23 CAR § 10-107 – Adverse or qualified opinions

(a)
1. (1) An adverse or qualified opinion is an indication that corrective action is necessary.
2. (2) As to plans for correction of the indicated problem, the Insurance Commissioner will question any company about which such an opinion is received, whether such opinion is rendered by:
  1. (A) Its own staff;
  2. (B) Its consultant; or
  3. (C) The State Insurance Department.
3. (3) It is recommended that in any situation in which an actuary finds it necessary to give a qualified or adverse opinion, he or she should notify the company, then the department.
(b) If the department’s actuary or consultant is unable to render an unqualified opinion, the department may require the company to obtain a separate opinion from another qualified actuary, which may be limited to the subject matter in question.