DISCLOSURES - CLAIM ESTIMATES & COMMUNICATIONS (ASOP 20, 43, 41)

Question 1

SECT D: DISCLOSURES – CLAIM ESTIMATES & COMMUNCIATIONS (ASOP 20, 43, 41)

MATERIALITY

Answer 1

When omission/misstatement > materiality standard

Question 2

SECT D: DISCLOSURES – CLAIM ESTIMATES & COMMUNCIATIONS (ASOP 20, 43, 41)

RISK OF MATERIAL ADVERSE DEVIATION

Answer 2

Explanatory paragraph on amount of adverse deviation that you judge to be material, including major factors/conditions that could result in material adverse deviation

Question 3

SECT D: DISCLOSURES – CLAIM ESTIMATES & COMMUNCIATIONS (ASOP 20, 43, 41)

DISCOUNTING (3)

Answer 3

1. Undiscounted – discounted claim estimates
2. Risk margin => basis, if included
3. Assumptions & basis of selected discount rates

Question 4

SECT D: DISCLOSURES – CLAIM ESTIMATES & COMMUNCIATIONS (ASOP 20, 43, 41)

(UNDISCOUNTED) CLAIM ESTIMATES

Answer 4

CHECK!!

Dates
1. Accounting => paid vs unpaid
2. Valuation => included transactions
3. Review => cutoff date for known information

Question 5

SECT D: DISCLOSURES – CLAIM ESTIMATES & COMMUNCIATIONS (ASOP 20, 43, 41)

GENERAL/MULTIPLE APPLICABLE SECTIONS FOR DISCLOSURES

Answer 5

1. Reliance on others to disclaim responsibility (discount rate, assumptions, law)
   I. Prescribed by law
   i. Applicable law
   ii. Assumptions/methods prescribed by law
   iii. Report prepared in accordance with applicable law
   II. Selected by another party
   i. Assumptions/methods
   ii. Party
   iii. Reasons
   iv. Reasonableness of assumptions/methods, or unable to judge
2. Responsible actuary
3. Scope & intended purposes
4. Intended users
5. Conflicts of interest
6. Actuarial documents & actuarial findings
7. Changes in methods/assumptions
8. Deviations from ASOPs