{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1367.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1367.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1367.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1367.html"}],"law_id":70162,"edition_id":1,"section_id":70162,"structure_id":14262,"section_number":"38.2-1367","catch_line":"Actuarial opinion of reserves","history":"2014, c. 571.","full_text":"A\n\nThe actuarial opinion prior to the operative date of the valuation manual shall require:1\n\nEvery life insurance company doing business in the Commonwealth to annually submit 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 the Commission by regulation are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of the Commonwealth. The Commission shall define by regulation the specifics of this opinion and add any other items deemed to be necessary to its scope.2\n\nEvery life insurance company, except as exempted by regulation, to annually include in the opinion required by subdivision 1, an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the Commission by regulation, 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.\n\t\t\t\tThe Commission may provide by regulation for a transition period for establishing any higher reserves that the qualified actuary may deem necessary in order to render the opinion required by this section.3\n\nEach opinion required by subdivision 2 to be governed by the following provisions:\n\t\t\t\ta. A memorandum, in form and substance acceptable to the Commission as specified by regulation, shall be prepared to support each actuarial opinion; and\n\t\t\t\tb. If the insurance company 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 insurance company 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 insurance company to review the opinion and the basis for the opinion and prepare the supporting memorandum required by the Commission.4\n\nEvery opinion required by this subsection to be governed by the following provisions:\n\t\t\t\ta. The opinion shall be submitted with the annual statement filed pursuant to \u00a7 38.2-1300 and shall reflect the valuation of such reserve liabilities for each year ending on or after December 31, 1992.\n\t\t\t\tb. The opinion shall apply to all business in force including individual and group health insurance plans, in form and substance acceptable to the Commission as specified by regulation.\n\t\t\t\tc. 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.\n\t\t\t\td. 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 the Commonwealth.\n\t\t\t\te. 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 adopted by the Commission.\n\t\t\t\tf. 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.\n\t\t\t\tg. Disciplinary action by the Commission against the insurer or the qualified actuary shall be defined in regulations adopted by the Commission.\n\t\t\t\th. Except as provided in subdivisions 4 l, m, and n, documents, materials, or other information in the possession or control of the Commission that is a memorandum in support of the opinion, and any other material provided by the insurer to the Commission in connection with the memorandum, shall be confidential by law and privileged, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. However, the Commission is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the Commission’s official duties.\n\t\t\t\ti. Neither the Commission nor any person who received documents, materials, or other information while acting under the authority of the Commission shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subdivision 4 h.\n\t\t\t\tj. In order to assist in the performance of the Commission’s duties, the Commission:1\n\nMay share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to subdivision 4 h, with other state, federal, and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with state, federal, and international law-enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information;2\n\nMay receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the NAIC and its affiliates and subsidiaries, and from regulatory and law-enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and3\n\nMay enter into agreements governing sharing and use of information consistent with subdivisions 4 h, i, and j.\n\t\t\t\t\tk. No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the Commission under this section or as a result of sharing as authorized in subdivision 4 j.\n\t\t\t\t\tl. A memorandum in support of the opinion, and any other material provided by the insurer to the Commission in connection with the memorandum, may be subject to subpoena for the purpose of defending an action seeking damages from the actuary submitting the memorandum by reason of an action required by this section or by regulations adopted hereunder.\n\t\t\t\t\tm. The memorandum or other material may otherwise be released by the Commission with the written consent of the insurer or to the American Academy of Actuaries upon request stating that the memorandum or other material is required for the purpose of professional disciplinary proceedings and setting forth procedures satisfactory to the Commission for preserving the confidentiality of the memorandum or other material.\n\t\t\t\t\tn. Once any portion of the confidential memorandum is cited by the insurer in its marketing, is cited before a governmental agency other than a state insurance department, or is released by the insurer to the news media, all portions of the confidential memorandum shall be no longer confidential.B\n\nThe actuarial opinion of reserves after the operative date of the valuation manual shall require:1\n\nEvery insurer with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in the Commonwealth and subject to regulation by the Commission to annually submit the opinion of the appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of the Commonwealth. The valuation manual will prescribe the specifics of this opinion, including any items deemed to be necessary to its scope.2\n\nEvery insurer with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in the Commonwealth and subject to regulation by the Commission, except as exempted in the valuation manual, to annually include in the opinion required by subdivision 1 an opinion of the same appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified in the valuation manual, 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.3\n\nEach opinion required by subdivision 2 to be governed by the following provisions:\n\t\t\t\ta. A memorandum, in form and substance as specified in the valuation manual, and acceptable to the Commission, shall be prepared to support each actuarial opinion.\n\t\t\t\tb. If the insurance company fails to provide a supporting memorandum at the request of the Commission within a period specified in the valuation manual or the Commission determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the valuation manual 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 the supporting memorandum required by the Commission.4\n\nEvery opinion required by this subsection to be governed by the following provisions:\n\t\t\t\ta. The opinion shall be in form and substance as specified in the valuation manual and acceptable to the Commission;\n\t\t\t\tb. The opinion shall be submitted with the annual statement reflecting the valuation of such reserve liabilities for each year ending on or after the operative date of the valuation manual;\n\t\t\t\tc. The opinion shall apply to all policies and contracts subject to subdivision 2, plus other actuarial liabilities as may be specified in the valuation manual;\n\t\t\t\td. The opinion shall be based on standards adopted from time to time by the Actuarial Standards Board or its successor, and on such additional standards as may be prescribed in the valuation manual;\n\t\t\t\te. 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 the Commonwealth;\n\t\t\t\tf. Except in cases of fraud or willful misconduct, the appointed actuary shall not be liable for damages to any person, other than the insurance company and the Commission, for any act, error, omission, decision, or conduct with respect to the appointed actuary’s opinion; and\n\t\t\t\tg. Disciplinary action by the Commission against the insurer or the appointed actuary shall be defined in regulations adopted by the Commission.","order_by":null,"text":{"0":{"id":253357,"text":"The actuarial opinion prior to the operative date of the valuation manual shall require:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":253358,"text":"Every life insurance company doing business in the Commonwealth to annually submit 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 the Commission by regulation are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of the Commonwealth. The Commission shall define by regulation the specifics of this opinion and add any other items deemed to be necessary to its scope.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":253359,"text":"Every life insurance company, except as exempted by regulation, to annually include in the opinion required by subdivision 1, an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the Commission by regulation, 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.\n\t\t\t\tThe Commission may provide by regulation for a transition period for establishing any higher reserves that the qualified actuary may deem necessary in order to render the opinion required by this section.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":253360,"text":"Each opinion required by subdivision 2 to be governed by the following provisions:\n\t\t\t\ta. A memorandum, in form and substance acceptable to the Commission as specified by regulation, shall be prepared to support each actuarial opinion; and\n\t\t\t\tb. If the insurance company 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 insurance company 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 insurance company to review the opinion and the basis for the opinion and prepare the supporting memorandum required by the Commission.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":253361,"text":"Every opinion required by this subsection to be governed by the following provisions:\n\t\t\t\ta. The opinion shall be submitted with the annual statement filed pursuant to \u00a7 38.2-1300 and shall reflect the valuation of such reserve liabilities for each year ending on or after December 31, 1992.\n\t\t\t\tb. The opinion shall apply to all business in force including individual and group health insurance plans, in form and substance acceptable to the Commission as specified by regulation.\n\t\t\t\tc. 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.\n\t\t\t\td. 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 the Commonwealth.\n\t\t\t\te. 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 adopted by the Commission.\n\t\t\t\tf. 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.\n\t\t\t\tg. Disciplinary action by the Commission against the insurer or the qualified actuary shall be defined in regulations adopted by the Commission.\n\t\t\t\th. Except as provided in subdivisions 4 l, m, and n, documents, materials, or other information in the possession or control of the Commission that is a memorandum in support of the opinion, and any other material provided by the insurer to the Commission in connection with the memorandum, shall be confidential by law and privileged, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. However, the Commission is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the Commission’s official duties.\n\t\t\t\ti. Neither the Commission nor any person who received documents, materials, or other information while acting under the authority of the Commission shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subdivision 4 h.\n\t\t\t\tj. In order to assist in the performance of the Commission’s duties, the Commission:","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A41"},"5":{"id":253362,"text":"May share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to subdivision 4 h, with other state, federal, and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with state, federal, and international law-enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information;","type":"section","prefixes":["A","4","1"],"prefix":"1","entire_prefix":"A41","prefix_anchor":"A41","level":3,"prior_prefix":"A4","next_prefix":"A42"},"6":{"id":253363,"text":"May receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the NAIC and its affiliates and subsidiaries, and from regulatory and law-enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and","type":"section","prefixes":["A","4","2"],"prefix":"2","entire_prefix":"A42","prefix_anchor":"A42","level":3,"prior_prefix":"A41","next_prefix":"A43"},"7":{"id":253364,"text":"May enter into agreements governing sharing and use of information consistent with subdivisions 4 h, i, and j.\n\t\t\t\t\tk. No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the Commission under this section or as a result of sharing as authorized in subdivision 4 j.\n\t\t\t\t\tl. A memorandum in support of the opinion, and any other material provided by the insurer to the Commission in connection with the memorandum, may be subject to subpoena for the purpose of defending an action seeking damages from the actuary submitting the memorandum by reason of an action required by this section or by regulations adopted hereunder.\n\t\t\t\t\tm. The memorandum or other material may otherwise be released by the Commission with the written consent of the insurer or to the American Academy of Actuaries upon request stating that the memorandum or other material is required for the purpose of professional disciplinary proceedings and setting forth procedures satisfactory to the Commission for preserving the confidentiality of the memorandum or other material.\n\t\t\t\t\tn. Once any portion of the confidential memorandum is cited by the insurer in its marketing, is cited before a governmental agency other than a state insurance department, or is released by the insurer to the news media, all portions of the confidential memorandum shall be no longer confidential.","type":"section","prefixes":["A","4","3"],"prefix":"3","entire_prefix":"A43","prefix_anchor":"A43","level":3,"prior_prefix":"A42","next_prefix":"B"},"8":{"id":253365,"text":"The actuarial opinion of reserves after the operative date of the valuation manual shall require:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A43","next_prefix":"B1"},"9":{"id":253366,"text":"Every insurer with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in the Commonwealth and subject to regulation by the Commission to annually submit the opinion of the appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of the Commonwealth. The valuation manual will prescribe the specifics of this opinion, including any items deemed to be necessary to its scope.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"10":{"id":253367,"text":"Every insurer with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in the Commonwealth and subject to regulation by the Commission, except as exempted in the valuation manual, to annually include in the opinion required by subdivision 1 an opinion of the same appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified in the valuation manual, 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.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"11":{"id":253368,"text":"Each opinion required by subdivision 2 to be governed by the following provisions:\n\t\t\t\ta. A memorandum, in form and substance as specified in the valuation manual, and acceptable to the Commission, shall be prepared to support each actuarial opinion.\n\t\t\t\tb. If the insurance company fails to provide a supporting memorandum at the request of the Commission within a period specified in the valuation manual or the Commission determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the valuation manual 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 the supporting memorandum required by the Commission.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"12":{"id":253369,"text":"Every opinion required by this subsection to be governed by the following provisions:\n\t\t\t\ta. The opinion shall be in form and substance as specified in the valuation manual and acceptable to the Commission;\n\t\t\t\tb. The opinion shall be submitted with the annual statement reflecting the valuation of such reserve liabilities for each year ending on or after the operative date of the valuation manual;\n\t\t\t\tc. The opinion shall apply to all policies and contracts subject to subdivision 2, plus other actuarial liabilities as may be specified in the valuation manual;\n\t\t\t\td. The opinion shall be based on standards adopted from time to time by the Actuarial Standards Board or its successor, and on such additional standards as may be prescribed in the valuation manual;\n\t\t\t\te. 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 the Commonwealth;\n\t\t\t\tf. Except in cases of fraud or willful misconduct, the appointed actuary shall not be liable for damages to any person, other than the insurance company and the Commission, for any act, error, omission, decision, or conduct with respect to the appointed actuary’s opinion; and\n\t\t\t\tg. Disciplinary action by the Commission against the insurer or the appointed actuary shall be defined in regulations adopted by the Commission.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3"}},"ancestry":[{"id":14262,"edition_id":1,"name":"Standard Valuation","identifier":"10","label":"article","depth":3,"order_by":1,"parent_id":13289,"metadata":{},"date_created":"2026-06-26 03:47:30","date_modified":"2026-06-26 03:47:30","permalink":{"id":211387,"object_type":"structure","relational_id":14262,"identifier":"10","token":"38.2\/13\/10","url":"\/38.2\/13\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13289,"edition_id":1,"name":"Reports, Reserves and Examinations, Insurance Holding Companies, Reinsurance Intermediaries, and Managing General Agents","identifier":"13","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211347,"object_type":"structure","relational_id":13289,"identifier":"13","token":"38.2\/13","url":"\/38.2\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":84586,"structure_id":14262,"section_number":"38.2-1365","catch_line":"Definitions","url":"\/38.2-1365\/","token":"38.2\/13\/10\/38.2-1365","metadata":false},{"id":80617,"structure_id":14262,"section_number":"38.2-1366","catch_line":"Reserve valuation","url":"\/38.2-1366\/","token":"38.2\/13\/10\/38.2-1366","metadata":false},{"id":70162,"structure_id":14262,"section_number":"38.2-1367","catch_line":"Actuarial opinion of reserves","url":"\/38.2-1367\/","token":"38.2\/13\/10\/38.2-1367","metadata":false},{"id":67907,"structure_id":14262,"section_number":"38.2-1368","catch_line":"Minimum valuation standard for policies issued prior to certain dates","url":"\/38.2-1368\/","token":"38.2\/13\/10\/38.2-1368","metadata":false},{"id":66783,"structure_id":14262,"section_number":"38.2-1369","catch_line":"Computation of minimum standard","url":"\/38.2-1369\/","token":"38.2\/13\/10\/38.2-1369","metadata":false},{"id":86779,"structure_id":14262,"section_number":"38.2-1370","catch_line":"Computation of minimum standard for annuities","url":"\/38.2-1370\/","token":"38.2\/13\/10\/38.2-1370","metadata":false},{"id":76954,"structure_id":14262,"section_number":"38.2-1371","catch_line":"Computation of minimum standard by calendar year of issue","url":"\/38.2-1371\/","token":"38.2\/13\/10\/38.2-1371","metadata":false},{"id":72346,"structure_id":14262,"section_number":"38.2-1372","catch_line":"Reserve valuation method; life insurance and endowment benefits","url":"\/38.2-1372\/","token":"38.2\/13\/10\/38.2-1372","metadata":false},{"id":76847,"structure_id":14262,"section_number":"38.2-1373","catch_line":"Reserve valuation method; annuity and pure endowment benefits","url":"\/38.2-1373\/","token":"38.2\/13\/10\/38.2-1373","metadata":false},{"id":77501,"structure_id":14262,"section_number":"38.2-1374","catch_line":"Minimum reserves","url":"\/38.2-1374\/","token":"38.2\/13\/10\/38.2-1374","metadata":false},{"id":84837,"structure_id":14262,"section_number":"38.2-1375","catch_line":"Optional reserve calculation","url":"\/38.2-1375\/","token":"38.2\/13\/10\/38.2-1375","metadata":false},{"id":55507,"structure_id":14262,"section_number":"38.2-1376","catch_line":"Reserve calculation; valuation net premium exceeding the gross premium charged","url":"\/38.2-1376\/","token":"38.2\/13\/10\/38.2-1376","metadata":false},{"id":76132,"structure_id":14262,"section_number":"38.2-1377","catch_line":"Reserve calculation; indeterminate premium plans","url":"\/38.2-1377\/","token":"38.2\/13\/10\/38.2-1377","metadata":false},{"id":71532,"structure_id":14262,"section_number":"38.2-1378","catch_line":"Minimum standard for accident and health insurance contracts","url":"\/38.2-1378\/","token":"38.2\/13\/10\/38.2-1378","metadata":false},{"id":86866,"structure_id":14262,"section_number":"38.2-1379","catch_line":"Valuation manual for policies issued on or after the operative date of the valuation manual","url":"\/38.2-1379\/","token":"38.2\/13\/10\/38.2-1379","metadata":false},{"id":82780,"structure_id":14262,"section_number":"38.2-1380","catch_line":"Requirements of a principle-based valuation","url":"\/38.2-1380\/","token":"38.2\/13\/10\/38.2-1380","metadata":false},{"id":56910,"structure_id":14262,"section_number":"38.2-1381","catch_line":"Experience reporting for policies in force on or after the operative date of the valuation manual","url":"\/38.2-1381\/","token":"38.2\/13\/10\/38.2-1381","metadata":false},{"id":67564,"structure_id":14262,"section_number":"38.2-1382","catch_line":"Confidentiality","url":"\/38.2-1382\/","token":"38.2\/13\/10\/38.2-1382","metadata":false},{"id":76707,"structure_id":14262,"section_number":"38.2-1383","catch_line":"Single state exemption","url":"\/38.2-1383\/","token":"38.2\/13\/10\/38.2-1383","metadata":false},{"id":63558,"structure_id":14262,"section_number":"38.2-1384","catch_line":"Assessment against insurers whose policies are valued","url":"\/38.2-1384\/","token":"38.2\/13\/10\/38.2-1384","metadata":false},{"id":65928,"structure_id":14262,"section_number":"38.2-1385","catch_line":"Article not applicable in certain cases","url":"\/38.2-1385\/","token":"38.2\/13\/10\/38.2-1385","metadata":false}],"previous_section":{"id":80617,"structure_id":14262,"section_number":"38.2-1366","catch_line":"Reserve valuation","url":"\/38.2-1366\/","token":"38.2\/13\/10\/38.2-1366","metadata":false},"next_section":{"id":67907,"structure_id":14262,"section_number":"38.2-1368","catch_line":"Minimum valuation standard for policies issued prior to certain dates","url":"\/38.2-1368\/","token":"38.2\/13\/10\/38.2-1368","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1367\/","history_text":"

This law was first created in 2014. The record of its establishment is cataloged in chapter 571<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":81929,"section_number":"38.2-1315.1","catch_line":"Actuarial statements of opinion, reports, memoranda, and summaries","order_by":null,"url":"\/38.2-1315.1\/"},{"id":84586,"section_number":"38.2-1365","catch_line":"Definitions","order_by":null,"url":"\/38.2-1365\/"},{"id":77501,"section_number":"38.2-1374","catch_line":"Minimum reserves","order_by":null,"url":"\/38.2-1374\/"},{"id":84837,"section_number":"38.2-1375","catch_line":"Optional reserve calculation","order_by":null,"url":"\/38.2-1375\/"},{"id":67564,"section_number":"38.2-1382","catch_line":"Confidentiality","order_by":null,"url":"\/38.2-1382\/"},{"id":76707,"section_number":"38.2-1383","catch_line":"Single state exemption","order_by":null,"url":"\/38.2-1383\/"},{"id":65928,"section_number":"38.2-1385","catch_line":"Article not applicable in certain cases","order_by":null,"url":"\/38.2-1385\/"},{"id":65309,"section_number":"38.2-4123","catch_line":"Exemptions","order_by":null,"url":"\/38.2-4123\/"}],"refers_to":[{"id":81115,"section_number":"38.2-1300","catch_line":"Annual statements","order_by":null,"url":"\/38.2-1300\/"}],"permalink":{"id":211397,"object_type":"law","relational_id":70162,"identifier":"38.2-1367","token":"38.2\/13\/10\/38.2-1367","url":"\/38.2-1367\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1367\/","token":"38.2\/13\/10\/38.2-1367","dublin_core":{"Title":"Actuarial opinion of reserves","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1367","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The actuarial opinion<\/span> prior to the operative date of the valuation manual<\/span> shall require: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Every life insurance company<\/span> doing business in the Commonwealth to annually submit the opinion<\/span> of a qualified actuary<\/span> as to whether the reserves and related actuarial items held in support of the policies and contracts<\/span> specified by the Commission<\/span> by regulation are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws<\/span> of the Commonwealth. The Commission<\/span> shall define by regulation the specifics of this opinion<\/span> and add any other items deemed to be necessary to its scope. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Every life insurance company<\/span>, except as exempted by regulation, to annually include in the opinion<\/span> required by subdivision 1, an opinion<\/span> of the same qualified actuary<\/span> as to whether the reserves and related actuarial items held in support of the policies and contracts<\/span> specified by the Commission<\/span> by regulation, when considered in light of the assets<\/span> held by the insurer<\/span> with respect to the reserves and related actuarial items, including but not limited to the investment earnings on the assets<\/span> and the considerations anticipated to be received and retained under the policies and contracts<\/span>, make adequate provision for the insurer<\/span>’s obligations under the policies and contracts<\/span>, including but not limited to the benefits under and expenses associated with the policies and contracts<\/span>. The Commission<\/span> shall specify by regulation the types of reserves and related actuarial items on which the opinion<\/span> is to be expressed.\n\t\t\t\tThe Commission<\/span> may provide by regulation for a transition period for establishing any higher reserves that the qualified actuary<\/span> may deem necessary in order<\/span> to render the opinion<\/span> required by this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Each opinion<\/span> required by subdivision 2 to be governed by the following provisions:\n\t\t\t\ta. A memorandum<\/span>, in form and substance acceptable to the Commission<\/span> as specified by regulation, shall be prepared to support each actuarial opinion<\/span>; and\n\t\t\t\tb. If the insurance company<\/span> fails to provide a supporting memorandum<\/span> at the request of the Commission<\/span> within a period specified by regulation or the Commission<\/span> determines that the supporting memorandum<\/span> provided by the insurance company<\/span> fails to meet the standards prescribed by the regulations or is otherwise unacceptable to the Commission<\/span>, the Commission<\/span> may engage a qualified actuary<\/span> at the expense of the insurance company<\/span> to review the opinion<\/span> and the basis for the opinion<\/span> and prepare the supporting memorandum<\/span> required by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Every opinion<\/span> required by this subsection to be governed by the following provisions:\n\t\t\t\ta. The opinion<\/span> shall be submitted with the annual statement filed pursuant to \u00a7 38.2-1300<\/a> and shall reflect the valuation of such reserve liabilities for each year ending on or after December 31, 1992.\n\t\t\t\tb. The opinion<\/span> shall apply to all business in force including individual and group health insurance plans, in form and substance acceptable to the Commission<\/span> as specified by regulation.\n\t\t\t\tc. The opinion<\/span> shall be based on standards adopted from time to time by the Actuarial Standards Board and on such additional standards as the Commission<\/span> may by regulation prescribe.\n\t\t\t\td. In the case of an opinion<\/span> required to be submitted by a foreign or alien insurer<\/span>, the Commission<\/span> may accept the opinion<\/span> filed by that insurer<\/span> with the insurance supervisory official of another state<\/span> if the Commission<\/span> determines that the opinion<\/span> reasonably meets the requirements applicable to an insurer<\/span> domiciled in the Commonwealth.\n\t\t\t\te. For the purposes of this section, “qualified actuary<\/span>” means a member in good standing of the American Academy of Actuaries who meets the requirements set forth in regulations adopted by the Commission<\/span>.\n\t\t\t\tf. Except in cases of fraud<\/span> or willful misconduct, the qualified actuary<\/span> shall not be liable for damages<\/span> to any person<\/span>, other than the insurer<\/span> and the Commission<\/span>, for any act, error, omission, decision, or conduct with respect to the actuary’s opinion<\/span>.\n\t\t\t\tg. Disciplinary action by the Commission<\/span> against the insurer<\/span> or the qualified actuary<\/span> shall be defined in regulations adopted by the Commission<\/span>.\n\t\t\t\th. Except as provided in subdivisions 4 l, m, and n, documents, materials<\/span>, or other information in the possession<\/span> or control of the Commission<\/span> that is a memorandum<\/span> in support of the opinion<\/span>, and any other material<\/span> provided by the insurer<\/span> to the Commission<\/span> in connection with the memorandum<\/span>, shall be confidential by law<\/span> and privileged, shall not be subject to subpoena<\/span>, and shall not be subject to discovery<\/span> or admissible<\/span> in evidence<\/span> in any private civil action<\/span>. However, the Commission<\/span> is authorized to use the documents, materials<\/span>, or other information in the furtherance of any regulatory or legal action brought as a part of the Commission<\/span>’s official duties.\n\t\t\t\ti. Neither the Commission<\/span> nor any person<\/span> who received documents, materials<\/span>, or other information while acting under the authority of the Commission<\/span> shall be permitted or required to testify in any private civil action<\/span> concerning any confidential documents, materials<\/span>, or information subject to subdivision 4 h.\n\t\t\t\tj. In order<\/span> to assist in the performance of the Commission<\/span>’s duties, the Commission<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> May share documents, materials<\/span>, or other information, including the confidential and privileged documents, materials<\/span>, or information subject to subdivision 4 h, with other state<\/span>, federal, and international regulatory agencies, with the NAIC<\/span> and its affiliates and subsidiaries, and with state<\/span>, federal, and international law<\/span>-enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material<\/span>, or other information; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> May receive documents, materials<\/span>, or information, including otherwise confidential and privileged documents, materials<\/span>, or information, from the NAIC<\/span> and its affiliates and subsidiaries, and from regulatory and law<\/span>-enforcement officials of other foreign or domestic jurisdictions<\/span>, and shall maintain as confidential or privileged any document, material<\/span>, or information received with notice or the understanding that it is confidential or privileged under the laws<\/span> of the jurisdiction<\/span> that is the source of the document, material<\/span>, or information; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> May enter into agreements governing sharing and use of information consistent with subdivisions 4 h, i, and j.\n\t\t\t\t\tk. No waiver<\/span> of any applicable privilege<\/span> or claim of confidentiality in the documents, materials<\/span>, or information shall occur as a result of disclosure to the Commission<\/span> under this section or as a result of sharing as authorized in subdivision 4 j.\n\t\t\t\t\tl. A memorandum<\/span> in support of the opinion<\/span>, and any other material<\/span> provided by the insurer<\/span> to the Commission<\/span> in connection with the memorandum<\/span>, may be subject to subpoena<\/span> for the purpose of defending an action seeking damages<\/span> from the actuary submitting the memorandum<\/span> by reason of an action required by this section or by regulations adopted hereunder.\n\t\t\t\t\tm. The memorandum<\/span> or other material<\/span> may otherwise be released by the Commission<\/span> with the written consent of the insurer<\/span> or to the American Academy of Actuaries upon request stating that the memorandum<\/span> or other material<\/span> is required for the purpose of professional disciplinary proceedings and setting forth procedures satisfactory to the Commission<\/span> for preserving the confidentiality of the memorandum<\/span> or other material<\/span>.\n\t\t\t\t\tn. Once any portion of the confidential memorandum<\/span> is cited by the insurer<\/span> in its marketing, is cited before a governmental agency other than a state<\/span> insurance department, or is released by the insurer<\/span> to the news media, all portions of the confidential memorandum<\/span> shall be no longer confidential. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The actuarial opinion<\/span> of reserves after the operative date of the valuation manual<\/span> shall require: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Every insurer<\/span> with outstanding life insurance contracts<\/span>, accident and health insurance<\/span> contracts, or deposit-type contracts<\/span> in the Commonwealth and subject to regulation by the Commission<\/span> to annually submit the opinion<\/span> of the appointed actuary<\/span> as to whether the reserves and related actuarial items held in support of the policies and contracts are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws<\/span> of the Commonwealth. The valuation manual<\/span> will prescribe the specifics of this opinion<\/span>, including any items deemed to be necessary to its scope. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Every insurer<\/span> with outstanding life insurance contracts<\/span>, accident and health insurance<\/span> contracts, or deposit-type contracts<\/span> in the Commonwealth and subject to regulation by the Commission<\/span>, except as exempted in the valuation manual<\/span>, to annually include in the opinion<\/span> required by subdivision 1 an opinion<\/span> of the same appointed actuary<\/span> as to whether the reserves and related actuarial items held in support of the policies and contracts specified in the valuation manual<\/span>, when considered in light of the assets<\/span> held by the insurer<\/span> with respect to the reserves and related actuarial items, including but not limited to the investment earnings on the assets<\/span> and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the insurer<\/span>’s obligations under the policies and contracts, including but not limited to the benefits under and expenses associated with the policies and contracts. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Each opinion<\/span> required by subdivision 2 to be governed by the following provisions:\n\t\t\t\ta. A memorandum<\/span>, in form and substance as specified in the valuation manual<\/span>, and acceptable to the Commission<\/span>, shall be prepared to support each actuarial opinion<\/span>.\n\t\t\t\tb. If the insurance company<\/span> fails to provide a supporting memorandum<\/span> at the request of the Commission<\/span> within a period specified in the valuation manual<\/span> or the Commission<\/span> determines that the supporting memorandum<\/span> provided by the insurance company<\/span> fails to meet the standards prescribed by the valuation manual<\/span> or is otherwise unacceptable to the Commission<\/span>, the Commission<\/span> may engage a qualified actuary<\/span> at the expense of the insurer<\/span> to review the opinion<\/span> and the basis for the opinion<\/span> and prepare the supporting memorandum<\/span> required by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Every opinion<\/span> required by this subsection to be governed by the following provisions:\n\t\t\t\ta. The opinion<\/span> shall be in form and substance as specified in the valuation manual<\/span> and acceptable to the Commission<\/span>;\n\t\t\t\tb. The opinion<\/span> shall be submitted with the annual statement reflecting the valuation of such reserve liabilities for each year ending on or after the operative date of the valuation manual<\/span>;\n\t\t\t\tc. The opinion<\/span> shall apply to all policies and contracts subject to subdivision 2, plus other actuarial liabilities as may be specified in the valuation manual<\/span>;\n\t\t\t\td. The opinion<\/span> shall be based on standards adopted from time to time by the Actuarial Standards Board or its successor, and on such additional standards as may be prescribed in the valuation manual<\/span>;\n\t\t\t\te. In the case of an opinion<\/span> required to be submitted by a foreign or alien insurer<\/span>, the Commission<\/span> may accept the opinion<\/span> filed by that insurer<\/span> with the insurance supervisory official of another state<\/span> if the Commission<\/span> determines that the opinion<\/span> reasonably meets the requirements applicable to an insurer<\/span> domiciled in the Commonwealth;\n\t\t\t\tf. Except in cases of fraud<\/span> or willful misconduct, the appointed actuary<\/span> shall not be liable for damages<\/span> to any person<\/span>, other than the insurance company<\/span> and the Commission<\/span>, for any act, error, omission, decision, or conduct with respect to the appointed actuary<\/span>’s opinion<\/span>; and\n\t\t\t\tg. Disciplinary action by the Commission<\/span> against the insurer<\/span> or the appointed actuary<\/span> shall be defined in regulations adopted by the Commission<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nACTUARIAL OPINION OF RESERVES (\u00a7 38.2-1367)\n\nA. The actuarial opinion prior to the operative date of the valuation manual\nshall require:\n\n 1. Every life insurance company doing business in the Commonwealth to annually\n submit the opinion of a qualified actuary as to whether the reserves and\n related actuarial items held in support of the policies and contracts\n specified by the Commission by regulation are computed appropriately, are\n based on assumptions that satisfy contractual provisions, are consistent with\n prior reported amounts, and comply with applicable laws of the Commonwealth.\n The Commission shall define by regulation the specifics of this opinion and\n add any other items deemed to be necessary to its scope.\n\n 2. Every life insurance company, except as exempted by regulation, to annually\n include in the opinion required by subdivision 1, an opinion of the same\n qualified actuary as to whether the reserves and related actuarial items held\n in support of the policies and contracts specified by the Commission by\n regulation, when considered in light of the assets held by the insurer with\n respect to the reserves and related actuarial items, including but not limited\n to the investment earnings on the assets and the considerations anticipated to\n be received and retained under the policies and contracts, make adequate\n provision for the insurer’s obligations under the policies and\n contracts, including but not limited to the benefits under and expenses\n associated with the policies and contracts. The Commission shall specify by\n regulation the types of reserves and related actuarial items on which the\n opinion is to be expressed.\n \t\t\t\tThe Commission may provide by regulation for a transition period for\n establishing any higher reserves that the qualified actuary may deem necessary\n in order to render the opinion required by this section.\n\n 3. Each opinion required by subdivision 2 to be governed by the following\n provisions:\n \t\t\t\ta. A memorandum, in form and substance acceptable to the Commission as\n specified by regulation, shall be prepared to support each actuarial opinion;\n and\n \t\t\t\tb. If the insurance company fails to provide a supporting memorandum at\n the request of the Commission within a period specified by regulation or the\n Commission determines that the supporting memorandum provided by the insurance\n company fails to meet the standards prescribed by the regulations or is\n otherwise unacceptable to the Commission, the Commission may engage a\n qualified actuary at the expense of the insurance company to review the\n opinion and the basis for the opinion and prepare the supporting memorandum\n required by the Commission.\n\n 4. Every opinion required by this subsection to be governed by the following\n provisions:\n \t\t\t\ta. The opinion shall be submitted with the annual statement filed pursuant\n to \u00a7 38.2-1300 and shall reflect the valuation of such reserve liabilities\n for each year ending on or after December 31, 1992.\n \t\t\t\tb. The opinion shall apply to all business in force including individual\n and group health insurance plans, in form and substance acceptable to the\n Commission as specified by regulation.\n \t\t\t\tc. The opinion shall be based on standards adopted from time to time by\n the Actuarial Standards Board and on such additional standards as the\n Commission may by regulation prescribe.\n \t\t\t\td. In the case of an opinion required to be submitted by a foreign or\n alien insurer, the Commission may accept the opinion filed by that insurer\n with the insurance supervisory official of another state if the Commission\n determines that the opinion reasonably meets the requirements applicable to an\n insurer domiciled in the Commonwealth.\n \t\t\t\te. For the purposes of this section, “qualified actuary” means\n a member in good standing of the American Academy of Actuaries who meets the\n requirements set forth in regulations adopted by the Commission.\n \t\t\t\tf. Except in cases of fraud or willful misconduct, the qualified actuary\n shall not be liable for damages to any person, other than the insurer and the\n Commission, for any act, error, omission, decision, or conduct with respect to\n the actuary’s opinion.\n \t\t\t\tg. Disciplinary action by the Commission against the insurer or the\n qualified actuary shall be defined in regulations adopted by the Commission.\n \t\t\t\th. Except as provided in subdivisions 4 l, m, and n, documents, materials,\n or other information in the possession or control of the Commission that is a\n memorandum in support of the opinion, and any other material provided by the\n insurer to the Commission in connection with the memorandum, shall be\n confidential by law and privileged, shall not be subject to subpoena, and\n shall not be subject to discovery or admissible in evidence in any private\n civil action. However, the Commission is authorized to use the documents,\n materials, or other information in the furtherance of any regulatory or legal\n action brought as a part of the Commission’s official duties.\n \t\t\t\ti. Neither the Commission nor any person who received documents,\n materials, or other information while acting under the authority of the\n Commission shall be permitted or required to testify in any private civil\n action concerning any confidential documents, materials, or information\n subject to subdivision 4 h.\n \t\t\t\tj. In order to assist in the performance of the Commission’s duties,\n the Commission:\n\n 1. May share documents, materials, or other information, including the\n confidential and privileged documents, materials, or information subject to\n subdivision 4 h, with other state, federal, and international regulatory\n agencies, with the NAIC and its affiliates and subsidiaries, and with state,\n federal, and international law-enforcement authorities, provided that the\n recipient agrees to maintain the confidentiality and privileged status of\n the document, material, or other information;\n\n 2. May receive documents, materials, or information, including otherwise\n confidential and privileged documents, materials, or information, from the\n NAIC and its affiliates and subsidiaries, and from regulatory and\n law-enforcement officials of other foreign or domestic jurisdictions, and\n shall maintain as confidential or privileged any document, material, or\n information received with notice or the understanding that it is\n confidential or privileged under the laws of the jurisdiction that is the\n source of the document, material, or information; and\n\n 3. May enter into agreements governing sharing and use of information\n consistent with subdivisions 4 h, i, and j.\n \t\t\t\t\tk. No waiver of any applicable privilege or claim of confidentiality in\n the documents, materials, or information shall occur as a result of\n disclosure to the Commission under this section or as a result of sharing as\n authorized in subdivision 4 j.\n \t\t\t\t\tl. A memorandum in support of the opinion, and any other material\n provided by the insurer to the Commission in connection with the memorandum,\n may be subject to subpoena for the purpose of defending an action seeking\n damages from the actuary submitting the memorandum by reason of an action\n required by this section or by regulations adopted hereunder.\n \t\t\t\t\tm. The memorandum or other material may otherwise be released by the\n Commission with the written consent of the insurer or to the American\n Academy of Actuaries upon request stating that the memorandum or other\n material is required for the purpose of professional disciplinary\n proceedings and setting forth procedures satisfactory to the Commission for\n preserving the confidentiality of the memorandum or other material.\n \t\t\t\t\tn. Once any portion of the confidential memorandum is cited by the\n insurer in its marketing, is cited before a governmental agency other than a\n state insurance department, or is released by the insurer to the news media,\n all portions of the confidential memorandum shall be no longer confidential.\n\nB. The actuarial opinion of reserves after the operative date of the valuation\nmanual shall require:\n\n 1. Every insurer with outstanding life insurance contracts, accident and\n health insurance contracts, or deposit-type contracts in the Commonwealth and\n subject to regulation by the Commission to annually submit the opinion of the\n appointed actuary as to whether the reserves and related actuarial items held\n in support of the policies and contracts are computed appropriately, are based\n on assumptions that satisfy contractual provisions, are consistent with prior\n reported amounts, and comply with applicable laws of the Commonwealth. The\n valuation manual will prescribe the specifics of this opinion, including any\n items deemed to be necessary to its scope.\n\n 2. Every insurer with outstanding life insurance contracts, accident and\n health insurance contracts, or deposit-type contracts in the Commonwealth and\n subject to regulation by the Commission, except as exempted in the valuation\n manual, to annually include in the opinion required by subdivision 1 an\n opinion of the same appointed actuary as to whether the reserves and related\n actuarial items held in support of the policies and contracts specified in the\n valuation manual, when considered in light of the assets held by the insurer\n with respect to the reserves and related actuarial items, including but not\n limited to the investment earnings on the assets and the considerations\n anticipated to be received and retained under the policies and contracts, make\n adequate provision for the insurer’s obligations under the policies and\n contracts, including but not limited to the benefits under and expenses\n associated with the policies and contracts.\n\n 3. Each opinion required by subdivision 2 to be governed by the following\n provisions:\n \t\t\t\ta. A memorandum, in form and substance as specified in the valuation\n manual, and acceptable to the Commission, shall be prepared to support each\n actuarial opinion.\n \t\t\t\tb. If the insurance company fails to provide a supporting memorandum at\n the request of the Commission within a period specified in the valuation\n manual or the Commission determines that the supporting memorandum provided by\n the insurance company fails to meet the standards prescribed by the valuation\n manual or is otherwise unacceptable to the Commission, the Commission may\n engage a qualified actuary at the expense of the insurer to review the opinion\n and the basis for the opinion and prepare the supporting memorandum required\n by the Commission.\n\n 4. Every opinion required by this subsection to be governed by the following\n provisions:\n \t\t\t\ta. The opinion shall be in form and substance as specified in the\n valuation manual and acceptable to the Commission;\n \t\t\t\tb. The opinion shall be submitted with the annual statement reflecting the\n valuation of such reserve liabilities for each year ending on or after the\n operative date of the valuation manual;\n \t\t\t\tc. The opinion shall apply to all policies and contracts subject to\n subdivision 2, plus other actuarial liabilities as may be specified in the\n valuation manual;\n \t\t\t\td. The opinion shall be based on standards adopted from time to time by\n the Actuarial Standards Board or its successor, and on such additional\n standards as may be prescribed in the valuation manual;\n \t\t\t\te. In the case of an opinion required to be submitted by a foreign or\n alien insurer, the Commission may accept the opinion filed by that insurer\n with the insurance supervisory official of another state if the Commission\n determines that the opinion reasonably meets the requirements applicable to an\n insurer domiciled in the Commonwealth;\n \t\t\t\tf. Except in cases of fraud or willful misconduct, the appointed actuary\n shall not be liable for damages to any person, other than the insurance\n company and the Commission, for any act, error, omission, decision, or conduct\n with respect to the appointed actuary’s opinion; and\n \t\t\t\tg. Disciplinary action by the Commission against the insurer or the\n appointed actuary shall be defined in regulations adopted by the Commission.\n\nHISTORY: 2014, c. 571.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}