There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Subtitle 3. Authorization of Insurers and General Requirements
304.3.242 Property and casualty insurers to annually submit statement of actuarial opinion and supporting documentation -- Opinion to be available for public inspection -- Confidentiality of supporting documentation -- Exemptions to filing requirement.
Download pdfinspection -- Confidentiality of supporting documentation -- Exemptions to
filing requirement. (1) Every insurer authorized to transact property or casualty insurance, unless otherwise exempt in accordance with subsection (7) of this section, shall annually submit the
opinion of an appointed actuary entitled "Statement of Actuarial Opinion," which
shall be provided with the annual statement required by KRS 304.3-240 and 304.3-
241. (2) Every insurer authorized to transact property or casualty insurance that is required to submit a statement of actuarial opinion shall annually submit an actuarial opinion
summary written by the company's appointed actuary, which shall be provided with
the annual statement required by KRS 304.3-240 and 304.3-241 and considered as a
document supporting the statement of actuarial opinion. (3) An actuarial report and underlying workpapers shall be prepared to support each statement of actuarial opinion. (4) The commissioner may engage a qualified actuary at the expense of the insurer to review the opinion and the basis for the opinion and prepare the supporting actuarial
report or workpapers if:
(a) The insurer fails to provide a supporting actuarial report or workpapers at the request of the commissioner; or (b) The commissioner determines that the supporting actuarial report or workpapers provided by the insurer are otherwise unacceptable to the
commissioner. (5) The appointed actuary shall not be liable for damages to any person other than the insurer and the commissioner for any act, error, omission, decision, or conduct with
respect to the actuary's opinion, except in cases of gross negligence, fraud, or willful
misconduct on the part of the appointed actuary. (6) (a) The statement of actuarial opinion shall be provided with the annual statement prepared in accordance with KRS 304.3-240 and 304.3-241 and shall be
available for public inspection. (b) Documents, materials, or other information in the possession or control of the department that are considered an actuarial report, workpapers, or actuarial
opinion summary provided in support of the opinion, and any other material
provided by the insurer to the commissioner in connection with the actuarial
report, workpapers, or actuarial opinion summary, shall be confidential and
privileged. The confidentiality and privilege protections contained in this
paragraph shall not extend to any nonregulatory person or entity holding the
documents, materials, or other information. (c) Paragraph (b) of this subsection shall not be construed to limit the commissioner's authority to:
1. Release the documents to the Actuarial Board for Counseling and
Discipline if the material is required for the purpose of professional disciplinary proceedings and the Actuarial Board for Counseling and
Discipline establishes procedures satisfactory to the commissioner for
preserving the confidentiality of the documents; or 2. Use the documents, materials, or other information in furtherance of any
regulatory or legal action brought as part of the commissioner's official
duties. (d) Neither the commissioner nor any person who received documents, materials, or other information while acting under the authority of the commissioner
shall be permitted or required to testify in any private civil action concerning
any confidential documents, materials, or information subject to this
subsection. (e) In order to assist in the performance of his or her duties as set forth in KRS 304.2-100, the commissioner may:
1. Share documents, materials, or other information, including the
confidential and privileged documents, materials, or information subject
to this subsection, with other state, federal, and international regulatory
agencies and with state, federal, and international law enforcement
authorities, provided that the recipient agrees to maintain the
confidentiality and privileged status of the document, material, or other
information and has the legal authority to maintain confidentiality; 2. Receive documents, materials, or other information, including otherwise
confidential and privileged documents, materials, or information, from
regulatory and law enforcement officials of other foreign or domestic
jurisdictions, and shall maintain as confidential or privileged any
document, material, or information received with notice or the
understanding that it is confidential or privileged under the laws of the
jurisdiction that is the source of the document, material, or information;
and 3. Enter into agreements governing the sharing and use of information
consistent with this subsection. (f) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or other information shall occur as a result of disclosure
to the commissioner under this section or as a result of sharing as authorized
in paragraph (e) of this subsection. (7) It shall not be necessary to file the actuarial report required by this section in the following instances:
(a) An insurer that has less than one million dollars ($1,000,000) total direct plus assumed written premiums during a calendar year, or that has less than one
thousand (1,000) policyholders or certificate holders at the end of a calendar
year. An insurer which intends to utilize this exemption shall submit a letter of
intent to the insurance regulatory official in its domiciliary state no later than
December 1 of the calendar year for which the exemption is to be claimed; (b) An insurer which is under rehabilitation, liquidation, or any other delinquency proceeding ordered pursuant to a statutory provision, unless ordered to make
the report by the insurance regulatory official in its domiciliary state; (c) An insurer writing property insurance only if the exemption is agreed to by the insurance regulatory official in the insurer's domiciliary state; or (d) Filing the report would constitute financial hardship, which is presumed to exist if the projected reasonable cost of the report would exceed the lesser of:
1. One percent (1%) of the insurer's capital and surplus reflected in the
insurer's annual statement for the calendar year for which the exemption
is sought; or 2. Three percent (3%) of the insurer's net direct plus assumed premiums
written during the calendar year for which the exemption is sought as
reflected in the insurer's annual statement filed with the insurance
regulator official in its domiciliary state. Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 975, effective July 15, 2010; and ch. 25, sec. 4, effective July 15, 2010. -- Created 1992 Ky. Acts ch. 386, sec. 2, effective
July 14, 1992. Legislative Research Commission Note (7/15/2010). References to the "executive director" and "office" of insurance in this section, as amended by 2010 Ky. Acts
ch. 25, sec. 4, have been changed in codification to the "commissioner" and
"department" of insurance to reflect the reorganization of certain parts of the
Executive Branch, as set forth in Executive Order 2009-535-1086 and confirmed by
the General Assembly in 2010 Ky. Acts ch. 24. These changes were made by the
Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 25, which are in conflict. Under KRS 446.250, Acts
ch. 25, which was last enacted by the General Assembly, prevails.
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