(b) The actuarial opinion shall state that, after taking into account any risk charge payable from the separate account assets and the amount of any reserve liability of the general account with respect to the asset maintenance requirement, the account assets make good and sufficient provision for contract liabilities. The opinion shall be accompanied by a certificate of an officer of the company responsible for the daily monitoring of compliance with the asset maintenance and reserve requirements for such separate accounts, describing the extent to and manner in which during the preceding year:

1. (1) actual benefit payments conformed to the benefit payments estimated to be made as described in the plan of operations;
2. (2) the level of risk charges, if any, retained in the general account was appropriate in view of such factors as the nature of the guaranteed contract liabilities and losses experienced in connection with account contracts; and disclosing the data required to be reported in accordance with section 97.5(m)(1) of this Part;
3. (3) after taking into account any reserve liability of the general account with respect to the asset maintenance requirement, the amount of the account assets satisfied the asset maintenance requirement;
4. (4) the determination of the market-value of the separate account assets conformed to the valuation procedures described in the plan of operations, including (but not limited to), a statement of the procedures and sources of information used during such year;
5. (5) the fixed-income asset portfolio(s) conformed to, and justified, the rates used to discount contract liabilities for valuation pursuant to section 97.5(k) of this Part;
6. (6) if the amount of the asset maintenance requirement depended on the separate account assets, or a subportfolio thereof, being duration matched, the actual experience of the separate account assets or such subportfolio thereof and actual benefit payments conformed to the assumptions made in the plan of operations for determining the duration of such assets and the duration of guaranteed contract liabilities (or the guaranteed contract liabilities funded by the subportfolio);
7. (7) if the amount of the asset maintenance requirement depended on the separate account assets, or a subportfolio thereof, being cash-flow matched, the cash inflows from the separate account assets or such subportfolio thereof matched the cash outflows to meet guaranteed contract liabilities (or the guaranteed contract liabilities funded by the subportfolio);
8. (8) any rate or rates used pursuant to section 97.5(k) of this Part to discount guaranteed contract liabilities and other items applicable to the separate account were modified from the rate or rates described in the plan of operations filed pursuant to section 97.4(b) of this Part; and
9. (9) any assets were transferred to or from the insurance company's general account, or any amounts were paid to the insurance company by any contractholder to support the insurance company's guarantee.

(d) The actuarial memorandum shall:

1. (1) either:

   1. (i) substantially conform with those portions of Part 95 of this Title that are applicable to testing and demonstrating the sufficiency of assets based upon cash-flow analysis; or
   2. (ii) demonstrate why cash flow analysis is not appropriate and set forth the procedures used to determine the sufficiency of account assets;
2. (2) clearly describe the assumptions the qualified actuary used in support of the actuarial opinion, including any assumptions made in projecting cash flows under each class of assets, and any dynamic portfolio hedging techniques utilized and the tests performed on the utilization of such techniques;
3. (3) clearly describe how the qualified actuary has reflected the risk of default on obligations and mortgage loans, including obligations and mortgage loans that are not investment grade;
4. (4) if the plan of operations provides for investments in separate account assets other than United States government obligations, demonstrate that the rates used to discount contract liabilities pursuant to section 97.5(k) of this Part conservatively reflect expected investment returns (taking into account any foreign exchange risks);
5. (5) if the account contracts provide that in certain circumstances they would cease to be funded by a separate account and, instead, would become contracts funded by the general account, clearly describe how any increased reserves would be provided for if and to the extent such circumstances occurred;
6. (6) state the amount of reserves and supporting assets as of December 31st and where such reserves are shown in the annual statement; and
7. (7) state the amount of any contingency reserve carried as part of surplus.