69O-138.043. General Requirements

(1) Submission of Statement of Actuarial Opinion.

(a) Included on or attached to Page 1 of the annual statement for each year, shall be 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 rule 69O-138.046, F.A.C.

(b) Upon written request by the company, the Office will, for good cause, grant an extension of the date for submission of the statement of actuarial opinion. Good cause includes the occurrence of an event or circumstance beyond the control of the company, which prevents compliance and could not be reasonably remedied or foreseen by the company.

(2) Qualified Actuary.

(a) The company shall give the Office, prior to or concurrent with the filing of the first annual statement to which this rule applies, 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 this paragraph (2)(b), below.

(b) Any appointed actuary will be considered to be a “Qualified Actuary” if he or she:

1. Is a member in good standing of the American Academy of Actuaries;

2. Is qualified to sign statements of actuarial opinion for life and health insurance company annual statements in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements;

3. Is familiar with the valuation requirements applicable to life and health insurance companies;

4. Has not been found by the Office (or if so found has subsequently been reinstated as a qualified actuary), following appropriate notice and hearing to have:

a. Violated any provision of, or any obligation imposed by, the Insurance Code or other state or federal law relating to insurance in the course of his or her dealings as a qualified actuary;

b. Been found guilty of or pleaded guilty or nolo contendere to fraudulent or dishonest practices without regard to whether a judgment of conviction has been entered by the court having jurisdiction in such case;

c. Demonstrated his or her incompetency, lack of cooperation, or untrustworthiness to act as a qualified actuary;

d. Submitted to the Office during the past 5 years, pursuant to this part, an actuarial opinion or memorandum that the Office rejected because it did not meet the provisions of this part including standards set by the Actuarial Standards Board; or

e. Resigned or been removed as an appointed 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,

5. Has not failed to notify the Office of any action taken by any insurance supervisory official of any other state similar to that under subparagraph (2)(b)4., above.

(c) Once notice is furnished, no further notice is required with respect to this person provided the company shall give the Office 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 paragraph 69O-138.043(2)(b), F.A.C. Notice must be prior to or concurrent with the termination of the actuary’s appointment or retention, or upon discovery that the actuary no longer meets the requirements set forth in paragraph 69O-138.043(2)(b), F.A.C. All filings shall be submitted electronically to http://www.floir.com/iportal.

(d) 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.

(3) Standards for Asset Adequacy Analysis. The asset adequacy analysis required by this part shall:

(a) Conform to the Standards of Practice as promulgated from time to time by the Actuarial Standards Board and on any additional standards under this part, which standards are to form the basis of the statement of actuarial opinion in accordance with rule 69O-138.046, F.A.C., of this part; and,

(b) Be based on methods of analysis deemed appropriate for such purposes by the Actuarial Standards Board.

(4) Liabilities to be Covered.

(a) Under authority of subsection (3), of the Standard Valuation Law, section 625.121, F.S., 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 5, 6 and 7, and claim liabilities in Exhibit 8, Part I of the Annual Statement, and equivalent items in the separate account statement or statements.

(b) If the appointed actuary, as the result of asset adequacy analysis, determines that a reserve shall be held in addition to the aggregate reserve held by the company and calculated in accordance with methods set forth in subsections 7, 11, 12, and 14 of the Standard Valuation Law, the company shall establish the additional reserve.

(c) Additional reserves established under paragraph (4)(b), above, and deemed not necessary in subsequent years may be released. Any amounts released shall be disclosed in the actuarial opinion for the applicable year. The release of such reserves will not be deemed an adoption of a lower standard of valuation.

Rulemaking Authority 624.308(1), 625.121(3)(a) FS. Law Implemented 624.307(1), 624.316(1)(c), 624.424(1), 625.121(3) FS. History–New 5-18-93, Amended 2-16-94, 1-23-03, Formerly 4-138.043, Amended 7-30-17.