Property and Casualty Actuarial Opinions

PURPOSE: This rule prescribes forms and procedures to be followed by insurance companies other than life obtaining the certification of an actuary and to effectuate or aid in the interpretation of the provisions of section 375.1060, RSMo, by providing guidance as to the actuarial opinion to be obtained by an insurance company other than life. (1) Statement of Actuarial Opinion. Every property and casualty insurance company doing business in this state, unless otherwise exempted by its domiciliary commissioner, shall file with its annual statement the actuarial certification required by section 375.1060, RSMo. This certification shall consist of the opinion of an appointed actuary entitled a “Statement of Actuarial Opinion.” This opinion shall be filed in accordance with the appropriate property and casualty annual statement instructions of the National Association of Insurance Commissioners (NAIC). (2) In support of the Statement of Actuarial Opinion, each property and casualty company shall prepare or cause to be prepared, and if required, retain and file with the director, each of the following: (A) Actuarial Opinion Summary. 1. Every property and casualty insurance company domiciled in this state that is required to submit a Statement of Actuarial Opinion shall annually submit an Actuarial Opinion Summary, written by the company’s appointed actuary. This Actuarial Opinion Summary shall be filed in accordance with the appropriate NAIC property and casualty annual statement instructions and shall be considered as a document supporting the Statement of Actuarial Opinion required in section (1). 2. An insurance company licensed but not domiciled in this state shall provide the Actuarial Opinion Summary upon request; and (B) Actuarial Report and Workpapers. 1. An Actuarial Report and underlying workpapers, as required by the appropriate NAIC property and casualty annual statement instructions, shall be prepared to support each Statement of Actuarial Opinion. 2. If the insurance company fails to provide a supporting Actuarial Report and/or workpapers at the request of the director or the director determines that the supporting Actuarial Report or workpapers provided by the insurance company is otherwise unacceptable to the director, the director may engage a qualified actuary at the expense of the insurance company to review the opinion and the basis for the opinion and prepare the supporting Actuarial Report or workpapers. (3) Confidentiality. (A) The Statement of Actuarial Opinion shall be provided with the annual statement in accordance with the appropriate NAIC property and casualty annual statement instructions and shall be treated as a public document. (B) While the Statement of Actuarial Opinion is a public document, all documents, materials, or other information in the possession or control of the Department of Commerce and Insurance that are considered an Actuarial Report, workpapers, or Actuarial Opinion Summary provided in support of the opinion, and any other material provided by the insurance company to the director in connection with the Actuarial Report, workpapers, or Actuarial Opinion Summary, shall be confidential by law and privileged, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action, to the same extent as the audit workpapers of an accountant under section 375.1050, RSMo. (C) This section shall not be construed to limit the director’s authority to release the documents to the Actuarial Board for Counseling and Discipline (ABCD) so long as the material is required for the purpose of professional disciplinary proceedings and that the ABCD establishes procedures satisfactory to the director for preserving the confidentiality of the documents, nor shall this section be construed to limit the director’s authority to use the documents, materials, or other information in furtherance of any regulatory or legal action brought as part of the director’s official duties. AUTHORITY: sections 374.045 and 374.071, RSMo Supp. 2009 and sections 375.1050 and 375.1060, RSMo 2000.* Original rule filed Aug. 27, 2009, effective March 30, 2010. Non-substantive change filed Sept. 11, 2019, published Oct. 31, 2019. *Original authority: 374.045, RSMo 1967, amended 1993, 1995, 2008; 374.071, RSMo 2005; 375.1050, RSMo 1991, amended 1992, 1993, 2009; and 375.1060, RSMo 1991, amended 1993.