2007 Minnesota Statutes

61A.74 ANNUAL CERTIFICATIONS.
(a) The board of directors of each insurer shall appoint one or more illustration actuaries.
(b) The illustration actuary shall certify that the disciplined current scale used in illustrations
is in conformity with the Actuarial Standard of Practice for Compliance with the NAIC Model
Regulation on Life Insurance Illustrations promulgated by the Actuarial Standards Board, and that
the illustrated scales used in insurer-authorized illustrations meet the requirements of sections
61A.70 to 61A.745.
(c) The illustration actuary shall:
(1) be a member in good standing of the American Academy of Actuaries;
(2) be familiar with the standard of practice regarding life insurance policy illustrations;
(3) not have been found by the commissioner, following appropriate notice and hearing to
have:
(i) violated any provision of, or any obligation imposed by, the insurance law or other law in
the course of the actuary's dealings as an illustration actuary;
(ii) been found guilty of fraudulent or dishonest practices;
(iii) demonstrated the actuary's incompetence, lack of cooperation, or untrustworthiness
to act as an illustration actuary; or
(iv) resigned or been removed as an illustration actuary within the past five years as a result
of acts or omissions indicated in any adverse report on examination or as a result of a failure to
adhere to generally acceptable actuarial standards;
(4) not fail to notify the commissioner of any action taken by a commissioner of another
state similar to that under clause (3);
(5) disclose in the annual certification whether, since the last certification, a currently
payable scale applicable for business issued within the previous five years and within the scope
of the certification has been reduced for reasons other than changes in the experience factors
underlying the disciplined current scale. If nonguaranteed elements illustrated for new policies are
not consistent with those illustrated for similar in-force policies, this must be disclosed in the
annual certification. If nonguaranteed elements illustrated for both new and in-force policies are
not consistent with the nonguaranteed elements actually being paid, charged, or credited to the
same or similar forms, this must be disclosed in the annual certification; and
(6) disclose in the annual certification the method used to allocate overhead expenses for
all illustrations:
(i) fully allocated expenses;
(ii) marginal expenses; or
(iii) a generally recognized expense table based on fully allocated expenses representing a
significant portion of insurance companies and approved by the National Association of Insurance
Commissioners or by the commissioner.
(d)(1) The illustration actuary shall file a certification with the board and with the
commissioner:
(i) annually for all policy forms for which illustrations are used; and
(ii) before a new policy form is illustrated.
(2) If an error in a previous certification is discovered, the illustration actuary shall notify the
board of directors of the insurer and the commissioner promptly.
(e) If an illustration actuary is unable to certify the scale for any policy form illustration
the insurer intends to use, the actuary shall notify the board of directors of the insurer and the
commissioner promptly of the actuary's inability to certify.
(f) A responsible officer of the insurer, other than the illustration actuary, shall certify
annually:
(1) that the illustration formats meet the requirements of sections 61A.70 to 61A.745 and
that the scales used in insurer-authorized illustrations are those scales certified by the illustration
actuary; and
(2) that the company has provided its agents with information about the expense allocation
method used by the company in its illustrations and disclosed as required in paragraph (c),
clause (6).
(g) The annual certifications must be provided to the commissioner each year by a date
determined by the insurer.
(h) If an insurer changes the illustration actuary responsible for all or a portion of the
company's policy forms, the insurer shall notify the commissioner of that fact promptly and
disclose the reason for the change.
History: 2007 c 104 s 14