N.Y. Comp. Codes R. & Regs. tit. 11, § 95.7 – Statement of actuarial opinion not including an asset adequacy analysis.

(1) a paragraph identifying the appointed actuary and his or her qualifications; and
(2) a regulatory authority paragraph stating that the company is exempt pursuant to this Part from submitting a statement of actuarial opinion based on an asset adequacy analysis and that the opinion, which is not based on an asset adequacy analysis, is rendered in accordance with section 95.7 of this Part;
(3) a scope paragraph identifying the subjects on which the opinion is expressed and describing the scope of the appointed actuary's work; and
(4) an opinion paragraph expressing the appointed actuary's opinion.
(b) Recommended language.
The following language provided is that which in typical circumstances would be included in a statement of actuarial opinion in accordance with this section. The language may be modified as needed to met the circumstances of a particular case, but the appointed actuary should use language which clearly expresses his or her professional judgment. However, in any event the opinion shall retain all pertinent aspects of the language provided in this section.
(1) The opening paragraph shall indicate the appointed actuary's relationship to the company and his or her qualifications to sign the opinion.
1. (i) For a company actuary the opening paragraph of the actuarial opinion shall contain a statement such as:
  “I, [name of actuary, initials of actuarial organizations that actuary belongs to, e.g., M.A.A.A. and F.S.A., and title of actuary], was 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 Superintendent dated [insert date]. I meet the Academy qualification standards for rendering the opinion and am familiar with the valuation requirements of the State of New York applicable to life and health insurance companies.”
2. (ii) For a consulting actuary, the opening paragraph of the actuarial opinion shall contain a statement such as:
  “I, [name of actuary, initials of actuarial organizations that actuary belongs to, e.g., M.A.A.A. and F.S.A., and title of actuary], 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 Superintendent dated [insert date]. I meet the Academy qualification standards for rendering the opinion and am familiar with the valuation requirements of the State of New York applicable to life and health insurance companies.”
(2) The regulatory authority paragraph shall include a statement such as the following:
“Said company is exempt pursuant to 11 NYCRR 95 (New York Insurance Regulation 126) from submitting a statement of actuarial opinion based on an asset adequacy analysis. This opinion, which is not based on an asset adequacy analysis, is rendered in accordance with section 95.7 of the regulation.”
(3) The scope paragraph shall contain a sentence such as the following: The paragraph shall list items and amounts with respect to which the appointed actuary is expressing an opinion. The list shall include but not be necessarily limited to:
1. (i) aggregate reserve and deposit funds for policies and contracts included in exhibit 8;
2. (ii) aggregate reserve and deposit funds for policies and contracts included in exhibit 9;
3. (iii) deposit funds, premiums, dividend and coupon accumulations and supplementary contracts not involving life contingencies included in exhibit 10; and
4. (iv) policy and contract claims-liability end of current year included in exhibit 11, Part I.
“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, [ ].”
(4) If the appointed actuary has examined the underlying records, the scope paragraph shall also include a statement such as the following:
“My examination included such review of the actuarial assumptions and actuarial methods and of the underlying basic records, which records, to the best of my knowledge and belief, are substantially accurate and complete, and such tests of the actuarial calculations as I considered necessary.”
(5) If the appointed actuary has not examined the underlying records, but has relied upon the company or a third party for the preparation of listings and summaries of policies in force and for the substantial accuracy of such records, the scope paragraph shall include a statement such as one of the following: The statement of the person certifying shall follow the form indicated by paragraph (11) of this subdivision.
(i) “I have relied upon [name and title of company officer certifying in force records] for the preparation of listings and summaries of policies and contracts and other liabilities in force and for the substantial accuracy of such records, as certified in the attached statement. I have reviewed such listings and summaries for reasonableness and consistency and I am so satisfied. 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 and I am satisfied as to their reasonableness and consistency.”
or
(ii) “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. I have reviewed such inventories and information for reasonableness and consistency and I am so satisfied. 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 and I am satisfied to their reasonableness and consistency.”
(6) The opinion paragraph shall include a statement such as the following: The actuarial methods, considerations and analyses used in forming my opinion conform to the appropriate Standards of Practice and Compliance Guidelines as promulgated by the Actuarial Standards Board, to the extent not inconsistent with New York Insurance Regulation 126 and conform to the requirements of such regulation.”
“In my opinion the amounts carried in the balance sheet on account of the actuarial items identified above:
(i) Are computed in accordance with those presently accepted actuarial standards of practice and actuarial compliance guidelines that specifically relate to the opinion required under section 95.7 of New York Insurance Regulation 126 to the extent not inconsistent therewith and in accordance with the requirements of such regulation, and which are consistently applied;
(ii) 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;
(iii) Meet the requirements of the insurance law and regulations of the State of [state of domicile] and are at least as great as the minimum aggregate amounts required by the State of New York;
(iv) 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
(v) Include provision for all actuarial reserves and related statement items which ought to be established.
(7) A paragraph should document the eligibility for the company to provide an opinion as provided by this section. It shall include the following:
“This opinion is provided in accordance with section 95.7 of Insurance Regulation 126. As such it does not include an opinion regarding the adequacy of reserves and related actuarial items when considered in light of the assets which support them.
Eligibility for section 95.7 is confirmed as follows based on the annual statement for the year ended December 31, 20 _:
(i) The ratio of the sum of capital and surplus to the total admitted assets is [insert amount], which equals or exceeds the applicable criterion based on the admitted assets of the company.
(ii) The ratio of the sum of the reserves and liabilities for annuities and deposits to the total admitted assets is [insert amount], which is less than the applicable criteria based on the admitted assets of the company.
(iii) The ratio of the book value of the noninvestment grade bonds to the sum of capital and surplus is [insert amount], which is less than the applicable criteria of.50
(iv) To my knowledge, based on such inquiry as I considered reasonable, the NAIC Examiner Team has not designated the company as a first priority company in either 20 _ or 20 _ generally based on the annual statements for 20 _ and 20 _, or a second priority company in each of such years or the company has resolved the first or second priority status to the satisfaction of the commissioner of the state of domicile.
(v) To my knowledge, based on such inquiry as I considered reasonable, there is not a specific request from the insurance regulator in any jurisdiction in which the company does business requiring an asset adequacy analysis opinion.”
(8) The concluding paragraph may state purposes for which the opinion is rendered, for example:
"This opinion is prepared for the use of company management and the New York Department of Financial Services for the purposes set forth in New York Insurance Law § 4217 and 11 NYCRR 95 (Insurance Regulation 126). This opinion covers business in force as of December 31, 20[ ] and does not cover new business issued subsequent to this date.
Signature of Appointed Actuary.
Address of Appointed Actuary.
Telephone Number of Appointed Actuary.
Date Opinion is Signed.”
(9) If there has been any change in the actuarial assumptions from those previously employed, that change should be described in the annual statement and in a paragraph of the statement of actuarial opinion, and the reference in subparagraph (6)(iv) of this subdivision to consistency should read as follows:
“. . . with the exception of the change described on Page [ ] of the annual statement (or in a separate paragraph in this opinion).”
The adoption for new issues or new claims or other new liabilities of an actuarial assumption which differs from a corresponding assumption used for prior new issues or new claims or other new liabilities is not a change in actuarial assumptions within the meaning of this paragraph.
(10) If the appointed actuary is unable to form an opinion, he or she shall refuse to issue a statement of actuarial opinion. If the appointed actuary's opinion is adverse or qualified, he or she shall issue an adverse or qualified actuarial opinion explicitly stating the reasons for such opinion. Any statements for any adverse or qualified actuarial opinion should follow the scope paragraph and precede the opinion paragraph.
(11) If the appointed actuary does not express an opinion as to the accuracy and completeness of the listings and summaries of policies in force, there shall be attached to the opinion the statement of a company officer or accounting firm who prepared such underlying data similar to the following:
"I [name of officer], [title] of [name and address of company or accounting firm], hereby affirm that the listings and summaries of policies and contracts in force as of December 31, [ ], prepared for and submitted to [name of appointed actuary], were prepared under my direction and, to the best of my knowledge and belief, are substantially accurate and complete.
Signature of the Officer of the Company or Accounting Firm.
Address of the Officer of the Company or Accounting Firm.
Telephone Number of the Officer of the Company or Accounting Firm.
Date Signed.”

(a) General description.

The statement of actuarial opinion required by this section shall consist of: