Appointed actuary in life insurance

(1) Every life insurance undertaking must appoint an appointed actuary. That person must be reliable and professionally qualified. Professional qualification requires sufficient knowledge of actuarial science and professional experience. Sufficient professional experience is generally assumed where at least three years' activity as an actuary is demonstrated.
(2) The person proposed as appointed actuary must be named to the supervisory authority before appointment, stating the facts material to assessing his or her reliability and professional qualification under subsection (1). Where facts exist showing that the person proposed as appointed actuary is not reliable or not professionally qualified, the supervisory authority may require that a different person be named. Where circumstances become known after the appointment that would have precluded the appointment, or where the appointed actuary does not properly perform the tasks incumbent upon him or her under this Act, the supervisory authority may require that a different appointed actuary be appointed. Where, in the cases of the second and third sentences, the person proposed or the new appointed actuary also fails to meet the conditions, or no new appointment is made, the supervisory authority may itself appoint the appointed actuary. The departure of the appointed actuary must be notified to the supervisory authority without delay. Where termination of the contract concluded with the appointed actuary, or its consensual rescission, is intended, the organ named in subsection (3) must notify the supervisory authority of this in advance, setting out the reasons.
(3) The appointed actuary is appointed or removed by the supervisory board or, where none exists, by the corresponding highest organ.
(4) The appointed actuary must attend the meeting of the supervisory board on the adoption of the annual financial statements and report on the material findings of his or her explanatory report on the actuarial confirmation. The supervisory board must address the appointed actuary's explanatory report in its report to the general meeting.
(5) The appointed actuary 1. must ensure that, in calculating the premiums and the premium reserves, the principles of section 138 and section 341f of the Commercial Code and the principles of the statutory instrument issued under section 88(3) are complied with; in doing so, he or she must examine, in particular, the financial position of the undertaking to determine whether the continuous ability to meet the obligations arising from the insurance contracts is guaranteed at all times; 2. must confirm, below the balance sheet, that the premium reserve has been established in accordance with section 341f of the Commercial Code and the statutory instrument issued under section 88(3) (actuarial confirmation); section 341k of the Commercial Code on the audit remains unaffected; in a report to the management board of the undertaking, he or she must explain the calculation approaches and further assumptions underlying the confirmation; 3. must, as soon as he or she recognises, in the performance of the tasks incumbent upon him or her, that he or she may not be able to issue the confirmation under point 2, or only with qualifications, inform the management board and, where it does not remedy the objection without delay, immediately inform the supervisory authority; where he or she identifies, in carrying out his or her activity, facts that endanger the continued existence of the undertaking or could materially impair its development, he or she must inform the management board and the supervisory authority without delay; and 4. must submit to the management board, for the insurance contracts entitled to surplus participation, proposals for an appropriate participation in the surplus; in doing so, he or she must take into account the undertaking's continuous ability to meet the obligations arising from the insurance contracts; in a report to the management board of the undertaking, he or she must explain the facts and assumptions from which the appropriateness of his or her proposal derives. The duties under the first sentence, point 2, do not apply to the appointed actuary where the life insurance undertaking is a smaller association within the meaning of section 210.
(6) The management board of the undertaking is obliged to 1. make available to the appointed actuary all information necessary for the proper performance of his or her tasks under subsection (5), 2. submit to the supervisory authority the explanatory report on the actuarial confirmation under subsection (5), point 2, and the appropriateness report under subsection (5), point 4, and 3. submit the appointed actuary's proposal under subsection (5), point 4, to the supervisory authority without delay, and notify it where it intends to set a surplus participation that departs from the appointed actuary's proposal; the reasons for the departure must be notified to the supervisory authority in writing or electronically.