Actuarial opinion of reserves

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  • (a)

    • (1) Every company with outstanding life insurance contracts, accident and health insurance contracts or deposit-type contracts in the Virgin Islands and subject to regulation by the Commissioner shall annually submit the opinion of the appointed actuary stating whether the reserves and related actuarial items held in support of the policies and contracts are:

      • (A) computed appropriately;

      • (B) based on assumptions that satisfy contractual provisions;

      • (C) consistent with prior reported amounts; and

      • (D) comply with applicable laws of this Territory.

    • (2) The valuation manual prescribes the specifics of this opinion, including any items necessary to its scope.

  • (b) Every company with outstanding life insurance contracts, accident and health insurance contracts or deposit-type contracts in the Virgin Islands, subject to regulation by the Commissioner, except as exempted in the valuation manual, shall annually include in the opinion required by subsection (a), an opinion by the same appointed actuary stating whether the reserves and related actuarial items held in support of the policies and contracts specified in the valuation manual made adequate provision for the company’s obligations under the policies and contracts, including the benefits under and expenses associated with the policies and contracts, when considered in light of the assets held by the company with respect to the reserves and related actuarial items, including the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts.

  • (c)

    • (1) Each opinion required by subsection (a) is governed by the following provisions:

      • (A) A memorandum, in form and substance as specified in the valuation manual, and acceptable to the Commissioner, must be prepared to support each actuarial opinion.

      • (B) The opinion must be in form and substance as specified in the valuation manual and acceptable to the Commissioner.

      • (C) The opinion must be submitted with the annual statement reflecting the valuation of the reserve liabilities for each year ending on or after the operative date of the valuation manual.

      • (D) The opinion applies to all policies and contracts subject to subsection (b), plus other actuarial liabilities as may be specified in the valuation manual.

      • (E) The opinion must be based on standards adopted from time to time by the Actuarial Standards Board or its successor, and on such additional standards as may be prescribed in the valuation manual.

    • (2) If the insurance company fails to provide a supporting memorandum at the request of the Commissioner within a period specified in the valuation manual or the Commissioner determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the valuation manual or is otherwise unacceptable to the Commissioner, 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 memorandum required by the Commissioner.

  • (d) For any opinion required under subsection (a), the following applies:

    • (1) For an opinion required to be submitted by a foreign or alien company, the Commissioner may accept the opinion filed by that company with the insurance supervisory official of another state if the Commissioner determines that the opinion reasonably meets the requirements applicable to a company domiciled in the Territory.

    • (2) Neither the appointed actuary nor the qualified actuary is 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.

    • (3) The Commissioner may take disciplinary action against a company, a qualified actuary, or an appointed actuary as provided in the regulations promulgated by the Commissioner.


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