58-26-55.1. Opinion of actuary on reserves and related actuarial items to be in accordance with valuation manual.
(1)Every company with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this state and subject to regulation by the director shall 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 this state. The valuation manual will prescribe the specifics of this opinion including any items deemed to be necessary to its scope.
(2)Every company with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this state and subject to regulation by the director, except as exempted in the valuation manual, shall also annually include in the opinion required pursuant to 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 company with respect to the reserves and related actuarial items, including 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 company's obligations under the policies and contracts, including the benefits under and expenses associated with the policies and contracts.
(3)Each opinion required by subdivision (2) is governed by the following provisions:
(a)A memorandum, in form and substance as specified in the valuation manual, and acceptable to the director, shall be prepared to support each actuarial opinion; and
(b)If the insurance company fails to provide a supporting memorandum at the request of the director within a period specified in the valuation manual or the director 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 director, the director 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 director.
(4)Every opinion is governed by the following provisions:
(a)The opinion is in form and substance as specified in the valuation manual and acceptable to the director;
(b)The opinion is 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;
(c)The opinion applies to all policies and contracts subject to subdivision (2), plus other actuarial liabilities as may be specified in the valuation manual;
(d)The opinion is 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;
(e)In the case of an opinion required to be submitted by a foreign or alien company, the director may accept the opinion filed by that company with the insurance supervisory official of another state if the director determines that the opinion reasonably meets the requirements applicable to a company domiciled in this state;
(f)Except in cases of fraud or willful misconduct, the appointed actuary is not liable for damages to any person, other than the insurance company and the director, for any act, error, omission, decision, or conduct with respect to the appointed actuary's opinion;
(g)Disciplinary action by the director against the company or the appointed actuary shall be defined in rules promulgated by the director, pursuant to chapter 1-26.
Source: SL 2015, ch 254, §5.
Structure South Dakota Codified Laws
Chapter 26 - Valuation Of Assets, Liabilities And Reserves
Section 58-26-1 - Assets allowed in determination of financial condition.
Section 58-26-2 - Valuation of bonds or other evidences of debt--Method of calculation.
Section 58-26-3 - Valuation of securities other than evidences of debt.
Section 58-26-4 - Preferred or guaranteed stocks--Method of computing value approved by director.
Section 58-26-6 - Purchase money mortgage on real property--Restriction as to valuation.
Section 58-26-7 - Appraisal for valuation of other real property.
Section 58-26-9 - Valuation not to be inconsistent with approved method.
Section 58-26-10 - Assets not allowed in determining financial condition.
Section 58-26-10.1 - Radio and television facilities allowable as assets.
Section 58-26-11 - Capital stock and liabilities chargeable against assets.
Section 58-26-12 - Assets allowed as deductions from corresponding liabilities.
Section 58-26-13.1 - Actuarial opinion of property, casualty, and health insurers.
Section 58-26-13.2 - Time limit for compliance with actuary opinion requirements.
Section 58-26-30 - Reserve requirements for health insurance.
Section 58-26-34 - Reserve for liability policies written during three years preceding.
Section 58-26-35 - Maintaining a reserve for outstanding losses under credit insurance policies.
Section 58-26-36 - Unearned premium reserve--Insurers required to maintain.
Section 58-26-37 - Unearned premium reserve--Computation--Use of table.
Section 58-26-38 - Unearned premium reserve--Computation on a prorata basis.
Section 58-26-40 - Unearned premium reserve provisions inapplicable to title insurance.
Section 58-26-41 - Unearned premium reserve on marine and transportation insurance.
Section 58-26-43 - Increase of inadequate reserves.
Section 58-26-44 - Application of chapter.
Section 58-26-44.1 - Definition of terms in §§ 58-26-45 to 58-26-105.
Section 58-26-46 - Annual opinion of qualified actuary required--Promulgation of rules.
Section 58-26-47 - Opinion required as to adequacy of reserves to provide for company's obligations.
Section 58-26-48 - Promulgation of rules for establishing higher reserves.
Section 58-26-49 - Form and substance of actuary's opinion.
Section 58-26-50 - Provisions governing submission of actuary's opinion.
Section 58-26-51 - Opinion submitted by foreign or alien company.
Section 58-26-52 - Qualified actuary defined.
Section 58-26-53 - Liability of qualified actuary.
Section 58-26-55 - Confidentiality of material supporting opinion of qualified actuary.
Section 58-26-56 - Minimum standard for valuation of policies and contracts.
Section 58-26-57 - Mortality tables used for ordinary life insurance policies.
Section 58-26-58 - Mortality tables used for industrial life insurance policies.
Section 58-26-59 - Mortality tables used for individual annuity and pure endowment contracts.
Section 58-26-60 - Mortality tables used for group annuity and pure endowment contracts.
Section 58-26-61 - Disability tables used for total and permanent disability.
Section 58-26-62 - Tables used for accidental death benefits.
Section 58-26-63 - Tables to be approved by director.
Section 58-26-71 - Calendar year statutory valuation interest rates defined.
Section 58-26-72 - Weighting factors.
Section 58-26-73 - Reference interest rate defined.
Section 58-26-74 - Alternative method for determination of reference interest rate.
Section 58-26-76 - Valuation of reserves for certain annuity or pure endowment contracts.
Section 58-26-77 - Minimum aggregate reserves for life insurance policies.
Section 58-26-80 - Company's greater standard of valuation may be lowered with director approval.
Section 58-26-87 - Actuarial report and workpapers to support actuarial opinion.
Section 58-26-92 - Prerequisites for adoption of NAIC valuation manual of instruction.
Section 58-26-93 - Adoption of change to valuation manual.
Section 58-26-94 - Specifications required for adoption of valuation manual.
Section 58-26-95 - Exceptions to valuation manual requirements.
Section 58-26-96 - Qualified actuary engaged by director or by official of another state.
Section 58-26-97 - Required change in assumption or method and adjustment of reserves.
Section 58-26-98 - Reserves to be established using principle-based valuation--Conditions.
Section 58-26-99 - Procedures, controls and report regarding principle-based valuation.
Section 58-26-100 - Prescribed formulaic reserve component.
Section 58-26-101 - Data to be submitted as prescribed in valuation manual.
Section 58-26-102 - Confidential information defined.
Section 58-26-103 - Confidential information privileged--Use and sharing.
Section 58-26-104 - Exceptions to confidentiality of information.
Section 58-26-105 - Exemption of certain forms or product lines of domestic insurer.