Provides for actuarial opinions relative to property and casualty insurance companies. (08/15/10)
If enacted, SB 133 will amend existing state laws by introducing stringent requirements for actuarial opinions and their accompanying documentation. Insurance companies will need to provide a summary of the actuarial opinion alongside their financial statements, prepared in accordance with the National Association of Insurance Commissioners (NAIC) guidelines. The bill also empowers the commissioner of insurance to engage external actuaries at the expense of the insurance companies if the submitted reports are unsatisfactory or lacking, thus enhancing regulatory accountability.
Senate Bill 133, introduced by Senator Morrell, focuses on regulatory requirements for actuarial opinions related to property and casualty insurance companies operating within Louisiana. The bill mandates that all such companies, unless exempted, must annually submit a statement of actuarial opinion from a qualified actuary. This statement is intended to confirm the adequacy and reliability of loss and expense reserves held by these companies, which is critical for ensuring the financial stability and compliance of the insurance sector.
Overall sentiment surrounding SB 133 appears supportive among regulators as it offers greater oversight and assurance regarding the financial practices of insurance companies. Proponents argue that the increased scrutiny will protect consumers and ensure that insurers maintain adequate reserves to cover potential liabilities. However, there may be concerns from the insurance industry about the increased regulatory burden and costs associated with compliance, particularly in terms of the fees for external actuaries.
Notable points of contention may arise around the confidentiality provisions included in SB 133. The bill stipulates that certain documents related to actuarial reports will be confidential and not subject to public disclosure. This could lead to debates about transparency versus the need to protect sensitive actuarial information. Additionally, the liability protections granted to appointed actuaries could draw scrutiny, especially if stakeholders feel that accountability is lacking under certain circumstances.