Chapter32-Provisions Flashcards

1
Q

Framework

A

1 Define provisions
2 Reasons for calculating provisions (BAD MEDICS)
3 Individual vs global provisions
4 Risks requiring global provision
5 Bases
6 Factors determining strength of bases
7 Assets impacting valuation of liabilities
Factors to consider when valuing liabilities for:
8 - Published accounts
9 - Supervisory solvency
10 - Transfer of liabilities
11 - DB scheme contributions; trustees and members
12 - DB scheme contributions; sponsor
13 - setting an investment strategy
Basis to use when valuing liabilities for:
14 - Internal accounts
15 - Discretionary benefits and benefit improvements
16 - Discontinuance benefits
17 Setting a basis for individuals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Reasons for calculating provisions (9)

A

Benefit improvements for a benefit scheme

Accounts and reports – published … … and internal

Discontinuance / surrender benefits

Mergers and acquisitions

Excess of assets over liabilities and so whether any discretionary benefits can be awarded

Disclosure information for beneficiaries

Investment strategy

Contribution / premium setting

Statutory solvency reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly