Ins 50.75(4)(b)(b) Shall be based on methods of analysis as are deemed appropriate for such purposes by the actuarial standards board. Ins 50.75(5)(a)(a) Under authority of ch. 623, Stats., and subch. IV, the statement of actuarial opinion shall apply to all in force business on the statement date regardless of when or where issued. This includes items reported in the annual statement exhibits pertaining to contract reserves for life insurance, annuities, accident and health insurance, and deposit type contracts; liabilities for unpaid claims; and equivalent items in the separate account statement or statements. Ins 50.75(5)(b)(b) If the appointed actuary determines as the result of asset adequacy analysis that a reserve should be held in addition to the aggregate reserve held by the company and calculated in accordance with methods set forth in s. 623.06 (3), (3m), (4m) and (7), Stats., and s. Ins 3.17, the company shall establish such additional reserve. Ins 50.75(5)(c)(c) Additional reserves established under par. (b) and deemed not necessary in subsequent years may be released. Any amounts released must be disclosed in the actuarial opinion for the applicable year. The release of such reserves would not be deemed an adoption of a lower standard of valuation. Ins 50.75 HistoryHistory: Cr. Register, December, 1995, No. 480, eff. 1-1-96; CR 04-071: am. (1) (a), (3) and (5) (a), r. (1) (b), (c) and (5) (c), renum. (1) (d) and (5) (d) to be (1) (b) and (5) (c) and am. (5) (c) Register December 2004 No. 588, eff. 12-31-05. Ins 50.76Ins 50.76 Required opinions. In accordance with subch. IV and ch. 623, Stats., every company doing business in this state shall annually submit the opinion of an appointed actuary as provided for by this subchapter. Ins 50.76 HistoryHistory: Cr. Register, December, 1995, No. 480, eff. 1-1-96; CR 04-071: r. and recr. Register December 2004 No. 588, eff. 12-31-05. Ins 50.78Ins 50.78 Statement of actuarial opinion based on an asset adequacy analysis. Ins 50.78(1)(1) General description. The statement of actuarial opinion submitted in accordance with this subchapter shall consist of: Ins 50.78(1)(a)(a) A paragraph identifying the appointed actuary and his or her qualifications; Ins 50.78(1)(b)(b) A scope paragraph identifying the subjects on which an opinion is to be expressed and describing the scope of the appointed actuary’s work, including a tabulation delineating the reserves and related actuarial items which have been analyzed for asset adequacy and the method of analysis, and identifying the reserves and related actuarial items covered by the opinion which have not been so analyzed; Ins 50.78(1)(c)(c) A reliance paragraph describing those areas, if any, where the appointed actuary has deferred to other experts in developing data, procedures or assumptions, including anticipated cash flows from currently owned assets and variation in cash flows according to economic scenarios, supported by a statement of each such expert in the form prescribed by sub. (5); and Ins 50.78(1)(d)(d) An opinion paragraph expressing the appointed actuary’s opinion with respect to the adequacy of the supporting assets to mature the liabilities. Ins 50.78(1)(e)(e) One or more additional paragraphs will be needed in individual company cases as follows: Ins 50.78(1)(e)1.1. If the appointed actuary considers it necessary to state a qualification of his or her opinion; Ins 50.78(1)(e)2.2. If the appointed actuary must disclose an inconsistency in the method of analysis or basis of asset allocation used at the prior opinion date with that used for this opinion. Ins 50.78(1)(e)3.3. If the appointed actuary must disclose whether additional reserves of the prior opinion date are released as of this opinion date, and the extent of the release. Ins 50.78(1)(e)4.4. If the appointed actuary chooses to add a paragraph briefly describing the assumptions which form the basis for the actuarial opinion. Ins 50.78(2)(2) Recommended language. The following paragraphs are to be included in the statement of actuarial opinion in accordance with this section. The language provided in this subsection is that which in typical circumstances should be included in a statement of actuarial opinion. The language may be modified as needed to meet the circumstances of a particular case, but the appointed actuary shall use language which clearly expresses his or her professional judgment. However, in any event the opinion shall retain all pertinent aspects of the language provided in this section. Ins 50.78(2)(a)(a) The opening paragraph should generally indicate the appointed actuary’s relationship to the company and his or her qualifications to sign the opinion. Ins 50.78(2)(a)1.1. For a company actuary, the opening paragraph of the actuarial opinion should read as follows: “I, [name], am [title] of [insurance company name] and a member of the American Academy of Actuaries. I was appointed by, or by the authority of, the Board of Directors of said insurer to render this opinion as stated in the letter to the commissioner dated [insert date]. I meet the Academy qualification standards for rendering the opinion and am familiar with the valuation requirements applicable to life and health insurance companies.” Ins 50.78(2)(a)2.2. For a consulting actuary, the opening paragraph should contain a sentence such as: “I, [name], a member of the American Academy of Actuaries, am associated with the firm of [name of consulting firm]. I have been appointed by, or by the authority of, the Board of Directors of [name of company] to render this opinion as stated in the letter to the commissioner dated [insert date]. I meet the Academy qualification standards for rendering the opinion and am familiar with the valuation requirements applicable to life and health insurance companies.” Ins 50.78(2)(b)(b) The scope paragraph shall include a statement, and table, such as the following: “I have examined the actuarial assumptions and actuarial methods used in determining reserves and related actuarial items listed below, as shown in the annual statement of the company, as prepared for filing with state regulatory officials, as of December 31, [year]. Tabulated below are those reserves and related actuarial items which have been subjected to asset adequacy analysis. Ins 50.78(2)(bg)(bg) The tabulation in the scope paragraph required under par. (b) shall conform to the following: Ins 50.78(2)(bg)2.2. The appointed actuary should indicate the method of analysis, determined in accordance with the standards for asset adequacy analysis referred to in s. Ins 50.75 (4), by means of symbols which should be defined in footnotes to the table.
