ICA.CH47 Flashcards
1
Q
Duties of an audit committee (7)
*2013 Fall asks for only 3
A
Meet-meet-review annual statement
- review annual statement before BoD approval
- review such company returns as superintendent may specify
- review investments & transactions with material adverse events brought to audit committee
- require management to implement & maintain internal controls
- meet with auditor to discuss the annual report
- meet with actuary to discuss portion of annual report that relates to the valuation of policy liabilities
- meet with chief internal auditors to discuss effectiveness of internal controls
2
Q
Ways an actuary may cease to be the AA (4)
A
- death
- appointment revoked by BoD
- resignation
- ceases to be an actuary
3
Q
What must AA do upon revocation/resignment
A
- write report outlining circumstances & reasons
- send to BoD and OSFI
4
Q
What must newly appointed AA do in the event of resignation of the last AA
A
- request written report on circumstances & reasons for prior AA leaving
- if not received in 15 days, new AA appointment may simply be accepted
5
Q
Reporting requirements of AA to BoD
A
- provide report on Financial position (annually)
- provide report on Financial condition (FCT)
6
Q
Reporting requirements of AA to CEO
A
- report on materially adverse events that require rectification (CEO, CFO, BoD)
7
Q
What is qualified privilege
A
If AA makes good faith report under (363, 369) then AA won’t be liable in civil action seeking indemnification
363: pertains to report from outgoing AA
369: pertains to report on Material adverse events
8
Q
Describe the requirements for foreign insurance companies under the insurance companies Act (4)
A
- must have assets > 5M vested in Canadian trust
- must appoint an actuary & auditor
- must establish chief agency
- must have min MCT ratio
9
Q
High-level duties of the BoD (3)
A
- establishing procedures to resolve conflicts of interest
- establishing committees: audit committee, conduct review committee, committee to monitor conflict resolution procedures
- BoD is responsible for setting the direction (or overall strategy) and for overseeing management
