(a) Except as provided in this section, for a policy or contract issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under § 23-84-102(b).
(b) The valuation manual shall specify:
(1) Minimum valuation standards and definitions for policies or contracts subject to § 23-84-102(b), including without limitation:
(A) The Insurance Commissioner's reserve valuation method for life insurance contracts, other than annuity contracts, subject to § 23-84-102(b);
(B) The commissioner's annuity reserve valuation method for annuity contracts subject to § 23-84-102(b); and
(C) Minimum reserves for all other policies or contracts subject to § 23-84-102(b);
(2) Which policies or contracts or types of policies or contracts are subject to the requirements of a principle-based valuation under § 23-84-116(a) and the minimum valuation standards consistent with those requirements;
(3) For policies and contracts subject to a principle-based valuation under § 23-84-116:
(A) Requirements for the format of reports to the commissioner under § 23-84-116(b)(3), including without limitation information necessary to determine if the valuation is appropriate and in compliance with this chapter;
(B) Assumptions for risks over which the company does not have significant control or influence; and
(C) Procedures for corporate governance and oversight of the actuarial function and a process for appropriate waiver or modification of those procedures;
(4) For policies not subject to a principle-based valuation under § 23-84-116, a minimum valuation standard:
(A) That is consistent with the minimum standard of valuation before the operative date of the valuation manual; or
(B) That requires reserves to be developed that quantify the benefits and guarantees and the funding associated with the policy or contract and its risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring;
(5) Other requirements, including without limitation those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memorandums, and transition rules and internal controls; and
(6) The data and form of the data required under § 23-84-117, with whom the data must be submitted and, if desired, other requirements, including data analyses and reporting of data analyses.
(c) If a specific valuation requirement is not specified in the valuation manual or if in the opinion of the commissioner a specific valuation requirement in the valuation manual is not in compliance with this chapter, then the company shall comply with minimum valuation standards prescribed by the commissioner for the specific valuation requirement.
(d)
(1) The commissioner may employ or contract with a qualified actuary at the expense of a company to:
(A) Perform an actuarial examination of the company and opine on the appropriateness of any reserve assumption or method used by the company; or
(B) Review and opine on a company's compliance with any requirement under this chapter.
(2) The commissioner may rely upon an opinion regarding provisions contained within this chapter of a qualified actuary employed or contracted with by a public official or regulatory authority responsible for regulating insurance companies of another state, district, or territory of the United States.
(e) The commissioner may:
(1) Require a company to change any assumption or method that in the opinion of the commissioner is necessary in order to comply with the requirements of the valuation manual or this chapter;
(2) Require a company to adjust the company's reserves; and
(3) Take other disciplinary action permitted by § 23-60-108.