Actuarial Standards Board News

The ASB recently adopted a final revision of Actuarial Standard of Practice (ASOP) No. 28, now titled Statements of Actuarial Opinion Regarding Health Insurance Assets and Liabilities. The ASOP provides guidance to actuaries when performing actuarial services with respect to issuing or reviewing a statement of actuarial opinion regarding health insurance assets and liabilities. The standard is effective for work performed involving statements of actuarial opinion regarding health insurance assets and liabilities issued on or after July 1, 2022.

The ASB also approved an exposure draft of a proposed revision of ASOP No. 24, Compliance with the NAIC Life Insurance Illustrations Model Regulation. The ASOP provides guidance to actuaries when performing actuarial services with respect to applicable law (statutes, regulations, and other legally binding authority) based on the NAIC Life Insurance Illustrations Model Regulation and related NAIC actuarial guidelines or when performing actuarial services with respect to illustrations represented to be in accordance with the Model and related NAIC actuarial guidelines. The comment deadline for the exposure draft is Sept. 30, 2021. Information on how to submit comments can be found in the exposure draft.

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The ASB recently adopted a final revision of ASOP No. 11, now titled Treatment of Reinsurance or Similar Risk Transfer Programs Involving Life Insurance, Annuities, or Health Benefit Plans in Financial Reports. The ASOP provides guidance to actuaries when performing actuarial services with respect to financial reports that reflect reinsurance programs that involve life insurance, annuities, or health benefit plans. This standard applies to actuaries when performing actuarial services in connection with preparing, determining, analyzing, or reviewing financial reports for internal or external use that reflect reinsurance or similar risk transfer programs on life insurance, annuities, or health benefit plans. The standard, which can be viewed here, is effective for actuarial services performed in connection with financial reports issued on or after Dec. 1, 2022. 

The ASB recently approved an exposure draft of a revision of ASOP No. 18, now titled Long-Term Care. The ASOP provides guidance to actuaries when performing actuarial services with respect to long-term care (LTC) benefit plans sponsored by insurers or other entities. The standard applies to actuaries designing, pricing, or determining funding of an LTC benefit plan and also to actuaries measuring or evaluating LTC liabilities within an LTC benefit plan. The standard does not apply to actuaries providing actuarial services related to LTC benefits for Medicaid eligible recipients, unless the actuarial services are for a long-range financial projection of LTC benefit expenditures and eligible recipients under the Medicaid program. The comment deadline for the exposure draft is Sept. 1, 2021. Information on how to submit comments can be found in the exposure draft. 

The ASB released its 2020 Annual Report, which highlights the board’s accomplishments throughout the year, including adopting three revised ASOPs, approving five exposure drafts for comment, and approving proposals to revise 10 existing ASOPs and one actuarial compliance guideline.