NAC681B.210. Opinion based on asset adequacy analysis: Contents.

     1. A statement of actuarial opinion based on an asset adequacy analysis submitted pursuant to NRS 681B.220 must contain:

     (a) A paragraph which identifies the appointed actuary and lists his or her qualifications;

     (b) A paragraph which identifies the subjects on which the opinion is expressed and describes the scope of the appointed actuary’s work, including a tabulation which:

          (1) Delineates the reserves and related actuarial items which have been analyzed for asset adequacy;

          (2) Delineates the method of analysis; and

          (3) Identifies the reserves and related actuarial items covered by the opinion which have not been analyzed;

     (c) A paragraph which describes those areas, if any, where the appointed actuary has deferred to other experts in developing data, procedures or assumptions, including, but not limited to, anticipated cash flows from currently owned assets, including variations in cash flows according to economic scenarios;

     (d) A supporting statement prepared by each expert consulted pursuant to paragraph (c);

     (e) A paragraph which expresses the appointed actuary’s opinion with respect to the adequacy of the supporting assets to mature the liabilities;

     (f) If the actuary determines that it is necessary to qualify his or her opinion, a paragraph which contains the qualification;

     (g) If it is necessary for the appointed actuary to disclose an inconsistency in the method of analysis or basis of asset allocation used in a previous opinion with that used in the opinion, a paragraph which contains the disclosure;

     (h) If it is necessary for the appointed actuary to disclose whether additional reserves required as of the date of a previous opinion are released as of the date of the current opinion and the extent of the release, a paragraph which contains the disclosure; and

     (i) If the appointed actuary wishes to add a brief description of the assumptions which form the basis for the actuarial opinion, a paragraph which contains the description.

     2. The paragraph required pursuant to paragraph (b) of subsection 1 must include, without limitation:

     (a) Aggregate reserves and deposit funds for policies and contracts included in Exhibit 5 of the insurer’s annual statement;

     (b) Aggregate reserves and deposit funds for policies and contracts included in Exhibit 6 of the insurer’s annual statement;

     (c) Deposit funds, premiums, dividend and coupon accumulations and supplementary contracts not involving life contingencies included in Exhibit 7 of the insurer’s annual statement; and

     (d) Liability for the end of the current year based on policy and contract claims included in Part I of Exhibit 8 of the insurer’s annual statement.

     3. Upon request, the Commissioner will provide guidelines for language that will satisfy the provisions of this section.

     (Added to NAC by Comm’r of Insurance, eff. 5-23-96; A by R146-12, 10-4-2013)