C5 Flashcards
(95 cards)
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)
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
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
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
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
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
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
- EVENT: Jan 5, 1998 (ice storm in Eastern Canada)
- ACTUARY BECAME AWARE: Jan 5 1998 (same day as event)
- SUBSEQUENT EVENT? yes, actuary became aware after CalcDt (12/31/97) & before report date (several weeks after Jan 5, 1998)
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
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
- EWDP-inform:
- Error? no –> go to next question
- When? event occurred AFTER CalcDt –> go to next question
- Different? yes, AFTER CalcDt –> go to next question
- Purpose? report on entity as it WAS
- –> FINAL ACTION: inform only
- EWDP-inform:
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
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
- EVENT: Feb 8, 2008 ($4,000 Alberta minor injury cap struck down)
- ACTUARY BECAME AWARE: Feb 8, 2008 (same day as event)
- SUBSEQUENT EVENT? depended on each insurer’s report date
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
- BRANCH: middle (if insurer’s RptDt was AFTER Feb 8, so it WAS a subsequent event)
- BRANCH: right (if insurer’s RptDt was BEFORE Feb 8, so it WASN’T a subsequent event)
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)
- (thx jaylow96!)
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
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
- EVENT: Jan 15
- ACTUARY BECAME AWARE: Jan 15 (same as event)
- SUBSEQUENT EVENT? yes, actuary became aware after CalcDt (12/31) & before report date (several weeks after Jan 15)
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
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
- Error? no –> go to next question
- When? event occurred AFTER CalcDt –> go to next question
- Different? yes, BEFORE CalcDt (failure provided evidence of prior deteriorating conditions)
- –> FINAL ACTION: reflect
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.
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
- EVENT: 1st week of Jan (big drop in stock market)
- ACTUARY BECAME AWARE: 1st week of Jan
- SUBSEQUENT EVENT? yes, actuary became aware after CalcDt (12/31) & before report date (several weeks after 1st week of Jan)
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
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
- EWDP-inform:
- Error? no –> go to next question
- When? event occurred AFTER CalcDt –> go to next question
- Different? yes, AFTER CalcDt –> go to next question
- Purpose? report on entity as it WAS
- –> FINAL ACTION: inform only
- EWDP-inform:
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)
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
- EVENT: before Jun 30 (claims database was missing claims)
- ACTUARY BECAME AWARE: Aug 5
- SUBSEQUENT EVENT? yes, actuary became aware after CalcDt (Jun 30) & before RptDt (RptDt is after Aug 5)
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
25
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**
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!)
26
565
CIA.SUBSEQ: All
Qz-6 (6.5 Missing Claims):**Relevant Comments: provide any further relevant detail(s) related to the MISSING CLAIMS example**
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
27
566
CIA.SUBSEQ: All
Qz-3 (6.6 Late Reported Claims):**FACTS: describe the timeline of events for the LATE-REPORTED CLAIMS example**
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)
28
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**
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
29
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**
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
30
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**
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
31
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**
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)
32
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**
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
33
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**
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
34
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**
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)
35
574
CIA.SUBSEQ: All
Qz-2 decision tree:**What is the prime consideration when applying the subsequent event decision tree**
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)
36
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)**
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
37
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
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)
38
591
*E (2018.Spring 10a.) 0.500 pts*
CAS.GovtIns: ALL
Qz-1 intro:**Identify REASONS for government participation in insurance (5)**
FCC(ES)
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
39
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
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
593
CAS.GovtIns: ALL
Qz-2 (Filling unmet needs):**Why might government insurance succeed where private insurance fails + examples**
subsidies
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
594
*E (2017.Fall 10a.) 0.500 pts*
CAS.GovtIns: ALL
Qz-2 (Filling unmet needs):**How can government insurance subsidize losses (2)**
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
595
CAS.GovtIns: ALL
Qz-2 (Compulsory Ins):**Why might government insurance exist when insurance is compulsory (2)**
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
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**
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
597
CAS.GovtIns: ALL
Qz-2 (Convenience):**Why may government insurance be more convenient to operate (2) + 2 Exs**
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
598
CAS.GovtIns: ALL
Qz-2 (Efficiency):**Why may government insurance be more efficient for auto insurance**
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
599
*E (2018.Spring 10b.) 0.250 pts*
CAS.GovtIns: ALL
Qz-2 (Efficiency):**Why may efficiency of government insurance be overstated**
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
600
CAS.GovtIns: ALL
Qz-2 (Social purposes):**Why may government insurance be better at social purposes (3) + 2 Exs**
motivation, complexity, legislation
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
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
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
602
*E (2017.Fall 10d.) 1.000 pts*
CAS.GovtIns: ALL
Qz-3 evaluation:**What are the differences between (insurance, social welfare)**
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
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
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
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
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
605
CAS.GovtIns: ALL
Qz-3 misc:**Reasons for government participation in TERRORISM insurance (2)**
F, convenience
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
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)**
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
6. Insurer must notify OSFI if Board of Directors revokes AA's appointment
7. Outgoing AA must write report to (Board of Directors, OSFI) on circumstances & reasons for leaving
8. 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
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
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
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
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
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**
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
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
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
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
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
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
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
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
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
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
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
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)
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
616
AA 2: QUALIFICATIONS of AA
Qz-2 AA qualifications:**Main one + 3 rules**
..PPS-ICSC..
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
617
*E (2018.Fall 30a.) 1.000 pts*
AA 2: QUALIFICATIONS of AA
Qz-2 AA qualifications:**OSFI expectations**
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
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)
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
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!)
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
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**
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
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**
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
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**
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
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**
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
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**
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
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**
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
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**
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
632
AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.
Qz-4 peer review misc:**Responsibilities of (AA, management)**
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
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**
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
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
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
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)**
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
636
AA 3b,c,d: PEER REVIEWER OBJECTIVES, WORK TO REVIEW, MAT.
Qz-4 peer review - materiality:**What causes increased rigour**
ICT.SCLs
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
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)**
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
638
AA 3e,f,g,h: AUDIT, REPORT, FREQUENCY, TIMING/PUBLISHINING
Qz-5 audit:**Do audit requirements satisfy peer review requirements (yes/no)**
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
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
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
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
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
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**
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
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**
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
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..
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
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..
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
645
AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER
Qz-6 peer reviewer:**If (hiring, changing) OSFI expects?**
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
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**
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
651
AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER
Qz-6 changing peer reviewer:**How often should a peer reviewer be changed**
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
652
AA 3i,j: QUALIFICATION STDS, CHANGING REVIEWER
Qz-6 changing peer reviewer:**Identify reasons for periodic changes of peer reviewer (2)**
object.edu
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
653
AA SUPP:
supp:**Can new peer reviewer be from same firm as previous**
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
654
*E (2014.Fall 33a.i) 1.000 pts*
AA SUPP:
supp:**What should AA do before accepting AA appointment (4)**
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
655
*E (2014.Fall 33a.ii) 0.000 pts*
AA SUPP:
supp:**How does Board of Directors support the AA in their duties (3)**
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
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)..
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
657
*E (2014.Fall 33b.) 1.250 pts*
AA SUPP:
supp:**How does AA identify and report material adverse transactions/conditions**
..(CEO,CFO)..
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
