1. (a) The Standard Valuation Law for Life Insurance and Annuities, Arkansas Code § 23-84-101 et seq., gives the Insurance Commissioner broad authority to accept the valuation of a foreign insurer when that valuation meets the requirements applicable to a company domiciled in this state in the aggregate.

2. (b) As an alternative to the requirements of paragraph (c) in 23 CAR § 24-302(g), the Insurance Commissioner may make one (1) or more of the following additional approaches available to the opining actuary:

   1. (1)

      1. (A) A statement that the reserves “meet the requirements of the insurance laws and rules of [state of domicile] and the formal written standards and conditions of this state for filing an opinion based on the law of the state of domicile”.
      2. (B) If the Insurance Commissioner chooses to allow this alternative, a formal written list of standards and conditions shall be made available.
      3. (C)

3. (i) If a company chooses to use this alternative, the standards and conditions in effect on July 1 of a calendar year shall apply to statements for that calendar year, and they shall remain in effect until they are revised or revoked.

   1. (ii) If no list is available, this alternative is not available;

   2. (2)

      1. (A) A statement that the reserves “meet the requirements of the insurance laws and rules of [state of domicile], and I have verified that the company’s request to file an opinion based on the law of the state of domicile has been approved and that any conditions required by the Insurance Commissioner for approval of that request have been met”.

      2. (B)

         1. (i) If the Insurance Commissioner chooses to allow this alternative, a formal written statement of such allowance shall be issued no later than March 31 of the year it is first effective.
         2. (ii) It shall remain valid until rescinded or modified by the Insurance Commissioner.
         3. (iii) The rescission or modifications shall be issued no later than March 31 of the year they are first effective.

      3. (C)

         1. (i) Subsequent to that statement being issued, if a company chooses to use this alternative, the company shall file a request to do so, along with justification for its use, no later than April 30 of the year of the opinion to be filed.
         2. (ii) The request shall be deemed approved on October 1 of that year if the Insurance Commissioner has not denied the request by that date; or

   3. (3)

      1. (A) A statement that the reserves “meet the requirements of the insurance laws and rules of [state of domicile], and I have submitted the required comparison as specified by this state”.

      2. (B)

         1. (i) If the Insurance Commissioner chooses to allow this alternative, a formal written list of products (to be added to the table in subdivision (b)(3)(C)(iii) of this section) for which the required comparison shall be provided will be published.
         2. (ii) If a company chooses to use this alternative, the list in effect on July 1 of a calendar year shall apply to statements for that calendar year, and it shall remain in effect until it is revised or revoked.
         3. (iii) If no list is available, this alternative is not available.

      3. (C)

         1. (i) If a company desires to use this alternative, the appointed actuary shall provide a comparison of the gross nationwide reserves held to the gross nationwide reserves that would be held under NAIC codification standards.
         2. (ii) Gross nationwide reserves are the total reserves calculated for the total company in force business directly sold and assumed, indifferent to the state in which the risk resides, without reduction for reinsurance ceded.
         3. (iii) The information provided shall be at least:

            (1)Product Type	(2)Death Benefit orAccount Value	(3)Reserves Held	(4)Codification Reserves	(5)Codification Standard

      4. (D) The information listed shall include all products identified by either the state of filing or any other states subscribing to this alternative.
      5. (E) If there is no codification standard for the type of product or risk in force or if the codification standard does not directly address the type of product or risk in force, the appointed actuary shall provide detailed disclosure of the specific method and assumptions used in determining the reserves held.

      6. (F) The comparison provided by the company is to be kept confidential to the same extent and under the same conditions as the actuarial memorandum.

         1. (c)
   4. (1) Notwithstanding the above, the Insurance Commissioner may reject an opinion based on the laws and rules of the state of domicile and require an opinion based on the laws of this state.
   5. (2) If a company is unable to provide the opinion within sixty (60) days of the request or such other period of time determined by the Insurance Commissioner after consultation with the company, the Insurance Commissioner may contract an independent actuary at the company’s expense to prepare and file the opinion.

Codification Notes: "NAIC" means National Association of Insurance Commissioners.