§ 84b.6. Required opinions.

 (a)  General. In accordance with section 301(f)(1) and (2) of the act (40 P. S. §  71(f)(1) and (2)), every company doing business in this Commonwealth shall annually submit the opinion of an appointed actuary as provided for by this chapter. The type of opinion submitted shall be determined by the provisions set forth in this section and shall be in accordance with the applicable provisions in this chapter.

 (b)  Company categories. For purposes of this chapter, companies shall be classified as follows based on the admitted assets as of the end of the calendar year for which the actuarial opinion is applicable:

   (1)  Category A consists of companies whose admitted assets do not exceed $20 million.

   (2)  Category B consists of companies whose admitted assets exceed $20 million but do not exceed $100 million.

   (3)  Category C consists of companies whose admitted assets exceed $100 million but do not exceed $500 million.

   (4)  Category D consists of companies whose admitted assets exceed $500 million.

 (c)  Exemption eligibility tests.

   (1)  A Category A company that, for any year beginning with 1994, meets the criteria in subparagraphs (i)—(iv) shall be eligible for exemption from submission of a statement of actuarial opinion in accordance with §  84b.8 (relating to statement of actuarial opinion based on asset adequacy analysis) for the year in which these criteria are met. The ratios in subparagraphs (i)—(iii) shall be calculated based on amounts as of the end of the calendar year for which the actuarial opinion is applicable.

     (i)   The ratio of the sum of capital and surplus to the sum of cash and invested assets is at least equal to .10.

     (ii)   The ratio of the sum of the reserves and liabilities for annuities and deposits to the total admitted assets is less than .30.

     (iii)   The ratio of the book value of the noninvestment grade bonds to the sum of capital and surplus is less than .50.

     (iv)   The Examiner Team for the NAIC has not designated the company as a ‘‘first priority company’’ in any of the 2 calendar years preceding the calendar year for which the actuarial opinion is applicable, or a ‘‘second priority company’’ in each of the 2 calendar years preceding the calendar year for which the actuarial opinion is applicable, or the company has resolved the ‘‘first priority company’’ or ‘‘second priority company’’ status to the satisfaction of the commissioner of the state of domicile and the commissioner has so notified the chair of the NAIC Life and Health Actuarial Task Force, or a successor thereto, and the NAIC Staff and Support Office.

   (2)  A Category B company that, for any year beginning with 1994, meets all of the criteria in subparagraphs (i)—(iv) shall be eligible for exemption from submission of a statement of actuarial opinion in accordance with §  84b.8 for the year in which the criteria are met. The ratios in subparagraphs (i)—(iii) shall be calculated based on amounts as of the end of the calendar year for which the actuarial opinion is applicable.

     (i)   The ratio of the sum of capital and surplus to the sum of cash and invested assets is at least equal to .07.

     (ii)   The ratio of the sum of the reserves and liabilities for annuities and deposits to the total admitted assets is less than .40.

     (iii)   The ratio of the book value of the noninvestment grade bonds to the sum of capital and surplus is less than .50.

     (iv)   The Examiner Team for the NAIC has not designated the company as a ‘‘first priority company’’ in any of the 2 calendar years preceding the calendar year for which the actuarial opinion is applicable, or a ‘‘second priority company’’ in each of the 2 calendar years preceding the calendar year for which the actuarial opinion is applicable, or the company has resolved the ‘‘first priority company’’ or ‘‘second priority company’’ status to the satisfaction of the commissioner of the state of domicile and the commissioner has so notified the chair of the NAIC Life and Health Actuarial Task Force, or a successor thereto, and the NAIC Staff and Support Office.

   (3)  A Category A or Category B company that meets the criteria in subsection (c)(1) or (2), whichever is applicable, is exempted from submission of a statement of actuarial opinion in accordance with §  84b.8 unless the Commissioner specifically indicates to the company that the exemption is not to be taken as provided by §  84b.3(c) (relating to scope).

   (4)  A Category A or Category B company that, for any year beginning with 1994, is not exempted under subsection (c)(3) shall be required to submit a statement of actuarial opinion in accordance with §  84b.8 for the year for which it is not exempt.

   (5)  A Category C company that, after submitting an opinion in accordance with §  84b.8 to the Commissioner or to the commissioner of another state, meets the criteria in subparagraphs (i)—(iv) is not required, unless required in accordance with paragraph (6), to submit a statement of actuarial opinion in accordance with §  84b.8 more frequently than every third year. The initial 3-year period begins with the earlier of the submission of the opinion in accordance with §  84b.8 to either the Commissioner of the Commonwealth or to the commissioner of another state. A Category C company which fails to meet the following criteria for any year shall submit a statement of actuarial opinion in accordance with §  84b.8 for that year. The ratios in subparagraphs (i)—(iii) shall be calculated based on amounts as of the end of the calendar year for which the actuarial opinion is applicable.

     (i)   The ratio of the sum of capital and surplus to the sum of cash and invested assets is at least equal to .05.

     (ii)   The ratio of the sum of the reserves and liabilities for annuities and deposits to the total admitted assets is less than .50.

     (iii)   The ratio of the book value of the noninvestment grade bonds to the sum of the capital and surplus is less than .50.

     (iv)   The Examiner Team for the NAIC has not designated the company as a ‘‘first priority company’’ in any of the 2 calendar years preceding the calendar year for which the actuarial opinion is applicable, or a ‘‘second priority company’’ in each of the 2 calendar years preceding the calendar year for which the actuarial opinion is applicable, or the company has resolved the ‘‘first priority company’’ or ‘‘second priority company’’ status to the satisfaction of the commissioner of the state of domicile and the commissioner has so notified the chair of the NAIC Life and Health Actuarial Task Force, or a successor thereto, and the NAIC Staff and Support Office.

   (6)  A company which is not required by this section to submit a statement of actuarial opinion in accordance with §  84b.8 for any year shall submit a statement of actuarial opinion in accordance with §  84b.7 (relating to statement of actuarial opinion not including an asset adequacy analysis) for that year unless as provided for by §  84b.3(c) the Commissioner requires a statement of actuarial opinion in accordance with §  84b.8.

 (d)  Large companies. Every Category D company shall submit a statement of actuarial opinion in accordance with §  84b.8 for each year beginning with 1994.

   This section cited in 31 Pa. Code §  84b.3 (relating to scope); 31 Pa. Code §  84b.5 (relating to general requirements).