(a)

1. (1) Any Category A company that, for any year, meets all of the following criteria shall be eligible for exemption from submission of a statement of actuarial opinion in accordance with Subpart 5 of this part for the year in which these criteria are met.

2. (2) The ratios in subdivisions (a)(2)(A) – (C) of this section shall be calculated based on amounts as of the end of the calendar year for which the actuarial opinion is applicable:

   1. (A) The ratio of the sum of capital and surplus to the sum of cash and invested assets is at least equal to .10;
   2. (B) The ratio of the sum of the reserves and liabilities for annuities and deposits to the total admitted assets is less than .30;
   3. (C) The ratio of the book value of the non-investment grade bonds to the sum of capital and surplus is less than .50; and
   4. (D) The Analyst Team System for the NAIC has not designated the company as a first-priority company in any of the two (2) calendar years preceding the calendar year for which the actuarial opinion is applicable or a second-priority company in each of the two (2) calendar years preceding the calendar year for which the actuarial opinion is applicable, or the company has resolved the first- or second-priority status to the satisfaction of the Insurance Commissioner.

(b)

1. (1) Any Category B company that, for any year, meets all of the following criteria shall be eligible for exemption from submission of a statement of actuarial opinion in accordance with Subpart 5 of this part for the year in which the criteria are met.

2. (2) The ratios in subdivisions (b)(2)(A) – (C) of this section shall be calculated based on amounts as of the end of the calendar year for which the actuarial opinion is applicable:

   1. (A) The ratio of the sum of capital and surplus to the sum of cash and invested assets is at least equal to .07;
   2. (B) The ratio of the sum of the reserves and liabilities for annuities and deposits to the total admitted assets is less than .40;
   3. (C) The ratio of the book value of the non-investment grade bonds to the sum of capital and surplus is less than .50; and
   4. (D) The Analyst Team System for the NAIC has not designated the company as a first-priority company in any of the two (2) calendar years preceding the calendar year for which the actuarial opinion is applicable or a second-priority company in each of the two (2) calendar years preceding the calendar year for which the actuarial opinion is applicable, or the company has resolved the first- or second-priority status to the satisfaction of the commissioner.

(e)

1. (1) Any Category C company that, after submitting an opinion in accordance with Subpart 5 of this part, meets all of the following criteria shall not be required, unless required in accordance with subsection (f) of this section, to submit a statement of actuarial opinion in accordance with Subpart 5 of this part more frequently than every third year.
2. (2) Any Category C company which fails to meet all of the following criteria for any year shall submit a statement of actuarial opinion in accordance with Subpart 5 of this part for that year.

3. (3) The ratios in subdivisions (e)(3)(A) – (C) of this section shall be calculated based on amounts as of the end of the calendar year for which the actuarial opinion is applicable:

   1. (A) The ratio of the sum of capital and surplus to the sum of cash and invested assets is at least equal to .05;
   2. (B) The ratio of the sum of the reserves and liabilities for annuities and deposits to the total admitted assets is less than .50;
   3. (C) The ratio of the book value of the non-investment grade bonds to the sum of the capital and surplus is less than .50; and
   4. (D) The Analyst Team System for the NAIC has not designated the company as a first-priority company in any of the two (2) calendar years preceding the calendar year for which the actuarial opinion is applicable or a second-priority company in each of the two (2) calendar years preceding the calendar year for which the actuarial opinion is applicable, or the company has resolved the first- or second-priority status to the satisfaction of the commissioner.