§ 84b.4. Definitions.

 The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

   Act—The Insurance Department Act of 1921 (40 P. S. § §  1—297.4).

   Actuarial opinion—With respect to § §  84b.8, 84b.9 and 84b.10 (relating to statement of actuarial opinion based on asset adequacy analysis; description of actuarial memorandum including an asset adequacy analysis; and additional considerations for analysis), the opinion of an appointed actuary regarding the adequacy of the reserves and related actuarial items based on an asset adequacy test in accordance with §  84b.8 and with actuarial standards. With respect to §  84b.7 (relating to statement of actuarial opinion not including an asset adequacy analysis), the opinion of an appointed actuary regarding the calculation of reserves and related items, in accordance with §  84b.7 and with actuarial standards which specifically relate to this opinion.

   Actuarial Standards Board—The board established by the American Academy of Actuaries, or a successor thereto, to develop and promulgate standards of actuarial practice.

   Annual statement—The statement required by section 320 of the Insurance Company Law of 1921 (40 P. S. §  443) to be filed by a life insurance company with the Commissioner annually and the statement required by section 602 of The Fraternal Benefit Societies Code (40 P. S. §  1142-602) to be filed by a fraternal benefit society with the Commissioner annually.

   Appointed actuary—A qualified actuary who is appointed or retained either directly by or by the authority of the board of directors through an executive officer of the company, to prepare the statement of actuarial opinion and supporting memorandum as required by §  301(f) of the act (40 P. S. §  71(f)).

   Asset adequacy analysis—An analysis that meets the standards and other requirements referred to in §  84b.5(d) (relating to general requirements). It may take many forms, including cash flow testing, sensitivity testing or applications of risk theory.

   Commissioner—The Insurance Commissioner of the Commonwealth.

   Company—A life insurance company or fraternal benefit society subject to this chapter.

   Department—The Insurance Department of the Commonwealth.

   First priority company—A company designated by the NAIC as a company which should be assigned a first priority in the scheduling of a state’s company financial reviews.

   NAIC—National Association of Insurance Commissioners, or a successor thereto.

   Noninvestment grade bonds—Bonds designated as classes 3, 4, 5 or 6 by the NAIC Securities Valuation Office, or a successor thereto.

   Policy—When used with respect to a fraternal benefit society, a certificate.

   Qualified actuary—An individual who meets the requirements in §  84b.5(b).

   Second priority company—A company designated by the NAIC as a company which should be assigned a second priority in the scheduling of a state’s company financial reviews.

   This section cited in 31 Pa. Code §  84c.3 (relating to definitions).