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C5 Flashcards

1
Q

539

CIA.SUBSEQ: All

Qz-1 define:Calculation date

A

539

CIA.SUBSEQ: All

Qz-1 define:Calculation date

  • Effective date of calculation (Ex: for financial statements, the calculation date would normally be the balance sheet date)
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2
Q

540

CIA.SUBSEQ: All

Qz-1 define:Report date

A

540

CIA.SUBSEQ: All

Qz-1 define:Report date

  • Date on which the actuary completes the report on his/her work
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3
Q

541

CIA.SUBSEQ: All

Qz-1 define:Report

A

541

CIA.SUBSEQ: All

Qz-1 define:Report

  • Actuary’s oral or written communication to users about his/her work
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4
Q

542
E (2018.Fall 29a.) 0.500 pts

CIA.SUBSEQ: All

Qz-1 define:Subsequent event

an event of which..

A

542
E (2018.Fall 29a.) 0.500 pts

CIA.SUBSEQ: All

Qz-1 define:Subsequent event

an event of which..

  • An event (of which an actuary first becomes aware) AFTER the CalcDt but BEFORE the corresponding report date
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5
Q

543

CIA.SUBSEQ: All

Qz-1 define:Adjusting event + Ex

..provides evidence..

A

543

CIA.SUBSEQ: All

Qz-1 define:Adjusting event + Ex

..provides evidence..

  • Event (after CalcDt) that provides evidence of conditions existing (at CalcDt): results in adjustments
  • EXAMPLE: reinsurer insolvency after CalcDt that was due to gradual deterioration occurring before CalcDt
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6
Q

544

CIA.SUBSEQ: All

Qz-1 define:Non-adjusting event + Ex

..indicative..

A

544

CIA.SUBSEQ: All

Qz-1 define:Non-adjusting event + Ex

..indicative..

  • Event (after CalcDt) indicative of conditions arising (after CalcDt): NO adjustments
  • EXAMPLE: reinsurer insolvency due to catastrophe
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7
Q

545

CIA.SUBSEQ: All

Qz-2 (6.1 Catastrophic Event):FACTS: describe the timeline of events for 1998 ICE STORM

A

545

CIA.SUBSEQ: All

Qz-2 (6.1 Catastrophic Event):FACTS: describe the timeline of events for 1998 ICE STORM

  1. EVENT: Jan 5, 1998 (ice storm in Eastern Canada)
  2. ACTUARY BECAME AWARE: Jan 5 1998 (same day as event)
  3. SUBSEQUENT EVENT? yes, actuary became aware after CalcDt (12/31/97) & before report date (several weeks after Jan 5, 1998)
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8
Q

546

CIA.SUBSEQ: All

Qz-2 (6.1 Catastrophic Event):BRANCH: which branch of the subsequent event decision tree should the ICE STORM example follow

A

546

CIA.SUBSEQ: All

Qz-2 (6.1 Catastrophic Event):BRANCH: which branch of the subsequent event decision tree should the ICE STORM example follow

  • BRANCH: middle
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9
Q

547

CIA.SUBSEQ: All

Qz-2 (6.1 Catastrophic Event):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the ICE STORM example follow

A

547

CIA.SUBSEQ: All

Qz-2 (6.1 Catastrophic Event):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the ICE STORM example follow

    1. EWDP-inform:
      1. Error? no –> go to next question
      2. When? event occurred AFTER CalcDt –> go to next question
      3. Different? yes, AFTER CalcDt –> go to next question
      4. Purpose? report on entity as it WAS
      5. –> FINAL ACTION: inform only
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10
Q

548

CIA.SUBSEQ: All

Qz-2 (6.1 Catastrophic Event):Relevant Comments: provide any further relevant detail(s) related to the ICE STORM subsequent event example

A

548

CIA.SUBSEQ: All

Qz-2 (6.1 Catastrophic Event):Relevant Comments: provide any further relevant detail(s) related to the ICE STORM subsequent event example

  • The ice storm doesn’t make entity different retroactively
  • The purpose of the actuary’s work was to report on the entity as it was
  • But note that premium liabilities would have been understated
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11
Q

550

CIA.SUBSEQ: All

Qz-4 (6.2 Judicial Decision):FACTS: describe the timeline of events for the ALBERTA MINOR INJURY CAP

A

550

CIA.SUBSEQ: All

Qz-4 (6.2 Judicial Decision):FACTS: describe the timeline of events for the ALBERTA MINOR INJURY CAP

  1. EVENT: Feb 8, 2008 ($4,000 Alberta minor injury cap struck down)
  2. ACTUARY BECAME AWARE: Feb 8, 2008 (same day as event)
  3. SUBSEQUENT EVENT? depended on each insurer’s report date
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12
Q

551

CIA.SUBSEQ: All

Qz-4 (6.2 Judicial Decision):BRANCH: which branch of the subsequent event decision tree should the ALBERTA MINOR INJURY CAP follow

A

551

CIA.SUBSEQ: All

Qz-4 (6.2 Judicial Decision):BRANCH: which branch of the subsequent event decision tree should the ALBERTA MINOR INJURY CAP follow

  1. BRANCH: middle (if insurer’s RptDt was AFTER Feb 8, so it WAS a subsequent event)
  2. BRANCH: right (if insurer’s RptDt was BEFORE Feb 8, so it WASN’T a subsequent event)
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13
Q

552

CIA.SUBSEQ: All

Qz-4 (6.2 Judicial Decision):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding ALBERTA MINOR INJURY CAP

A

552

CIA.SUBSEQ: All

Qz-4 (6.2 Judicial Decision):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding ALBERTA MINOR INJURY CAP

  • For insurers where it WAS a subsequent event (middle branch): EWD-reflect
  • For insurers where it WASN’T a subsequent event (right branch):
    • If material → RI-withdraw/amend
    • If not material → inform (“no action” may not be enough for industry-wide events)
      1. (thx jaylow96!)
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14
Q

553

CIA.SUBSEQ: All

Qz-4 (6.2 Judicial Decision):Relevant Comments: provide any further relevant detail(s) related to the ALBERTA MINOR INJURY CAP

A

553

CIA.SUBSEQ: All

Qz-4 (6.2 Judicial Decision):Relevant Comments: provide any further relevant detail(s) related to the ALBERTA MINOR INJURY CAP

  • This example was complicated by the fact that some insurers would have completed their report by Feb 8, while others would not have
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15
Q

554

CIA.SUBSEQ: All

Qz-5 (6.3 Reinsurer Failure):FACTS: describe the timeline of events for the REINSURER FAILURE example

A

554

CIA.SUBSEQ: All

Qz-5 (6.3 Reinsurer Failure):FACTS: describe the timeline of events for the REINSURER FAILURE example

  1. EVENT: Jan 15
  2. ACTUARY BECAME AWARE: Jan 15 (same as event)
  3. SUBSEQUENT EVENT? yes, actuary became aware after CalcDt (12/31) & before report date (several weeks after Jan 15)
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16
Q

555

CIA.SUBSEQ: All

Qz-5 (6.3 Reinsurer Failure):BRANCH: which branch of the subsequent event decision tree should the REINSURER FAILURE example follow

A

555

CIA.SUBSEQ: All

Qz-5 (6.3 Reinsurer Failure):BRANCH: which branch of the subsequent event decision tree should the REINSURER FAILURE example follow

  • BRANCH: middle
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17
Q

556

CIA.SUBSEQ: All

Qz-5 (6.3 Reinsurer Failure):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the REINSURER FAILURE example

A

556

CIA.SUBSEQ: All

Qz-5 (6.3 Reinsurer Failure):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the REINSURER FAILURE example

  • EWD-reflect
    1. Error? no –> go to next question
    2. When? event occurred AFTER CalcDt –> go to next question
    3. Different? yes, BEFORE CalcDt (failure provided evidence of prior deteriorating conditions)
  1. –> FINAL ACTION: reflect
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18
Q

557

CIA.SUBSEQ: All

Qz-5 (6.3 Reinsurer Failure):Relevant Comments: provide any further relevant detail(s) related to the REINSURER FAILURE example

A

557

CIA.SUBSEQ: All

Qz-5 (6.3 Reinsurer Failure):Relevant Comments: provide any further relevant detail(s) related to the REINSURER FAILURE example

  • Action depends on cause of failure: here reinsurer failure had been buidling prior to CalcDt
    • Failure AFTER CalcDt simply provided further evidence of conditions existing prior to CalcDt
  • If failure was due to a catstrophe, path through decision tree would be: EWDP
    • In other words, final action would be to inform only.
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19
Q

558

CIA.SUBSEQ: All

Qz-5 (6.4 Change in Markets):FACTS: describe the timeline of events for the STOCK MARKET DROP example

A

558

CIA.SUBSEQ: All

Qz-5 (6.4 Change in Markets):FACTS: describe the timeline of events for the STOCK MARKET DROP example

  1. EVENT: 1st week of Jan (big drop in stock market)
  2. ACTUARY BECAME AWARE: 1st week of Jan
  3. SUBSEQUENT EVENT? yes, actuary became aware after CalcDt (12/31) & before report date (several weeks after 1st week of Jan)
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20
Q

559

CIA.SUBSEQ: All

Qz-5 (6.4 Change in Markets):BRANCH: which branch of the subsequent event decision tree should the STOCK MARKET DROP example follow

A

559

CIA.SUBSEQ: All

Qz-5 (6.4 Change in Markets):BRANCH: which branch of the subsequent event decision tree should the STOCK MARKET DROP example follow

  • BRANCH: middle
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21
Q

560

CIA.SUBSEQ: All

Qz-5 (6.4 Change in Markets):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the STOCK MARKET DROP example

A

560

CIA.SUBSEQ: All

Qz-5 (6.4 Change in Markets):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the STOCK MARKET DROP example

    1. EWDP-inform:
      1. Error? no –> go to next question
      2. When? event occurred AFTER CalcDt –> go to next question
      3. Different? yes, AFTER CalcDt –> go to next question
      4. Purpose? report on entity as it WAS
      5. –> FINAL ACTION: inform only
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22
Q

561

CIA.SUBSEQ: All

Qz-5 (6.4 Change in Markets):Relevant Comments: provide any further relevant detail(s) related to the STOCK MARKET DROP example

A

561

CIA.SUBSEQ: All

Qz-5 (6.4 Change in Markets):Relevant Comments: provide any further relevant detail(s) related to the STOCK MARKET DROP example

  • Main issue is whether the market drop provided evidence of conditions in existence PRIOR to CalcDt or not
  • It was decided was that it did NOT (different from the ‘reinsurer failure’ example)
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23
Q

562

CIA.SUBSEQ: All

Qz-6 (6.5 Missing Claims):FACTS: describe the timeline of events for the MISSING CLAIMS example

A

562

CIA.SUBSEQ: All

Qz-6 (6.5 Missing Claims):FACTS: describe the timeline of events for the MISSING CLAIMS example

  1. EVENT: before Jun 30 (claims database was missing claims)
  2. ACTUARY BECAME AWARE: Aug 5
  3. SUBSEQUENT EVENT? yes, actuary became aware after CalcDt (Jun 30) & before RptDt (RptDt is after Aug 5)
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24
Q

563

CIA.SUBSEQ: All

Qz-6 (6.5 Missing Claims):BRANCH: which branch of the subsequent event decision tree should the MISSING CLAIMS example follow

A

563

CIA.SUBSEQ: All

Qz-6 (6.5 Missing Claims):BRANCH: which branch of the subsequent event decision tree should the MISSING CLAIMS example follow

  • BRANCH: middle
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25
Q

564

CIA.SUBSEQ: All

Qz-6 (6.5 Missing Claims):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the MISSING CLAIMS example

A

564

CIA.SUBSEQ: All

Qz-6 (6.5 Missing Claims):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the MISSING CLAIMS example

  • E-reflect

Error? yes ~–> FINAL ACTION: reflect (in other words, correct the error!)

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26
Q

565

CIA.SUBSEQ: All

Qz-6 (6.5 Missing Claims):Relevant Comments: provide any further relevant detail(s) related to the MISSING CLAIMS example

A

565

CIA.SUBSEQ: All

Qz-6 (6.5 Missing Claims):Relevant Comments: provide any further relevant detail(s) related to the MISSING CLAIMS example

  • If actuary had become aware AFTER the report date, this wouldn’t be a subsequent event
  • We would then be on the RIGHT BRANCH of the decision tree and ask these questions instead: (see wiki)
    1. Would the event be reflected IF it had been a subsequent event? yes –> go to next question
    2. Does the event invalidate the report? yes –> FINAL ACTION: withdraw or amend report
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27
Q

566

CIA.SUBSEQ: All

Qz-3 (6.6 Late Reported Claims):FACTS: describe the timeline of events for the LATE-REPORTED CLAIMS example

A

566

CIA.SUBSEQ: All

Qz-3 (6.6 Late Reported Claims):FACTS: describe the timeline of events for the LATE-REPORTED CLAIMS example

  1. EVENT: Nov 20 (case reserve increase by ceding insurer)
  2. ACTUARY BECAME AWARE: Jan 12
  3. SUBSEQUENT EVENT? yes, actuary became aware after CalcDt (12/31) & before RptDt (several weeks after Jan 12, 1998)
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28
Q

567

CIA.SUBSEQ: All

Qz-3 (6.6 Late Reported Claims):BRANCH: which branch of the subsequent event decision tree should the LATE-REPORTED CLAIMS example folow

A

567

CIA.SUBSEQ: All

Qz-3 (6.6 Late Reported Claims):BRANCH: which branch of the subsequent event decision tree should the LATE-REPORTED CLAIMS example folow

  1. BRANCH: middle
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29
Q

568

CIA.SUBSEQ: All

Qz-3 (6.6 Late Reported Claims):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the LATE-REPORTED CLAIMS example

A

568

CIA.SUBSEQ: All

Qz-3 (6.6 Late Reported Claims):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the LATE-REPORTED CLAIMS example

  1. EW-reflect:
    1. Error? no –> go to next question
    2. When? event occurred BEFORE CalcDt –>
  2. FINAL ACTION: reflect
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30
Q

569

CIA.SUBSEQ: All

Qz-3 (6.6 Late Reported Claims):Relevant Comments: provide any further relevant detail(s) related to the LATE-REPORTED CLAIMS example

A

569

CIA.SUBSEQ: All

Qz-3 (6.6 Late Reported Claims):Relevant Comments: provide any further relevant detail(s) related to the LATE-REPORTED CLAIMS example

  • This situation often arises for reinsurers
  • It is NOT the same as a data error or missing claims
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31
Q

570

CIA.SUBSEQ: All

Qz-6 (6.7 Change in Industry Benchmarks):FACTS: describe the timeline of events for the CHANGE in INDUSTRY BENCHMARKS example

A

570

CIA.SUBSEQ: All

Qz-6 (6.7 Change in Industry Benchmarks):FACTS: describe the timeline of events for the CHANGE in INDUSTRY BENCHMARKS example

  1. EVENT: Jul 15 (new industry LDF benchmarks released)
  2. ACTUARY BECAME AWARE: Jul 15
  3. SUBSEQUENT EVENT? yes, actuary became aware after quarterly CalcDt (6/30) & before report date (several weeks after Jul 15)
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32
Q

571

CIA.SUBSEQ: All

Qz-6 (6.7 Change in Industry Benchmarks):BRANCH: which branch of the subsequent event decision tree should the CHANGE in INDUSTRY BENCHMARKS example follow

A

571

CIA.SUBSEQ: All

Qz-6 (6.7 Change in Industry Benchmarks):BRANCH: which branch of the subsequent event decision tree should the CHANGE in INDUSTRY BENCHMARKS example follow

  • BRANCH: middle
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33
Q

572

CIA.SUBSEQ: All

Qz-6 (6.7 Change in Industry Benchmarks):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the CHANGE in INDUSTRY BENCHMARKS example

A

572

CIA.SUBSEQ: All

Qz-6 (6.7 Change in Industry Benchmarks):ACTION: according to the subsequent event decision tree, what action should the actuary take regarding the CHANGE in INDUSTRY BENCHMARKS example

  1. EWD-stop
    1. Error? no –> go to next question
    2. When? event occurred AFTER CalcDt –> go to next question
    3. Different? event did NOT make entity different - LDFs don’t change much from qtr-to-qtr –>
  2. FINAL ACTION: nothing
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34
Q

573

CIA.SUBSEQ: All

Qz-6 (6.7 Change in Industry Benchmarks):Relevant Comments: provide any further relevant detail(s) related to the CHANGE in INDUSTRY BENCHMARKS example

A

573

CIA.SUBSEQ: All

Qz-6 (6.7 Change in Industry Benchmarks):Relevant Comments: provide any further relevant detail(s) related to the CHANGE in INDUSTRY BENCHMARKS example

  1. This situation could arise for a new company without its own credible data (must rely on industry benchmarks)
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35
Q

574

CIA.SUBSEQ: All

Qz-2 decision tree:What is the prime consideration when applying the subsequent event decision tree

A

574

CIA.SUBSEQ: All

Qz-2 decision tree:What is the prime consideration when applying the subsequent event decision tree

  1. PRIME CONSIDERATION: is the event material? (if not, no action is required)
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36
Q

575
E (2017.Spring 27a.) 0.750 pts

CIA.SUBSEQ: All

Qz-7 decision tree:Identify circumstances under which a subsequent event must be accounted for (3)

A

575
E (2017.Spring 27a.) 0.750 pts

CIA.SUBSEQ: All

Qz-7 decision tree:Identify circumstances under which a subsequent event must be accounted for (3)

  • If the event is MATERIAL
  • If the event reflects an ERROR
  • If the event makes the entity DIFFERENT relative to the timing/purpose of the actuary’s report
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37
Q

590
E (2016.Spring 10b.) 0.750 pts

CAS.GovtIns: ALL

Qz-1 intro:Identify the LEVELS of government involvement in insurance (3) + examples

sole, partner, competitor

A

590
E (2016.Spring 10b.) 0.750 pts

CAS.GovtIns: ALL

Qz-1 intro:Identify the LEVELS of government involvement in insurance (3) + examples

sole, partner, competitor

  • Government as SOLE provider (CPP)
  • Government as a provider in PARTNERSHIP with private insurance (crop reinsurance)
  • Government as a provider in COMPETITION with private insurance (WC in some states)
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38
Q

591
E (2018.Spring 10a.) 0.500 pts

CAS.GovtIns: ALL

Qz-1 intro:Identify REASONS for government participation in insurance (5)

FCC(ES)

A

591
E (2018.Spring 10a.) 0.500 pts

CAS.GovtIns: ALL

Qz-1 intro:Identify REASONS for government participation in insurance (5)

FCC(ES)

  • For FILLING NEEDS unmet by private insurance (terrorism)
    • May occur when private insurance is not economically viable
    • After 9/11 terrorist attack in NYC, private market withdrew coverage
  • When insurance is COMPULSORY (BC auto)
    • If compulsory, but not offered by private market (for whatever reason) –> government must provide
  • For CONVENIENCE (flood)
    • Government may already have necessary structures in place
    • (government already provides disaster relief after floods)
  • For EFFICIENCY (auto)
    1. Agent commissions eliminated ? lower expense ratio ? lower premiums for consumer
  • For SOCIAL purposes (medical)
    • Private market is motivated by profit
    • This is sometimes at the expense of social purposes like universal medical coverage
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39
Q

592
E (2012.Fall 13b.) 1.000 pts

CAS.GovtIns: ALL

Qz-1 intro:Identify examples for each reason for government participation in insurance

flood insurance is a valid example for 4 out of the 5 reasons

A

592
E (2012.Fall 13b.) 1.000 pts

CAS.GovtIns: ALL

Qz-1 intro:Identify examples for each reason for government participation in insurance

flood insurance is a valid example for 4 out of the 5 reasons

  1. FILLING unmet NEEDS (flood, terrorism, crop)
  2. COMPULSORY insurance (BC auto)
  3. CONVENIENCE (flood, terrorism)
  4. EFFICIENCY (flood, auto)
  5. SOCIAL PURPOSES (medical, CPP)
40
Q

593

CAS.GovtIns: ALL

Qz-2 (Filling unmet needs):Why might government insurance succeed where private insurance fails + examples

subsidies

A

593

CAS.GovtIns: ALL

Qz-2 (Filling unmet needs):Why might government insurance succeed where private insurance fails + examples

subsidies

  1. Government insurance can SUBSIDIZE losses through taxes (Ex: flood, terrorism, crop)
41
Q

594
E (2017.Fall 10a.) 0.500 pts

CAS.GovtIns: ALL

Qz-2 (Filling unmet needs):How can government insurance subsidize losses (2)

A

594
E (2017.Fall 10a.) 0.500 pts

CAS.GovtIns: ALL

Qz-2 (Filling unmet needs):How can government insurance subsidize losses (2)

  • General tax revenue
  • Charge less than the actual cost of insurance & fill gap with special fund
42
Q

595

CAS.GovtIns: ALL

Qz-2 (Compulsory Ins):Why might government insurance exist when insurance is compulsory (2)

A

595

CAS.GovtIns: ALL

Qz-2 (Compulsory Ins):Why might government insurance exist when insurance is compulsory (2)

  • If private insurance IS NOT available:
    • Government would be sole provider
  • If private insurance IS available:
    • Profits should be limited due to guaranteed market that government created
    • Government involvement could accomplish this
43
Q

596
E (2017.Fall 10c.) 0.250 pts

CAS.GovtIns: ALL

Qz-2 (Compulsory Ins):Identify a private market mechanism that provides complusory insurance to high-risk insureds

A

596
E (2017.Fall 10c.) 0.250 pts

CAS.GovtIns: ALL

Qz-2 (Compulsory Ins):Identify a private market mechanism that provides complusory insurance to high-risk insureds

  1. Risk-sharing pool or residual market (Ex: Facility Association)
44
Q

597

CAS.GovtIns: ALL

Qz-2 (Convenience):Why may government insurance be more convenient to operate (2) + 2 Exs

A

597

CAS.GovtIns: ALL

Qz-2 (Convenience):Why may government insurance be more convenient to operate (2) + 2 Exs

  • May already have necessary structures in place
    • Example: DFAA already exists and dovetails with insurance for flood & terrorism
    • DFAA stands for Disaster Financial Assistance Arrangements
45
Q

598

CAS.GovtIns: ALL

Qz-2 (Efficiency):Why may government insurance be more efficient for auto insurance

A

598

CAS.GovtIns: ALL

Qz-2 (Efficiency):Why may government insurance be more efficient for auto insurance

  1. Eliminates commissions –> reduces expenses –> lowers premiums
46
Q

599
E (2018.Spring 10b.) 0.250 pts

CAS.GovtIns: ALL

Qz-2 (Efficiency):Why may efficiency of government insurance be overstated

A

599
E (2018.Spring 10b.) 0.250 pts

CAS.GovtIns: ALL

Qz-2 (Efficiency):Why may efficiency of government insurance be overstated

  • Other government departments may already be performing services normally provided by insurer
  • But the cost of these services may not be included in expenses (true expenses understated)
  1. EXAMPLES: investing, property appraisal
47
Q

600

CAS.GovtIns: ALL

Qz-2 (Social purposes):Why may government insurance be better at social purposes (3) + 2 Exs

motivation, complexity, legislation

A

600

CAS.GovtIns: ALL

Qz-2 (Social purposes):Why may government insurance be better at social purposes (3) + 2 Exs

motivation, complexity, legislation

  1. MOTIVATION:
    • Private insurance motivated by profit not social purposes
  2. COMPLEXITY: (Ex: CPP)
    • Some programs are too large & comprehensive for private companies
  3. LEGISLATION:
    • Enact building codes for risk mitigation
48
Q

601
E (2019.Spring 10a.) 0.750 pts

CAS.GovtIns: ALL

Qz-3 evaluation:Identify criteria that a government insurance program should satisfy (5)

W/I - EN

A

601
E (2019.Spring 10a.) 0.750 pts

CAS.GovtIns: ALL

Qz-3 evaluation:Identify criteria that a government insurance program should satisfy (3)

W/I - EN

  • Is it welfare or insurance
  • Is it efficient
  • Is it necessary
49
Q

602
E (2017.Fall 10d.) 1.000 pts

CAS.GovtIns: ALL

Qz-3 evaluation:What are the differences between (insurance, social welfare)

A

602
E (2017.Fall 10d.) 1.000 pts

CAS.GovtIns: ALL

Qz-3 evaluation:What are the differences between (insurance, social welfare)

  1. INSURANCE:
    • Pays upon covered loss REGARDLESS of need (funded by insureds)
  2. WELFARE:
    • Pays BASED on need (funded by general tax revenues)
50
Q

603
E (2015.Spring 16a.) 1.500 pts

CAS.GovtIns: ALL

Qz-3 evaluation:Identify reasons to SUPPORT public auto insurance (3)

Filling unment needs, Efficiency, Social purpose

A

603
E (2015.Spring 16a.) 1.500 pts

CAS.GovtIns: ALL

Qz-3 evaluation:Identify reasons to SUPPORT public auto insurance (3)

Filling unment needs, Efficiency, Social purpose

  1. FILLING UNMET NEEDS: coverage may not be available or afforable for young males
  2. EFFICIENCY: eliminates commission -> reduces expenses -> lowers premiums
  3. SOCIAL PURPOSES: ensures universal coverage (and sustainability through general tax revenues, if necessary)
51
Q

604
E (2015.Spring 16b.) 1.500 pts

CAS.GovtIns: ALL

Qz-3 evaluation:Identify reasons to ELIMINATE public auto insurance (3)

private market is capable, private market more customizable, government efficiency overstated

A

604
E (2015.Spring 16b.) 1.500 pts

CAS.GovtIns: ALL

Qz-3 evaluation:Identify reasons to ELIMINATE public auto insurance (3)

private market is capable, private market more customizable, government efficiency overstated

  • Private insurance can do it (they can form a residual market for high-risk drivers)
  • Private insurance offers more CUSTOMIZABLE policies
  • Efficiency may be OVERSTATED
52
Q

605

CAS.GovtIns: ALL

Qz-3 misc:Reasons for government participation in TERRORISM insurance (2)

F, convenience

A

605

CAS.GovtIns: ALL

Qz-3 misc:Reasons for government participation in TERRORISM insurance (2)

F, convenience

  1. F (filling unmet need)
    • Private market withdrew terrorism coverage after the 9/11 NYC terrorist attacks
    • People expect assistance in recovering from terrorism
  2. C (convenience) - necessary structures already in place (Ex: DFAA in Canada - Disaster Financial Assistance Arrangements)
53
Q

606
E (2016.Fall 27a.iv) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 legal requirements for appt. of AA:What are the legal requirements for the appointment of an AA (8)

A

606
E (2016.Fall 27a.iv) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 legal requirements for appt. of AA:What are the legal requirements for the appointment of an AA (8)

  1. Insurer must appoint an AA
  2. Insurer must notify OSFI of the appointment
  3. AA must be a FCIA
  4. AA can’t be (CEO,COO) or similar without authorization from OSFI
  5. AA can’t be CFO without audit committee permission

o Audit committee must certify (AA, CFO) duties can be performed competently & independently

  1. Insurer must notify OSFI if Board of Directors revokes AA’s appointment
  2. Outgoing AA must write report to (Board of Directors, OSFI) on circumstances & reasons for leaving
  3. Incoming AA must review outgoing AA’s report within 15 days

o If incoming AA does not receive report within 15 days, they may accept appointment regardless

54
Q

607
E (2016.Fall 27c.i) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Summarize the roles & responsibilities of an AA (7)

valn.rpt5.opinion

A

607
E (2016.Fall 27c.i) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Summarize the roles & responsibilities of an AA (7)

valn.rpt5.opinion

  • Valuation or reserves
  • 5 reports (AFFMP):
    • Appointed Actuary report
    • Financial Position report
    • Financial Condition report
    • Material Adverse Event report
    • Policy Holder Fairness report
  • Final (opinion, memo)
55
Q

608
E (2016.Fall 27c.ii) 0.250 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:What is the main responsbility of the appointed actuary (1)/7

valuation

A

608
E (2016.Fall 27c.ii) 0.250 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:What is the main responsbility of the appointed actuary (1)/7

valuation

  1. The AA must perform a VALUATION of the policy liabilities at year-end using AAP (Accepted Actuarial Practice)
56
Q

609
E (2018.Spring 27d.) 0.500 pts

AA 1: LEGAL REQS OF AA

misc:Identify basic disclosure items that must appear in the peer review of the AA report

A

609
E (2018.Spring 27d.) 0.500 pts

AA 1: LEGAL REQS OF AA

misc:Identify basic disclosure items that must appear in the peer review of the AA report

  • Main results & findings (Duh)
  • When the review was done
  • Name of peer reviewer (double-Duh)
57
Q

610
E (2016.Fall 27c.iiii) 0.250 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - describe the AA report (2)/7

rpt: AA

A

610
E (2016.Fall 27c.iiii) 0.250 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - describe the AA report (2)/7

rpt: AA

  1. AA Report:
    • Must be completed at least 21 days before AGM (Annual General Meeting)
    • Must state whether Annual Report fairly represents results of valuation
58
Q

611
E (2016.Fall 27c.iv) 0.250 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - where is the AA’s report on financial position sent (3)/7

rpt: FinPos

A

611
E (2016.Fall 27c.iv) 0.250 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - where is the AA’s report on financial position sent (3)/7

rpt: FinPos

  1. Financial Position Report:
    • Completed annually
    • Send to (Board of Directors)
59
Q

612
E (2016.Fall 27c.v) 0.250 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - when & how is the AA’s report on financial condition done & where is it sent (4)/7

rpt: FinCond

A

612
E (2016.Fall 27c.v) 0.250 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - when & how is the AA’s report on financial condition done & where is it sent (4)/7

rpt: FinCond

  1. Financial Condition Report:
    • Must complete when directed by OSFI
    • Involves a 3-year projection possibly using DCAT methodology
    • Send to (Board of Directors, OSFI)
60
Q

613
E (2016.Fall 27c.vi) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - when is the AA’s MAE (Material Adverse Event) report done & where is it sent (5)/7

rpt: MAE

A

613
E (2016.Fall 27c.vi) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - when is the AA’s MAE (Material Adverse Event) report done & where is it sent (5)/7

rpt: MAE

  1. MAE Report:
    • Report on MAE (Material Adverse Events) requiring rectification
    • Send to (Board of Directors, CEO, CFO)
61
Q

614
E (2016.Fall 27c.vii) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - what is another report the AA must complete that relates to policy holders (6)/7

rpt: PHfairness

A

614
E (2016.Fall 27c.vii) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Reporting - what is another report the AA must complete that relates to policy holders (6)/7

rpt: PHfairness

  1. Policy Holder Report:
    • Completed annualy
    • Assesses fairness with which policy holders are treated regarding (dividends, bonus, other benefits)
62
Q

615
E (2016.Fall 27c.viii) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Final opinion - what does the AA’s final opinion contain (7)/7

opinion:d.s(CJ)

A

615
E (2016.Fall 27c.viii) 0.000 pts

AA 1: LEGAL REQS OF AA

Qz-1 roles & duties of AA:Final opinion - what does the AA’s final opinion contain (7)/7

opinion:d.s(CJ)

  1. Final Opinion/Memo:
    • Concerns parts of financial statements requiring discretion or siginificant (calculations, judgments)
63
Q

616

AA 2: QUALIFICATIONS of AA

Qz-2 AA qualifications:Main one + 3 rules

..PPS-ICSC..

A

616

AA 2: QUALIFICATIONS of AA

Qz-2 AA qualifications:Main one + 3 rules

..PPS-ICSC..

  1. Main qualification: FCIA - in good standing
  2. RULE 1: PPS w/ ICSC (Perform Professional Services WITH Integrity, Competence, Skill, Care)
  3. RULE 2: PPS (Perform Professional Services) only when qualified to do so
  4. RULE 3: meet all applicable SOPs (Standards of Practice)
64
Q

617
E (2018.Fall 30a.) 1.000 pts

AA 2: QUALIFICATIONS of AA

Qz-2 AA qualifications:OSFI expectations

A

617
E (2018.Fall 30a.) 1.000 pts

AA 2: QUALIFICATIONS of AA

Qz-2 AA qualifications:OSFI expectations

  • Must have 3 years of Canadian experience within past 6 years (including 1 year of valuation)
  • Must have experience with CIA’s SOPs (also insurance legislation & regulation)
  • Must maintain professional development requirements
  • Must have NO adverse findings with CIA disciplinary tribunal
65
Q

623
E (2016.Fall 27f.) 0.750 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - objectives:What are the objectives of a peer review

peer: AAC(mpr)

A

623
E (2016.Fall 27f.) 0.750 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - objectives:What are the objectives of a peer review

peer: AAC(mpr)

  1. ASSIST(OSFI): in assessing insurer (safety, soundness)
  2. ASSIST(AA): by providing independent advice & a source for professional development
  3. Increase CONFIDENCE in (AA): with (management, public, regulators)
66
Q

624
E (2018.Spring 27b.i) 0.500 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Abbreviated list of peer review work (1-7)/7

Am AA, Die MAD (I Am the AA and I will Die MAD!)

A

624
E (2018.Spring 27b.i) 0.500 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Abbreviated list of peer review work (1-7)/7

Am AA, Die MAD (I Am the AA and I will Die MAD!)

  1. ASSIST(OSFI): in assessing insurer (safety, soundness)
  2. ASSIST(AA): by providing independent advice & a source for professional development
  3. Increase CONFIDENCE in (AA): with (management, public, regulators)
67
Q

625
E (2018.Spring 27b.ii) 0.200 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 1st item of peer review work: Am (1)/7

A

625
E (2018.Spring 27b.ii) 0.200 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 1st item of peer review work: Am (1)/7

  1. ASSIST(OSFI): in assessing insurer (safety, soundness)
  2. ASSIST(AA): by providing independent advice & a source for professional development
  3. Increase CONFIDENCE in (AA): with (management, public, regulators)
68
Q

626
E (2018.Spring 27b.iii) 0.100 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 2nd item of peer review work: AA

A

626
E (2018.Spring 27b.iii) 0.100 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 2nd item of peer review work: AA

  1. ASSIST(OSFI): in assessing insurer (safety, soundness)
  2. ASSIST(AA): by providing independent advice & a source for professional development
  3. Increase CONFIDENCE in (AA): with (management, public, regulators)
69
Q

627
E (2018.Spring 27b.iv) 0.100 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 3rd item of peer review work: D

A

627
E (2018.Spring 27b.iv) 0.100 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 3rd item of peer review work: D

  1. ASSIST(OSFI): in assessing insurer (safety, soundness)
  2. ASSIST(AA): by providing independent advice & a source for professional development
  3. Increase CONFIDENCE in (AA): with (management, public, regulators)
70
Q

628
E (2018.Spring 27b.v) 0.100 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 4th item of peer review work: ie

A

628
E (2018.Spring 27b.v) 0.100 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 4th item of peer review work: ie

  1. ASSIST(OSFI): in assessing insurer (safety, soundness)
  2. ASSIST(AA): by providing independent advice & a source for professional development
  3. Increase CONFIDENCE in (AA): with (management, public, regulators)
71
Q

629
E (2018.Spring 27b.vi) 0.000 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 5th item of peer review work: M

A

629
E (2018.Spring 27b.vi) 0.000 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 5th item of peer review work: M

  1. ASSIST(OSFI): in assessing insurer (safety, soundness)
  2. ASSIST(AA): by providing independent advice & a source for professional development
  3. Increase CONFIDENCE in (AA): with (management, public, regulators)
72
Q

630
E (2018.Spring 27b.vii) 0.000 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 6th item of peer review work: A

A

630
E (2018.Spring 27b.vii) 0.000 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 6th item of peer review work: A

  1. ASSIST(OSFI): in assessing insurer (safety, soundness)
  2. ASSIST(AA): by providing independent advice & a source for professional development
  3. Increase CONFIDENCE in (AA): with (management, public, regulators)
73
Q

631
E (2018.Spring 27b.viii) 0.000 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 7th item of peer review work: D

A

631
E (2018.Spring 27b.viii) 0.000 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-3 peer review - work to review:Describe the 7th item of peer review work: D

  1. ASSIST(OSFI): in assessing insurer (safety, soundness)
  2. ASSIST(AA): by providing independent advice & a source for professional development
  3. Increase CONFIDENCE in (AA): with (management, public, regulators)
74
Q

632

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review misc:Responsibilities of (AA, management)

A

632

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review misc:Responsibilities of (AA, management)

  1. Full cooperation - respond to reviewer in a timely manner with all relevant (docs, info)
75
Q

633

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review - materiality:Who sets (whole co.) & what is the basis

A

633

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review - materiality:Who sets (whole co.) & what is the basis

  1. External auditor
  2. basis = size of company
76
Q

634
E (2015.Spring 34b.) 1.000 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review - materiality:Material changes to consider

SEV(am)O

A

634
E (2015.Spring 34b.) 1.000 pts

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review - materiality:Material changes to consider

SEV(am)O

  • Systems (Ex: valuation software)
  • Material External event (Ex: inflation)
  • Valuation assumptions (Ex: LDFs, trends)
  • Valuation methods (Ex: for claims liabilities)
  • Operations (Ex: investment policies, reinsurance practices)
77
Q

635

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review - materiality:Is auditor’s level suff. for (AA, peer review)

A

635

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review - materiality:Is auditor’s level suff. for (AA, peer review)

  • No, a numerical threshold for company as a whole is not sufficient
  • Peer reviewer & AA must use professional judgment for different areas within company
78
Q

636

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review - materiality:What causes increased rigour

ICT.SCLs

A

636

AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.

Qz-4 peer review - materiality:What causes increased rigour

ICT.SCLs

  • Getting near (internal capital targets, solvency control levels)
    • Small changes could trigger significants actions
79
Q

637
E (2019.Spring 25c.) 1.000 pts

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 audit:Difference between (external audit, peer review)

A

637
E (2019.Spring 25c.) 1.000 pts

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 audit:Difference between (external audit, peer review)

  1. AUDIT:
    • Checks that F/S is free from material misstatement as a whole
    • Uses CICA standard
  2. PEER REVIEW:
    • Reviews AA’s financial statement work at more granular level
    • Uses CIA standard
    1. peer reviewer does not:
      1. ==> |1] verify DATA
      2. ==> |2] verify CONTROLS
      3. ==> |3] perform detailed RECALCULATIONS (provided AA has controls to detect errors in valuation)
80
Q

638

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 audit:Do audit requirements satisfy peer review requirements (yes/no)

A

638

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 audit:Do audit requirements satisfy peer review requirements (yes/no)

  1. No (a peer review is more detailed than an audit)
81
Q

639
E (2017.Spring 24d.ii,ii) 0.750 pts

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 audit:Duties that a peer reviewer does not perform

recalcs.data

A

639
E (2017.Spring 24d.ii,ii) 0.750 pts

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 audit:Duties that a peer reviewer does not perform

recalcs.data

  1. Peer reviewer DOESN’T:
    1. ==> |2] verify DATA
    2. ==> |3] verify CONTROLS
    3. ==> |1] perform detailed RECALCULATIONS (provided AA has controls to detect errors in valuation)
82
Q

640

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 peer review report:Contents (4)

describe work, compliance, recommendations, relationship with AA

A

640

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 peer review report:Contents (4)

describe work, compliance, recommendations, relationship with AA

  1. Description of (work | timing | materiality level)
  2. Compliance with AAP & changes in (AM)
  3. Recommendations for further work
  4. Relationship with AA
83
Q

641
E (2019.Spring 25b.i) 0.250 pts

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 frequency:How often is a F/S peer review performed when there have been NO material changes to the valuation

A

641
E (2019.Spring 25b.i) 0.250 pts

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 frequency:How often is a F/S peer review performed when there have been NO material changes to the valuation

  1. At least once every 3 yrs, all at once OR in phases (with brief annual report stating that there were no material changes)
84
Q

642
E (2019.Spring 25b.ii) 0.250 pts

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 frequency:How often is a F/S peer review performed when there HAVE been material changes to the valuation

A

642
E (2019.Spring 25b.ii) 0.250 pts

AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING

Qz-5 frequency:How often is a F/S peer review performed when there HAVE been material changes to the valuation

  1. Annually
85
Q

643
E (2019.Spring 25a.i) 0.500 pts

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 peer reviewer:Identify the qualification standards for a peer reviewer

..PPS-ICSC..

A

643
E (2019.Spring 25a.i) 0.500 pts

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 peer reviewer:Identify the qualification standards for a peer reviewer

..PPS-ICSC..

o Same as outlined in PART 2 for AA:

o Main qualification: FCIA - in good standing

  1. RULE 1: PPS w/ ICSC (Perform Professional Services WITH Integrity, Competence, Skill, Care)
  2. RULE 2: PPS (Perform Professional Services) only when qualified to do so
  3. RULE 3: meet all applicable SOPs (Standards of Practice)
86
Q

644
E (2019.Spring 25a.ii) 0.500 pts

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 peer reviewer:Req’d prior experience before appointment

exposure to..

A

644
E (2019.Spring 25a.ii) 0.500 pts

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 peer reviewer:Req’d prior experience before appointment

exposure to..

  • Exposure to 2 or more unrelated insurers
  • Familiarity with range of practices & assumptions used in Canada
87
Q

645

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 peer reviewer:If (hiring, changing) OSFI expects?

A

645

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 peer reviewer:If (hiring, changing) OSFI expects?

  1. Written notification (w/ reasons for change in peer reviewer, if applicable)
88
Q

650

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 peer reviewer:Identify a reason that a peer reviewer may be from insurer’s Audit Firm

A

650

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 peer reviewer:Identify a reason that a peer reviewer may be from insurer’s Audit Firm

  • Using peer reviewer from Audit Firm accomodates (smaller, simpler) insurers
  • This is discouraged for large insurers (large insurers need a broader perspective)
89
Q

651

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 changing peer reviewer:How often should a peer reviewer be changed

A

651

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 changing peer reviewer:How often should a peer reviewer be changed

  1. At least once every 2 cycles (i.e. every 6 years)
90
Q

652

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 changing peer reviewer:Identify reasons for periodic changes of peer reviewer (2)

object.edu

A

652

AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER

Qz-6 changing peer reviewer:Identify reasons for periodic changes of peer reviewer (2)

object.edu

  • Enhance objectivity
  • Increase educational value to AA
91
Q

653

AA SUPP:

supp:Can new peer reviewer be from same firm as previous

A

653

AA SUPP:

supp: Can new peer reviewer be from same firm as previous
1. Yes, and it could even be a reappointment (provided there has been at least one intervening cycle (i.e. 3 yrs))

92
Q

654
E (2014.Fall 33a.i) 1.000 pts

AA SUPP:

supp:What should AA do before accepting AA appointment (4)

A

654
E (2014.Fall 33a.i) 1.000 pts

AA SUPP:

supp:What should AA do before accepting AA appointment (4)

  • Self-verify(QEK)or (Qualifications, Education, Experience)
  • Consult with outgoing AA
  • Verify appointing body understands AA duties
  • Verify that appointing body will support the AA in their duties
93
Q

655
E (2014.Fall 33a.ii) 0.000 pts

AA SUPP:

supp:How does Board of Directors support the AA in their duties (3)

A

655
E (2014.Fall 33a.ii) 0.000 pts

AA SUPP:

supp:How does Board of Directors support the AA in their duties (3)

  • Provide timely access to (records, info, explanations)
  • Provide adequate resources (Ex: software)
  • Provide venue for presenting AA report
94
Q

656
E (2017.Fall 27error4.) 0.750 pts

AA SUPP:

Qz-6 supp:How does AA identify and report material adverse transactions/conditions

..(CEO,CFO)..

A

656
E (2017.Fall 27error4.) 0.750 pts

AA SUPP:

Qz-6 supp:How does AA identify and report material adverse transactions/conditions

..(CEO,CFO)..

  1. IDENTIFY: use (DCAT, stress-testing)
  2. REPORTING: report to (CEO, CFO) with deadline for corrective action (cc: BoD)
  3. IF DEADLINE NOT MET: cc:OSFI & outline events leading up to notifying OSFI
95
Q

657
E (2014.Fall 33b.) 1.250 pts

AA SUPP:

supp:How does AA identify and report material adverse transactions/conditions

..(CEO,CFO)..

A

657
E (2014.Fall 33b.) 1.250 pts

AA SUPP:

supp:How does AA identify and report material adverse transactions/conditions

..(CEO,CFO)..

  1. IDENTIFY: use (DCAT, stress-testing)
  2. REPORTING: report to (CEO, CFO) with deadline for corrective action (cc: BoD)
  3. IF DEADLINE NOT MET: cc:OSFI & outline events leading up to notifying OSFI

6 (9 decks)

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