Property and Casualty Practice Note December 2008 1.
The documentation should be sufficient for another actuary practicing in the same field to evaluate the work.
2.
The documentation should describe clearly the sources of data, material assumptions, and methods.
3.
Any material changes in sources of data, assumptions, or methods from the last analysis should be documented. The actuary should explain the reason(s) for and describe the impact of the changes.
The NAIC Instructions require the actuarial report to show the analysis, from the basic data to the conclusions, and the Instructions require the actuarial report to contain all the items listed in Section 7. The Instructions also require that the actuarial report be available for review in a timely fashion. Additionally, they require that the reconciliation papers discussed in paragraph 4 become a part of the report or workpapers. The actuary may wish to consider both ASOP No. 95 and the regulatory guidance in Appendix 9a when developing the actuarial report. The actuary usually includes within the actuarial report some detail on how the materiality threshold was chosen, including commentary on what items were considered in choosing the threshold. In addition, the actuarial report normally would include extended commentary on the risks considered in the actuary’s determination of the existence of a risk of material adverse deviation. The CASTF, through the Regulatory Guidance Brief, included as Appendix 9a of this Practice Note, also encourages the actuary to include in the actuarial report an exhibit that summarizes changes in the Appointed Actuary’s estimates from the prior analysis, with extended discussion of significant factors underlying the changes. 8.
The statement should conclude with the signature of the Appointed Actuary responsible for providing the Actuarial Opinion and the date when the opinion was rendered. The signature and date should appear in the following format: __________________________ Signature of actuary Printed name of actuary Address of actuary Telephone number of actuary Date opinion was rendered
9.
4 5
The insurer required to furnish an actuarial opinion shall require its Appointed Actuary to notify its Board of Directors or its audit committee in writing within five (5) business days after any determination by the Appointed Actuary that the opinion
The repeal of ASOP No. 9 is pending. The repeal of ASOP No. 9 is pending.
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