To:           All Small Employer Carriers

From:      Jay Angoff, Director

Re:          Actuarial Certification

Date:       February 19, 1997

Attached to this bulletin, you will find a finalized version of the actuarial certification format developed by the Missouri Department of Insurance for use in certifying compliance with the Small Employer Health Insurance Availability Act pursuant to Section 379.936.5(2). As you will recall, an exposure draft of this certification was distributed to all small employer carriers on December 5, 1996, via Bulletin Number 96-09. Carriers were requested to complete the form based on calendar year 1995 information, make any comments or suggestions, and return it to us by January 6, 1997.

We appreciate the cooperation of the small employer carriers in completing the exposure draft and in submitting their comments and suggestions. We have reviewed the information submitted and made changes to the actuarial certification format as a result. These changes are as follows:

  • The font and line-height of the form have been modified to be typewriter compatible. While the form as originally designed was intended to be easily completed by hand, some found it preferable to use a typewriter. Accordingly, the form is now based on a 6-line-per-inch format.
  • A pencil icon has been added to help those completing the form to find items that need to be completed. In reviewing the submitted forms, we noted that fill-in lines were the most often overlooked item (vs. the check mark boxes, which were rarely overlooked). This was particularly so for the fill-in line in section 1.e. The pencil icon should help insure that all necessary items are completed.
  • The instructions to Exhibit I have been further clarified. These changes generally revolve around the information by class and in total. Changes have also been made throughout the certification to better accommodate carriers that offer only one class of business.

This finalized actuarial certification format should be used for filing the 1996 certification due by March 15, 1997. For consistency and comparison of historical data, we are also requesting that you complete this final form for all previous calendar years (i.e., 1993, 1994, and 1995) and submit it to us by June 1, 1997. (Because the intent of the exposure draft was to make improvements to the final version and because we are requesting 1995 data in the final format, we will not be requesting any corrections to improperly completed exposure drafts already submitted.) Please include in your submissions, by cover letter or attachment, the name and telephone number of the appropriate contact person for the filing if it is someone other than the signing actuary. All filings should be sent to the attention of Craig S. Kalman, ASA, MAAA, Health Actuary, Missouri Department of Insurance, P.O. Box 690, Jefferson City, MO 65102. Any questions should also be directed to Mr. Kalman at (573) 751-1389.