{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-4061","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-4061","heading":"Definitions - Reserves and related actuarial items -","body":"Appropriate computation and adequacy - Periodic opinion and\n\nmemorandum of qualified actuary - Requirements - Liability -\n\nActuarial Opinion of Reserves - Confidentiality.\n\nA. Definitions. For the purposes of this section, the\n\nfollowing definitions shall apply on or after the operative date of\n\nthe valuation manual:\n\n1. \"Accident and health insurance\" means contracts that\n\nincorporate morbidity risk and provide protection against economic\n\nloss resulting from accident, sickness, or medical conditions and as\n\nmay be specified in the valuation manual;\n\n2. \"Appointed actuary\" means a qualified actuary who is\n\nappointed in accordance with the valuation manual to prepare the\n\nactuarial opinion required in this section;\n\n3. \"Company\" means an entity which:\n\na. has written, issued, or reinsured life insurance\n\ncontracts, accident and health insurance contracts, or\n\ndeposit-type contracts in this state and has at least\n\none such policy in force or on claim, or\n\nb. has written, issued, or reinsured life insurance\n\ncontracts, accident and health insurance contracts, or\n\ndeposit-type contracts in any state and is required to\n\nhold a certificate of authority to write life\n\ninsurance, accident and health insurance, or deposit-\n\ntype contracts in this state;\n\n4. \"Deposit-type contract\" means contracts that do not\n\nincorporate mortality or morbidity risks and as may be specified in\n\nthe valuation manual;\n\n5. \"Life insurance\" means contracts that incorporate mortality\n\nrisk, including annuity and pure endowment contracts, and as may be\n\nspecified in the valuation manual;\n\n6. \"NAIC\" means the National Association of Insurance\n\nCommissioners;\n\n7. \"Principle-based valuation\" means a reserve valuation that\n\nuses one or more methods or one or more assumptions determined by\n\nthe insurer and is required to comply with subsection Q of Section\n\n1510 of this title as specified in the valuation manual;\n\n8. \"Qualified actuary\" means an individual who is qualified to\n\nsign the applicable statement of actuarial opinion in accordance\n\nwith the American Academy of Actuaries qualification standards for\n\nactuaries signing such statements and who meets the requirements\n\nspecified in the valuation manual; and\n\n9. \"Valuation manual\" means the manual of valuation\n\ninstructions adopted by the NAIC as specified in Section 1510 of\n\nthis title or as subsequently amended.\n\nB. Actuarial Opinion Beginning January 1, 1998, and Prior to\n\nthe Operative Date of the Valuation Manual.\n\n1. Every life insurance company doing business in this state\n\nshall annually, and quarterly if required by the Insurance\n\nCommissioner, submit the opinion of a qualified actuary as to\n\nwhether the reserves and related actuarial items held in support of\n\nthe policies and contracts specified by the Insurance Commissioner\n\nby rule are computed appropriately, are based on assumptions which\n\nsatisfy contractual provisions, are consistent with prior reported\n\naccounts and comply with applicable laws of this state. The\n\nCommissioner by rule shall define the specifics of this opinion and\n\nadd any other items deemed to be necessary to its scope.\n\n2. a. Every life insurance company, except as exempted by or\n\npursuant to rule, shall also annually, and quarterly\n\nif required by the Insurance Commissioner, include in\n\nthe opinion required by paragraph 1 of this\n\nsubsection, an opinion of the same qualified actuary\n\nas to whether the reserves and related actuarial items\n\nheld in support of the policies and contracts\n\nspecified by the Commissioner by rule, when considered\n\nin light of the assets held by the company with\n\nrespect to the reserves and related actuarial items,\n\nincluding but not limited to the investment earnings\n\non the assets and the considerations anticipated to be\n\nreceived and retained under the policies and\n\ncontracts, make adequate provision for the company's\n\nobligations under the policies and contracts,\nhe Commissioner by rule, when considered\n\nin light of the assets held by the company with\n\nrespect to the reserves and related actuarial items,\n\nincluding but not limited to the investment earnings\n\non the assets and the considerations anticipated to be\n\nreceived and retained under the policies and\n\ncontracts, make adequate provision for the company's\n\nobligations under the policies and contracts,\n\nincluding but not limited to the benefits under and\n\nexpenses associated with the policies and contracts.\n\nb. The Commissioner may provide by rule for a transition\n\nperiod for establishing any higher reserves which the\n\nqualified actuary may deem necessary in order to\n\nrender the opinion required by this section.\n\n3. Each opinion required by paragraph 2 of this subsection\n\nshall be accompanied by a memorandum, in form and substance\n\nacceptable to the Commissioner as specified by rule, prepared to\n\nsupport each actuarial opinion. If the insurance company fails to\n\nprovide a supporting memorandum at the request of the Commissioner\n\nwithin a period specified by rule, or the Commissioner determines\n\nthat the supporting memorandum provided by the insurance company\n\nfails to meet the standards prescribed by the rules or is otherwise\n\nunacceptable to the Commissioner, the Commissioner may engage a\n\nqualified actuary at the expense of the company to review the\n\nopinion and the basis for the opinion and prepare such supporting\n\nmemorandum as is required by the Commissioner.\n\n4. Every opinion shall be governed by the following provisions:\n\na. the opinion shall be submitted with the annual\n\nstatement and quarterly statement, if a quarterly\n\nstatement is required by the Commissioner, reflecting\n\nthe valuation of such reserve liabilities for each\n\nyear,\n\nb. the opinion shall apply to all business in force\n\nincluding individual and group health insurance plans,\n\nin form and substance acceptable to the Commissioner\n\nas specified by rule,\n\nc. the opinion shall be based on standards adopted from\n\ntime to time by the Actuarial Standards Board and on\n\nsuch additional standards as the Commissioner may by\n\nrule prescribe,\n\nd. in the case of an opinion required to be submitted by\n\na foreign or alien company, the Commissioner may\n\naccept the opinion filed by that company with the\n\ninsurance supervisory official of another state if the\n\nCommissioner determines that the opinion reasonably\n\nmeets the requirements applicable to a company\n\ndomiciled in this state,\n\ne. except in cases of fraud or willful misconduct, the\n\nqualified actuary shall not be liable for damages to\n\nany person, other than the insurance company and the\n\nCommissioner, for any act, error, omission, decision\n\nor conduct with respect to the actuary's opinion, and\n\nf. disciplinary action by the Commissioner against the\n\ncompany or the qualified actuary shall be defined in\n\nrules by the Commissioner.\n\n5. a. Any memorandum in support of the opinion, and any\n\nother material provided by the company to the\n\nCommissioner in connection therewith, shall be kept\n\nconfidential by the Commissioner and shall not be made\n\npublic and shall not be subject to subpoena, other\n\nthan for the purpose of defending an action seeking\n\ndamages from any person by reason of any action\n\nrequired by this section or by rules promulgated\n\nhereunder; provided, however, that the memorandum or\n\nother material may otherwise be released by the\n\nCommissioner as follows:\n\n(1) with the written consent of the company, or\nt to subpoena, other\n\nthan for the purpose of defending an action seeking\n\ndamages from any person by reason of any action\n\nrequired by this section or by rules promulgated\n\nhereunder; provided, however, that the memorandum or\n\nother material may otherwise be released by the\n\nCommissioner as follows:\n\n(1) with the written consent of the company, or\n\n(2) to the American Academy of Actuaries upon request\n\nstating that the memorandum or other material is\n\nrequired for the purpose of professional\n\ndisciplinary proceedings and setting forth\n\nprocedures satisfactory to the Commissioner for\n\npreserving the confidentiality of the memorandum\n\nor other material.\n\nb. Once any portion of the confidential memorandum is\n\ncited by the company in its marketing or is cited\n\nbefore any governmental agency other than a state\n\ninsurance department or is released by the company to\n\nthe news media, all portions of the confidential\n\nmemorandum shall be no longer confidential.\n\n6. For the purposes of this section, \"qualified actuary\" means\n\na member in good standing of the American Academy of Actuaries who\n\nmeets the requirements set forth in rules promulgated by the\n\nInsurance Commissioner.\n\nC. Actuarial Opinion of Reserves after the Operative Date of\n\nthe Valuation Manual.\n\n1. Every company with outstanding life insurance contracts,\n\naccident and health insurance contracts or deposit-type contracts in\n\nthis state and subject to regulation by the commissioner shall\n\nannually, and quarterly if required by the Insurance Commissioner,\n\nsubmit the opinion of the appointed actuary as to whether the\n\nreserves and related actuarial items held in support of the policies\n\nand contracts are computed appropriately, are based on assumptions\n\nwhich satisfy contractual provisions, are consistent with prior\n\nreported accounts and comply with applicable laws of this state.\n\nThe valuation manual will prescribe the specifics of this opinion\n\nincluding any items deemed to be necessary to its scope.\n\n2. Every life insurance company with outstanding life insurance\n\ncontracts, accident health insurance contracts or deposit type\n\ncontracts in this state and subject to regulation by the\n\ncommissioner, except as exempted in the valuation manual, shall also\n\nannually, and quarterly if required by the Insurance Commissioner,\n\ninclude in the opinion required by paragraph 1 of this subsection,\n\nan opinion of the same appointed actuary as to whether the reserves\n\nand related actuarial items held in support of the policies and\n\ncontracts specified in the valuation manual, when considered in\n\nlight of the assets held by the company with respect to the reserves\n\nand related actuarial items, including, but not limited to, the\n\ninvestment earnings on the assets and the considerations anticipated\n\nto be received and retained under the policies and contracts, make\n\nadequate provision for the company's obligations under the policies\n\nand contracts, including, but not limited to, the benefits under and\n\nexpenses associated with the policies and contracts.\n\n3. Each opinion required by paragraph 2 of this subsection\n\nshall be accompanied by a memorandum, in form and substance as\n\nspecified in the valuation manual, and acceptable to the\n\nCommissioner, prepared to support each actuarial opinion. If the\n\ninsurance company fails to provide a supporting memorandum at the\n\nrequest of the Commissioner within a period specified in the\n\nvaluation manual or is otherwise unacceptable to the Commissioner,\n\nthe Commissioner may engage a qualified actuary at the expense of\n\nthe company to review the opinion and the basis for the opinion and\n\nprepare such supporting memorandum as is required by the\n\nCommissioner.\n\n4. Every opinion shall be governed by the following provisions:\n\na. the opinion shall be in form and substance as\n\nspecified in the valuation manual and acceptable to\n\nthe Commissioner,\nner,\n\nthe Commissioner may engage a qualified actuary at the expense of\n\nthe company to review the opinion and the basis for the opinion and\n\nprepare such supporting memorandum as is required by the\n\nCommissioner.\n\n4. Every opinion shall be governed by the following provisions:\n\na. the opinion shall be in form and substance as\n\nspecified in the valuation manual and acceptable to\n\nthe Commissioner,\n\nb. the opinion shall be submitted with the annual\n\nstatement and quarterly statement, if a quarterly\n\nstatement is required by the Commissioner, reflecting\n\nthe valuation of such reserve liabilities for each\n\nyear ending on or after the operative date of the\n\nvaluation manual,\n\nc. the opinion shall apply to all policies and contracts\n\nsubject to paragraph 2 of this subsection, plus other\n\nactuarial liabilities as may be specified in the\n\nvaluation manual,\n\nd. the opinion shall be based on standards adopted from\n\ntime to time by the Actuarial Standards Board or its\n\nsuccessor, and on such additional standards as may be\n\nprescribed in the valuation manual,\n\ne. in the case of an opinion required to be submitted by\n\na foreign or alien company, the Commissioner may\n\naccept the opinion filed by that company with the\n\ninsurance supervisory official of another state if the\n\nCommissioner determines that the opinion reasonably\n\nmeets the requirements applicable to a company\n\ndomiciled in this state,\n\nf. except in cases of fraud or willful misconduct, the\n\nappointed actuary shall not be liable for damages to\n\nany person, other than the insurance company and the\n\nCommissioner, for any act, error, omission, decision\n\nor conduct with respect to the appointed actuary's\n\nopinion, and\n\ng. disciplinary action by the Commissioner against the\n\ncompany or the appointed actuary shall be defined in\n\nrules by the Commissioner.\n\nD. Confidentiality.\n\n1. For purposes of this subsection \"confidential information\"\n\nmeans:\n\na. a memorandum in support of an opinion submitted under\n\nthis section and any other documents, materials and\n\nother information, including, but not limited to, all\n\nworking papers, and copies thereof, created, produced\n\nor obtained by or disclosed to the commissioner or any\n\nother person in connection with such memorandum,\n\nb. all documents, materials and other information,\n\nincluding, but not limited to, all working papers, and\n\ncopies thereof, created, produced or obtained by or\n\ndisclosed to the commissioner or any other person in\n\nthe course of an examination made under paragraph 6 of\n\nsubsection P of Section 1510 of this title; provided,\n\nhowever, that if an examination report or other\n\nmaterial prepared in connection with an examination\n\nmade under Sections 309.1 through 309.7 of this title\n\nis not held as private and confidential information\n\nunder Sections 309.1 through 309.7 of this title, an\n\nexamination report or other material prepared in\n\nconnection with an examination made under paragraph 6\n\nof subsection P of Section 1510 of this title shall\n\nnot be \"Confidential Information\" to the same extent\n\nas if such examination report or other material had\n\nbeen prepared under Sections 309.1 through 309.7 of\n\nthis title,\n\nc. any reports, documents, materials and other\n\ninformation developed by a company in support of, or\n\nin connection with, an annual certification by the\n\ncompany under subparagraph (b) of paragraph 2 of\n\nsubsection Q of Section 1510 of this title evaluating\n\nthe effectiveness of the company's internal controls\n\nwith respect to a principle-based valuation and any\n\nother documents, materials and other information,\n\nincluding, but not limited to, all working papers, and\n\ncopies thereof, created, produced or obtained by or\n\ndisclosed to the commissioner or any other person in\n\nconnection with such reports, documents, materials and\n\nother information,\n\nd. any principle-based valuation report developed under\n\nsubparagraph (c) of paragraph 2 of subsection Q of\ny\n\nother documents, materials and other information,\n\nincluding, but not limited to, all working papers, and\n\ncopies thereof, created, produced or obtained by or\n\ndisclosed to the commissioner or any other person in\n\nconnection with such reports, documents, materials and\n\nother information,\n\nd. any principle-based valuation report developed under\n\nsubparagraph (c) of paragraph 2 of subsection Q of\n\nSection 1510 of this title and any other documents,\n\nmaterials and other information, including, but not\n\nlimited to, all working papers, and copies thereof,\n\ncreated, produced or obtained by or disclosed to the\n\ncommissioner or any other person in connection with\n\nsuch report, and\n\ne. any documents, materials, data and other information\n\nsubmitted by a company under subsection R of Section\n\n1510 of this title, collectively, \"experience data\",\n\nand any other documents, materials, data and other\n\ninformation, including, but not limited to, all\n\nworking papers, and copies thereof, created or\n\nproduced in connection with such experience data, in\n\neach case that include any potentially company-\n\nidentifying or personally identifiable information,\n\nthat is provided to or obtained by the commissioner,\n\ntogether with any \"experience data\", the \"experience\n\nmaterials\", and any other documents, materials, data\n\nand other information, including, but not limited to,\n\nall working papers, and copies thereof, created,\n\nproduced or obtained by or disclosed to the\n\ncommissioner or any other person in connection with\n\nsuch experience materials.\n\n2. Privilege for, and Confidentiality of, Confidential\n\nInformation.\n\na. except as provided in this subsection, a company's\n\nConfidential Information is confidential by law and\n\nprivileged, and shall not be subject to Oklahoma Open\n\nRecords Act, shall not be subject to subpoena and\n\nshall not be subject to discovery or admissible in\n\nevidence in any private civil action; provided,\n\nhowever, that the commissioner is authorized to use\n\nthe Confidential Information in the furtherance of any\n\nregulatory or legal action brought against the company\n\nas a part of the commissioner's official duties,\n\nb. neither the commissioner nor any person who received\n\nConfidential Information while acting under the\n\nauthority of the commissioner shall be permitted or\n\nrequired to testify in any private civil action\n\nconcerning any Confidential Information,\n\nc. in order to assist in the performance of the\n\ncommissioner's duties, the commissioner may share\n\nConfidential Information:\n\n(1) with other state, federal and international\n\nregulatory agencies and with the NAIC and its\n\naffiliates and subsidiaries,\n\n(2) in the case of Confidential Information specified\n\nin subparagraphs (a) and (d) of paragraph 1 of\n\nthis subsection, with the Actuarial Board for\n\nCounseling and Discipline or its successor upon\n\nrequest stating that the Confidential Information\n\nis required for the purpose of professional\n\ndisciplinary proceedings and with state, federal\n\nand international law enforcement officials, and\nspecified\n\nin subparagraphs (a) and (d) of paragraph 1 of\n\nthis subsection, with the Actuarial Board for\n\nCounseling and Discipline or its successor upon\n\nrequest stating that the Confidential Information\n\nis required for the purpose of professional\n\ndisciplinary proceedings and with state, federal\n\nand international law enforcement officials, and\n\n(3) in the case of (1) and (2), provided that such\n\nrecipient agrees, and has the legal authority to\n\nagree, to maintain the confidentiality and\n\nprivileged status of such documents, materials,\n\ndata and other information in the same manner and\n\nto the same extent as required for the\n\ncommissioner.\n\nd. the commissioner may receive documents, materials,\n\ndata and other information, including otherwise\n\nconfidential and privileged documents, materials, data\n\nor information, from the NAIC and its affiliates and\n\nsubsidiaries, from regulatory or law enforcement\n\nofficials of other foreign or domestic jurisdictions\n\nand from the Actuarial Board for Counseling and\n\nDiscipline or its successor and shall maintain as\n\nconfidential or privileged any document, material,\n\ndata or other information received with notice or the\n\nunderstanding that it is confidential or privileged\n\nunder the laws of the jurisdiction that is the source\n\nof the document, material or other information,\n\ne. the commissioner may enter into agreements governing\n\nsharing and use of information consistent with\n\nparagraph 2 of this subsection,\n\nf. no waiver of any applicable privilege or claim of\n\nconfidentiality in the Confidential Information shall\n\noccur as a result of disclosure to the commissioner\n\nunder this section or as a result of sharing as\n\nauthorized in subparagraph (c) of paragraph 2 of this\n\nsubsection,\n\ng. a privilege established under the law of any state or\n\njurisdiction that is substantially similar to the\n\nprivilege established under paragraph 2 of this\n\nsubsection shall be available and enforced in any\n\nproceeding in, and in any court of, this state,\n\nh. in this subsection \"regulatory agency\", \"law\n\nenforcement agency\" and the \"NAIC\" include, but are\n\nnot limited to, their employees, agents, consultants\n\nand contractors.\n\n3. Notwithstanding paragraph 2 of this subsection, any\n\nConfidential Information specified in subparagraphs a and d of\n\nparagraph 1 of this subsection:\n\na. may be subject to subpoena for the purpose of\n\ndefending an action seeking damages from the appointed\n\nactuary submitting the related memorandum in support\n\nof an opinion submitted under this section or\n\nprinciple-based valuation report developed under\n\nsubparagraph c of paragraph 2 of subsection Q of\n\nSection 1510 of this title by reason of an action\n\nrequired by Section 1510 of this title or by rules\n\npromulgated hereunder,\n\nb. may otherwise be released by the commissioner with the\n\nwritten consent of the company, and\n\nc. once any portion of a memorandum in support of an\n\nopinion submitted under this section or a principle-\n\nbased valuation report developed under subparagraph c\n\nof paragraph 2 of subsection Q of Section 1510 of this\n\ntitle is cited by the company in its marketing or is\n\npublicly volunteered to or before a governmental\n\nagency other than a state insurance department or is\n\nreleased by the company to the news media, all\n\nportions of such memorandum or report shall no longer\n\nbe confidential.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"da0cc44958a292bc90e24770ec054ccd4672067e016047fac5ac7e6a0e845564","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-406","next":"us-ok/okla.-stat.-tit.-36-36-4071"},"notice":"GroundRules: Original legal text. Not legal advice."}