(a) A memorandum shall be prepared to support each actuarial opinion required by § 425.054 or 425.0545. The form and substance of each supporting memorandum must comply with the commissioner’s rules for memorandums subject to § 425.054, or the valuation manual for memorandums subject to § 425.0545.
(b) The commissioner may engage an actuary or other financial specialist as defined by commissioner rule if:
(1) a life insurance company does not provide a supporting memorandum at the request of the commissioner in the time specified by rule; or
(2) the company provides a supporting memorandum, but the commissioner determines that the supporting memorandum does not meet the standards prescribed by rule or is otherwise unacceptable to the commissioner.

Terms Used In Texas Insurance Code 425.055

  • Company: means an entity that:
    (A) has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this state and has at least one such policy in force or on claim; or
    (B) has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this state. See Texas Insurance Code 425.052
  • Life insurance: means contracts that incorporate mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual. See Texas Insurance Code 425.052
  • Rule: includes regulation. See Texas Government Code 311.005
  • Valuation manual: means the manual of valuation instructions adopted by the commissioner by rule. See Texas Insurance Code 425.052

(c) The actuary or other financial specialist under Subsection (b) shall:
(1) review the actuarial opinion and the basis for the opinion; and
(2) prepare the supporting memorandum.
(d) A life insurance company is responsible for the expense of the actuary or other financial specialist under Subsection (b).

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