2006 Kentucky Revised Statutes - .171 Requirement for actuarial opinion as to appropriate computation of reserves and related items and compliance with state law.304.6-171 Requirement for actuarial opinion as to appropriate computation of reserves and related items and compliance with state law. (1) This section shall become operative at the end of the first full calendar year following the year of enactment. (2) Every life insurance company doing business in this state shall annually submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the executive director by administrative regulation are computed appropriately, are based on assumptions which satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of this state. The executive director by administrative regulation shall define the specifics of this opinion and add any other items deemed to be necessary to its scope. (3) (a) Every life insurance company, except as exempted by or pursuant to administrative regulation, shall also annually include in the opinion required by subsection (2) of this section, an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the executive director by administrative regulation, when considered in light of the assets held by the company with respect to the reserves and related actuarial items, including but not limited to the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations under the policies and contracts, including but not limited to the benefits under and expenses associated with the policies and contracts. (b) The executive director may provide by administrative regulation for a transition period for establishing any higher reserves which the qualified actuary may deem necessary in order to render the opinion required by this section. (4) Each opinion required by subsection (2) of this section shall be governed by the following provisions: (a) A memorandum, in form and substance acceptable to the executive director as specified by administrative regulation, shall be prepared to support each actuarial opinion. (b) If the insurance company fails to provide a supporting memorandum at the request of the executive director within a period specified by administrative regulation or the executive director determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the administrative regulations or is otherwise unacceptable to the executive director, the executive director may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting memorandum as is required by the executive director. (5) Every opinion shall be governed by the following provisions: Page 1 of 3
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