(a)

1. (1) In accordance with Arkansas Code § 23-84-112, the appointed actuary shall prepare a memorandum to the company describing the analysis done in support of his or her opinion regarding the reserves.

2. (2) The memorandum shall be made available for examination by the Insurance Commissioner upon his or her request but:

   1. (A) Shall be returned to the company after such examination; and
   2. (B) Shall not be considered a record of the State Insurance Department or subject to automatic filing with the Insurance Commissioner.

(c)

1. (1) If the Insurance Commissioner requests a memorandum and no such memorandum exists or if the Insurance Commissioner finds that the analysis described in the memorandum fails to meet the standards of the Actuarial Standards Board or the standards and requirements of this part, the Insurance Commissioner may designate a qualified actuary to review the opinion and prepare such supporting memorandum as is required for review.
2. (2) The reasonable and necessary expense of the independent review shall be paid by the company but shall be directed and controlled by the Insurance Commissioner.

(d)

1. (1) The reviewing actuary shall have the same status as an examiner for purposes of obtaining data from the company and the work papers and documentation of the reviewing actuary shall be retained by the Insurance Commissioner.

2. (2) Provided, however, that any information provided by the company to the reviewing actuary and included in the work papers shall be:

   1. (A) Considered as material provided by the company to the Insurance Commissioner; and
   2. (B) Kept confidential to the same extent as is prescribed by law with respect to other material provided by the company to the Insurance Commissioner pursuant to the statute governing this part.

3. (3) The reviewing actuary shall not be an employee of a consulting firm involved with the preparation of any prior memorandum or opinion for the insurer pursuant to this part for any one (1) of the:

   1. (A) Current year; or
   2. (B) Preceding three (3) years.

(e)

1. (1) In accordance with Arkansas Code § 23-84-112, the appointed actuary shall prepare a regulatory asset adequacy issues summary, the contents of which are specified in 23 CAR § 24-403.
2. (2) The regulatory asset adequacy issues summary will be submitted no later than March 15 of the year following the year for which a statement of actuarial opinion based on asset adequacy is required.
3. (3) The regulatory asset adequacy issues summary is to be kept confidential to the same extent and under the same conditions as the actuarial memorandum.