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DEPARTMENT OF ENERGY, LABOR AND ECONOMIC GROWTH OFFICE OF FINANCIAL AND INSURANCE REGULATION PROPERTY AND CASUALTY RESERVES - ACTUARIAL OPINION
Filed with the Secretary of State on
These rules take effect 7 days after filing with the Secretary of State
(By authority conferred on the commissioner of the Office of Financial and Insurance Regulation by sections 210, 234, and 814 of 1956 PA 218 as amended, 1969 PA 306, as amended, and E.R.O. 2008-4,
MCL 500.210, MCL 500.234, MCL 500.814, and MCL 24.231 to MCL 24.233, MCL 445.2005)
Draft 4-13-09
R 500.831, R 500.832, R 500.833 are added to the Michigan Administrative Code as follows:
R 500.831 Statement of actuarial opinion of reserves; actuarial opinion summary; actuarial report and workpapers.
Rule 1. (1) Both of the following apply to the statement of actuarial opinion:
(a) Every property and casualty insurance company doing business in this state, unless otherwise exempted by the domiciliary commissioner, shall annually submit the opinion of an appointed actuary entitled statement of actuarial opinion.
(b) This opinion shall be filed in accordance with the annual order of the commissioner issued under section 438 of 1956 PA 218, MCL 500.438, and the appropriate National Association of Insurance Commissioners (NAIC) property and casualty annual statement instructions.
(2) All of the following apply to the actuarial opinion summary:
(a) 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.
(b) 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 subrule (1) of this rule.
(c) A company licensed but not domiciled in this state shall provide the actuarial opinion summary upon request.
(3) All of the following apply to an actuarial report and workpapers:
(a) An actuarial report and underlying workpapers as required by the appropriate NAIC property and casualty annual statement instructions shall be prepared to support each actuarial opinion.
(b) If the insurance company fails to provide a supporting actuarial report and/or workpapers at the request of the commissioner or the commissioner
determines that the supporting actuarial report or workpapers provided by the insurance company is otherwise unacceptable to the commissioner, the commissioner 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. This actuarial fee assessed by the commissioner is authorized by section 244(3) of 1956 PA 218, MCL 500.244(3) and not included in the regulatory fee imposed under section 244(4) of 1956 PA 218, MCL 500.244.
(c) The appointed actuary shall not be liable for damages to any person, other than the insurance company and the commissioner, 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.
R 500.832 Confidentiality.
Rule 2. (1)The statement of actuarial opinion shall be provided with the annual statement in accordance with the appropriate NAIC property and casualty annual statement instructions and shall be treated as a public document.
(2) Documents, materials, or other information in the possession or control of the office of financial and insurance regulation that are considered an actuarial report, workpapers, or actuarial opinion summary provided in support of the opinion, and any other material provided by the company to the commissioner in connection with the actuarial report, workpapers or actuarial opinion summary, are confidential by law and privileged. These documents are not subject to any of the following:
(a) The freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(b) Subpoena.
(c) Discovery or admissible as evidence in any private civil action.
(3) Subrule (2) of this rule does not limit the commissioner’s authority to release the documents to the actuarial board for counseling and discipline
(ABCD) so long as the material is required for professional disciplinary proceedings and the ABCD establishes procedures satisfactory to the commissioner for preserving the confidentiality of the documents. This section does not limit the commissioner’s authority to use the documents, materials, or other information in any regulatory or legal action brought as part of the commissioner’s official duties.
(4) Neither the commissioner nor any person who received documents, materials, or other information while acting under the authority of the commissioner shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subrule
(2) of this rule.
(5) To assist in the performance of the commissioner’s duties, the commissioner may do all of the following:
(a) Share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to subrule (2) of this rule with other state, federal, and international regulatory agencies, with the NAIC 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.
(b) Receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the NAIC 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.
(c) Enter into agreements governing sharing and use of information consistent with subrules (2) to (4) of this rule.
(6) 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 commissioner under this rule or as a result of sharing as authorized in subrule (4) of this rule.
R 500.833 Effective date.
Rule 3. These rules shall take effect 7 days after filing with the Secretary of State and shall apply to filings submitted after January 1, 2010.
