ICA Flashcards
ICA: Section 165: Duties
Directors and officers
1 - Directors shall supervise the management of the business and affairs of the cie
2 - Specific duties
• Appoint the actuary of the cie
Establish:
• Audit committee
• A conduct review committee
• Procedures regarding conflicts of interest
• A policy for dividends and bonuses
• Procedures to provide required disclosures
• Investment and lending policies
ICA: Section 203: Audit Committee
Directors and officers
- Consist of at least 3 directors
- Majority of members must be unaffiliated; none may be officers or employees
- Must report to the directors
- May call a meeting of the directors
• Duties
1 - Review the AS before approved by directors
2 - Review returns of the cie specified by the Supt
3 - Require, review, evaluate, and approve internal control procedures
4 - Review invest/trans that could adv affect cie
5 - Meet with auditor and actuary
6 - Meet with chief internal auditor and management regarding control procedures
ICA: Section 331: Annual Financial Statement
Financial Statement
Directors to put before shareholders and PH:
1 - Comparative AS for the last and previous years
2 - Appointed Auditor’s and AA Report
3 - Description of the roles of the auditor and actuary
4 - Further info required by the by-laws of the cie
AS to contain:
1 - BS
2 - Income statement
3 - Statement of Change in Financial Position, Shareholder’s Equity and Participating Accounts
ICA: Section 346: Auditor’s Examination
Auditors
- Auditor to make an examination so as to report on FS
- Can use the actuary’s valuation for year-end and increases in policy liabs
- Valuation by other than the actuary of the cie may be used only if it was done in accordance with GAAP and with any changes or additional directions from the Supt.
ICA: Section 357: Notice of Appointment
Actuaries
Cie shall notify the Supt. in writing of the appointment of the actuary
ICA: Section 359: Officer Precluded
Actuaries
• CEO/CFO can be appointed, but must be authorized by the Supt
• CEO - Can hold position no longer than 6 months
• CFO
- Authorization may contain tim limit and conditions
- Requires proof from the audit committee that can hold jobs satisfactorily
ICA: Section 360: Revocation of Appointment
Actuaries
Company (directors) may revoke the appointment of the actuary, but must notify the Supt in writing
ICA: Section 361: Ceasing to Hold Office
Actuaries
• Actuary ceases to hold office if resigns, ceases to be an actuary, dies, or had appointment revoked by directors
ICA: Section 362-364: Filling Vacancy
Actuaries
• If vacancy, directors to notify the Supt and fill it
• If resignation/revocation, actuary needs to submit a Statement to the Supt explaining why, in actuary’s
opinion, this change happened
• Replacement actuary must receive a Statement from prior actuary regarding resignation/revocation before accepting the position (must not accept before receiving or until 15 days have passed)
ICA: Section 365: Actuary’s Valuation
Actuaries
- Actuary to value actuarial and other policy liabs at year-end and other matters specified by Supt.
- Be in accordance with GAAP modified by Supt.
- Supt may appoint an actuary to value liabs; may not be an actuary of the cie
- Expenses to be approved by Supt and paid by the cie
ICA: Section 366: Right to Information; Liability
Actuaries
- Company to provide the actuary with access to records and info, which actuary views as needed
- Communication in response to the actuary will not result in civil liability
ICA: Section 367: Actuary’s Report
Actuaries
- Actuary to make a report on the valuation and other prescribed matters at least 21 days before the annual meeting
- Actuary to indicate whether the AS presents fairly the results of the valuation
ICA: Section 368: Report to Directors
Actuaries
Actuary to meet at least once a year with the directors or audit committee to discuss the financial condition of cie, and when directed, the future financial condition of the cie
ICA: Section 369: Report to the Officers
Actuaries
- Actuary to provide written report to cie (CEO/CFO) matters with material adv effects and needing rectifying
- Actuary to provide a copy of report to directors
- If actuary believes suitable action not being taken, should send a report to the Supt.
ICA: Section 370: Qualified Privilege
Actuaries
- Qualified privilege given to the actuary’s oral/written statements
- Actuary has no civil liab for statements made in good faith