From:      Jay Angoff, Director

Re:          Actuarial Certification

Date:       December 5, 1996

On August 5, we sent out Bulletin Number 96-04 informing all small employer carriers that a standardized format for the actuarial certification was being developed. Enclosed you will find an exposure draft of that certification. We ask that you do the following:

1. Fill out this exposure draft based on your small employer business during calendar year 1995. Basically, this information should match the certification that was due to us by 3/15/96.

2. Make any comments or suggestions based on this exposure draft.

You may notice the reference to the new Actuarial Standard of Practice Number 26. Since this has just been approved by the Actuarial Standards Board, you may not have yet received it. For the proposes of this exposure draft, you should be able to complete this without having that standard in-hand. In addition, this certification contains questions on marketing and underwriting issues. The Department recognizes that the filing actuary may need to rely upon information provided by other company employees in order to complete this form and we have allowed for this via the certification language.

Please return these to us by January 6, 1997. This will allow us time to review the comments and make any necessary changes and get a final version in your hands in time to fill out the 1996 certification which is due by 3/15/97.

Your completed forms should be addressed to:

Craig S. Kalman, ASA, MAAA
Health Actuary
Missouri Department of Insurance
P.O. Box 690
Jefferson City, MO 65102-0690

If you have any questions, please call Mr. Kalman at (573) 751-1389. Thank you for your cooperation.