Property and Casualty Practice Note December 2008 The Company had one-year adverse development in excess of five percent of surplus in at least three of the last five calendar years. I became the appointed actuary on [date] and have issued the Statement of Actuarial Opinion on the Company’s loss and loss adjustment expense reserves, beginning with year-end [year]. I have reviewed the actuarial reports for the years prior to my appointment, and I have determined that the one-year adverse development in prior years was due to . . . Setting Up Actuarial Opinion Summary The AOS is due by March 15, and it is to be submitted by the company (see Appendix 6 for comments on intercompany pooling) separately from its Annual Statement and the SAO. Because it is sent separately from the opinion, the actuary may wish to consider including some basic information along with the AOS. Sample wording is presented below: Date: March 15, 2009 Actuarial Opinion Summary Company: NAIC#: Appointed Actuary:
THE Insurance Company #### Janet Actuary
I have signed the Company’s Statement of Actuarial Opinion on Feb. 22, 2009. These two documents are closely linked; the Actuarial Opinion Summary is an extension of the Statement of Actuarial Opinion. Therefore, all limitations, caveats, and reliances in the Statement of Actuarial Opinion should also be applied to the Actuarial Opinion Summary. Moreover, it is my understanding that, consistent with the Annual Statement Instructions, the Actuarial Opinion Summary will be kept confidential by state regulators and is not intended for public inspection, subject to applicable law. Note that the actuary is not required to submit a copy of the SAO with the AOS, since that opinion will have been submitted along with the company’s Annual Statement. Sample formats for the AOS are provided below. These sample formats are intended to be illustrative only, and they may not apply in every situation. The actuary is not required to adopt them.
PN08
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