58-26-99. Procedures, controls and report regarding principle-based valuation.
154 words·~1 min read·
/sd/title-58/chapter-58-26/58-26-99·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A company using a principle-based valuation for one or more policies or contracts subject to §§ 58-26-98 to 58-26-100 , inclusive, as specified in the valuation manual shall:
(1)Establish procedures for corporate governance and oversight of the actuarial valuation function consistent with those described in the valuation manual;
(2)Provide to the director and the board of directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation. The controls shall be designed to assure that all material risks inherent in the liabilities and associated assets subject to such valuation are included in the valuation, and that valuations are made in accordance with the valuation manual. The certification shall be based on the controls in place as of the end of the preceding calendar year;
(3)Develop, and file with the director upon request, a principle-based valuation report that complies with standards prescribed in the valuation manual.