§ 38.2-3127.1. Actuarial opinion of reserves
A. Effective December 31, 1992, every life insurer doing business in this Commonwealth shall annually submit an actuarial opinion that complies with the provisions of this section. Such an opinion shall be rendered by a qualified actuary and shall state whether the reserves and related actuarial items held in support of designated policies and contracts, are computed appropriately, are based on assumptions which satisfy contractual provisions, are consistent with prior reported amounts and comply with applicable laws of this Commonwealth. The Commission shall specify by regulation the types of reserves and related actuarial items on which the opinion is to be expressed.
1. The Commission by regulation shall define the specifics of this opinion and add any other items deemed to be necessary to its scope.
2. The opinion shall be submitted with the annual statement filed pursuant to § 38.2-1300 and shall reflect the valuation of such reserve liabilities for each year ending on or after December 31, 1992.
3. The opinion shall apply to all business in force, including individual and group health insurance plans, in a form and substance acceptable to the Commission as specified by regulation.
4. The opinion shall be based on standards adopted from time to time by the Actuarial Standards Board and on such additional standards as the Commission may by regulation prescribe.
5. In the case of an opinion required to be submitted by a foreign or alien insurer, the Commission may accept the opinion filed by that insurer with the insurance supervisory official of another state if the Commission determines that the opinion reasonably meets the requirements applicable to an insurer domiciled in this Commonwealth.
6. For the purposes of this section, "qualified actuary" means a member in good standing of the American Academy of Actuaries who meets the requirements set forth in regulations promulgated by the Commission.
7. Except in cases of fraud or willful misconduct, the qualified actuary shall not be liable for damages to any person, other than the insurer and the Commission, for any act, error, omission, decision or conduct with respect to the actuary's opinion.
B. 1. Effective December 31, 1992, every life insurer, except as exempted by or pursuant to regulation, shall also annually include in the opinion required by subsection A of this section, an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts, when considered in light of the assets held by the insurer with respect to the reserves and related actuarial items, including but not limited to the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the insurer's obligations under the policies and contracts, including but not limited to the benefits under and expenses associated with the policies and contracts. The Commission shall specify by regulation the types of reserves and related actuarial items on which the opinion is to be expressed.
2. The Commission may provide by regulation for a transition period for establishing any higher reserves which the qualified actuary may deem necessary in order to render the opinion required by this section.
3. A memorandum, in form and substance acceptable to the Commission as specified by regulation, shall be prepared to support each actuarial opinion.
4. If the insurer fails to provide a supporting memorandum at the request of the Commission within a period specified by regulation or the Commission determines that the supporting memorandum provided by the insurer fails to meet the standards prescribed by the regulations or is otherwise unacceptable to the Commission, the Commission may engage a qualified actuary at the expense of the insurer to review the opinion and the basis for the opinion and prepare such supporting memorandum as is required by the Commission.
5. Any supporting memorandum, and any other material provided by the insurer to the Commission in connection therewith, shall be kept confidential by the Commission and shall not be made public and shall not be subject to subpoena. However, the memorandum or other material may otherwise be released by the Commission (i) with the written consent of the insurer, (ii) to the American Academy of Actuaries upon the Academy's written request stating that the memorandum or other material is required for professional disciplinary proceedings and that the American Academy of Actuaries will observe procedures satisfactory to the Commission to preserve the confidentiality of the memorandum or other material, or (iii) to a regulatory official of any state or country; the National Association of Insurance Commissioners, its affiliate or its subsidiary; or a law-enforcement authority of any state or country. Any such disclosure by the Commission shall not constitute a waiver of confidentiality of such supporting memorandum or any other material provided by the insurer in connection therewith. Once any portion of the confidential memorandum is cited by the insurer in its marketing efforts or is cited before any governmental agency other than a state insurance department or is released by the insurer to the news media, all portions of the memorandum shall be no longer confidential.
(1992, c. 588; 2001, c. 519.)
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