Actuarial Issues Insurance Expertise

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A. Expertise as to Actuarial Issues as a Regulator. As Insurance Commissioner, my agency was responsible for solvency oversight, insurance company examinations and financial and accounting matters of insurance companies. In particular, that oversight included the responsibility of overseeing practices of insurers, agents and actuaries who formulated their rates. Everyone of these pivotal functions carried with it intense actuarial considerations and required careful understanding and daily application of actuarial principles. Along these lines, I hold an undergraduate degree in mathematics, the intellectual foundation of actuarial science.

In addition to my service as Commissioner of Insurance, I also served as First Deputy Commissioner of Insurance and as Assistant Attorney General assigned to the Department of Insurance. These two positions included intense intersection with actuarial science, both as to its underpinnings of insurance and in connection with rate making and solvency issues, both of which are highly reliant on actuarial science.

B. NAIC: Actuarial Matters as a Regulator: As a member of the NAIC’s Executive Committee, I had ongoing actuarial responsibilities. The Executive Committee of the NAIC had and has responsibility for all of the underlying NAIC committees, including the A Committee (Life Insurance and Annuities, including life actuarial issues), the B Committee (Health insurance and Managed Care, including Long Term Care policies and related actuarial issues), the C Committee (Property and Casualty Insurance, including related actuarial issues), the D Committee (Market Regulation and Consumer Affairs), the E Committee (Financial Condition), the F Committee (Financial Regulation Standards and Accreditation), the G Committee (International Insurance Relations) and the H Committee (Information Resources management). Overall, the NAIC has responsibilities for establishing model insurance administrative regulations and model statutes for consideration by all of the states. While with the NAIC, I served as, among other things:

  1. NAIC Chairmanships – Actuarial Issues: Chair of the Life Insurance Committee. As a member of the NAIC, I served as both Vice Chairman and Chairman of the NAIC Life Insurance Committee. The charge of this Committee was oversight of all issues relating to life insurance products as well as life insurers, including practices such as underwriting. This Committee’s work included considerations relating to underlying actuarial issues as to the pricing and unfolding of this product.
  2. NAIC Chairmanships: Actuarial Issues: Chair of the Universal Life Insurance Task Force. In addition to chairing the Life Insurance Committee, I also chaired the Universal Life Insurance Task Force. This Committee’s work included considerations relating to underlying actuarial issues, among others.
  3. NAIC Chairmanships: Actuarial Issues: Chair of the Life Insurance Product Development Task Force. I also chaired the Life Insurance Product Development Task Force. While Chairman of this task force, I led the development of model disclosure statements for universal and indeterminate premium life products designed to assist consumers in their comparison of different types of interest sensitive life insurance products. This Committee’s work included considerations relating to underlying actuarial issues.
  4. NAIC: Member, Casualty Actuarial Committee: This NAIC Committee had responsibility to oversee all actuarial issues that relate to property casualty issues, including those relating to complex liability coverages.
  5. Other NAIC Chairmanships: I also served in a number of NAIC capacities including Chairman of the Financial Services and Insurance Regulation Task Force. In addition, my service on the following NAIC Committees was also helpful in this regard:
    • Member, Casualty Actuarial Committee (as stated above);
    • Member, Accounting Practices and Procedures Committee;
    • Member, the Blanks Committee;
    • Member, Guarantee Fund Committee
    • Member, Commercial Lines Committee;
    • Member, Rehabilitator and Liquidators Committee
    • Member, Commercial Lines Committee
    • Member, Valuation of Securities Committee,
    • Member, International Insurance Relations Committee; and
    • Member, State and Federal Legislative Committee.

C. Expertise as to Actuarial Issues as a Insurance Company CEO. During my tenure as CEO, NCCI had (and continues to have) responsibility to accurately price and file pricing for some $12 - $15 billion of workers compensation insurance in 39 states throughout the U.S. NCCI prepared proposed premium filings for regulators to approve by extracting key data from its 600 member insurance companies and then used that data to project necessary premium changes. NCCI carried out its intense pricing work though the professional efforts of an actuarial division of about 150 personnel. These individuals included support staff; statisticians; actuarial students and qualified actuaries. This staff produced about 40 major rate filings annual covering 40 states, pricing some $12 to $15 billion of insurance (workers compensation); and included the responsibility to advocate those rate changes before state government.

D. Expertise as to Actuarial Issues: General Counsel to the American Academy of Actuaries. I served as General Counsel and Director of Government Relations for the American Academy of Actuaries, including advising on admissions, discipline, federal antitrust and general corporate law. I represented the 20,000 member professional organization before Congress (e.g., Senate Committees on Banking, Commerce, Finance and Labor, and House committees on Education, Labor, Energy, and Ways and Means) and the various federal regulatory agencies.

The Academy is the professional organization of actuaries and includes qualified actuaries from all disciplines and all forms of insurers. Academy members included affiliation with virtually every property casualty and life insurance company and actuarial consulting company in America. The Academy’s Board of Directors was likewise made up of leading insurance company executives from such companies.

  1. Author: Law Review Articles on Actuarial Malpractice: I am the author of one of the leading law review articles on actuarial malpractice, namely The Emerging Law of Actuarial Malpractice, 31 Drake L. Rev. 831 (1982); (Hager and Noel-Creitien).
  2. Authorship: Actuarial Issues. I am also co-author of another law review article discussing actuarial science in connection with insured plans, namely:Tthe Norris Decision, Its Implications and Applications, 32 Drake L. Rev. 913 (1983); (Hager & Larry Zimpleman, Chairman and CEO of Principal Financial Group, Des Moines, as of April, 2015);
  3. Pension Actuarial Practices: U.S. Supreme Court: Amicus Curiae Brief re Actuarial Science. Similarly, I am co-author of an amicus curiae brief filed with the U.S. Supreme Court, namely: in the case of Arizona Governing Committee v. Norris, 463 U.S. 1073 (1983) on behalf of the American Academy of Actuaries. This case raised issues of risk classification, among others, and the brief spoke to that issue. The Supreme Court recognized the filing of the amicus curiae brief in its decision: “Briefs of amicus curiae were filed by Lawrence J. Latto, Stephen J. Hadley, and William D. Hager for the American Academy of Actuaries…” at p. 1073, 1074.
  4. Numerous Other Publications re Actuarial Science. See “Publications,” inclusive of numerous authorships on actuarial issues.

E. Expert Experience on Actuarial Issues. I have served in a number of cases as an expert on actuarial issues, including in Arizona, Florida and California. I am also the author of a number of articles on the actuarial profession.

F. Attorney in Private Practice: Actuarial Issues. As an attorney in private practice, I represented a number of entitles with actuarial issues. Those interests included the position of Property Casualty Insurers Association of America (“PCIAA”) of America, who had ongoing issues relating to pricing of insurance products and the underlying actuarial science considerations. Specifically, those insurers were concerned that in approving (and disapproving) proposed rate filings (as prepared by actuaries and as approved or disapproved by the Commissioner of Insurance) the Insurance Commissioner act fairly in evaluating the rates underlying actuarial considerations.

G. Actuarial Issues as Reinsurance Arbitrator. I am certified by ARIAS as one of about 200 U.S. certified reinsurance arbitrators and sit as an arbitrator on disputes between insurers and their reinsurers; actuarial issues routinely arise in such disputes in the form of pricing disputes including information (and mis-information) supplied by the ceding company and that information’s (and mis-information’s) positive or adverse effect on the pricing that was agreed to at the time of the initial reinsurance agreement.

Contact Bill Hager at 561-306-5072 or via email to discuss your case.


William D. Hager

Insurance and Reinsurance
Expert and Arbitrator


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