Weekly Tip: Does Your Filing Require Actuarial Review?

Weekly Tips

Insurance Compact Weekly Tip: Does Your Filing Require Actuarial Review?


Does your company have a upcoming filing which involves the submission of a Supporting Documentation Update filing? In this week's Weekly Tip, we will review a few of the more common filings that require actuarial review.

Whether actuarial review of a Supporting Documentation Update is required depends on what is being updated from the approved Compact filing. This is slightly different than the principle for actuarial review of a product form submission, which is determined solely by whether the applicable Uniform Standards contain actuarial submission requirements.

Individual life insurance and annuity Uniform Standards require prior approval and an actuarial review for any revision that impacts nonforfeiture values. In addition, the core disability income (DI) and long-term care (LTC) insurance Uniform Standards require actuarial review of any revision or form that impacts premium rates. Therefore, any filing of revisions to previously approved filings that affect life/annuity nonforfeiture values and LTC/DI rates will require the submission of an actuarial memorandum and supporting actuarial information. Additionally, most core policy and contract Uniform Standards identify certain product specifications that must be described in the actuarial memo. Revising these specifications will require the submission of an actuarial memo and supporting actuarial information.

Some examples of filings which require an actuarial review and the submission of an actuarial memo include:

  • An annuity rider or endorsement that assesses an additional charge from the account value.
  • A life rider that changes the premium paying period of a traditional whole life form.
  • The creation of a new risk class for a life form that results in a new premium schedule.
  • Adding a level premium or guarantee period to a life policy.
  • Modifying the issue age range or minimum specified amount at which a life policy will be issued.
  • A DI endorsement for a new marketing program that impacts the available premiums or applicable discounts.
  • An updated range of available inflation options available on a previously approved LTC product.
  • A change to the nonforfeiture interest rate or nonforfeiture mortality table.
  • A change to the guaranteed minimum interest rate, guaranteed maximum cost of insurance rates, or guaranteed maximum surrender or expense charges for a universal life product.

The Insurance Compact Office maintains a list of Uniform Standards that don't require Actuarial Review on the Insurer Resources page of the Insurance Compact website. A Supporting Documentation Update submission subject only to the Uniform Standards on the posted list does not require actuarial review.

If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.