DFS-23-14-00003-P Regulations Governing an Actuarial Opinion and Memorandum

6/11/14 N.Y. St. Reg. DFS-23-14-00003-P

NEW YORK STATE REGISTER

VOLUME XXXVI, ISSUE 23

June 11, 2014

RULE MAKING ACTIVITIES

DEPARTMENT OF FINANCIAL SERVICES

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. DFS-23-14-00003-P

Regulations Governing an Actuarial Opinion and Memorandum

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

This is a consensus rule making to amend Part 95 (Regulation 126) of Title 11 NYCRR.

Statutory authority:

Financial Services Law, sections 202 and 302; and Insurance Law, sections 107, 301, 308, 310, 1301, 1303, 1304, 4217, 4232 and 4240

Subject:

Regulations Governing an Actuarial Opinion and Memorandum.

Purpose:

To correct unintended revision to section 95.8(b)(6)(vi) made by last amendment to this rule.

Text of proposed rule:

Section 95.8(b)(6)(vi) is amended to read as follows:

(vi) 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, 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.

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, to the extent not inconsistent with Insurance Regulation 126 and conform to the requirements of such regulation.

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) that 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.]"

Note: Choose one of the above two paragraphs, whichever is applicable.

"This opinion is prepared for the use of company management and the New York Department of Financial Services for the purposes set forth in New York Insurance Law § 4217, and 11 NYCRR 95 (Insurance Regulation 126), as amended from time to time. This opinion covers business inforce as of December 31, 20[ ] and does not cover new business issued subsequent to this date. This opinion does not cover all matters needed to assess the future capital and surplus adequacy of the company.

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 Opinion is Signed.”

Text of proposed rule and any required statements and analyses may be obtained from:

Jennifer Roig, NYS Department of Financial Services, One Commerce Plaza, Albany, NY 12257, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Consensus Rule Making Determination

This amendment re-adds language that existed in the rule prior to its last amendment, which had been unintentionally removed, and updates that language by changing the reference to the year 19[ ] to 20[ ]. Thus, no person or entity is likely to object.

Accordingly, this rulemaking is determined to be a consensus rulemaking, as defined in State Administrative Procedure Act (“SAPA”) § 102(11), and is proposed pursuant to SAPA § 202(1)(b)(i). Therefore, this rulemaking is exempt from the requirement to file a Regulatory Impact Statement, Regulatory Flexibility Analysis for Small Businesses and Local Governments, or a Rural Area Flexibility Analysis.

Job Impact Statement

This amendment re-adds language that existed in the rule prior to its last amendment, which had been unintentionally removed, and updates that language by changing the reference to the year 19[ ] to 20[ ]. Amendment of the rule will not adversely impact job or employment opportunities in New York, or have any adverse impact on self-employment opportunities, because the revision imposes no new or additional requirements on any insurer subject to the rule.