(1) The statement of actuarial opinion submitted in accordance with this rule shall consist of:

(a) A paragraph identifying the appointed actuary and his or her qualifications (see (2) (a) ) ;

(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, (see (2) (b) ) and identifying the reserves and related actuarial items covered by the opinion which have not been so analyzed;

(c) A reliance paragraph describing those areas, if any, where the appointed actuary has deferred to other experts in developing data, procedures or assumptions, (e.g., anticipated cash flows from currently owned assets, including variation in cash flows according to economic scenarios (see (2) (c) ) , supported by a statement of each such expert in the form prescribed by (5) ; and

(d) An opinion paragraph expressing the appointed actuary's opinion with respect to the adequacy of the supporting assets to mature the liabilities (see (2) (f) ) .

(e) One or more additional paragraphs will be needed in individual company cases as follows:

(i) If the appointed actuary considers it necessary to state a qualification of his or her opinion;

(ii) If the appointed actuary must disclose the method of aggregation for reserves of different products or lines of business for asset adequacy analysis;

(iii) If the appointed actuary must disclose reliance upon any portion of the assets supporting the asset valuation reserve (AVR) , interest maintenance reserve (IMR) or other mandatory or voluntary statement of reserves for asset adequacy analysis;

(iv) 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;

(v) 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;

(vi) If the appointed actuary chooses to add a paragraph briefly describing the assumptions which form the basis for the actuarial opinion.

(2) The following paragraphs are to be included in the statement of actuarial opinion in accordance with this rule. Language 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 should 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 rule.

(a) The opening paragraph should generally indicate the appointed actuary's relationship to the company and his or her qualifications to sign the opinion.

(i) 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 disability insurance companies."

(ii) 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 disability insurance companies."

(b) The scope paragraph should include a statement 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,[   ]. Tabulated below are those reserves and related actuarial items which have been subjected to asset adequacy analysis."

Asset Adequacy Tested Amounts Reserves and Liabilities
		Additional			Total
	Formula	Actuarial	Analysis	Other	Amount
Statement Item	Reserves	Reserves	Method	Amount	(1) +(2) +(3)
	(1)	a. (2)	b.	(3)	(4)
Exhibit 8
A Life Insurance
B Annuities
C Supplementary
Contracts
Involving
Life
Contingencies
D Accidental
Death
Benefit
E Disability -
Active
F Disability -
Disabled
G Miscellaneous
Total (Exhibit 8
Item 1, Page 3)
Exhibit 9
A Active Life
Reserve
B Claim Reserve
Total (Exhibit 9
Item 2, Page 3)

 

Notes:

 

a. The additional actuarial reserves are the reserves established under ARM 6.6.6505(5) (b) or (c) .

 

b. The appointed actuarial should indicate the method of analysis, determined in accordance with the standards for asset adequacy analysis referred to in ARM 6.6.6505(4) , by means of symbols which should be defined in footnotes to the table.

		Additional			Total
	Formula	Actuarial	Analysis	Other	Amount
Statement Item	Reserves	Reserves	Method	Amount	(1) +(2) +(3)
	(1)	a. (2)	b.	(3)	(4)
Exhibit 10 1      Premiums and
Other Deposit
Funds
1.1 Policyholder
Premiums
(Page 3, Line
10.1)
1.2 Guaranteed
Interest
Contracts
(Page 3, Line
10.2)
1.3 Other Contract
Deposit Funds
(Page 3, Line
10.3)
2      Supplementary
Contracts Not
Involving Life
Contingencies
(Page 3, Line 3)
3      Dividend and
Coupon
Accumulations
(Page 3, Line 5)
Total Exhibit 10

 

Notes:

 

a. The additional actuarial reserves are the reserves

established under ARM 6.6.6505(5) (b) or (5) (c) .

 

b. The appointed actuary should indicate the method of

analysis, determined in accordance with the standards for asset

adequacy analysis referred to in ARM 6.6.6505(4) , by means of

symbols which should be defined in footnotes to the table.

		Additional			Total
	Formula	Actuarial	Analysis	Other	Amount
Statement Item	Reserves	Reserves	Method	Amount	(1) +(2) +(3)
	(1)	a. (2)	b.	(3)	(4)
Exhibit 11 Part 1
1      Life (Page 3,
Line 4.1)
2      Health (Page 3,
Line 4.2)
Total Exhibit 11,
Part 1
Separate Accounts
(Page 3, Line 27)
TOTAL RESERVES

 

IMR (Page__ Line__)
ARV (Page__ Line__)	c.

 

Notes:

 

a. The additional actuarial reserves are the reserves

established under ARM 6.6.6505(5) (b) or (5) (c) .

 

b. The appointed actuary should indicate the method of analysis, determined in accordance

with the standards for asset adequacy analysis referred to in ARM 6.6.6505(4) , by means of

symbols which should be defined in footnotes to the table.

 

c. Allocated amount

 

(c) If the appointed actuary has relied on other experts to develop certain portions of the analysis, the reliance paragraph should include a statement such as the following: "I have relied on [name], [title] for [e.g., anticipated cash flows from currently owned assets, including variations in cash flows according to economic scenarios] and, as certified in the attached statement, ..." or "I have relied on personnel as cited in the supporting memorandum for certain critical aspects of the analysis in reference to the accompanying statement." Such a statement of reliance on other experts should be accompanied by a statement by each of such experts of the form prescribed by ARM 6.6.6508(5) .

(d) If the appointed actuary has examined the underlying asset and liability records, the reliance paragraph should also include the following: "My examination included such review of the actuarial assumptions and actuarial methods and of the underlying basic asset and liability records and such tests of the actuarial calculations as I considered necessary."

(e) If the appointed actuary has not examined the underlying records, but has relied upon listings and summaries of policies in force and/or asset records prepared by the company or a third party, the reliance paragraph should include a sentence such as: "I have relied upon listings and summaries [of policies and contracts, of asset records] prepared by [name and title of company officer certifying in-force records] as certified in the attached statement. In other respects my examination included such review of the actuarial assumptions and actuarial methods and such tests of the actuarial calculations as I considered necessary;" or "I have relied upon [name of accounting firm] for the substantial accuracy of the in-force records inventory and information concerning other liabilities, as certified in the attached statement. In other respects my examination included review of the actuarial assumptions and actuarial methods and tests of the actuarial calculations as I considered necessary." Such a section must be accompanied by a statement by each person relied upon of the form prescribed by ARM 6.6.6508(5) .

(f) The opinion paragraph should include the following: "In my opinion the reserves and related actuarial values concerning the statement items identified above:

(i) Are computed in accordance with presently accepted actuarial standards consistently applied and are fairly stated, in accordance with sound actuarial principles;

(ii) Are based on actuarial assumptions which produce reserves at least as great as those called for in any contract provision as to reserve basis and method, and are in accordance with all other contract provisions;

(iii) Meet the requirements of the Insurance Law and regulation of the state of [state of domicile] and are at least as great as the minimum aggregate amounts required by the state in which this statement is filed;

(iv) Are computed on the basis of assumptions consistent with those used in computing the corresponding items in the annual statement of the preceding year-end (with any exceptions noted below) ;

(v) Include provision for all actuarial reserves and related statement items which ought to be established.

 

The reserves and related items, when considered in light of the assets held by the company with respect to such reserves and related actuarial items including, but not limited to, the investment earnings on such assets, and the considerations anticipated to be received and retained under such policies and contracts, make adequate provision, according to presently accepted actuarial standards of practice, for the anticipated cash flows required by the contractual obligations and related expenses of the company.

 

The actuarial methods, considerations and analyses used in forming my opinion conform to the appropriate Standards of Practice as promulgated by the actuarial standards board, which standards form the basis of this statement of opinion.

 

This opinion is updated annually as required by statute. To the best of my knowledge, there have been no material changes from the applicable date of the annual statement to the date of the rendering of this opinion which should be considered in reviewing this opinion.

or

The following material change(s) which occurred between the date of the statement for which this opinion is applicable and the date of this opinion should be considered in reviewing this opinion: (Describe the change or changes.)

 

The impact of unanticipated events subsequent to the date of this opinion is beyond the scope of this opinion. The analysis of asset adequacy portion of this opinion should be viewed recognizing that the company's future experience may not follow all the assumptions used in the analysis.

 

             ________________________________________

                  Signature of Appointed Actuary

             ________________________________________

                   Address of Appointed Actuary

             ________________________________________

              Telephone Number of Appointed Actuary"

 

(3) The adoption for new issues or new claims or other new liabilities of an actuarial assumption which differs from a corresponding assumption used for prior new issues or new claims or other new liabilities is not a change in actuarial assumptions within the meaning of ARM 6.6.6508.

(4) If the appointed actuary is unable to form an opinion, then he or she shall refuse to issue a statement of actuarial opinion. If the appointed actuary's opinion is adverse or qualified, then he or she shall issue an adverse or qualified actuarial opinion explicitly stating the reason(s) for such opinion. This statement should follow the scope paragraph and precede the opinion paragraph.

(5) If the appointed actuary does not express an opinion as to the accuracy and completeness of the listings and summaries of policies in force and/or asset oriented information, there shall be attached to the opinion the statement of a company officer or accounting firm who prepared such underlying data similar to the following: "I [name of officer],[title], of [name of company or accounting firm], hereby affirm that the listings and summaries of policies and contracts in force as of December 31,[ ], and other liabilities prepared for and submitted to [name of appointed actuary] were prepared under my direction and, to the best of my knowledge and belief, are substantially accurate and complete.

 

________________________________________________ 

 Signature of the Officer of the Company

or Accounting Firm

________________________________________________ 

Address of the Officer of the Company

or Accounting Firm

________________________________________________

Telephone Number of the Officer of the

Company or Accounting Firm"

 

and/or

"I, [name of officer], [title] of [name of company, accounting firm, or security analyst], hereby affirm that the listings, summaries and analyses relating to data prepared for and submitted to [name of appointed actuary] in support of the asset-oriented aspects of the opinion were prepared under my direction and, to the best of my knowledge and belief, are substantially accurate and complete.

 

________________________________________________

Signature of the Officer of the Company,

 Accounting Firm or the Security Analyst

________________________________________________

Address of the Officer of the Company,

Accounting Firm or the Security Analyst

________________________________________________

Telephone Number of the Officer of the

Company, Accounting Firm or

the Security Analyst"