                                 CODE OF VIRGINIA

ACTUARIAL STATEMENTS OF OPINION, REPORTS, MEMORANDA, AND SUMMARIES (§
38.2-1315.1)

A. Effective December 31, 2004, and except as otherwise provided by this section
or Article 10 (&#xA7; 38.2-1365 et seq.) of Chapter 13, every insurer doing
business in the Commonwealth shall annually submit an actuarial opinion that has
been prepared by an appointed actuary and that satisfies at a minimum the
standards set forth in the appropriate National Association of Insurance
Commissioners (NAIC) annual statement instructions.

B. Every insurer domiciled in the Commonwealth that is required to submit an
actuarial opinion pursuant to subsection A shall annually submit an actuarial
opinion summary, also written by the insurer&#8217;s appointed actuary. Every
insurer domiciled in the Commonwealth that is required to submit an actuarial
opinion pursuant to subsection A or &#xA7; 38.2-1367, at the request of the
Commission, shall submit underlying work papers and an actuarial report or
memorandum that satisfies the minimum standards set forth in the appropriate
NAIC annual statement instructions and complies with all additional standards or
requirements established by statute or by the Commission in accordance with the
provisions of this section or Article 10 (&#xA7; 38.2-1365 et seq.) of Chapter
13. A company licensed but not domiciled in the Commonwealth shall provide such
summary, work papers, report, and memorandum upon request of the Commission. Any
summary, work papers, report, or memorandum filed in accordance with the
appropriate NAIC annual statement 13 instructions shall be considered as a
document supporting the actuarial opinion required by subsection A or &#xA7;
38.2-1367.

C. If the insurer fails to provide supporting work papers or a required report
or memorandum at the request of the Commission, or the Commission determines
that the work papers or report or memorandum are unacceptable, the Commission
may engage a qualified actuary at the expense of the insurer to review the
opinion and the basis for the opinion and to prepare supporting work papers, or
a report or memorandum.

D. The appointed 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&#8217;s opinion, except in cases of fraud or
willful misconduct on the part of the actuary.

E. An actuarial opinion provided with the annual statement in accordance with
the appropriate NAIC annual statement instructions shall be open to public
inspection in accordance with &#xA7; 38.2-1306.

F. Documents, materials, or other information in the possession or control of
the Commission that are considered an actuarial report, work papers, an
actuarial opinion summary, or an actuarial opinion report or memorandum provided
in support of the opinion, and any other material provided by the insurer to the
Commission in connection with the report, work papers, or summary, shall be
confidential by law and privileged, shall not be subject to inspection or review
by the general public, shall not be subject to subpoena, and shall not be
subject to discovery or admissible in evidence in any private civil action.
However, this provision shall not be construed to limit the Commission&#8217;s
authority to release the documents to any actuarial board established for
counseling or discipline so long as the material is required for the purpose of
professional disciplinary proceedings and such board establishes procedures
satisfactory to the Commission for preserving the confidentiality of the
documents. Moreover, the Commission is authorized to use the documents,
materials, or other information in furtherance of any regulatory or legal action
brought as part of the Commission&#8217;s official duties.

   1. 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 this subsection.

   2. In order to assist in the performance of the Commission&#8217;s duties
   under this section, the Commission:
   				a. May share documents, material, or other information, including the
   confidential and privileged documents, materials, or information subject to
   this subsection, with other state, federal, and international regulatory
   agencies, with the NAIC, its affiliates, or 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.
   				b. May receive documents, materials, or information, including otherwise
   confidential and privileged documents, materials, or information, from the
   NAIC, its affiliates, or 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.

G. The Commission may waive or modify submission requirements for a foreign
insurer that has been exempted by its domiciliary commissioner from filing an
actuarial opinion under a substantially similar law in its state of domicile.
The Commission may modify requirements in any year for an insurer that makes
application, with good cause shown, for exemption due to the nature of business
written or the size and volume of business activity, or because the insurer is
under supervision or an order of conservation, or if the imposition of an annual
filing requirement would create a financial hardship.

HISTORY: 2004, c. 315; 2006, c. 320; 2014, c. 571.