Ohio § 3903.726

§ 3903.726.

(A) This section shall apply on and after the operative date of the valuation manual. (B) Every company with an outstanding life insurance contract, accident and health insurance

contract, or deposit-type contract in this state that is subject to rules adopted

by the superintendent shall annually submit the opinion of an appointed actuary as

to whether the reserves and related actuarial items held in support of the policies

and contracts are computed appropriately, are based on assumptions that satisfy contractual

provisions, are consistent with prior reported amounts, and comply with applicable

laws of this state.  The valuation manual shall prescribe the specifics of this opinion. (C) Every company with an outstanding life insurance contract, accident and health insurance

contract, or deposit-type contract in this state that is subject to rules adopted

by the superintendent, except as exempted in the valuation manual, shall also annually

include in the opinion required by division (B) of this section, an opinion of the

same appointed actuary as to whether the reserves and related actuarial items held

in support of the policies and contracts specified in the valuation manual, when considered

in light of the assets held by the company with respect to the reserves and related

actuarial items, including the investment earnings on the assets and the considerations

anticipated to be received and retained under the policies and contracts, make adequate

provision for the company's obligations under the policies and contracts, including

the benefits under and expenses associated with the policies and contracts. (D) Each opinion required by divisions (B) and (C) of this section shall be governed

by the following provisions: (1) The opinion shall be in form and substance as specified in the valuation manual and

acceptable to the superintendent. (2) The opinion shall be submitted with the annual statement reflecting the valuation

of such reserve liabilities for each year ending on or after the operative date of

the valuation manual. (3) The opinion shall apply to all policies and contracts subject to division (C) of

this section, plus other actuarial liabilities as may be specified in the valuation

manual. (4) The opinion shall be based on standards adopted from time to time by the actuarial

standards board or its successor, and on such additional standards as may be prescribed

in the valuation manual. (5) In the case of an opinion required to be submitted by a foreign or alien company,

the superintendent may accept the opinion filed by that company with the insurance

supervisory official of another state if the superintendent determines that the opinion

reasonably meets the requirements applicable to a company domiciled in this state. (6) Except in cases of fraud or willful misconduct, 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 appointed actuary's

opinion. (7) Disciplinary action by the superintendent against the company or the appointed actuary

shall be defined in rules adopted by the superintendent. (E) In addition to the requirements specified in division (D) of this section, each opinion

required by division (C) of this section shall be governed by the following provisions: (1) A memorandum, in form and substance as specified in the valuation manual, and acceptable

to the superintendent, shall be prepared to support each actuarial opinion. (2) If the insurance company fails to provide a supporting memorandum at the request

of the superintendent within a period specified in the valuation manual or the superintendent

determines that the supporting memorandum provided by the insurance company fails

to meet the standards prescribed by the valuation manual or 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 memorandum required by the superintendent.