Sec. 23. (a) This section applies on and after the operative date of the Valuation Manual.

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Terms Used In Indiana Code 27-1-12.8-23

  • accident and sickness insurance: means insurance described in Class 1(b), Class 1(c)(2), or Class 2(a) of IC 27-1-5-1. See Indiana Code 27-1-12.8-1
  • appointed actuary: means a qualified actuary who is appointed to prepare an actuarial opinion required by sections 21 and 22 of this chapter. See Indiana Code 27-1-12.8-2
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Commissioner: means the "insurance commissioner" of this state. See Indiana Code 27-1-2-3
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Fraud: Intentional deception resulting in injury to another.
  • Insurance: means a contract of insurance or an agreement by which one (1) party, for a consideration, promises to pay money or its equivalent or to do an act valuable to the insured upon the destruction, loss or injury of something in which the other party has a pecuniary interest, or in consideration of a price paid, adequate to the risk, becomes security to the other against loss by certain specified risks; to grant indemnity or security against loss for a consideration. See Indiana Code 27-1-2-3
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • life insurance: means insurance under a contract that incorporates mortality risk, including annuity and pure endowment contracts. See Indiana Code 27-1-12.8-10
  • person: includes individuals, corporations, associations, and partnerships; personal pronoun includes all genders; the singular includes the plural and the plural includes the singular. See Indiana Code 27-1-2-3
  • qualified actuary: means an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries qualification standards. See Indiana Code 27-1-12.8-14
  • reserves: means reserve liabilities. See Indiana Code 27-1-12.8-15
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
     (b) A company with outstanding life insurance contracts, accident and sickness insurance contracts, or deposit-type contracts in Indiana that is subject to regulation by the commissioner shall:

(1) annually submit the opinion of the appointed actuary concerning whether the reserves and related actuarial items held in support of the contracts:

(A) are computed appropriately;

(B) are based on assumptions that satisfy contractual provisions;

(C) are consistent with previously reported amounts; and

(D) comply with applicable Indiana law;

according to the specific requirements prescribed by the Valuation Manual; and

(2) except as exempted in the Valuation Manual, annually submit the opinion of the appointed actuary concerning whether the reserves and related actuarial items held in support of the contracts specified in the Valuation Manual, when considered with the assets held by the company with respect to the reserves and related actuarial items including the:

(A) investment earnings on the assets; and

(B) considerations anticipated to be received and retained under the contracts;

make adequate provision for the company’s obligations, including benefits under, expenses associated with, and any other obligations under the contracts.

     (c) The following requirements apply to an opinion required by subsection (b)(2):

(1) A memorandum, in form and substance as specified in the Valuation Manual and acceptable to the commissioner, must be prepared to support each actuarial opinion.

(2) If:

(A) the company fails to provide a supporting memorandum at the request of the commissioner within a period specified in the Valuation Manual; or

(B) the commissioner determines that the supporting memorandum provided by the company fails to meet the standards prescribed by the Valuation Manual or is otherwise unacceptable to the commissioner;

the commissioner 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 commissioner.

     (d) The following requirements apply to an opinion prepared under subsection (b)(1) or (b)(2):

(1) The opinion must be in form and substance as specified in the Valuation Manual and acceptable to the commissioner.

(2) The opinion must be submitted with the annual statement reflecting the valuation of the reserves for each year ending on or after the operative date of the Valuation Manual.

(3) The opinion must apply to all contracts subject to subsection (b)(2) plus other actuarial liabilities specified in the Valuation Manual.

(4) The opinion must be based on:

(A) standards adopted by the Actuarial Standards Board; and

(B) additional standards prescribed in the Valuation Manual.

(5) In the case of an opinion required to be submitted by a foreign or alien company, the commissioner may accept the opinion filed by the company with the insurance supervisory official of another state if the commissioner determines that the opinion reasonably meets the requirements applicable to a company domiciled in Indiana.

(6) Except in cases of fraud or willful misconduct, the appointed actuary is not liable for damages to a person other than the company and the commissioner for any act, error, omission, decision, or conduct with respect to the appointed actuary’s opinion.

(7) Disciplinary action by the commissioner against the company or the appointed actuary must be defined in rules adopted by the commissioner under IC 4-22-2.

As added by P.L.276-2013, SEC.10. Amended by P.L.124-2018, SEC.24.

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