under this subsection.

(k) Upon written application of any insurer, the commissioner may, in his or her discretion, grant an exemption from compliance with this section if the commissioner finds, upon review of the application, that compliance with this rule would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specified period or periods. (Added 1991, No. 249 (Adj. Sess.), § 9.)


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