(b) It shall specify:

1. (1) For reserves:

   1. (A) Product descriptions including:

(i) Market description;

1. (ii) Underwriting; and

   1. (iii) Other aspects of a risk profile and the specific risks the appointed actuary deems significant;
   2. (B) Source of liability in force;
   3. (C) Reserve method and basis;
   4. (D) Investment reserves;
   5. (E) Reinsurance arrangements;

   6. (F) Identification of:

      1. (i) Any explicit or implied guarantees made by the general account in support of benefits provided through a separate account or under a separate account policy or contract; and
      2. (ii) The methods used by the appointed actuary to provide for the guarantees in the asset adequacy analysis; and

   7. (G)

      1. (i) Documentation of assumptions to test reserves for the following:

(b) (b) Interest crediting rate strategy;

1. (c) (c) Mortality;

   1. (d) (d) Policyholder dividend strategy;

(h) (h) Morbidity.

1. (ii) The documentation of the assumptions shall be such that an actuary reviewing the actuarial memorandum could form a conclusion as to the reasonableness of the assumptions;

2. (2) For assets:

   1. (A) Portfolio descriptions, including a risk profile disclosing the quality, distribution, and types of assets;
   2. (B) Investment and disinvestment assumptions;
   3. (C) Source of asset data;
   4. (D) Asset valuation bases; and

   5. (E)

      1. (i) Documentation of assumptions made for:

(b) (b) Bond call function;

1. (c) (c) Mortgage prepayment function;

   1. (d) (d) Determining market value for assets sold due to disinvestment strategy; and

(e) (e) Determining yield on assets acquired through the investment strategy.

1. (ii) The documentation of the assumptions shall be such that an actuary reviewing the actuarial memorandum could form a conclusion as to the reasonableness of the assumptions;

2. (3) For the analysis basis:

   1. (A) Methodology;
   2. (B) Rationale for inclusion or exclusion of different blocks of business and how pertinent risks were analyzed;
   3. (C) Rationale for degree of rigor in analyzing different blocks of business (include in the rationale the level of “materiality” that was used in determining how rigorously to analyze different blocks of business);
   4. (D) Criteria for determining asset adequacy (include in the criteria the precise basis for determining if assets are adequate to cover reserves under “moderately adverse conditions” or other conditions as specified in relevant actuarial standards of practice); and
   5. (E) Whether the impact of federal income taxes was considered and the method of treating reinsurance in the asset adequacy analysis;
3. (4) Summary of material changes in methods, procedures, or assumptions from prior year’s asset adequacy analysis;
4. (5) Summary of results; and
5. (6) Conclusions.