(1) In accordance with 33-2-521(4) , (5) , MCA, every company doing business in this state shall annually submit the opinion of an appointed actuary as provided for by these rules. The type of opinion submitted shall be determined by the provisions set forth in this ARM 6.6.6506 and shall be in accordance with the applicable provisions in these rules.

(2) For purposes of these rules, 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:

(a) Category A shall consist of those companies whose admitted assets do not exceed $20 million;

(b) Category B shall consist of those companies whose admitted assets exceed $20 million but do not exceed $100 million;

(c) Category C shall consist of those companies whose admitted assets exceed $100 million but do not exceed $500 million; and

(d) Category D shall consist of those companies whose admitted assets exceed $500 million.

(3) Exemption eligibility tests follow:

(a) Any category A company that, for any year beginning with the year in which these rules become effective, meets all of the following criteria shall be eligible for exemption from submission of a statement of actuarial opinion in accordance with ARM 6.6.6508 for the year in which these criteria are met. The ratios in (3) (a) (i) , (ii) and (iii) below 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 non-investment grade bonds to the sum of capital and surplus is less than .50.

(iv) The examiner team for the national association of insurance commissioners (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 or second priority 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 and the NAIC staff and support office.

(b) Any category B company that, for any year beginning with the year in which these rules become effective, meets all of the following criteria shall be eligible for exemption from submission of a statement of actuarial opinion in accordance with ARM 6.6.6508 for the year in which the criteria are met. The ratios in (3) (b) (i) , (ii) and (iii) below 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 non-investment grade bonds to the sum of capital and surplus is less than .50.

(iv) The examiner team for the national association of insurance commissioners (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 or second priority 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 and the NAIC staff and support office.

(c) Any category A or category B company that meets all of the criteria set forth in (3) (a) or (b) , whichever is applicable, is exempted from submission of a statement of actuarial opinion in accordance with ARM 6.6.6508 unless the commissioner specifically indicates to the company that the exemption is not to be taken.

(d) Any category A or category B company that, for any year beginning with the year in which these rules become effective, is not exempted under (3) (c) shall be required to submit a statement of actuarial opinion in accordance with ARM 6.6.6508 for the year for which it is not exempt.

(e) Any category C company that, after submitting an opinion in accordance with ARM 6.6.6508, meets all of the following criteria shall not be required, unless required in accordance with (3) (f) below, to submit a statement of actuarial opinion in accordance with ARM 6.6.6508 more frequently than every third year. Any category C company which fails to meet all of the following criteria for any year shall submit a statement of actuarial opinion in accordance with ARM 6.6.6508 for that year. The ratios in (3) (e) (i) , (ii) and (iii) below 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 non-investment grade bonds to the sum of the capital and surplus is less than .50.

(iv) The examiner team for the national association of insurance commissioners (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 or second priority 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 and the NAIC staff and support office.

(f) Any company which is not required by ARM 6.6.6506 to submit a statement of actuarial opinion in accordance with ARM 6.6.6508 for any year shall submit a statement of actuarial opinion in accordance with ARM 6.6.6507 for that year unless as provided for by ARM 6.6.6503(2) the commissioner requires a statement of actuarial opinion in accordance with ARM 6.6.6508.

(4) Every category D company shall submit a statement of actuarial opinion in accordance with ARM 6.6.6508 for each year beginning with the year in which this regulation becomes effective.