Sec. 21. (a) This section applies before the operative date of the valuation manual.

(b) A company doing business in Indiana shall annually submit to the department the opinion of a qualified actuary concerning whether the reserves and related actuarial items held by the company in support of the contracts specified by the commissioner in rules adopted under IC 4-22-2:

(1) are computed appropriately;

(2) are based on assumptions that satisfy contractual provisions;

(3) are consistent with previously reported amounts; and

(4) comply with applicable laws of the state.

(c) The commissioner shall adopt rules under IC 4-22-2 to implement this section. The rules adopted by the commissioner:

(1) must specify the information to be included in an actuary's opinion submitted under this section;

(2) may require the inclusion in the opinion of other items of information that the commissioner considers necessary to the scope of the opinion; and

(3) must provide for disciplinary action against a company or a qualified actuary that violates this section.

(d) Unless exempted by a rule adopted by the commissioner under IC 4-22-2, a company doing business in Indiana shall include with the actuary's opinion submitted under subsection (b) an opinion by the same qualified actuary stating whether the reserves and related actuarial items held by the company in support of the contracts specified by the commissioner in rules adopted under IC 4-22-2 make adequate provision for the obligations of the company under the contracts, including:

(1) the benefits under;

(2) the expenses associated with; and

(3) any other obligations under;

the contracts of the company. In making the determination required under this subsection, the qualified actuary shall consider the assets held by the company with respect to reserves and related actuarial items, including investment earnings on the assets and the considerations anticipated to be received and retained under the contracts.

(e) The commissioner, in rules adopted under IC 4-22-2, may provide for a transition period to establish higher reserves considered necessary by the qualified actuary to render the opinion required by this section.

(f) The following requirements apply to an actuary's opinion required by subsection (d):

(1) A memorandum that meets all requirements established by the commissioner in rules adopted under IC 4-22-2 concerning form and content must be prepared to support each actuarial opinion.

(2) If:

(A) the company fails to provide a supporting memorandum at the request of the commissioner within a period specified by rules adopted by the commissioner under IC 4-22-2; or

(B) the commissioner determines that the supporting memorandum provided by the company does not meet the standards set forth in rules adopted by the commissioner under IC 4-22-2 or is otherwise unacceptable to the commissioner;

the commissioner, at the expense of the company, may engage a qualified actuary to review the opinion and the basis for the opinion and to prepare the supporting memorandum required by the commissioner.

(g) The following apply to an actuarial opinion submitted under this section:

(1) The opinion must:

(A) be submitted with the annual statement of the company; and

(B) reflect the valuation of reserves for each year ending after December 31, 1994.

(2) The opinion must:

(A) apply to all business in force, including individual and group accident and sickness insurance contracts; and

(B) meet all requirements concerning form and content established by the commissioner in rules adopted under IC 4-22-2.

(3) The opinion must be based on:

(A) standards adopted by the Actuarial Standards Board; and

(B) additional standards prescribed by the commissioner in rules adopted under IC 4-22-2.

(4) In the case of an opinion required to be submitted by a foreign or alien company, the commissioner may accept the opinion filed by the foreign or alien company with the insurance supervisory official of another state if the commissioner determines that the opinion reasonably meets the requirements applicable to a company domiciled in Indiana.

(h) Except in cases of fraud or willful misconduct, a qualified actuary who provides an opinion required by this section is not liable for damages to a person other than:

(1) the company for which the opinion is offered; and

(2) the commissioner;

for any act, error, omission, decision, or conduct with respect to the actuary's opinion.

As added by P.L.276-2013, SEC.10.