Chapter 1

Question 1

What is Corporate governance?

Answer 1

refers to how an insurer is run. It encompasses the process, structure, and information used in the management of the company. The goal of OSFI is that the company is run well

Question 2

What is MCT

Answer 2

minimum capital test. Requires that insurers have assets worth at least a certain multiple of the amount of their liabilities as well as margin of additional assets. Used for Canadian insurers.

Question 3

What is BAAT

Answer 3

branch adequacy of assets test for branch offices of foreign property/casuality insurers. This is the MCT for branch offices of foreign property/casuality insureres

Question 4

What are reinsurance recoverable

Answer 4

A source of credit risk and actuarial risk to an insurer. The reinsurer may not be possible to pay the share of the loss to the insurer.

Question 5

What is IBC

Answer 5

Insurance Bureau of Canada

Question 6

What is CCIR

Answer 6

Canadian Council of Insurance regulators – composed of 14 regulators, one for each province and territory. It’s responsibility is to administer the insurance regulatory system, and its goals concern market conduct, solvency, and governance.