A. An exemption under this subsection may not be granted unless the insurer is licensed and doing business exclusively in this State;   [PL 2013, c. 238, Pt. C, §9 (NEW).]

B. The exemption must be in writing;   [PL 2013, c. 238, Pt. C, §9 (NEW).]

C. The superintendent may rescind or modify the exemption in writing at any time, with reasonable notice to the insurer;   [PL 2013, c. 238, Pt. C, §9 (NEW).]

D. The exemption may apply to all business written by the insurer or to specific policy or contract forms or product lines; and   [PL 2013, c. 238, Pt. C, §9 (NEW).]

E. An insurer granted an exemption under this subsection shall value its reserves using the assumptions and methods used before the operative date of the valuation manual, in addition to any requirements established by the superintendent by rule or by the terms of the order granting the exemption.   [PL 2013, c. 238, Pt. C, §9 (NEW).]

A. Quantifies the benefits and guarantees, and the funding, associated with the policies and contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring during the lifetime of the policies and contracts. For polices and contracts with significant tail risk, the methodology must reflect conditions appropriately adverse to quantify the tail risk;   [PL 2013, c. 238, Pt. C, §9 (NEW).]

B. Incorporates assumptions, risk analysis methods and financial models and management techniques that are consistent with, but not necessarily identical to, those used within the insurer's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods;   [PL 2013, c. 238, Pt. C, §9 (NEW).]

C. Incorporates assumptions that are derived in one of the following manners:  

D. Provides margins for uncertainty including adverse deviation and estimation error, such that the greater the uncertainty the larger the margin and resulting reserve.   [PL 2013, c. 238, Pt. C, §9 (NEW).]

A. Establish procedures for corporate governance and oversight of the actuarial valuation function consistent with those described in the valuation manual;   [PL 2013, c. 238, Pt. C, §9 (NEW).]

B. Provide to the superintendent and the insurer's board of directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation. Such controls must be designed to ensure that all material risks inherent in the liabilities and associated assets subject to principle-based valuation are included in the valuation and that valuations are made in accordance with the valuation manual. The certification must be based on the controls in place as of the end of the preceding calendar year; and   [PL 2013, c. 238, Pt. C, §9 (NEW).]

C. Develop, and file with the superintendent upon request, a principle-based valuation report that complies with standards prescribed in the valuation manual.   [PL 2013, c. 238, Pt. C, §9 (NEW).]