PARRIS N. GLENDENING, Governor                                  Ch. 36

(1)      COMPUTED APPROPRIATELY;

(2)      BASED ON ASSUMPTIONS THAT SATISFY CONTRACTUAL
PROVISIONS;

(3)      CONSISTENT WITH PRIOR REPORTED AMOUNTS; AND

(4)      IN COMPLIANCE WITH APPLICABLE LAWS OF THE STATE.

(D)     SAME — ADEQUACY OF RESERVES.

(1)      EXCEPT AS EXEMPTED BY REGULATIONS ADOPTED BY THE
COMMISSIONER, EACH LIFE INSURER, NONPROFIT HEALTH SERVICE PLAN, AND
FRATERNAL BENEFIT SOCIETY SHALL INCLUDE WITH THE OPINION REQUIRED BY
SUBSECTION (C) OF THIS SECTION AN ADDITIONAL OPINION OF THE SAME
QUALIFIED ACTUARY, STATING WHETHER THE RESERVES AND RELATED
ACTUARIAL ITEMS THAT ARE HELD IN SUPPORT OF THE POLICIES, CONTRACTS, AND
BENEFIT AGREEMENTS BY THE LIFE INSURER, NONPROFIT HEALTH SERVICE PLAN,
OR FRATERNAL BENEFIT SOCIETY ARE ADEQUATE TO MEET ITS OBLIGATIONS
UNDER ITS POLICIES, CONTRACTS, AND BENEFIT AGREEMENTS, IN LIGHT OF THE
ASSETS HELD WITH RESPECT TO THE RESERVES AND RELATED ACTUARIAL ITEMS.

(2)      THE OBLIGATIONS OF A LIFE INSURER, NONPROFIT HEALTH
SERVICE PLAN, OR FRATERNAL BENEFIT SOCIETY UNDER ITS POLICIES,
CONTRACTS, AND BENEFIT AGREEMENTS INCLUDE BENEFITS TO BE PROVIDED AND
ASSOCIATED EXPENSES THAT MAY REASONABLY BE EXPECTED.

(3)      IN REVIEWING THE ASSETS HELD BY THE LIFE INSURER, NONPROFIT
HEALTH SERVICE PLAN, OR FRATERNAL BENEFIT SOCIETY WITH RESPECT TO THE
RESERVES AND RELATED ACTUARIAL ITEMS, THE QUALIFIED ACTUARY SHALL
CONSIDER THE EXPECTED INVESTMENT EARNINGS ON THE ASSETS AND OTHER
CONSIDERATION THAT THE LIFE INSURER, NONPROFIT HEALTH SERVICE PLAN, OR
FRATERNAL BENEFIT SOCIETY EXPECTS TO RECEIVE AND RETAIN UNDER THE
POLICIES, CONTRACTS, AND BENEFIT AGREEMENTS.

(E)     SAME — SUPPORTING MEMORANDUM.

(1)      A MEMORANDUM ACCEPTABLE TO THE COMMISSIONER SHALL BE
PREPARED TO SUPPORT EACH OPINION REQUIRED UNDER THIS SECTION.

(2)      THE SUPPORTING MEMORANDUM SHALL BE IN THE FORM AND
CONTAIN THE INFORMATION THAT IS SPECIFIED BY REGULATION.

(3)      THE LIFE INSURER, NONPROFIT HEALTH SERVICE PLAN, OR
FRATERNAL BENEFIT SOCIETY SHALL:

(I)       KEEP THE SUPPORTING MEMORANDUM IN ITS HOME OFFICE;
AND

(II)     ON REQUEST, SUBMIT A COPY OF THE MEMORANDUM TO THE
COMMISSIONER.

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