(a) The board of directors of each insurer shall appoint one or more illustration actuaries.
(b) The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Practice for Compliance with the NAIC Model Regulation on Life Insurance Illustrations promulgated by the Actuarial Standards Board, and that the illustrated scales used in insurer-authorized illustrations meet the requirements of sections 61A.70 to 61A.745.
(c) The illustration actuary shall:
(1) be a member in good standing of the American Academy of Actuaries;
(2) be familiar with the standard of practice regarding life insurance policy illustrations;
(3) not have been found by the commissioner, following appropriate notice and hearing to have:
(i) violated any provision of, or any obligation imposed by, the insurance law or other law in the course of the actuary's dealings as an illustration actuary;
(ii) been found guilty of fraudulent or dishonest practices;
(iii) demonstrated the actuary's incompetence, lack of cooperation, or untrustworthiness to act as an illustration actuary; or
(iv) resigned or been removed as an illustration actuary within the past five years as a result of acts or omissions indicated in any adverse report on examination or as a result of a failure to adhere to generally acceptable actuarial standards;
(4) not fail to notify the commissioner of any action taken by a commissioner of another state similar to that under clause (3);
(5) disclose in the annual certification whether, since the last certification, a currently payable scale applicable for business issued within the previous five years and within the scope of the certification has been reduced for reasons other than changes in the experience factors underlying the disciplined current scale. If nonguaranteed elements illustrated for new policies are not consistent with those illustrated for similar in-force policies, this must be disclosed in the annual certification. If nonguaranteed elements illustrated for both new and in-force policies are not consistent with the nonguaranteed elements actually being paid, charged, or credited to the same or similar forms, this must be disclosed in the annual certification; and
(6) disclose in the annual certification the method used to allocate overhead expenses for all illustrations:
(i) fully allocated expenses;
(ii) marginal expenses; or
(iii) a generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the National Association of Insurance Commissioners or by the commissioner.
(d)(1) The illustration actuary shall file a certification with the board and with the commissioner:
(i) annually for all policy forms for which illustrations are used; and
(ii) before a new policy form is illustrated.
(2) If an error in a previous certification is discovered, the illustration actuary shall notify the board of directors of the insurer and the commissioner promptly.
(e) If an illustration actuary is unable to certify the scale for any policy form illustration the insurer intends to use, the actuary shall notify the board of directors of the insurer and the commissioner promptly of the actuary's inability to certify.
(f) A responsible officer of the insurer, other than the illustration actuary, shall certify annually:
(1) that the illustration formats meet the requirements of sections 61A.70 to 61A.745 and that the scales used in insurer-authorized illustrations are those scales certified by the illustration actuary; and
(2) that the company has provided its agents with information about the expense allocation method used by the company in its illustrations and disclosed as required in paragraph (c), clause (6).
(g) The annual certifications must be provided to the commissioner each year by a date determined by the insurer.
(h) If an insurer changes the illustration actuary responsible for all or a portion of the company's policy forms, the insurer shall notify the commissioner of that fact promptly and disclose the reason for the change.
2007 c 104 s 14
Structure Minnesota Statutes
Chapters 59A - 79A — Insurance
Section 61A.01 — Life Insurance Company Defined.
Section 61A.011 — Interest On Unpaid Benefits.
Section 61A.02 — Forms Of Policy.
Section 61A.021 — Sale Of Life Insurance And Annuity As Single Policy Prohibited.
Section 61A.03 — Required Provisions; Life Insurance Policies.
Section 61A.031 — Suicide Provisions.
Section 61A.04 — Spendthrift Provisions.
Section 61A.05 — Life Policies To Contain Entire Contract.
Section 61A.06 — Aviation And War Risk Exclusion Permitted.
Section 61A.07 — Prohibited Provisions.
Section 61A.071 — Applications.
Section 61A.072 — Accelerated Benefits.
Section 61A.09 — Group Life Insurance.
Section 61A.091 — Employee Group Life Insurance Plans.
Section 61A.092 — Continuation Of Coverage For Life Insurance.
Section 61A.093 — Certificate Of Insurance.
Section 61A.10 — Extension Of Time For Payment Of Premiums.
Section 61A.11 — Misstatement, When Not To Invalidate Policy.
Section 61A.12 — Beneficiaries.
Section 61A.14 — Companies Entitled To Issue Contracts; Accounts; Investments.
Section 61A.15 — Contract Provisions.
Section 61A.16 — Contract Provisions.
Section 61A.17 — Filing Of Contracts.
Section 61A.18 — Disapproval Of Contracts.
Section 61A.19 — Company Requirements.
Section 61A.21 — Application Of Other Laws.
Section 61A.22 — Contracts To Specify Benefits And Consideration.
Section 61A.23 — Provisions In Policies; Laws Of Other States.
Section 61A.24 — Standard Nonforfeiture Law For Life Insurance.
Section 61A.245 — Standard Nonforfeiture Law For Individual Deferred Annuities.
Section 61A.25 — Standard Valuation Law.
Section 61A.255 — Smoker And Nonsmoker Mortality Tables.
Section 61A.257 — Preferred Mortality Tables For Use In Determining Minimum Reserve Liabilities.
Section 61A.27 — Contingency Reserve; Limitations.
Section 61A.276 — Funding Agreements.
Section 61A.28 — Domestic Companies, Investments.
Section 61A.281 — Investments; Subsidiaries.
Section 61A.282 — Investments In Name Of Company Or Nominee And Prohibitions.
Section 61A.283 — Admitted Assets.
Section 61A.284 — Investments; Capital Stock Of Other Insurance Companies.
Section 61A.29 — Foreign Investments.
Section 61A.30 — Joint Investments.
Section 61A.31 — Real Estate Holdings.
Section 61A.315 — Investments And Holdings; Limitations.
Section 61A.39 — Cooperative Life And Casualty Companies.
Section 61A.40 — Qualifications For License; Number Of Members.
Section 61A.41 — Reserve Fund; Reciprocal Provisions.
Section 61A.42 — Payments; Liens; Assessments; Policies To Be Labeled.
Section 61A.43 — Accumulations; Amendment To Articles Or Bylaws.
Section 61A.44 — Limitation On Expenses; Life Insurance.
Section 61A.45 — Limitation On Expenses; Companies With Reserve Deposits.
Section 61A.46 — Net Rates; Reserve Fund; Limitation Of Expenses.
Section 61A.47 — Reinsurance Or Consolidation.
Section 61A.48 — Change To Legal Reserve Or Level Premium Companies.
Section 61A.52 — Reserve Required.
Section 61A.55 — Duties Of Agents And Brokers.
Section 61A.56 — Duties Of All Insurers.
Section 61A.57 — Duties Of Insurers That Use Agents Or Brokers.
Section 61A.58 — Duties Of Insurers With Respect To Direct Response Sales.
Section 61A.59 — Enforcement; Effect Of Compliance.
Section 61A.60 — Required Replacement Notice And Form.
Section 61A.70 — Applicability And Scope.
Section 61A.705 — Definitions.
Section 61A.71 — Policies To Be Illustrated.
Section 61A.715 — General Rules And Prohibitions.
Section 61A.72 — Standards For Basic Illustrations.
Section 61A.725 — Standards For Supplemental Illustrations.
Section 61A.73 — Delivery Of Illustration And Record Retention.
Section 61A.735 — Annual Report; Notice To Policy Owners.