The Actuarial Standards Board (ASB) of the American Academy of Actuaries recently adopted a revision of ASOP No. 2, now titled Nonguaranteed Elements for Life Insurance and Annuity Products. The ASOP applies to actuaries when performing actuarial services with respect to the determination and, if applicable, illustration of nonguaranteed elements (NGEs) for life insurance and annuity policies written on individual policy forms where NGEs may vary at the discretion of the insurer, except as noted in the ASOP.
The ASB also adopted a revision of ASOP No. 22, now titled Statements of Actuarial Opinion Based on Asset Adequacy Analysis for Life Insurance, Annuity, or Health Insurance Reserves and Other Liabilities. The ASOP applies to actuaries when performing actuarial services with respect to providing a statement of actuarial opinion based on asset adequacy analysis of life insurance, annuity, or health insurance reserves and other liabilities when the statement of actuarial opinion is prepared to comply with applicable law based on the model Standard Valuation Law and VM-30 of the NAIC Valuation Manual; or when the statement of actuarial opinion is prepared for an insurance company to comply with other applicable law.
Lastly, the ASB adopted a revision of ASOP No. 3, now titled Continuing Care Retirement Communities and At Home Programs. The ASOP applies to actuaries when performing actuarial services, including giving advice, in connection with continuing care retirement communities (including nonprofit and for-profit entities) or At Home Programs that are not regulated as insurance entities. These actuarial services may be performed for owners, operators, financing entities, or current or prospective contractual residents or members, as well as for other professionals or regulatory bodies.
The effective date for all three revised ASOPs, which can be viewed here, is June 1, 2022.