Section 41Sec./Art. 41

Annual Pre-need Reserve Valuation Report. Every pre-need company shall annually determine its reserve requirement and contractual liabilities, and submit to the Commission an annual pre-need reserve valuation report within one hundred twenty (120) days from the end of the fiscal year of the pre-need company. The valuation report shall contain the assumptions, methodology, formulas used, a summary of the pre-need plans that were the subject of the valuation and the results of such valuation. The report should be duly certified by an actuary accredited by the Commission in the case of contingent plans such as memorial/life plans and by the pre-need company's external auditors or by a qualified actuary in the case of scheduled - benefit plans such as pre-need pension and education plans, the liabilities of which are not actuarial in nature.

The reserving formula, bases and limits of the assumptions to be used in the valuation of reserves shall be prescribed by the Commission.

The Commission may require any pre-need company to submit an interim pre-need reserve valuation report if any of the following events occurred:

(a) When there is sufficient evidence that a subsequent event or transaction occurred after the end of the fiscal year and such event would materially affect the computation of the pre-need reserve valuation report submitted; and

(b) When the company ceased operation six (6) months after the end of the fiscal year.