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23-84-115. Valuation of policy or contract issued on or after operative date of the valuation manual.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-84-115. Valuation of policy or contract issued on or after operative date of the valuation manual.
(a) Except as provided in this section, for a policy or contract issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under § 23-84-102(b).
(b) The valuation manual shall specify:
(1) Minimum valuation standards and definitions for policies or contracts subject to § 23-84-102(b), including without limitation:
(A) The Insurance Commissioner's reserve valuation method for life insurance contracts, other than annuity contracts, subject to § 23-84-102(b);
(B) The commissioner's annuity reserve valuation method for annuity contracts subject to § 23-84-102(b); and
(C) Minimum reserves for all other policies or contracts subject to § 23-84-102(b);
(2) Which policies or contracts or types of policies or contracts are subject to the requirements of a principle-based valuation under § 23-84-116(a) and the minimum valuation standards consistent with those requirements;
(3) For policies and contracts subject to a principle-based valuation under § 23-84-116:
(A) Requirements for the format of reports to the commissioner under § 23-84-116(b)(3), including without limitation information necessary to determine if the valuation is appropriate and in compliance with this chapter;
(B) Assumptions for risks over which the company does not have significant control or influence; and
(C) Procedures for corporate governance and oversight of the actuarial function and a process for appropriate waiver or modification of those procedures;
(4) For policies not subject to a principle-based valuation under § 23-84-116, a minimum valuation standard:
(A) That is consistent
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-84-115
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:23-84-115
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 673bd33e123b6b63f2eec957c30d0d69a97791617f789b18ef450a59cff2fcda
Source location: content.xml paragraph 50996
Stored source content
23-84-115. Valuation of policy or contract issued on or after operative date of the valuation manual.
(a) Except as provided in this section, for a policy or contract issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under § 23-84-102(b).
(b) The valuation manual shall specify:
(1) Minimum valuation standards and definitions for policies or contracts subject to § 23-84-102(b), including without limitation:
(A) The Insurance Commissioner's reserve valuation method for life insurance contracts, other than annuity contracts, subject to § 23-84-102(b);
(B) The commissioner's annuity reserve valuation method for annuity contracts subject to § 23-84-102(b); and
(C) Minimum reserves for all other policies or contracts subject to § 23-84-102(b);
(2) Which policies or contracts or types of policies or contracts are subject to the requirements of a principle-based valuation under § 23-84-116(a) and the minimum valuation standards consistent with those requirements;
(3) For policies and contracts subject to a principle-based valuation under § 23-84-116:
(A) Requirements for the format of reports to the commissioner under § 23-84-116(b)(3), including without limitation information necessary to determine if the valuation is appropriate and in compliance with this chapter;
(B) Assumptions for risks over which the company does not have significant control or influence; and
(C) Procedures for corporate governance and oversight of the actuarial function and a process for appropriate waiver or modification of those procedures;
(4) For policies not subject to a principle-based valuation under § 23-84-116, a minimum valuation standard:
(A) That is consistent with the minimum standard of valuation before the operative date of the valuation manual; or
(B) That requires reserves to be developed that quantify the benefits and guarantees and the funding associated with the policy or contract and its risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring;
(5) Other requirements, including without limitation those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memorandums, and transition rules and internal controls; and
(6) The data and form of the data required under § 23-84-117, with whom the data must be submitted and, if desired, other requirements, including data analyses and reporting of data analyses.
(c) If a specific valuation requirement is not specified in the valuation manual or if in the opinion of the commissioner a specific valuation requirement in the valuation manual is not in compliance with this chapter, then the company shall comply with minimum valuation standards prescribed by the commissioner for the specific valuation requirement.
(d)(1) The commissioner may employ or contract with a qualified actuary at the expense of a company to:
(A) Perform an actuarial examination of the company and opine on the appropriateness of any reserve assumption or method used by the company; or
(B) Review and opine on a company's compliance with any requirement under this chapter.
(2) The commissioner may rely upon an opinion regarding provisions contained within this chapter of a qualified actuary employed or contracted with by a public official or regulatory authority responsible for regulating insurance companies of another state, district, or territory of the United States.
(e) The commissioner may:
(1) Require a company to change any assumption or method that in the opinion of the commissioner is necessary in order to comply with the requirements of the valuation manual or this chapter;
(2) Require a company to adjust the company's reserves; and
(3) Take other disciplinary action permitted by § 23-60-108.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-60-108. Penalty generally.
Unless a greater penalty is provided by another law of this state, a violation of a statute or rule enforceable by the Insurance Commissioner is punishable:
(1) By the refusal, suspension, revocation, or nonrenewal of a license or certificate of authority; and
(2) A fine no greater than one thousand dollars ($1,000) per violation, not to exceed fifty thousand dollars ($50,000) in any six-month period.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-60-108
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-60-108. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-84-102. Valuation of reserves by Insurance Commissioner.
(a) Except as provided in subdivision (a)(4) of this section, for a policy or contract issued before the operative date of the valuation manual:
(1)(A) The Insurance Commissioner shall annually value, or cause to be valued, the reserves for all outstanding life insurance issued by a company on or after January 1, 1960, and before the operative date of the valuation manual.
(B) In calculating the reserves, the commissioner may use group methods and approximate averages for fractions of a year or otherwise;
(2) In lieu of the valuation of the reserves required by this section of any foreign or alien insurer, the commissioner may accept any valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when that valuation complies with the minimum standard provided in this section;
(3)(A) Sections 23-84-103 — 23-84-111, 23-84-113, and 23-84-114 apply to a policy or contract issued on or after January 1, 1960, and before the operative date of the valuation manual.
(B) Sections 23-84-115 and 23-84-116 do not apply to a policy or contract issued on or after January 1, 1960, and before the operative date of the valuation manual; and
(4) The minimum standard for the valuation of a policy or contract issued before January 1, 1960, is the minimum standard in effect immediately before January 1, 1960.
(b) With regard to a policy or contract issued on or after the operative date of the valuation manual:
(1)(A) The commissioner shall annually value or cause to be valued the reserves for all outstanding policies or contracts of a company issued on or after the operative date of the valuation manual.
(B) In lieu of the valuation of the reserves required of a
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-84-102
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-84-102. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-84-116. Requirements of principle-based valuation.
(a) A company shall establish reserves for a policy or contract using a principle-based valuation as specified in the valuation manual that:
(1)(A) Quantifies the benefits and guarantees and the funding associated with the policy or contract and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring during the lifetime of the policy or contract.
(B) For a policy or contract with significant tail risk, the principle-based valuation shall reflect conditions appropriately adverse to quantify the tail risk;
(2) Incorporates assumptions, risk analysis methods, financial models, and management techniques that are consistent with, but not necessarily identical to, those utilized within the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods;
(3) Incorporates assumptions that are:
(A) Prescribed by the valuation manual; or
(B) For assumptions that are not prescribed by the valuation manual:
(i) Established utilizing the company's available experience to the extent it is relevant and statistically credible; and
(ii) To the extent that company data is not available, relevant, or statistically credible, established utilizing other relevant, statistically credible experience; and
(4) Provides margins for uncertainty, including adverse deviation and estimation error, such that the greater the uncertainty, the larger the margin and resulting reserve.
(b) A company using a principle-based valuation for one (1) or more policies or contracts subject to this section as specified in the valuation manual shall:
(1) Estab
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-84-116
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-84-116. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-84-117. Experience reporting.
For a policy or contract in force on or after the operative date of the valuation manual, a company shall submit mortality, morbidity, policyholder behavior, or expense and other data as prescribed in the valuation manual.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-84-117
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-84-117. This identifies an authority to review, not proof of applicability.