2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 3 - Authorization of Insurers and General Requirements 3.3-242 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 inspection -- Confidentiality of supporting
documentation -- Exemptions to filing requirement.
(1)
(2)
(3)
(4)
(5)
(6)
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.
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.
An actuarial report and underlying workpapers shall be prepared to support
each statement of actuarial opinion.
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.
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.
(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
(7)
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.
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)
(d)
An insurer writing property insurance only if the exemption is agreed to by
the insurance regulatory official in the insurer's domiciliary state; or
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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