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.

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304.3-242 Property and casualty insurers to annually submit statement of actuarial opinion and supporting documentation -- Opinion to be available for public <br>inspection -- Confidentiality of supporting documentation -- Exemptions to <br>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 <br>opinion of an appointed actuary entitled &quot;Statement of Actuarial Opinion,&quot; which <br>shall be provided with the annual statement required by KRS 304.3-240 and 304.3-<br>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 <br>summary written by the company's appointed actuary, which shall be provided with <br>the annual statement required by KRS 304.3-240 and 304.3-241 and considered as a <br>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 <br>report or workpapers if: <br>(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 <br>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 <br>respect to the actuary's opinion, except in cases of gross negligence, fraud, or willful <br>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 <br>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 <br>opinion summary provided in support of the opinion, and any other material <br>provided by the insurer to the commissioner in connection with the actuarial <br>report, workpapers, or actuarial opinion summary, shall be confidential and <br>privileged. The confidentiality and privilege protections contained in this <br>paragraph shall not extend to any nonregulatory person or entity holding the <br>documents, materials, or other information. (c) Paragraph (b) of this subsection shall not be construed to limit the commissioner's authority to: <br>1. Release the documents to the Actuarial Board for Counseling and <br>Discipline if the material is required for the purpose of professional disciplinary proceedings and the Actuarial Board for Counseling and <br>Discipline establishes procedures satisfactory to the commissioner for <br>preserving the confidentiality of the documents; or 2. Use the documents, materials, or other information in furtherance of any <br>regulatory or legal action brought as part of the commissioner's official <br>duties. (d) Neither the commissioner nor any person who received documents, materials, or other information while acting under the authority of the commissioner <br>shall be permitted or required to testify in any private civil action concerning <br>any confidential documents, materials, or information subject to this <br>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: <br>1. Share documents, materials, or other information, including the <br>confidential and privileged documents, materials, or information subject <br>to this subsection, with other state, federal, and international regulatory <br>agencies and with state, federal, and international law enforcement <br>authorities, provided that the recipient agrees to maintain the <br>confidentiality and privileged status of the document, material, or other <br>information and has the legal authority to maintain confidentiality; 2. Receive documents, materials, or other information, including otherwise <br>confidential and privileged documents, materials, or information, from <br>regulatory and law enforcement officials of other foreign or domestic <br>jurisdictions, and shall maintain as confidential or privileged any <br>document, material, or information received with notice or the <br>understanding that it is confidential or privileged under the laws of the <br>jurisdiction that is the source of the document, material, or information; <br>and 3. Enter into agreements governing the sharing and use of information <br>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 <br>to the commissioner under this section or as a result of sharing as authorized <br>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: <br>(a) An insurer that has less than one million dollars (&#36;1,000,000) total direct plus assumed written premiums during a calendar year, or that has less than one <br>thousand (1,000) policyholders or certificate holders at the end of a calendar <br>year. An insurer which intends to utilize this exemption shall submit a letter of <br>intent to the insurance regulatory official in its domiciliary state no later than <br>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 <br>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: <br>1. One percent (1%) of the insurer's capital and surplus reflected in the <br>insurer's annual statement for the calendar year for which the exemption <br>is sought; or 2. Three percent (3%) of the insurer's net direct plus assumed premiums <br>written during the calendar year for which the exemption is sought as <br>reflected in the insurer's annual statement filed with the insurance <br>regulator official in its domiciliary state. Effective: July 15, 2010 <br>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 <br>July 14, 1992. Legislative Research Commission Note (7/15/2010). References to the &quot;executive director&quot; and &quot;office&quot; of insurance in this section, as amended by 2010 Ky. Acts <br>ch. 25, sec. 4, have been changed in codification to the &quot;commissioner&quot; and <br>&quot;department&quot; of insurance to reflect the reorganization of certain parts of the <br>Executive Branch, as set forth in Executive Order 2009-535-1086 and confirmed by <br>the General Assembly in 2010 Ky. Acts ch. 24. These changes were made by the <br>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 <br>ch. 25, which was last enacted by the General Assembly, prevails.

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