23 CAR § 24-302 – Recommended language

(a)
1. (1) The following paragraphs are to be included in the statement of actuarial opinion in accordance with this subpart.
2. (2)
  1. (A) Language is that which in typical circumstances should be included in a statement of actuarial opinion.
  2. (B) The language may be modified as needed to meet the circumstances of a particular case, but the appointed actuary should use language that clearly expresses his or her professional judgment.
  3. (C) However, in any event the opinion shall retain all pertinent aspects of the language provided in this section.
(b)
1. (1) The opening paragraph should generally indicate the appointed actuary’s relationship to the company and his or her qualifications to sign the opinion.
2. (2) For a company actuary, the opening paragraph of the actuarial opinion should include a statement such as: I, [name], am [title] of [insurance company name] 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 Insurance 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.
3. (3) For a consulting actuary, the opening paragraph should include a statement such as: I, [name], a member of the American Academy of Actuaries, am associated with the firm of [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 Insurance 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.

(c) The scope paragraph should include a statement such as: 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, [ ]. Tabulated below are those reserves and related actuarial items which have been subjected to asset adequacy analysis.

Asset Adequacy Tested Amounts—Reserves and Liabilities
Statement Item	Formula Reserves(1)	Additional Actuarial Reserves (a) (2)	Analysis Method(b)	Other Amount(3)	Total Amount (1)+(2)+(3) (4)
Exhibit 5A Life Insurance
B Annuities
C Supplementary Contracts Involving Life Contingencies
D Accidental Death Benefit
E Disability—Active
F Disability—Disabled
G Miscellaneous
Total Exhibit 5 (Page 3, Line 1)
Exhibit 6A Active Life Reserve
B Claim Reserve
Total Exhibit 6 (Page 3, Line 2)
Exhibit 7Premium and Other Deposit Funds(Column 5, Line 14)
Guaranteed InterestContracts(Column 2, Line 14)
Other(Column 6, Line 14)
Supplemental Contracts andAnnuities Certain(Column 3, Line 14)
Dividend Accumulationsor Refunds(Column 4, Line 14)
Total Exhibit 7 (Page 3, Line 3)
Exhibit 8, Part 11 Life (Page 3, Line 4.1)
2 Health (Page 3, Line 4.2)
Total Exhibit 8, Part 1
Separate Accounts(Page 3 of the Annual Statement of the Separate Accounts, Lines 1, 2, 3.1, 3.2, 3.3)
TOTAL RESERVES
IMR (General Account, Page Line )___

(Separate Accounts, Page Line )___

AVR (Page Line )___	(c)

Net Deferred and Uncollected Premium

Notes.

(a) (a) The additional actuarial reserves are the reserves established under 23 CAR § 24-205(b).
(b) (b) The appointed actuary should indicate the method of analysis, determined in accordance with the standards for asset adequacy analysis referred to in 23 CAR § 24-204, by means of symbols that should be defined in footnotes to the table.
(c) (c) Allocated amount of Asset Valuation Reserve (AVR).
(d)
1. (1) If the appointed actuary has relied on other experts to develop certain portions of the analysis, the reliance paragraph should include a statement such as: I have relied on [name], [title] for [e.g., “anticipated cash flows from currently owned assets, including variations in cash flows according to economic scenarios” or “certain critical aspects of the analysis performed in conjunction with forming my opinion”], as certified in the attached statement. I have reviewed the information relied upon for reasonableness.
2. (2) A statement of reliance on other experts should be accompanied by a statement by each of the experts in the form prescribed by 23 CAR § 24-305.
(e) If the appointed actuary has examined the underlying asset and liability records, the reliance paragraph should include a statement such as: My examination included such review of the actuarial assumptions and actuarial methods and of the underlying basic asset and liability records and such tests of the actuarial calculations as I considered necessary. I also reconciled the underlying basic asset and liability records to [exhibits and schedules listed as applicable] of the company’s current annual statement.
(f)
1. (1) If the appointed actuary has not examined the underlying records, but has relied upon data (e.g., listings and summaries of policies in force or asset records) prepared by the company, the reliance paragraph should include a statement such as: In forming my opinion on [specify types of reserves], I relied upon data prepared by [name and title of company officer certifying in force records or other data] as certified in the attached statements. I evaluated that data for reasonableness and consistency. I also reconciled that data to [exhibits and schedules to be listed as applicable] of the company’s current annual statement. In other respects, my examination included review of the actuarial assumptions and actuarial methods used and tests of the calculations I considered necessary.
2. (2) The section shall be accompanied by a statement by each person relied upon in the form prescribed by 23 CAR § 24-305.
(g) The opinion paragraph should include a statement such as: “In my opinion the reserves and related actuarial values concerning the statement items identified above:
(a) Are computed in accordance with presently accepted actuarial standards consistently applied and are fairly stated, in accordance with sound actuarial principles;
(b) Are based on actuarial assumptions that 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;
(c) Meet the requirements of the Insurance Law and Rule of the state of [state of domicile]; and are at least as great as the minimum aggregate amounts required by the state in which this statement is filed;
(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 noted below); and
(e) Include provision for all actuarial reserves and related statement items which ought to be established. The reserves and related items, when considered in light of the assets held by the company with respect to such 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, according to presently accepted actuarial standards of practice, for the anticipated cash flows required by the contractual obligations and related expenses of the company. The actuarial methods, considerations and analyses used in forming my opinion conform to the appropriate Standards of Practice as promulgated by the Actuarial Standards Board, which standards form the basis of this statement of opinion. 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.)” Note. Choose one (1) of the above two (2) paragraphs, whichever is applicable. “The impact of unanticipated events subsequent to the date of this opinion is beyond the scope of this opinion. The analysis of asset adequacy portion of this opinion should be viewed recognizing that the company’s future experience may not follow all the assumptions used in the analysis.” [Signature of Appointed Actuary] [Address of Appointed Actuary] [Telephone Number of Appointed Actuary] [Date]