OAR 836-051-0590
Annual Certifications

(1)

The board of directors of each insurer shall appoint one or more illustration actuaries.

(2)

The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Practice for Compliance with the NAIC Model Regulation on Life Insurance Illustrations promulgated by the Actuarial Standards Board, and that the illustrated scales used in insurer-authorized illustrations meet the requirements of OAR 836-051-0500 (Purpose; Authority) to 836-051-0600 (Trade Practice Regulation).

(3)

The illustration actuary shall:

(a)

Be a member in good standing of the American Academy of Actuaries;

(b)

Be familiar with the standard of practice regarding life insurance policy illustrations;

(c)

Not have been found by the Director, following appropriate notice and hearing to have:

(A)

Violated any provision of, or any obligation imposed by, the Insurance Law or other law in the course of the actuary’s dealings as an illustration actuary;

(B)

Been found guilty of fraudulent or dishonest practices;

(C)

Demonstrated the actuary’s incompetence, lack of cooperation or untrustworthiness to act as an illustration actuary; or

(D)

Resigned or been removed as an illustration actuary within the past five years as a result of acts or omissions indicated in any adverse report on examination or as a result of a failure to adhere to generally acceptable actuarial standards.

(d)

Not fail to notify the Director of any action taken by a commissioner of another state similar to that under subsection (c) of this section (3);

(e)

Disclose in the annual certification whether, since the last certification, a currently payable scale applicable for business issued within the previous five years and within the scope of the certification has been reduced for reasons other than changes in the experience factors underlying the disciplined current scale. If nonguaranteed elements illustrated for new policies are not consistent with those illustrated for similar in force policies, this must be disclosed in the annual certification. If nonguaranteed elements illustrated for both new and in force policies are not consistent with the nonguaranteed elements actually being paid, charged or credited to the same or similar forms, this must be disclosed in the annual certification; and

(f)

Disclose in the annual certification the method used to allocate overhead expenses for all illustrations:

(A)

Fully allocated expenses;

(B)

Marginal expenses; or

(C)

A generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the Director.

(4)

Intentionally left blank —Ed.

(a)

The illustration actuary shall file a certification with the board and with the Director:

(A)

Annually for all policy forms for which illustrations are used; and

(B)

Before a new policy form is illustrated.

(b)

If an error in a previous certification is discovered, the illustration actuary shall notify the board of directors of the insurer and the director promptly.

(5)

If an illustration actuary is unable to certify the scale for any policy form illustration the insurer intends to use, the actuary shall notify the board of directors of the insurer and the Director promptly of the actuary’s inability to certify.

(6)

A responsible officer of the insurer, other than the illustration actuary, shall certify annually:

(a)

That the illustration formats meet the requirements of OAR 836-051-0500 (Purpose; Authority) to 836-051-0600 (Trade Practice Regulation) and that the scales used in insurer-authorized illustrations are those scales certified by the illustration actuary; and

(b)

That the insurer has provided its insurance producers with information about the expense allocation method used by the insurer in its illustrations and disclosed as required in section (3)(f) of this rule.

(7)

The annual certification shall be provided to the Director each year by a date determined by the insurer. If the insurer decides to change the date for a subsequent year, the insurer must so notify the Director prior to the insurer’s current elected date and include with the notification an explanation for the change. The first annual certification by an insurer is due on the date elected by the insurer during the calendar year beginning January 1, 1998.

(8)

If an insurer changes the illustration actuary responsible for all or a portion of the insurer’s policy forms, the insurer shall notify the Director of that fact promptly and disclose the reason for the change.

Source: Rule 836-051-0590 — Annual Certifications, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=836-051-0590.

836‑051‑0005
Statutory Authority 836‑051‑0010
Definitions 836‑051‑0015
Disclosure Requirements 836‑051‑0020
General Requirements 836‑051‑0030
Purpose and Applicability 836‑051‑0032
Definition 836‑051‑0034
Exemptions 836‑051‑0036
Disclosure Requirements 836‑051‑0038
Insurer Duties 836‑051‑0040
Trade Practice Regulation 836‑051‑0101
Statutory Authority 836‑051‑0106
Life Insurance Valuation and Nonforfeiture Standards 836‑051‑0110
Life Insurance Nonforfeiture Standards for Men and Women 836‑051‑0115
Smoker/Nonsmoker Mortality Tables 836‑051‑0150
Individual Deferred Annuities Surrender Charge 836‑051‑0153
Limitations on Surrender Charge Scales 836‑051‑0156
Fair Surrender Charges 836‑051‑0200
Authority 836‑051‑0210
Purpose 836‑051‑0220
Definitions 836‑051‑0230
Individual Annuity or Pure Endowment Contracts 836‑051‑0235
Application of the 2012 IAR Mortality Table 836‑051‑0240
Group Annuity or Pure Endowment Contracts 836‑051‑0250
Application of the 1994 GAR Table 836‑051‑0300
Statutory Authority 836‑051‑0310
Acknowledgement of Concurrence for Payout from Assignee or Beneficiary 836‑051‑0320
Payment Options 836‑051‑0330
Disclosure 836‑051‑0340
Exercise of the Accelerated Benefit 836‑051‑0350
Waiver of Premium 836‑051‑0360
Discrimination 836‑051‑0370
Minimum Benefit Standards 836‑051‑0380
Actuarial Disclosure and Reserves 836‑051‑0500
Purpose 836‑051‑0510
Applicability and Scope 836‑051‑0520
Definitions 836‑051‑0530
Policies to Be Illustrated 836‑051‑0540
General Rules and Prohibitions 836‑051‑0550
Standards for Basic Illustrations 836‑051‑0560
Standards for Supplemental Illustrations 836‑051‑0570
Delivery of Illustration and Record Retention 836‑051‑0580
Annual Report 836‑051‑0590
Annual Certifications 836‑051‑0600
Trade Practice Regulation 836‑051‑0700
Authorization, Genetic Testing 836‑051‑0750
Purpose 836‑051‑0755
Definitions 836‑051‑0760
Minimum Valuation Mortality Standards 836‑051‑0765
Minimum Valuation Interest Rate Standards 836‑051‑0770
Minimum Valuation Method Standards 836‑051‑0775
Transition Rules 836‑051‑0900
Purpose 836‑051‑0905
Applicability and Scope 836‑051‑0910
Definitions 836‑051‑0915
Standards for the Disclosure Document and Buyer’s Guide 836‑051‑0920
Report to Contract Owners 836‑051‑0925
Trade Practice Regulation
Last Updated

Jun. 8, 2021

Rule 836-051-0590’s source at or​.us