(a)

1. (1) The following language provided is that which typically would be included in a statement of actuarial opinion in accordance with this section.

2. (2)

   1. (A) The language may be modified as needed to meet the circumstances of a particular case, but the appointed actuary should use language which clearly expresses his or her professional judgment.
   2. (B) However, in any event the opinion shall retain all pertinent aspects of the language provided in this subpart.

(b)

1. (1) The opening paragraph should indicate the appointed actuary’s relationship to the company.
2. (2) For a company actuary, the opening paragraph of the actuarial opinion should read as follows: I, [name of actuary], am [title] of [name of company] and a member of the American Academy of Actuaries. I was appointed by, or by the authority of, the Board of Directors of said insurer to render this opinion as stated in the letter to the Commissioner dated [insert date]. I meet the Academy qualification standards for rendering the opinion and am familiar with the valuation requirements applicable to life and health companies.
3. (3) For a consulting actuary, the opening paragraph of the actuarial opinion should contain a statement such as the following: I, [name and title of actuary], a member of the American Academy of Actuaries, am associated with the firm of [insert name of consulting firm]. I have been appointed by, or by the authority of, the Board of Directors of [name of company] to render this opinion as stated in the letter to the Commissioner dated [insert date]. I meet the Academy qualification standards for rendering the opinion and am familiar with the valuation requirements applicable to life and health insurance companies.

(d)

1. (1) The scope paragraph should contain a sentence such as the following: I have examined the actuarial assumptions and actuarial methods used in determining reserves and related actuarial items listed below, as shown in the annual statement of the company, as prepared for filing with state regulatory officials, as of December 31, [ ].

2. (2)

   1. (A) The paragraph should list items and amounts with respect to which the appointed actuary is expressing an opinion.
   2. (B) The list should include, but not be necessarily limited to:

(i) Aggregate reserve and deposit funds for policies and contracts included in Exhibit 5;

1. (ii) Aggregate reserve and deposit funds for policies and contracts included in Exhibit 6;

   1. (iii) Deposit funds, premiums, dividend and coupon accumulations, and supplementary contracts not involving life contingencies included in Exhibit 7; and

      1. (iv) Policy and contract claims--liability end of current year included in Exhibit 8, Part I.

(f)

1. (1) If the appointed actuary has not examined the underlying records, but has relied upon listings and summaries of policies in force prepared by the company or a third party, the scope paragraph should include a statement such as one (1) of the following: I have relied upon listings and summaries of polices and contracts and other liabilities in force prepared by [name and title of company officer certifying in force records] as certified in the attached statement. (See accompanying affidavit by a company officer.) In other respects my examination included review of the actuarial assumptions and actuarial methods and such tests of the actuarial calculations as I considered necessary. or I have relied upon [name of accounting firm] for the substantial accuracy of the in force records inventory and information concerning other liabilities, as certified in the attached statement. In other respects my examination included review of the actuarial assumptions and actuarial methods and such tests of the actuarial calculations as I considered necessary.
2. (2) The statement of the person so certifying shall follow the form indicated by 23 CAR § 23-405.

(b) Are based on actuarial assumptions which produce reserves at least as great as those called for in any contract provision as to reserve basis and method, and are in accordance with all other contract provisions;

1. (c) Meet the requirements of the Insurance Law and rules of the state of Arkansas and are at least as great as the minimum aggregate amounts required by this state;

   1. (d) Are computed on the basis of assumptions consistent with those used in computing the corresponding items in the annual statement of the preceding year-end with any exceptions as noted below; and

(b) The ratio of the sum of the reserves and liabilities for annuities and deposits to the excess of the total admitted assets is [insert amount], which is less than the applicable criteria based on the admitted assets of the company (23 CAR § 23-303).

1. (c) The ratio of the book value of the non-investment grade bonds to the sum of capital and surplus is [insert amount], which is less than the applicable criteria of .50.

   1. (d) To my knowledge, the NAIC Examiner Team 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 of its state of domicile.

      1. (i)
2. (1) If there has been any change in the actuarial assumptions from those previously employed, that change should be described in the annual statement or in a paragraph of the statement of actuarial opinion.
3. (2) Include one (1) of the following, whichever is applicable: This opinion is updated annually as required by statute. To the best of my knowledge, there have been no material changes from the applicable date of the annual statement to the date of the rendering of this opinion which should be considered in reviewing this opinion. or The following material changes which occurred between the date of the statement for which this opinion is applicable and the date of this opinion should be considered in reviewing this opinion: (Describe the change or changes.)