Texas Insurance Code - Section 425.054. Actuarial Opinion Required
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§ 425.054. ACTUARIAL OPINION REQUIRED. (a) For purposes
of this section, "qualified actuary" means:
(1) a qualified actuary, as that term is defined by
Section 802.002; or
(2) a person who, before September 1, 1993, satisfied
the requirements of the former State Board of Insurance to submit an
opinion under former Section 2A(a)(1), Article 3.28.
(b) In conjunction with the annual statement and in addition
to other information required by this subchapter, each life
insurance company engaged in business in this state shall annually
submit to the department the opinion of a qualified actuary as to
whether the reserves and related actuarial items held in support of
the policies and contracts specified by commissioner rule:
(1) are computed appropriately;
(2) are based on assumptions that satisfy contractual
provisions;
(3) are consistent with prior reported amounts; and
(4) comply with applicable laws of this state.
(c) The commissioner by rule shall specify the requirements
of an actuarial opinion under Subsection (b), including any matters
considered necessary to the opinion's scope.
(d) The opinion required by this section must:
(1) apply to all of the life insurance company's
business in force, including individual and group health insurance
plans; and
(2) be in the form and contain the substance specified
by commissioner rule and be acceptable to the commissioner.
(e) The commissioner may accept as an opinion required to be
submitted under Subsection (b) by a foreign or alien company the
opinion filed by that company with the insurance supervisory
official of another state if the commissioner determines that the
opinion filed in the other state reasonably meets the requirements
applicable to a company domiciled in this state.
(f) Except as exempted by or as otherwise provided by
commissioner rule, a life insurance company shall include in the
opinion required by Subsection (b) an opinion that states whether
the reserves and related actuarial items held in support of the
policies and contracts specified by commissioner rule adequately
provide for the company's obligations under the policies and
contracts, including the benefits under and expenses associated
with the policies and contracts.
(g) In making the opinion under Subsection (f), the reserves
and related actuarial items are considered in light of the assets
held by the life insurance company with respect to the reserves and
related actuarial items, including:
(1) the investment earnings on the assets; and
(2) the considerations anticipated to be received and
retained under the policies and contracts.
(h) The person who certifies the opinion required by
Subsection (b) must make the opinion required by Subsection (f).
(i) Rules adopted under this section may exempt life
insurance companies that would be exempt from the requirements of
this section under the most recently adopted regulation by the
National Association of Insurance Commissioners entitled "Model
Actuarial Opinion and Memorandum Regulation," or a successor to
that regulation, if the commissioner considers the exemption
appropriate.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 425.006 425.007 425.008 425.009 425.051 425.052 425.053 425.054 425.055 425.056 425.057 425.058 425.059 425.060 425.061
Last modified: August 11, 2007
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