DAR File No. 39443

Insurance, Administration

Section R590-162-3

Scope

Notice of Proposed Rule

(Amendment)

DAR File No.: 39443
Filed: 06/15/2015 11:56:36 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The rule is being amended to exclude life insurance companies that file the health annual statement from its scope. The change is done to avoid conflicting actuarial opinion requirements for life companies that file the health annual statements. These companies should follow NAIC annual statement instructions rather than this rule.

Summary of the rule or change:

The scope section is amended to exclude life insurance companies that file the health annual statement from its scope.

State statutory or constitutional authorization for this rule:

• Section 31A-17-503

Anticipated cost or savings to:

the state budget:

There is no impact to the state budget. The rule only affects the form of the actuarial opinion required to be filed each year by insurance companies.

local governments:

There is no impact to the local government. The rule only affects the form of the actuarial opinion required to be filed each year by insurance companies.

small businesses:

There is no impact to the small business. The rule only affects the form of the actuarial opinion required to be filed each year by insurance companies.

persons other than small businesses, businesses, or local governmental entities:

There is no impact to persons other than small businesses, businesses, or local government entities. The rule only affects the form of the actuarial opinion required to be filed each year by insurance companies.

Compliance costs for affected persons:

There is no cost to the affected companies. The change simplifies filing requirements for some companies, but any savings would be minimal because for these companies the cost of compliance with the existing requirements is very low.

Comments by the department head on the fiscal impact the rule may have on businesses:

The change will have no fiscal impact. The rule only affects the form of the actuarial opinion required to be filed each year by insurance companies.

Todd E. Kiser, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at sgooch@utah.gov

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:

07/31/2015

This rule may become effective on:

08/07/2015

Authorized by:

Todd Kiser, Commissioner

R590. Insurance, Administration.

R590-162. Actuarial Opinion and Memorandum Rule.

R590-162-3. Scope.

This rule shall apply to all [life insurance ]companies and fraternal benefit societies that file the life, accident and health annual statement[doing business in this State] and to all [life insurance ]companies and fraternal benefit societies [which]that are authorized to reinsure life insurance, annuities or [disability]accident and health insurance business in this State.

Companies that file the property and casualty annual statement or the health annual statement shall follow the actuarial opinion and supporting actuarial memoranda requirements pursuant to the instructions for these annual statements. Such companies are not subject to actuarial opinion and supporting actuarial memoranda requirements of this rule.

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. A statement of opinion on the adequacy of the reserves and related actuarial items based on an asset adequacy analysis in accordance with Section 6 of this rule, and a memorandum in support thereof in accordance with Section 7 of this rule, shall be required each year.

 

KEY: insurance

Date of Enactment or Last Substantive Amendment: [December 5, 2012]2015

Notice of Continuation: September 27, 2013

Authorizing, and Implemented or Interpreted Law: 31A-17-503