Legislative Proposals
DPFR-8
STATE OF MAINE
IN THE YEAR OF OUR LORD
TWO THOUSAND AND SEVEN
_____L.D._____
AN ACT Regarding Property Casualty Insurance Actuarial Opinion
of Reserves
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A M.R.S.A. Chapter 11, subchapter II-A is repealed
and the following enacted in its place:
SUBCHAPTER II-A
PROPERTY CASUALTY ACTUARIAL
OPINION
§ 941. Title
This Act shall be known as the Property and Casualty
Actuarial Opinion Law.
§ 942. Definitions
As used in this subchapter, unless the context otherwise
indicates, the following terms have the following meanings.
1. Covered kinds of insurance. "Covered kinds
of insurance" includes:
A. Casualty insurance as defined in section
707; and
B. Property insurance as defined in section 705. Property insurance
written by domestic mutual assessment insurers pursuant to chapter
51 is not subject to the requirements of this subchapter.
2. Qualified actuary. "Qualified actuary"
means a person who is a member of the American Academy of Actuaries
who has obtained a designation either as a Fellow or an Associate
in the Casualty Actuarial Society and, if an Associate, has at least
5 years' experience in actuarial practice obtained in the kinds of
insurance covered in this subsection.
§ 943. Actuarial Opinion of Reserves
and Supporting Documentation
This section shall become operative at the end of
the first full calendar year following the year of enactment.
A. Statement of Actuarial Opinion
Every property and casualty insurance company doing
business for covered kinds of insurance in this state, unless otherwise
exempted by the domiciliary commissioner, shall annually submit the
opinion of a qualified Appointed Actuary entitled “Statement
of Actuarial Opinion.” This opinion shall be filed in accordance
with the appropriate NAIC Property and Casualty Annual Statement Instructions.
B. Actuarial Opinion Summary
(1) Every property and casualty insurance
company domiciled in this State that is required to submit a Statement
of Actuarial Opinion shall annually submit an Actuarial Opinion Summary,
written by the company’s Appointed Actuary. This Actuarial Opinion
Summary shall be filed in accordance with the appropriate NAIC Property
and Casualty Annual Statement Instructions and shall be considered
as a document supporting the Actuarial Opinion required in Subsection
A.
(2) A company licensed but not domiciled
in this State shall provide the Actuarial Opinion Summary upon request.
C. Actuarial Report and Workpapers
(1) An Actuarial Report and underlying work papers
as required by the appropriate National Association of Insurance Commissioners
Property and Casualty Annual Statement Instructions shall be prepared
to support each Actuarial Opinion.
(2) If the insurance company fails to provide a
supporting Actuarial Report and/or work papers at the request of the
superintendent or the superintendent determines that the supporting
Actuarial Report or work papers provided by the insurance company
is otherwise unacceptable to the superintendent, the superintendent
may engage a qualified actuary at the expense of the company to review
the opinion and the basis for the opinion and prepare the supporting
Actuarial Report or workpapers.
D. The Appointed Actuary shall not be liable for
damages to any person (other than the insurance company and the superintendent)
for any act, error, omission, decision or conduct with respect to the
actuary’s opinion, except in cases of fraud or willful misconduct
on the part of the Appointed Actuary.
§ 944. Confidentiality
A. The Statement of Actuarial Opinion shall be provided
with the Annual Statement in accordance with the appropriate National
Association of Insurance Commissioners Property and Casualty Annual
Statement Instructions and shall be treated as a public document.
B.
(1) Documents, materials or other information
in the possession or control of the Bureau of Insurance that are considered
an Actuarial Report, work papers or Actuarial Opinion Summary provided
in support of the opinion, and any other material provided by the
company to the superintendent in connection with the Actuarial Report,
work papers or Actuarial Opinion Summary, shall be confidential by
law and privileged, shall not be subject to freedom of access, shall
not be subject to subpoena, and shall not be subject to discovery
or admissible in evidence in any private civil action.
(2) This provision shall not be construed to limit
the superintendent’s authority to release the documents to the
Actuarial Board for Counseling and Discipline (ABCD) so long as the
material is required for the purpose of professional disciplinary
proceedings and that the ABCD establishes procedures satisfactory
to the commissioner for preserving the confidentiality of the documents,
nor shall this section be construed to limit the superintendent’s
authority to use the documents, materials or other information in
furtherance of any regulatory or legal action brought as part of the
superintendent’s official duties.
C. Neither the superintendent nor any person who
received documents, materials or other information while acting under
the authority of the superintendent shall be permitted or required to
testify in any private civil action concerning any confidential documents,
materials or information subject to Subsection B.
D. In order to assist in the performance of the superintendent’s
duties, the superintendent:
(1) May share documents, materials or other information,
including the confidential and privileged documents, materials or
information subject to Subsection B with other state, federal and
international regulatory agencies, with the National Association of
Insurance Commissioners and its affiliates and subsidiaries, and with
state, federal and international law enforcement authorities, provided
that the recipient agrees to maintain the confidentiality and privileged
status of the document, material or other information and has the
legal authority to maintain confidentiality;
(2) May receive documents, materials or information,
including otherwise confidential and privileged documents, materials
or information, from the National Association of Insurance Commissioners
and its affiliates and subsidiaries, and from regulatory and law enforcement
officials of other foreign or domestic jurisdictions, and shall maintain
as confidential or privileged any document, material or information
received with notice or the understanding that it is confidential
or privileged under the laws of the jurisdiction that is the source
of the document, material or information; and
(3) May enter into agreements governing sharing
and use of information consistent with Subsections B to D.
E. No waiver of any applicable privilege or claim
of confidentiality in the documents, materials or information shall
occur as a result of disclosure to the superintendent under this section
or as a result of sharing as authorized in Subsection D.
SUMMARY
This bill amends the Insurance Code by replacing the current provisions
regarding property casualty actuarial opinions on insurer reserves with
the model legislation adopted by the National Association of Insurance
Commissioners (NAIC). The bill requires the filing of the Statement
of Actuarial Opinion, the Actuarial Report supporting the Opinion and
the Actuarial Opinion Summary by domestic insurers, excluding domestic
mutual property insurers.
