KPMG.PACICC

Question 1

Identify the 2 types of insurers under OSFI's solvency regulations

Answer 1

1. Federally incorporated P&C insurers
2. Canadian P&C branch operations of insurers incorporated outside Canada

Question 2

Identify the type of insurers under provincial solvency regulations

Answer 2

P&C insurers incorporated in their own province

Question 3

What is CCIR

Canadian Council of Insurance Regulators

Answer 3

An association of insurance regulators from across Canada

Question 4

What does CCIR do

Canadian Council of Insurance Regulators

Answer 4

Promote an efficient regulatory system to serve the public interest

Question 5

What is the most common definition of an ‘actuary’

Answer 5

Someone with the FCIA designation is an actuary

Question 6

Identify 2 exceptions to the most common definition of an ‘actuary’

Answer 6

Alberta & British Columbia offer an exception:

A non-FCIA can serve as an actuary if the Minister is satisfied they have the necessary training and experience

The reason for the exception is to accommodate small provincial insurers without a FCIA on staff

Question 7

Describe a disadvantage of having separate federal and provincial solvency regulation

Answer 7

Separate regulation could create 2 classes of insurers (the PACICC guaranty fund may demand a higher risk premium from insurers with weak provincial regulation)