CCRC regulations in several states require periodic submission of a comprehensive actuarial study with an opinion prepared in accordance with ASOP No. 3 or a set of financial forecasts based on actuarial projections of population flows with certification regarding the reasonableness of the underlying assumptions. We have prepared actuarial reports using a customized template for each state’s specific regulations to meet their format and content requirements. We have submitted reports for each of the seven states that require a formal actuarial opinion about a CCRC’s financial condition, and our reports have been reviewed and accepted for 100% of our clients. In a few states, A.V. POWELL & ASSOCIATES has been selected as the regulator’s consulting actuary on CCRCs and CCaHs to review actuarial reports submitted by other firms and to assist them with developing policies for organizations in challenging financial situations.
Sophisticated investors and bank credit committees have relied on financial projections contained in A.V. POWELL & ASSOCIATES reports to authorize commitments for more than $1 billion in letter-of-credit bond financings since 1988. As part of the loan covenants, the actuarial study may be required to be updated annually so that management will have timely information to adjust fees so that the CCRC maintains its satisfactory actuarial balance status for reserves and fee structure.