OFFICE OF THE
[Filed November 15, 2021, 4:36 p.m., effective January 1, 2022]
Effective Date of Rule: January 1, 2022.
Purpose: The purpose of this proposal is to permit actuaries with other NAIC-accepted actuarial designations to be considered qualified actuaries. The proposal amends a subsection of WAC 284-07-060 Statement of actuarial opinion. The proposal amends the subsection pertaining to qualified actuarial designations.
The proposed rule will provide guidance regarding NAIC-accepted actuarial designations. The NAIC has updated the requirements as of 2019 and the proposed rule conforms to these updated requirements. The existing designations require an actuary to be a member of the Casualty Actuarial Society (CAS). The new designations are as follows:
|•||Fellow of the CAS having passed the United States version of Exam 6.|
|•||Associate of the CAS having passed Exam 7 and the United States version of Exam 6.|
|•||Fellow of the Society of Actuaries (SOA) including completion of the general insurance track and these exams: The United States version of the Financial and Regulatory Environment Exam and the Advanced Topics in General Insurance Exam.|
Citation of Rules Affected by this Order: Amending WAC 284-07-060.
Adopted under notice filed as WSR 21-19-138 on September 21, 2021.
A final cost-benefit analysis is available by contacting Simon Casson, P.O. Box 40260, Olympia, WA 98504-0260, phone 360-725-7038, fax 360-586-3109, email firstname.lastname@example.org.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 1, Repealed 0.
Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: November 15, 2021.
AMENDATORY SECTION(Amending WSR 14-15-149, filed 7/23/14, effective 8/23/14)
WAC 284-07-060Statement of actuarial opinion.
(1) For purposes of this section "insurer" has the same meaning as set forth in RCW 48.01.050
. It also includes health care service contractors registered under chapter 48.44
RCW, health maintenance organizations registered under chapter 48.46
RCW, fraternal benefit societies registered under chapter 48.36A
RCW, and self-funded multiple employer welfare arrangements authorized under chapter 48.125
(2)(a) Each insurer must include with its annual statement, a statement from a qualified actuary, as defined in WAC 284-05-060, or as defined in subsection (4) of this section for domestic property and casualty insurers, or as defined in subsection (5) of this section for health care service contractors, health maintenance organizations, and self-funded multiple employer welfare arrangements authorized under chapter 48.125
RCW entitled "Statement of Actuarial Opinion," setting forth the actuary's opinion relating to the insurer's reserves and other actuarial items, prepared in accordance with the appropriate Annual Statement Instructions
and Accounting Practices and Procedures Manuals
adopted by the National Association of Insurance Commissioners. If an exemption is allowed by the Annual Statement Instructions
and is approved by the domiciliary commissioner, an insurer shall be exempt from this requirement (unless the commissioner of Washington makes a specific finding, by order, bulletin, letter, or otherwise, that for a specific insurer, or one or more insurers, company compliance is necessary to carry out the commissioner's statutory responsibilities). A certified copy of the approved exemption must be filed with the annual statement in all jurisdictions in which the company is authorized.
(b) After December 31, 2014, statements of actuarial opinion for all domestic and foreign insurers must be filed electronically with the NAIC. The filing with the NAIC will be deemed to be a filing with the commissioner. This includes the statement of actuarial opinion for the year ended December 31, 2014. Insurers must electronically transmit the statement of actuarial opinion, as described in (a) of this subsection, in PDF or other format as noted on the commissioner's website. The commissioner has the discretion to allow an insurer to file a statement of actuarial opinion electronically with the commissioner. The insurer must demonstrate that filing with the NAIC will create an undue financial hardship for the insurer. Applications for permission to not file with the NAIC must be received by the commissioner at least ninety days before the statement of actuarial opinion is due.
(c) To comply with requirements that statements of actuarial opinion must be signed by the actuary, an insurer may:
(i) Use a method of electronic signature verification that has been approved by the commissioner for use by the insurer; or
(ii) Include in the electronic filing an image of the original signature in PDF format as noted on the commissioner's website. This electronically filed document must contain a legally binding signature of the actuary and any person providing supporting documentation.
(3) This section does not relieve an insurer from its obligation to comply with other requirements of Titles 48
RCW and 284 WAC.
(4) With respect to statements of actuarial opinion for property and casualty insurers domiciled in this state, a person can demonstrate competency in loss reserve evaluation, and thus be considered to be a qualified actuary, only by being:
(a) A ((member in good standing of the Casualty Actuarial Society))person who meets the basic education, experience, and continuing education requirements of the qualification standards promulgated by the American Academy of Actuaries, has obtained and maintains an accepted actuarial designation prescribed by the Annual Statement Instructions, and is a member of a professional actuarial association that requires adherence to the same Code of Professional Conduct and U.S. Qualification Standards promulgated by the American Academy of Actuaries, and participates in the Actuarial Board for Counseling and Discipline when its association members are practicing in the U.S.; or
(b) A member in good standing of the American Academy of Actuaries who has been approved as qualified for signing casualty loss reserve opinions by the Casualty Practice Council of the American Academy of Actuaries; or
(c) A person with documented experience, skill, and knowledge substantially equivalent to that required for either (a) or (b) of this subsection, acceptable to the commissioner. A person qualifying under this alternative (c) must be approved in advance by the commissioner, as prescribed by the Annual Statement Instructions.
(5) With respect to statements of actuarial opinion for health care service contractors, health maintenance organizations, and self-funded multiple employer welfare arrangements the qualified actuary must be:
(a) A member in good standing of the American Academy of Actuaries;
(b) A person recognized by the American Academy of Actuaries as qualified for such actuarial evaluation; or
(c) A person with documented experience, skill, and knowledge substantially equivalent to that required for either (a) or (b) of this subsection, acceptable to the commissioner. A person qualifying under this alternative (c) must be approved in advance by the commissioner. In such a case, the health care service contractor or health maintenance organization must request approval at least ninety days prior to the filing of its annual statement.