Sec. 23. (a) This section applies on and after the operative date of the Valuation Manual.
(b) A company with outstanding life insurance contracts, accident and sickness insurance contracts, or deposit-type contracts in Indiana that is subject to regulation by the commissioner shall:
(1) annually submit the opinion of the appointed actuary concerning whether the reserves and related actuarial items held in support of the contracts:
(A) are computed appropriately;
(B) are based on assumptions that satisfy contractual provisions;
(C) are consistent with previously reported amounts; and
(D) comply with applicable Indiana law;
according to the specific requirements prescribed by the Valuation Manual; and
(2) except as exempted in the Valuation Manual, annually submit the opinion of the appointed actuary concerning whether the reserves and related actuarial items held in support of the contracts specified in the Valuation Manual, when considered with the assets held by the company with respect to the reserves and related actuarial items including the:
(A) investment earnings on the assets; and
(B) considerations anticipated to be received and retained under the contracts;
make adequate provision for the company's obligations, including benefits under, expenses associated with, and any other obligations under the contracts.
(c) The following requirements apply to an opinion required by subsection (b)(2):
(1) A memorandum, in form and substance as specified in the Valuation Manual and acceptable to the commissioner, must be prepared to support each actuarial opinion.
(2) If:
(A) the company fails to provide a supporting memorandum at the request of the commissioner within a period specified in the Valuation Manual; or
(B) the commissioner determines that the supporting memorandum provided by the company fails to meet the standards prescribed by the Valuation Manual or is otherwise unacceptable to the commissioner;
the commissioner may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting memorandum required by the commissioner.
(d) The following requirements apply to an opinion prepared under subsection (b)(1) or (b)(2):
(1) The opinion must be in form and substance as specified in the Valuation Manual and acceptable to the commissioner.
(2) The opinion must be submitted with the annual statement reflecting the valuation of the reserves for each year ending on or after the operative date of the Valuation Manual.
(3) The opinion must apply to all contracts subject to subsection (b)(2) plus other actuarial liabilities specified in the Valuation Manual.
(4) The opinion must be based on:
(A) standards adopted by the Actuarial Standards Board; and
(B) additional standards prescribed in the Valuation Manual.
(5) In the case of an opinion required to be submitted by a foreign or alien company, the commissioner may accept the opinion filed by the company with the insurance supervisory official of another state if the commissioner determines that the opinion reasonably meets the requirements applicable to a company domiciled in Indiana.
(6) Except in cases of fraud or willful misconduct, the appointed actuary is not liable for damages to a person other than the company and the commissioner for any act, error, omission, decision, or conduct with respect to the appointed actuary's opinion.
(7) Disciplinary action by the commissioner against the company or the appointed actuary must be defined in rules adopted by the commissioner under IC 4-22-2.
As added by P.L.276-2013, SEC.10. Amended by P.L.124-2018, SEC.24.
Structure Indiana Code
Article 1. Department of Insurance
Chapter 12.8. Standard Valuation Law
27-1-12.8-1. "Accident and Sickness Insurance"
27-1-12.8-2. "Appointed Actuary"
27-1-12.8-3. "Change in Fund Basis"
27-1-12.8-5. "Confidential Information"
27-1-12.8-7. "Contractholder Behavior"
27-1-12.8-8. "Deposit Type Contract"
27-1-12.8-9. "Issue Year Basis"
27-1-12.8-10. "Life Insurance"
27-1-12.8-13. "Principal Based Valuation"
27-1-12.8-14. "Qualified Actuary"
27-1-12.8-20. Annual Reserve Valuation
27-1-12.8-21. Annual Submission of Qualified Actuary Opinion; Requirements
27-1-12.8-22. Supporting Memorandum; Confidentiality and Privilege
27-1-12.8-23. Annual Submission of Appointed Actuary Opinion; Supporting Memorandum; Requirements
27-1-12.8-24. Minimum Standard for Valuation of Contracts; Mortality Tables
27-1-12.8-26. Interest Rates in Determining Minimum Standard for Valuation
27-1-12.8-27. Reserves According to Commissioners Reserve Valuation Method
27-1-12.8-28. Reserves According to Commissioners Annuity Reserve Method
27-1-12.8-29. Aggregate Reserves
27-1-12.8-30. Reserves; Calculation
27-1-12.8-31. Minimum Reserve Requirement Related to Gross Premium
27-1-12.8-32. Minimum Reserve Requirement for Certain Contracts
27-1-12.8-33. Accident and Sickness Insurance Contracts
27-1-12.8-36. Submission of Data Prescribed by Valuation Manual
27-1-12.8-37. Confidential Information
27-1-12.8-38. Confidential Information; Release
27-1-12.8-39. Exemptions of Certain Products From Requirements