D - ICA

Question 1

ICA

5 specific duties of Board, according to ICA (Duty to manage)

Answer 1

1) appoint the Actuary
2) Establish an audit committee
3) Establish conduct and review committee
4) Establish procedures to resolve conflicts of interest
5) establish an investment and lending procedure
5) establish a committee of the board to monitor the procedures

Question 2

ICA

3 rules when constituting the membership in AUDIT COMMITTEE

Answer 2

1) at least 3 directors
2) majority of members not affiliated with the cie
3) no member can be officers or employees

Question 3

ICA

3 duties of the Audit Committee.

Answer 3

review annual statement before approval by Board

require mgmt to implement internal control procedures

approve internal control procedures

meet CHIEF INTERNAL AUDITOR to discuss effectiveness of internal control procedures

Meet with actuary to discuss Annual Statement parts prepared by him

call meeting with Board to discuss any concern of the audit committee.

Question 4

ICA

4 elements Board shall present in the Annual Financial statement (prepared and audited in accordance with GAAP) at every annual meeting

Answer 4

1) comparative annual statement of current and previous financial years
2) report of the auditor
3) report of the actuary
4) description of roles of actuary and auditor related to annual statement.