This bulletin calls attention to new Actuarial Guideline 38 (AG 38) filing requirements and how to submit the required filings. The new requirements can be found at: www.naic.org/documents/committees_e_emerging_actuarial_issues_wg_related_ag38_revisions.pdf
The National Association of Insurance Commissioners (NAIC) adopted AG 38, Sections 8D and 8E in September 2012. The department is working to adopt these requirements through the annual adoption of the NAIC Accounting Practices and Procedures Manual. The new requirements affect companies that write universal life insurance policies with secondary guarantees and apply to certain in-force universal life insurance policies with secondary guarantees.
Required AG 38, Section 8D and 8E filings along with contact information should be submitted electronically to: Mike Boerner, Actuarial Office Director, Actuarialdivision@tdi.texas.gov
AG 38, Section 8E provides for two methods, Method I and Method II. Method I filings include an Actuarial Opinion and Company Representation. For forms approved for use in Texas the policy form number must be provided along with the Actuarial Opinion and Company Representation. The same information must be provided with the Actuarial Opinion and Company Representation for forms approved for use in other states if those forms are not similar to the forms approved for use in Texas.
AG 38, Section 8E Method II filings include the report that describes the analytical review required by AG 38, Section 8E. For forms approved for use in Texas the policy form number must be provided with the report. The reserve memorandum must also be provided. This information must be provided with Method II filings for forms approved for use in other states if those forms are not similar to the forms approved for use in Texas. An electronic copy of any such non-similar forms must also be submitted.
Model responses to questions regarding these requirements are being posted on the NAIC E Committee website found under Committees and Activities under NAIC.org
Please direct any questions you have about the required filings, the new requirements, or model responses to questions referenced above, to Mike Boerner at 512-322-5065 or by email to: mike.boerner@tdi.texas.gov.
Eleanor Kitzman
Commissioner of Insurance