(1) As to the submission of Statement of Actuarial opinion, the following requirements apply:

(a) There is to be included on or attached to page 1 of the annual statement for each year beginning with the year in which this regulation becomes effective the statement of an appointed actuary, entitled "Statement of Actuarial Opinion," setting forth an opinion relating to reserves and related actuarial items held in support of policies and contracts, in accordance with ARM 6.6.6508; provided, however, that any company exempted pursuant to ARM 6.6.6506 from submitting a statement of actuarial opinion in accordance with ARM 6.6.6508 shall include on or attach to page 1 of the annual statement a statement of actuarial opinion rendered by an appointed actuary in accordance with ARM 6.6.6507.

(b) If in the previous year a company provided a statement of actuarial opinion in accordance with ARM 6.6.6507, and in the current year fails the exemption criteria of ARM 6.6.6506(3) (a) , (b) or (e) to again provide an actuarial opinion in accordance with ARM 6.6.6507, the statement of actuarial opinion in accordance with ARM 6.6.6508 shall not be required until August 1 following the date of the annual statement. In this instance, the company shall provide a statement of actuarial opinion in accordance with ARM 6.6.6507 with appropriate qualification noting the intent to subsequently provide a statement of actuarial opinion in accordance with ARM 6.6.6508.

(c) In the case of a statement of actuarial opinion re-quired to be submitted by a foreign or alien company, the commissioner may accept the statement of actuarial opinion filed by such company with the insurance supervisory regulator of another state if the commissioner determines that the opinion reasonably meets the requirements applicable to a company domiciled in this state.

(d) Upon written request by the company, the commissioner may grant an extension of the date for submission of the statement of actuarial opinion.

(2) A "qualified actuary" is an individual who:

(a) Is a member in good standing of the American academy of actuaries; and

(b) Is qualified to sign statements of actuarial opinion for life and health insurance company annual statements in accordance with the American academy of actuaries quali-fication standards for actuaries signing such statements; and

(c) Is familiar with the valuation requirements applicable to life and disability insurance companies; and

(d) Has not been found by the commissioner (or if so found has subsequently been reinstated as a qualified actuary) , 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 his or her dealings as a qualified actuary; or

(ii) Been found guilty of fraudulent or dishonest practices; or

(iii) Demonstrated his or her incompetency, lack of cooperation, or untrustworthiness to act as a qualified actuary; or

(iv) Submitted to the commissioner during the past 5 years, pursuant to these rules, an actuarial opinion or memorandum that the commissioner rejected because it did not meet the provisions of these rules including standards set by the actuarial standards board; or

(v) Resigned or been removed as an actuary within the past 5 years as a result of acts or omissions indicated in any adverse report on examination or as a result of failure to adhere to generally acceptable actuarial standards; and

(e) Has not failed to notify the commissioner of any action taken by any commissioner of any other state similar to that under ARM 6.6.6505(2) (d) .

(3) An "appointed actuary" is a qualified actuary who is appointed or retained to prepare the statement of actuarial opinion required by these rules, either directly by or by the authority of the board of directors through an executive officer of the company. The company shall give the commissioner timely written notice of the name, title (and, in the case of a consulting actuary, the name of the firm) and manner of appointment or retention of each person appointed or retained by the company as an appointed actuary and shall state in such notice that the person meets the requirements set forth in ARM 6.6.6505(2) . Once notice is furnished, no further notice is required with respect to this person, provided that the company shall give the commissioner timely written notice in the event the actuary ceases to be appointed or retained as an appointed actuary or to meet the requirements set forth in ARM 6.6.6505(2) . If any person appointed or retained as an appointed actuary replaces a previously appointed actuary, the notice shall so state and give the reasons for replacement.

(4) The asset adequacy analysis required by these rules:

(a) Shall conform to the standards of practice as promulgated from time to time by the actuarial standards board and on any additional standards under these rules, which standards are to form the basis of the statement of actuarial opinion in accordance with ARM 6.6.6508; and

(b) Shall be based on methods of analysis as are deemed appropriate for such purposes by the actuarial standards board.

(5) Liabilities to be covered by the actuarial opinion are as follows:

(a) Under authority of 33-2-521 (4) ,(5) and 33-7-118 (2) , MCA, the statement of actuarial opinion shall apply to all in force business on the statement date regardless of when or where issued, e.g., reserves of Exhibits 8, 9 and 10, and claim liabilities in Exhibit 11, Part I and equivalent items in the separate account statement or statements.

(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 33-2-525, 33-2-526 and 33-2-537, MCA, the company shall establish such additional reserve.

(c) For years ending prior to December 31, 1997, the company may, in lieu of establishing the full amount of the additional reserve in the annual statement for that year, set upon additional reserve in an amount not less than the following:

(i) December 31, 1995 The additional reserve divided by three.

(ii) December 31, 1996 Two times the additional reserve divided by three.

(d) Additional reserves established under (5) (a) or (b) above 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.