2019 Oregon Revised Statutes
Volume : 18 - Financial Institutions, Insurance
Chapter 733 - Accounting and Investments
Section 733.331 - Opinion of appointed actuary; liabilities of appointed actuary; rules.
(1)(a) Every insurer that has outstanding accident and health insurance contracts, deposit-type contracts or life insurance contracts in this state and is subject to regulation by the Director of the Department of Consumer and Business Services shall annually submit to the director the opinion of an appointed actuary as to whether the reserves and related actuarial items the insurer holds in support of the policies and contracts are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts and comply with applicable laws of this state. The opinion must comply with the specific standards and scope set forth in the valuation manual and must:
(A) Meet the specifications for form and substance set forth in the valuation manual and otherwise be acceptable to the director.
(B) Accompany an annual statement that reflects the valuation of reserve liabilities for each year that ends on or after the operative date of the valuation manual.
(C) Apply to all policies and contracts that are subject to subsection (2) of this section, plus other actuarial liabilities that the valuation manual may specify.
(D) Be based on standards that the Actuarial Standards Board adopts, or that a successor to the Actuarial Standards Board adopts, and on any other additional standards that the valuation manual prescribes and that the director adopts by rule.
(b) The director may accept an opinion that a foreign or alien insurer filed with the insurance supervisory official of another state as the opinion the foreign or alien insurer must submit under this section if the director determines that the opinion reasonably meets the requirements that apply to an insurer domiciled in this state.
(2)(a) Every insurer that has outstanding accident and health insurance contracts, deposit-type contracts or life insurance contracts in this state, that is subject to regulation by the director and that is not exempted in the valuation manual shall include in the opinion required under subsection (1) of this section an opinion of the same appointed actuary as to whether the reserves and related actuarial items the insurer holds in support of the policies and contracts specified in the valuation manual, when considered in light of the assets the insurer holds with respect to the reserves and related actuarial items, including but not limited to investment earnings on the assets and the considerations the insurer expects to receive and retain under the policies and contracts, provide adequately for the insurer’s obligations under the policies and contracts, including but not limited to the benefits under and expenses associated with the policies and contracts.
(b) For each opinion that an insurer submits under paragraph (a) of this subsection, the insurer shall support the opinion with a memorandum that meets the specifications for form and substance set forth in the valuation manual and that is otherwise acceptable to the director. If the insurer fails to provide a supporting memorandum at the director’s request within a period specified in the valuation manual, or if the director determines that the supporting memorandum the insurer provides fails to meet the standards prescribed by the valuation manual or is otherwise unacceptable, the director may engage a qualified actuary at the insurer’s expense to review the opinion and the basis for the opinion and to prepare the supporting memorandum the director requires.
(3) Except in cases of fraud or willful misconduct, the appointed actuary is not liable for damages to any person other than the insurer and the director for any act, error, omission, decision or conduct with respect to the appointed actuary’s opinion.
(4) The director shall take any disciplinary action against an insurer or an appointed actuary in accordance with rules the director adopts. [2015 c.547 §13]
