File No. 36215
This rule was published in the June 1, 2012, issue (Vol. 2012, No. 11) of the Utah State Bulletin.
Insurance, Administration
Rule R590-162
Actuarial Opinion and Memorandum Rule
Notice of Proposed Rule
(Amendment)
DAR File No.: 36215
Filed: 05/15/2012 04:17:41 PM
RULE ANALYSIS
Purpose of the rule or reason for the change:
This rule is being changed to more closely follow the National Association of Insurance Commissioners (NAIC) Model Regulation. This regulation has already been adopted by most states.
Summary of the rule or change:
This rule affects all life insurance companies and fraternal benefit societies doing business in Utah. The amendments: 1) require that all life insurance companies and fraternal benefit societies, regardless of size, file an actuarial opinion based on an asset adequacy analysis; 2) require domestic life insurers to submit, by March 15th of each year, and all foreign licensed life insurers to complete and make available to the department upon request, the Regulatory Asset Adequacy Issues Summary (RAAIS), a confidential document, providing details regarding the asset adequacy analysis; and 3) provide a process for the foreign insurers to file actuarial opinions based on the laws of the state of their domicile. These proposed amendments are intended to improve the regulatory oversight and to help Utah comply with the accreditation standards of the NAIC.
State statutory or constitutional authorization for this rule:
- Section 31A-17-503
Anticipated cost or savings to:
the state budget:
The department is already asking domestic life insurers, of which there are 16, to provide the department with the Regulatory Asset Adequacy Issues Summary (RAAIS) document noted in 6 above. Once received the department would put it in the company's file. It would not require the department to hire additional employees or work overtime.
local governments:
The changes to this rule will have no fiscal impact on local governments since they deal solely with the relationship between the department and its licensees.
small businesses:
This rule will not affect small businesses. It will only affect life and fraternal life insurers doing business in Utah; all of which have over 50 employees.
persons other than small businesses, businesses, or local governmental entities:
The changes in this rule may affect at least four out of sixteen domestic life insurers that are not already complying with the requirements of the rule. Of the four that are not complying yet, one said it could comply without any problem or added expense, and three others could possibly ask to be exempted from the rule since they have very little or no insurance business outside of the state, or they could hire a consultant to file the form for two to three years until their in-house actuary is able to do it, or they could just hire it out every year to a consultant to do it for them. Consultants may charge as much as $200 per hour.
Compliance costs for affected persons:
The changes in this rule may affect at least four out of sixteen domestic life insurers that are not already complying with the requirements of the rule. Of the four that are not complying yet, one said it could comply without any problem or added expense, and three others could possibly ask to be exempted from the rule since they have very little or no insurance business outside of the state, or they could hire a consultant to file the form for two to three years until their in-house actuary is able to do it, or they could just hire it out every year to a consultant to do it for them. Consultants may charge as much as $200 per hour.
Comments by the department head on the fiscal impact the rule may have on businesses:
The new requirements in this rule may financially impact one to three of our sixteen domestic life insurers. Two of these could ask to be exempted from the rule and not be impacted at all. It should be noted that the department has received no written comments from our domestic life insurers to the effect that the rule will have a negative impact on them or their business.
Neal T. Gooch, Commissioner
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:
InsuranceAdministration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201
Direct questions regarding this rule to:
- Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected]
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
07/02/2012
This rule may become effective on:
07/09/2012
Authorized by:
Jilene Whitby, Information Specialist
RULE TEXT
R590. Insurance, Administration.
R590-162. Actuarial Opinion and Memorandum Rule.
R590-162-1. Purpose.
The purpose of this rule is to prescribe:
A. [Guidelines and standards]Requirements for statements of actuarial opinion which are
to be submitted in accordance with Section 31A-17-503, and for
memoranda in support thereof;
B. [Guidelines and standards for statements of actuarial
opinion which are to be submitted when a company is exempt from
Subsection 31A-17-503(3)]Guidance as to the meaning of "adequacy of reserves;
" and
C. Rules applicable to the appointment of an appointed actuary.
R590-162-2. Authority.
This rule is issued pursuant to the
authority vested in the Commissioner of Insurance of the State of
Utah under Section 31A-17 Part 5. This rule will take effect for
annual statements for the year [1993]2011.
R590-162-3. Scope.
This rule shall apply to all life insurance companies and fraternal benefit societies doing business in this State and to all life insurance companies and fraternal benefit societies which are authorized to reinsure life insurance, annuities or disability insurance business in this State.
This rule shall be applied in a manner that allows the appointed actuary to utilize professional judgment in performing the asset adequacy analysis and developing the actuarial opinion and supporting memoranda, consistent with applicable actuarial standards of practice. However, the commissioner shall have the authority to specify the methods of actuarial analysis and actuarial assumptions when, in the commissioner's judgment, these specifications are necessary for an acceptable opinion to be rendered relative to the adequacy of reserves and related items.
This rule shall be applicable to all
annual statements filed with the office of the commissioner after
the effective date of this rule. [Except with respect to companies which are exempted
pursuant to Section 6 of this rule, a]A statement of opinion on the adequacy of the reserves and
related actuarial items based on an asset adequacy analysis in
accordance with Section [8]6 of this rule, and a memorandum in support thereof in
accordance with Section [9]7 of this rule, shall be required each year.[
Any company so exempted must file a statement of actuarial
opinion pursuant to Section 7 of this rule.
Notwithstanding the foregoing, the commissioner may require
any company otherwise exempt pursuant to this rule to submit a
statement of actuarial opinion and to prepare a memorandum in
support thereof in accordance with Sections 8 and 9 of this rule
if, in the opinion of the commissioner, an asset adequacy analysis
is necessary with respect to the company.]
R590-162-4. Definitions.
A. Actuarial Opinion means[:
(1) With respect to Section 8, 9 or 10 of this
rule,] the opinion of an Appointed Actuary regarding the
adequacy of the reserves and related actuarial items based on an
asset adequacy test in accordance with Section [8]6 of this rule and with [presently accepted]applicable Actuarial Standards
of Practice[;
(2) With respect to Section 7 of this rule, the opinion of
an Appointed Actuary regarding the calculation of reserves and
related items, in accordance with Section 7 of this rule and with
those presently accepted Actuarial Standards which specifically
relate to this opinion].
B. "Actuarial Standards Board" is the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice.
C. "Annual Statement" means that statement required by Section 31A-4-113 to be filed by the company with the office of the commissioner annually.
D. "Appointed Actuary" means any individual who is appointed or retained in accordance with the requirements set forth in Section 5C of this rule to provide the actuarial opinion and supporting memorandum as required by 31A-17-503.
E. "Asset Adequacy Analysis" means an analysis that meets the standards and other requirements referred to in Section 5D of this rule. It may take many forms, including, but not limited to, cash flow testing, sensitivity testing or applications of risk theory.
F. "Commissioner" means the Insurance Commissioner of this State.
G. "Company" means a life insurance company, fraternal benefit society or reinsurer subject to the provisions of this rule.
[
H. "Non-Investment Grade Bonds" are those
designated as classes 3, 4, 5 or 6 by the NAIC Securities Valuation
Office.
] I. "Qualified Actuary" means any individual who meets the requirements set forth in Section 5B of this rule.
R590-162-5. General Requirements.
A. Submission of Statement of Actuarial Opinion
(1) 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 rule 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 Section [8]6 of this rule
.[; provided, however, that any company exempted pursuant to
Section 6 of this rule from submitting a statement of actuarial
opinion in accordance with Section 8 of this rule 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 Section 7 of this rule.
(2) If in the previous year a company provided a statement
of actuarial opinion in accordance with Section 7 of this rule, and
in the current year fails the exemption criteria of Sections 6C(1),
6C(2) or 6C(5) of this rule, to again provide an actuarial opinion
in accordance with Section 7 of this rule, the statement of
actuarial opinion in accordance with Section 8 of this rule, 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 Section 7 of this rule,
with appropriate qualification noting the intent to subsequently
provide a statement of actuarial opinion in accordance with Section
8 of this rule.]
([3]2) In the case of a statement of actuarial opinion required
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.
([4]3) Upon written request by the company, the commissioner may
grant an extension of the date for submission of the statement of
actuarial opinion.
B. Qualified Actuary
A "qualified actuary" is an individual who:
(1) Is a member in good standing of the
American Academy of Actuaries;[
and]
(2) Is qualified to sign statements of
actuarial opinion for life and [disability]health insurance company annual statements in accordance
with the American Academy of Actuaries qualification standards for
actuaries signing such statements;[
and]
(3) Is familiar with the valuation
requirements applicable to life and [disability]health insurance companies;[
and]
(4) 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:
(a) Violated any provision of, or any
obligation imposed by, the Utah Code or other law in the course of
his or her dealings as a qualified actuary;[or]
(b) Been found guilty of fraudulent or
dishonest practices;[
or]
(c) Demonstrated his or her incompetency,
lack of cooperation, or untrustworthiness to act as a qualified
actuary;[
or]
(d) Submitted to the commissioner during the past five years, pursuant to this rule, an actuarial opinion or memorandum that the commissioner rejected because it did not meet the provisions of this rule including standards set by the Actuarial Standards Board; or
(e) Resigned or been removed as an actuary within the past five 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 commissioner of any action taken by any commissioner of any other state similar to that under Paragraph (4) above.
C. Appointed Actuary
An "appointed actuary" is a qualified actuary who is appointed or retained to prepare the Statement of Actuarial Opinion required by this rule, either directly by or by the authority of the board of directors through an executive officer of the company other than the qualified actuary. 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 Section 5B of this rule. 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 Section 5B. 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.
D. Standards for Asset Adequacy Analysis
The asset adequacy analysis required by this rule:
(1) Shall conform to the Standards of
Practice as promulgated from time to time by the Actuarial
Standards Board and on any additional standards under this rule,
which standards are to form the basis of the statement of actuarial
opinion in accordance with [Section 8 of] this rule; and
(2) Shall be based on methods of analysis as are deemed appropriate for such purposes by the Actuarial Standards Board.
E. Liabilities to be Covered
(1) Under authority of Section 31A-17-503, the statement of actuarial opinion shall apply to all in force business on the statement date , whether directly issued or assumed, 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.
(2) 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 Sections 31A-17-505(1), 31A-17-505(1)(a), 31A-17-511, 31A-17-512, and 31A-17-513, the company shall establish such additional reserve.
[
(3) For years ending prior to December 31, 1995, the
company may, in lieu of establishing the full amount of the
additional reserve in the annual statement for that year, set up an
additional reserve in an amount not less than the
following:
December 31, 1993. The additional reserve divided by
three.
December 31, 1994. Two times the additional reserve
divided by three.
] ([4]3) Additional reserves established under Paragraphs (2) [or (3)] 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.
[R590-162-6. Required Opinions.
A. General
In accordance with Section 31A-17-503, every company
doing business in this State shall annually submit the opinion of
an appointed actuary as provided for by this rule. The type of
opinion submitted shall be determined by the provisions set forth
in this Section 6 and shall be in accordance with the applicable
provisions in this rule.
B. Company Categories
For purposes of this rule, companies shall be classified
as follows based on the admitted assets as of the end of the
calendar year for which the actuarial opinion is
applicable:
(1) Category A shall consist of those companies whose
admitted assets do not exceed $20 million;
(2) Category B shall consist of those companies whose
admitted assets exceed $20 million but do not exceed $100
million;
(3) Category C shall consist of those companies whose
admitted assets exceed $100 million but do not exceed $500
million; and
(4) Category D shall consist of those companies whose
admitted assets exceed $500 million.
C. Exemption Eligibility Tests
(1) Any Category A company that, for any year beginning
with the year in which this rule becomes effective, meets all of
the following criteria shall be eligible for exemption from
submission of a statement of actuarial opinion in accordance with
Section 8 of this rule for the year in which these criteria are
met. The ratios in (a), (b) and (c) below shall be calculated
based on amounts as of the end of the calendar year for which the
actuarial opinion is applicable.
(a) The ratio of the sum of capital and surplus to the
sum of cash and invested assets is at least equal to
.10.
(b) The ratio of the sum of the reserves and liabilities
for annuities and deposits to the total admitted assets is less
than .30.
(c) The ratio of the book value of the non-investment
grade bonds to the sum of capital and surplus is less than
.50.
(d) The Examiner Team for the National Association of
Insurance Commissioners (NAIC) has not designated the company as
a first priority company in any of the two calendar years
preceding the calendar year for which the actuarial opinion is
applicable, or a second priority company in each of the two
calendar years preceding the calendar year for which the
actuarial opinion is applicable, or the company has resolved the
first or second priority status to the satisfaction of the
commissioner of the state of domicile and the commissioner has so
notified the chair of the NAIC Life and Health Actuarial Task
Force and the NAIC Staff and Support Office.
(2) Any Category B company that, for any year beginning
with the year in which this rule becomes effective, meets all of
the following criteria shall be eligible for exemption from
submission of a statement of actuarial opinion in accordance with
Section 8 of this rule for the year in which the criteria are
met. The ratios in (a), (b) and (c) below shall be calculated
based on amounts as of the end of the calendar year for which the
actuarial opinion is applicable.
(a) The ratio of the sum of capital and surplus to the
sum of cash and invested assets is at least equal to
.07.
(b) The ratio of the sum of the reserves and liabilities
for annuities and deposits to the total admitted assets is less
than .40.
(c) The ratio of the book value of the non-investment
grade bonds to the sum of capital and surplus is less than
.50.
(d) The Examiner Team for the National Association of
Insurance Commissioners (NAIC) has not designated the company as
a first priority company in any of the two calendar years
preceding the calendar year for which the actuarial opinion is
applicable, or a second priority company in each of the two
calendar years preceding the calendar year for which the
actuarial opinion is applicable, or the company has resolved the
first or second priority status to the satisfaction of the
commissioner of the state of domicile and the commissioner has so
notified the chair of the NAIC Life and Health Actuarial Task
Force and the NAIC Staff and Support Office.
(3) Any Category A or Category B company that meets all
of the criteria set forth in Paragraph (1) or (2) of this
subsection, whichever is applicable, is exempted from submission
of a statement of actuarial opinion in accordance with Section 8
of this rule unless the commissioner specifically indicates to
the company that the exemption is not to be taken.
(4) Any Category A or Category B company that, for any
year beginning with the year in which this rule becomes
effective, is not exempted under Paragraph (3) of this subsection
shall be required to submit a statement of actuarial opinion in
accordance with Section 8 of this rule for the year for which it
is not exempt.
(5) Any Category C company that, after submitting an
opinion in accordance with Section 8 of this rule, meets all of
the following criteria shall not be required, unless required in
accordance with Paragraph (6) below, to submit a statement of
actuarial opinion in accordance with Section 8 of this rule more
frequently than every third year. Any Category C company which
fails to meet all of the following criteria for any year shall
submit a statement of actuarial opinion in accordance with
Section 8 of this rule for that year. The ratios in (a), (b) and
(c) below shall be calculated based on amounts as of the end of
the calendar year for which the actuarial opinion is
applicable.
(a) The ratio of the sum of capital and surplus to the
sum of cash and invested assets is at least equal to
.05.
(b) The ratio of the sum of the reserves and liabilities
for annuities and deposits to the total admitted assets is less
than .50.
(c) The ratio of the book value of the non-investment
grade bonds to the sum of the capital and surplus is less than
.50.
(d) The Examiner Team for the NAIC has not designated the
company as a first priority company in any of the two calendar
years preceding the calendar year for which the actuarial opinion
is applicable, or a second priority company in each of the two
calendar years preceding the calendar year for which the
actuarial opinion is applicable, or the company has resolved the
first or second priority status to the satisfaction of the
commissioner of the state of domicile and the commissioner has so
notified the chair of the NAIC Life and Health Actuarial Task
Force and the NAIC Staff and Support Office.
(6) Any company which is not required by this Section 6
to submit a statement of actuarial opinion in accordance with
Section 8 of this rule for any year shall submit a statement of
actuarial opinion in accordance with Section 7 of this rule for
that year unless as provided for by the second paragraph of
Section 3 of this rule the commissioner requires a statement of
actuarial opinion in accordance with Section 8 of this
rule.
D. Large Companies
Every Category D company shall submit a statement of
actuarial opinion in accordance with Section 8 of this rule for
each year beginning with the year in which this rule becomes
effective.
R590-162-7. Statement of Actuarial Opinion Not Including an
Asset Adequacy Analysis.
A. General Description
The statement of actuarial opinion required by this
section shall consist of a paragraph identifying the appointed
actuary and his or her qualifications; a regulatory authority
paragraph stating that the company is exempt pursuant to this
rule from submitting a statement of actuarial opinion based on an
asset adequacy analysis and that the opinion, which is not based
on an asset adequacy analysis, is rendered in accordance with
Section 7 of this rule; a scope paragraph identifying the
subjects on which the opinion is to be expressed and describing
the scope of the appointed actuary's work; and an opinion
paragraph expressing the appointed actuary's opinion as
required by Section 31A-17-503.
B. Recommended Language
The following language provided is that which in typical
circumstances would be included in a statement of actuarial
opinion in accordance with this section. 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 Section 7 of this rule.
(1) The opening paragraph should indicate the appointed
actuary's relationship to the company. For a company actuary,
the opening paragraph of the actuarial opinion should read as
follows:
"I, (name of actuary), am (title) of (name of
company) 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
companies."
For a consulting actuary, the opening paragraph of the
actuarial opinion should contain a sentence such as:
"I, (name and title of actuary), a member of the
American Academy of Actuaries, am associated with the firm of
(insert 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."
(2) The regulatory authority paragraph should include a
statement such as the following: "Said company is exempt
pursuant to Rule (insert designation) of the (name of state)
Insurance Department from submitting a statement of actuarial
opinion based on an asset adequacy analysis. This opinion, which
is not based on an asset adequacy analysis, is rendered in
accordance with Section 7 of the rule."
(3) The scope paragraph should contain a sentence 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, ( )."
The paragraph should list items and amounts with respect
to which the appointed actuary is expressing an opinion. The list
should include but not be necessarily limited to:
(a) Aggregate reserve and deposit funds for policies and
contracts included in Exhibit 8;
(b) Aggregate reserve and deposit funds for policies and
contracts included in Exhibit 9;
(c) Deposit funds, premiums, dividend and coupon
accumulations and supplementary contracts not involving life
contingencies included in Exhibit 10; and
(d) Policy and contract claims--liability end of current
year included in Exhibit 11, Part I.
(4) If the appointed actuary has examined the underlying
records, the scope paragraph should also include the
following:
"My examination included such review of the
actuarial assumptions and actuarial methods and of the underlying
basic records and such tests of the actuarial calculations as I
considered necessary."
(5) If the appointed actuary has not examined the
underlying records, but has relied upon listings and summaries of
policies in force prepared by the company or a third party, the
scope paragraph should include a sentence such as one of the
following:
"I have relied upon listings and summaries of
policies and contracts and other liabilities in force prepared by
(name and title of company officer certifying in force records)
as certified in the attached statement. (See accompanying
affidavit by a company officer.) In other respects my examination
included 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
such tests of the actuarial calculations as I considered
necessary."
The statement of the person certifying shall follow the
form indicated by Section 7B(10) of this rule.
(6) The opinion paragraph should include the
following:
"In my opinion the amounts carried in the balance
sheet on account of the actuarial items identified
above:
(a) Are computed in accordance with those presently
accepted actuarial standards which specifically relate to the
opinion required under this section;
(b) 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;
(c) Meet the requirements of the Insurance Law and rules
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.
(d) 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 as
noted below; and
(e) Include provision for all actuarial reserves and
related statement items which ought to be established.
The actuarial methods, considerations and analyses used
in forming my opinion conform to the appropriate Compliance
Guidelines as promulgated by the Actuarial Standards Board, which
guidelines form the basis of this statement of
opinion."
(7) The concluding paragraph should document the
eligibility for the company to provide an opinion as provided by
this Section 7. It shall include the following:
"This opinion is provided in accordance with Section
7 of the NAIC Actuarial Opinion and Memorandum Rule. As such it
does not include an opinion regarding the adequacy of reserves
and related actuarial items when considered in light of the
assets which support them.
Eligibility for Section 7 of this rule is confirmed as
follows:
(a) The ratio of the sum of capital and surplus to the
sum of cash and invested assets is (insert amount), which equals
or exceeds the applicable criterion based on the admitted assets
of the company specified in Section 6C of this rule.
(b) The ratio of the sum of the reserves and liabilities
for annuities and deposits to the excess of the total admitted
assets is (insert amount), which is less than the applicable
criteria based on the admitted assets of the company specified in
Section 6C of this rule.
(c) The ratio of the book value of the non-investment
grade bonds to the sum of capital and surplus is (insert amount),
which is less than the applicable criteria of .50.
(d) To my knowledge, the NAIC Examiner Team has not
designated the company as a first priority company in any of the
two calendar years preceding the calendar year for which the
actuarial opinion is applicable, or a second priority company in
each of the two calendar years preceding the calendar year for
which the actuarial opinion is applicable or the company has
resolved the first or second priority status to the satisfaction
of the commissioner of the state of domicile.
(e) To my knowledge there is not a specific request from
any commissioner requiring an asset adequacy analysis
opinion.
.......................................
Signature of Appointed Actuary
.......................................
Address of Appointed Actuary
.......................................
Telephone Number of Appointed Actuary"
(8) If there has been any change in the actuarial
assumptions from those previously employed, that change should be
described in the annual statement or in a paragraph of the
statement of actuarial opinion, and the reference in Section
7B(6)(d) above to consistency should read as follows:
"... with the exception of the change described on
Page ( ) of the annual statement (or in the preceding
paragraph)."
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 this paragraph.
(9) If the appointed actuary is unable to form an
opinion, he or she shall refuse to issue a statement of actuarial
opinion. If the appointed actuary's opinion is adverse or
qualified, 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.
(10) If the appointed actuary does not express an opinion
as to the accuracy and completeness of the listings and summaries
of policies in force, there should 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 and address
of company or accounting firm), hereby affirm that the listings
and summaries of policies and contracts in force as of December
31, ( ), 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"
]R590-162-[8]6. Statement of Actuarial Opinion Based On an Asset Adequacy
Analysis.
A. General Description
The statement of actuarial opinion submitted in accordance with this section shall consist of:
(1) A paragraph identifying the appointed
actuary and his or her qualifications as specified in Section [8]6B(1) of this rule;
(2) 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, as
specified in Section [8]6B(2) of this rule, and identifying the reserves and related
actuarial items covered by the opinion which have not been so
analyzed;
(3) 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, as
specified in Section [8]6B(3) of this rule, supported by a statement of each such
expert in the form prescribed by Section [8]6E of this rule; and
(4) An opinion paragraph expressing the
appointed actuary's opinion with respect to the adequacy of the
supporting assets to mature the liabilities, as specified in
Section [8]6B(6) of this rule.
(5) One or more additional paragraphs will be needed in individual company cases as follows:
(a) If the appointed actuary considers it
necessary to state a qualification of [his or her]the opinion;
(b) If the appointed actuary must disclose the method of aggregation for reserves of different products or lines of business for asset adequacy analysis;
(c) 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.
(d) 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.
(e) 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.
(f) If the appointed actuary chooses to add a paragraph briefly describing the assumptions which form the basis for the actuarial opinion.
B. Recommended Language
The following paragraphs are to be included in the statement of actuarial opinion in accordance with this section. 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 section.
(1) The opening paragraph should generally indicate the appointed actuary's relationship to the company and his or her qualifications to sign the opinion. 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]health insurance companies."
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]health insurance companies."
(2) 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, [19]20( ). Tabulated below are those reserves and related
actuarial items which have been subjected to asset adequacy
analysis.
(3) 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
or certain critical aspects of the analysis performed in
conjunction with forming my opinion)[
and], as certified in the attached statement[,]
I have reviewed the information relied upon for
reasonableness.[..]"
[
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 Section [8]6E of this rule.
(4) 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. I also reconciled the underlying basic asset and liability records to (exhibits and schedules listed as applicable) of the company's current annual statement."
(5) If the appointed actuary has not
examined the underlying records, but has relied upon
data (e.g., 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]statement such as:
"In forming my opinion on (specify types of reserves) I have
relied upon
data[listings and summaries (of policies and contracts, of asset
records)] prepared by (name and title of company officer
certifying in-force records
or other data) as certified in the attached statement.
I evaluated that data for reasonableness and consistency. I also
reconciled that data to (exhibits and schedules to be listed as
applicable) of the company's current annual 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
statement of reliance[section] must be accompanied by a statement by
each person relied upon of the form prescribed by Section [8]6E of this rule.
(6) The opinion paragraph should include the following:
"In my opinion the reserves and related actuarial values concerning the statement items identified above:
(a) Are computed in accordance with presently accepted actuarial standards consistently applied and are fairly stated, in accordance with sound actuarial principles;
(b) 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;
(c) Meet the requirements of the Insurance Law and rule 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.
(d) 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);
(e) 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. (At the discretion of the commissioner, this language may be omitted for an opinion filed on behalf of a company doing business only in this State and in no other state.)
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["]
...................
Date"
C. Assumptions for New Issues
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 this Section [8]6.
D. Adverse Opinions
If the appointed actuary is unable to form
an opinion, then [he or she]the actuary shall refuse to issue a statement of actuarial
opinion. If the appointed actuary's opinion is adverse or
qualified, then [he or she]the actuary 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.
E. Reliance on Data Furnished by Other Persons
If the appointed actuary relies on the certification of others on matters concerning the accuracy or completeness of any data underlying the actuarial opinion, or the appropriateness of any other information used by the appointed actuary in forming the actuarial opinion, the actuarial opinion should so indicate the persons the actuary is relying upon and a precise identification of the items subject to the reliance.
In addition, the persons on whom the appointed actuary relies
shall provide a certification that precisely identifies the items
on which the person is providing information and a statement as to
the accuracy, completeness or reasonableness, as applicable, of the
items. This certification shall include the signature, title,
company, address and telephone number of the person rendering the
certification, as well as the date on which it is signed.[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,
19( ), 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"]
F. Alternate Option
(1) As an alternative to the requirements of Subsection B(6)(c) of this rule, the appointed actuary may state that the reserves and related actuarial values "meet the requirements of the Insurance Law and rule of the State of (state of domicile) and I have verified that the company's request to file an opinion based on the laws of the state of domicile has been approved by the commissioner and that any conditions required by the commissioner for approval of that request have been met."
(2) To use this alternative, the company shall file a request to do so, along with the justification for its use, no later than April 30 of the year of the opinion to be filed. The request shall be deemed approved on October 1 of that year if the commissioner has not denied the request by that date.
(3) Notwithstanding the above, the commissioner may reject an opinion based on the laws of the state of domicile and require an opinion based on the laws of this State. If a company is unable to provide the opinion within sixty days of the request or such other period of time determined by the commissioner after consultation with the company, the commissioner may contract an independent actuary at the company's expense to prepare and file the opinion.
R590-162-[9]7. Description of Actuarial Memorandum Including an Asset
Adequacy Analysis.
A. General
(1) In accordance with Section 31A-17-503,
the appointed actuary shall prepare a memorandum to the company
describing the analysis done in support of [his or her]the opinion regarding the reserves[
under a Section 8 opinion]. The memorandum shall
be made available for examination by the commissioner upon [his or her] request but shall be returned to the
company after such examination and shall not be considered a record
of the insurance department or subject to automatic filing with the
commissioner.
(2) In preparing the memorandum, the appointed actuary may rely on, and include as a part of his or her own memorandum, memoranda prepared and signed by other actuaries who are qualified within the meaning of Section 5B of this rule, with respect to the areas covered in such memoranda, and so state in their memoranda.
(3) If the commissioner requests a memorandum and no such memorandum exists or if the commissioner finds that the analysis described in the memorandum fails to meet the standards of the Actuarial Standards Board or the standards and requirements of this rule, the commissioner may designate a qualified actuary to review the opinion and prepare such supporting memorandum as is required for review. The reasonable and necessary expense of the independent review shall be paid by the company but shall be directed and controlled by the commissioner.
(4) The reviewing actuary shall have the same status as an examiner for purposes of obtaining data from the company and the work papers and documentation of the reviewing actuary shall be retained by the commissioner; provided, however, that any information provided by the company to the reviewing actuary and included in the work papers shall be considered as material provided by the company to the commissioner and shall be kept confidential to the same extent as is prescribed by law with respect to other material provided by the company to the commissioner pursuant to the statute governing this rule. The reviewing actuary shall not be an employee of a consulting firm involved with the preparation of any prior memorandum or opinion for the insurer pursuant to this rule for any one of the current year or the preceding three years.
(5)(a) In accordance with Section 31A-17-503, the appointed actuary shall prepare a regulatory asset adequacy issues summary, the content of which are specified in Subsection C.
(b) Every company domiciled in this state shall submit the regulatory asset adequacy issues summary no later than March 15 of the year following the year for which a statement of actuarial opinion based on asset adequacy is required.
(c) Every foreign company is required to make the regulatory asset adequacy issues summary available to the commissioner upon request.
(d) The regulatory asset adequacy issues summary shall be kept confidential to the same extent and under the same conditions as the actuarial memorandum.
B. Details of the Memorandum Section
Documenting Asset Adequacy Analysis[
of Section 8 of this rule].
When an actuarial opinion [under Section 8 of this rule] is provided, the
memorandum shall demonstrate that the analysis has been done in
accordance with the standards for asset adequacy referred to in
Section 5D of this rule and any additional standards under this
rule. It shall specify:
(1) For reserves:
(a) Product descriptions including market description, underwriting and other aspects of a risk profile and the specific risks the appointed actuary deems significant;
(b) Source of liability in force;
(c) Reserve method and basis;
(d) Investment reserves;
(e) Reinsurance arrangements[.];
(f) Identification of any explicit or implied guarantees made the general account in support of benefits provided through a separate account or under a separate account policy or contract and the methods used by the appointed actuary to provide for the guarantees in the asset adequacy analysis; and
(g) Documentation of assumptions to test reserves for the following:
(i) Lapse rates (both base and excess);
(ii) Interest crediting strategy;
(iii) Mortality;
(iv) Policyholder dividend strategy;
(v) Competitor or market interest rate;
(vi) Annuitization rates;
(vii) Commissions and expenses; and
(viii) Morbidity.
(2) For assets:
(a) Portfolio descriptions, including a risk profile disclosing the quality, distribution and types of assets;
(b) Investment and disinvestment assumptions;
(c) Source of asset data;
(d) Asset valuation bases[.]; and
(e) Documentation of assumptions made for:
(i) Default costs;
(ii) Bond call function;
(iii) Mortgage prepayment function;
(iv) Determining market value for assets sold due to disinvestment strategy; and
(v) Determining yield on assets acquired through the investment strategy.
(3)
For the [A]analysis basis:
(a) Methodology;
(b) Rationale for inclusion/exclusion of different blocks of business and how pertinent risks were analyzed;
(c) Rationale for degree of rigor in analyzing different blocks of business (include in the rationale the level of "materiality" that was used in determining how rigorously to analyze different blocks of business);
(d) Criteria for determining asset adequacy (include in the criteria the precise basis for determining if assets are adequate to cover reserves under "moderately adverse conditions" or other conditions as specified in relevant actuarial standards of practice); and
(e) Effect of federal income taxes, reinsurance and other relevant factors.
(4) Summary of material changes in methods, procedures, or assumptions from prior year's asset adequacy analysis;
([4]5) Summary of Results
; and
([5]6) Conclusions.[(s)]
C. [Conformity to Standards of Practice]Details of the Regulatory Asset Adequacy Summary
(1) The regulatory asset adequacy issues summary shall include:
(a) Descriptions of the scenarios tested (including whether those scenarios are stochastic or deterministic) and the sensitivity testing done relative to those scenarios. If negative ending surplus results under certain tests in aggregate, the actuary should describe those tests and the amount of additional reserve as of the valuation date which, if held, would eliminate the negative aggregate surplus values. Ending surplus values shall be determined by either extending the projection period until the in force and associated assets and liabilities at the end of the projection period are immaterial or by adjusting the surplus amount at the end of the projection period by an amount that appropriately estimates the value that can reasonably be expected to arise from the assets and liabilities remaining in force;
(b) The extent to which the appointed actuary uses assumptions in the asset adequacy analysis that are materially different than the assumptions used in the previous asset adequacy analysis;
(c) The amount of reserves and the identity of the product lines that had been subjected to asset adequacy analysis in the prior opinion but were not subject to analysis for the current opinion;
(d) Comments on any interim results that may be of significant concern to the appointed actuary. For example, the impact of the insufficiency of assets to support the payment of benefits and expenses and the establishment of statutory reserve during one or more interim periods;
(e) The methods used by the actuary to recognize the impact of reinsurance on the company's cash flows, including both assets and liabilities, under each scenario tested; and
(f) Whether the actuary has been satisfied that all options, whether explicit or embedded, in any asset or liability (including but not limited to those affecting cash flows embedded in fixed income securities) and equity-like features in any investments have been appropriately considered in the asset adequacy analysis.
(2) The regulatory asset adequacy issues summary shall contain the name of the company for which the regulatory asset adequacy issues summary is being supplied and shall be signed and dated by the appointed actuary rendering the actuarial opinion.
[
The memorandum shall include a statement:
"Actuarial methods, considerations and analyses used
in the preparation of this memorandum conform to the appropriate
Standards of Practice as promulgated by the Actuarial Standards
Board, which standards form the basis for this
memorandum."
R590-162-10. Additional Considerations for Analysis.
A. Aggregation
For the asset adequacy analysis for the statement of
actuarial opinion provided in accordance with Section 8 of this
rule, reserves and assets may be aggregated by either of the
following methods:
(1) Aggregate the reserves and related actuarial items,
and the supporting assets, for different products or lines of
business, before analyzing the adequacy of the combined assets to
mature the combined liabilities. The appointed actuary must be
satisfied that the assets held in support of the reserves and
related actuarial items so aggregated are managed in such a
manner that the cash flows from the aggregated assets are
available to help mature the liabilities from the blocks of
business that have been aggregated.
(2) Aggregate the results of asset adequacy analysis of
one or more products or lines of business, the reserves for which
prove through analysis to be redundant, with the results of one
or more products or lines of business, the reserves for which
prove through analysis to be deficient. The appointed actuary
must be satisfied that the asset adequacy results for the various
products or lines of business for which the results are so
aggregated:
(a) Are developed using consistent economic scenarios,
or
(b) Are subject to mutually independent risks, i.e., the
likelihood of events impacting the adequacy of the assets
supporting the redundant reserves is completely unrelated to the
likelihood of events impacting the adequacy of the assets
supporting the deficient reserves. In the event of any
aggregation, the actuary must disclose in his or her opinion that
such reserves were aggregated on the basis of method (1), (2)(a)
or (2)(b) above, whichever is applicable, and describe the
aggregation in the supporting memorandum.
B. Selection of Assets for Analysis
The appointed actuary shall analyze only those assets
held in support of the reserves which are the subject for
specific analysis, hereafter called "specified
reserves." A particular asset or portion thereof supporting
a group of specified reserves cannot support any other group of
specified reserves. An asset may be allocated over several groups
of specified reserves. The annual statement value of the assets
held in support of the reserves shall not exceed the annual
statement value of the specified reserves, except as provided in
Subsection C below. If the method of asset allocation is not
consistent from year to year, the extent of its inconsistency
should be described in the supporting memorandum.
C. Use of Assets Supporting the Interest Maintenance
Reserve and the Asset Valuation Reserve:
An appropriate allocation of assets in the amount of the
Interest Maintenance Reserve (IMR), whether positive or negative,
must be used in any asset adequacy analysis. Analysis of risks
regarding asset default may include an appropriate allocation of
assets supporting the Asset Valuation Reserve (AVR); these AVR
assets may not be applied for any other risks with respect to
reserve adequacy. Analysis of these and other risks may include
assets supporting other mandatory or voluntary reserves available
to the extent not used for risk analysis and reserve support. The
amount of the assets used for the AVR must be disclosed in the
Table of Reserves and Liabilities of the opinion and in the
memorandum. The method used for selecting particular assets or
allocated portions of assets must be disclosed in the
memorandum.
D. Required Interest Scenarios
For the purpose of performing the asset adequacy analysis
required by this rule, the qualified actuary is expected to
follow standards adopted by the Actuarial Standards Board;
nevertheless, the appointed actuary must consider in the analysis
the effect of at least the following interest rate
scenarios:
(1) Level with no deviation;
(2) Uniformly increasing over ten years at a half percent
per year and then level;
(3) Uniformly increasing at one percent per year over
five years and then uniformly decreasing at one percent per year
to the original level at the end of ten years and then
level;
(4) An immediate increase of 3% and then level;
(5) Uniformly decreasing over ten years at a half percent
per year and then level;
(6) Uniformly decreasing at one percent per year over
five years and then uniformly increasing at one percent per year
to the original level at the end of ten years and then level;
and
(7) An immediate decrease of 3% and then level.
For these and other scenarios which may be used,
projected interest rates for a five year Treasury Note need not
be reduced beyond the point where the five year Treasury Note
yield would be at 50% of its initial level.
The beginning interest rates may be based on interest
rates for new investments as of the valuation date similar to
recent investments allocated to support the product being tested
or be based on an outside index, such as Treasury yields, of
assets of the appropriate length on a date close to the valuation
date.
Whatever method is used to determine the beginning yield
curve and associated interest rates should be specifically
defined. The beginning yield curve and associated interest rates
should be consistent for all interest rate scenarios.
E]D. Documentation
The appointed actuary shall retain on file, for at least seven years, sufficient documentation so that it will be possible to determine the procedures followed, the analyses performed, the bases for assumptions and the results obtained. The documentation of the assumptions shall be such that an actuary reviewing the actuarial memorandum could form a conclusion as to the reasonableness of the assumptions.
KEY: insurance
Date of Enactment or Last Substantive Amendment: [1994]2012
Notice of Continuation: October 30, 2008
Authorizing, Implemented or Interpreted Law: 31A-17-503
Additional Information
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2012/b20120601.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
Text to be deleted is struck through and surrounded by brackets (e.g., [example]). Text to be added is underlined (e.g., example). Older browsers may not depict some or any of these attributes on the screen or when the document is printed.
For questions regarding the content or application of this rule, please contact Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected].