As you know the Senate Subcommittee on Anti-trust and Monopoly, chaired by Senator Hart of Michigan, in cooperation with the NAIC Task Force on Life Insurance Cost Comparison, chaired by Stan DuRose, has assembled a rather extensive life insurance pricing study data bank. This data bank is comprised of the pricing study input file consisting of one reel of computer tape and an output file consisting of five reels of computer tapes. The data, both input and output, is also available in visual form on forty-nine cartridges of microfilm. At the direction of Commissioner Bell, as President of the NAIC, the Central Office has acquired one copy of each of the computer tapes and the microfilm cartridges for inclusion in the NAIC research library.

Several commissioners have expressed a desire to obtain this data in connection with specific projects they have undertaken in their own states and, of course, Commissioner DuRose is in need of this information in order that the research projects being performed under the auspices of his Task Force can be completed. Senator Hart has suggested and it has been agreed that the NAIC should coordinate access to this data by NAIC members and committees or task forces working on NAIC project

In the South Carolina Case, there was a suggestion that the actuary had actually "rigged" the books of the company and, in this process, frustrated the employees of the Department in their efforts to correctly ascertain the "in force".

It turned out that the company's actuary was not a member of the "lodge"; that is, he was not a member of the Society of Actuaries or of the American Academy of Actuaries, or of the Conference of Actuaries in Public Practice. Stated another way, the company's actuary was a "home grown" actuary carrying the title.

To correct this situation, South Carolina amended Section 37-293 of its Insurance Code. The statute now provides that the financial statement shall also be signed by an actuary or consulting actuary. It reads:

1974-2 NAIC Proc.