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Regular Session, 2010
SENATE BILL NO. 674
BY SENATOR HEBERT
PROPERTY INSURANCE. Provide for the annual filing of actuarial opinions by property
and casualty insurance companies. (8/15/10)
AN ACT1
To amend and reenact R.S. 22:771 and R.S. 44:4.1(B)(10), relative to property and casualty2
insurance companies; to provide with respect to the annual filing of actuarial3
opinions; to provide for the filing of actuarial opinion summaries; to provide for the4
filing of actuarial opinion reports and workpapers; to provide for the commissioners5
authority to engage actuaries; to provide for liability with respect to actuarial6
opinions; to provide for the confidentiality of certain documents; and to provide for7
related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 22:771 is hereby amended and reenacted to read as follows: 10
§771. Statement of Actuarial actuarial opinion certification of loss and loss11
expense reserves12
The loss and loss expense reserves shall be accompanied by a statement of13
the opinion of an associate or fellow of the Casualty Actuarial Society or other14
qualified loss reserve specialist, setting forth his opinion relative to the15
reasonableness and sufficiency of loss and loss expense reserves.16
A. Every property and casualty insurance company doing business in17 SB NO. 674
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
this state, unless otherwise exempted by the domiciliary commissioner, shall1
annually submit the opinion of a qualified actuary appointed by the company2
entitled "statement of actuarial opinion." This opinion shall be filed in3
accordance with the appropriate NAIC Property and Casualty Annual4
Statement Instructions.5
B.(1) Every property and casualty insurance company domiciled in this6
state that is required to submit a statement of actuarial opinion shall annually7
submit an actuarial opinion summary, written by the company's appointed8
actuary. This actuarial opinion summary shall be filed in accordance with the9
appropriate NAIC Property and Casualty Annual Statement Instructions and10
shall be considered as a document supporting the actuarial opinion required in11
Subsection A of this Section.12
(2) A company licensed but not domiciled in this state shall provide the13
actuarial opinion summary upon request.14
C.(1) An actuarial report and underlying workpapers as required by the15
appropriate NAIC Property and Casualty Annual Statement Instructions shall16
be prepared to support each actuarial opinion.17
(2) If the insurance company fails to provide a supporting actuarial18
report or workpapers at the request of the commissioner or if the commissioner19
determines that the supporting actuarial report or workpapers provided by the20
insurance company is otherwise unacceptable to the commissioner, the21
commissioner may engage a qualified actuary at the expense of the company to22
review the opinion and the basis for the opinion and prepare the supporting23
actuarial report or workpapers.24
D. Except in cases of fraud or willful misconduct, the appointed actuary25
shall not be liable for damages to any person, other than the insurance company26
and the commissioner, for any act, error, omission, decision, or conduct with27
respect to the actuary's opinion.28
E. The statement of actuarial opinion shall be provided with the annual29 SB NO. 674
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statement in accordance with the appropriate NAIC Property and Casualty1
Annual Statement Instructions and shall be treated as a public document.2
F. All documents, materials or other information in the possession or3
control of the commissioner that are considered an actuarial report,4
workpapers or actuarial opinion summary provided in support of the opinion,5
and any other material provided by the company to the commissioner in6
connection with the actuarial report, workpapers or actuarial opinion7
summary, shall be given confidential treatment and are not subject to subpoena8
and may not be made public by the commissioner or any other person, except9
that any access may be granted to the National Association of Insurance10
Commissioners, insurance departments of other states, international, federal or11
state law enforcement agencies or international, federal or state regulatory12
agencies with statutory oversight over the financial services industry, if the13
recipient agrees to maintain the confidentiality of those documents which are14
confidential under the laws of this state. Nothing contained in this Subsection15
shall be construed to limit the commissioner's authority to use any document,16
material or other information in the furtherance of any legal or regulatory17
action which the commissioner may, in his sole discretion, deem appropriate.18
Section 2. R.S. 44:4.1(B)(10) is hereby amended and reenacted to read as follows:19
§4.1. Exceptions20
* * *21
B. The legislature further recognizes that there exist exceptions, exemptions,22
and limitations to the laws pertaining to public records throughout the revised23
statutes and codes of this state. Therefore, the following exceptions, exemptions, and24
limitations are hereby continued in effect by incorporation into this Chapter by25
citation:26
* * *27
(10) R.S. 22:2, 14, 42.1, 88, 244, 461, 572, 574, 618, 706, 732, 752, 771,28
1203, 1460, 1466, 1546, 1644, 1656, 1723, 1929, 1983, 2036, 230329 SB NO. 674
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Horne.
DIGEST
Present law requires the loss and expense reserves of insurers to be accompanied by a
statement of opinion of an associate or fellow of the Casualty Actuarial Society or other
qualified loss reserve specialist, setting forth his opinion relative to the reasonableness and
sufficiency of loss and loss expense reserves. Proposed law deletes this provision and
requires every property and casualty insurance company doing business in the state, unless
exempted by the domiciliary commissioner, to annually submit the opinion of a qualified
actuary appointed by the company entitled "statement of actuarial opinion" which shall be
filed in accordance with the appropriate NAIC Property and Casualty Annual Statement
Instructions.
Proposed law requires every property and casualty insurance company domiciled in the state
that is required to submit a Statement of Actuarial Opinion to annually submit an actuarial
opinion summary, written by the company's appointed actuary and filed in accordance with
the appropriate NAIC Property and Casualty Annual Statement Instructions as a supporting
document. Requires a company licensed but not domiciled in the state to provide the
actuarial opinion summary upon request.
Proposed law requires an actuarial report and underlying workpapers to be prepared to
support each actuarial opinion. Provides that if the insurance company fails to provide a
supporting actuarial report or workpapers at the request of the commissioner or if the
commissioner determines that the supporting actuarial report or workpapers is unacceptable,
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.
Proposed law prohibits the appointed actuary from being held 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.
Proposed law requires the statement of actuarial opinion to 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.
Proposed law requires all documents, materials or other information in the possession or
control of the commissioner that are considered an actuarial report and any other material
provided by the company in connection with the actuarial report, workpapers or actuarial
opinion summary to be given confidential treatment and are not subject to subpoena and may
not be made public by the commissioner or any person. Permits access to be granted to the
National Association of Insurance Commissioners, insurance departments of other states,
international, federal or state law enforcement agencies or international, federal or state
regulatory agencies with statutory oversight over the financial services industry if the
recipient agrees to maintain the confidentiality of those documents.
Proposed law is included in the exceptions, exemptions, and limitations to the laws
pertaining to public records throughout the revised statutes and codes of the state.
Effective August 15, 2010.
(Amends R.S.22:771 and R.S. 44:4.1(B)(10))