ICA Flashcards

1
Q

ICA: Section 165: Duties

Directors and officers

A

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

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2
Q

ICA: Section 203: Audit Committee

Directors and officers

A
  • 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

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3
Q

ICA: Section 331: Annual Financial Statement

Financial Statement

A

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

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4
Q

ICA: Section 346: Auditor’s Examination

Auditors

A
  • 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.
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5
Q

ICA: Section 357: Notice of Appointment

Actuaries

A

Cie shall notify the Supt. in writing of the appointment of the actuary

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6
Q

ICA: Section 359: Officer Precluded

Actuaries

A

• 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

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7
Q

ICA: Section 360: Revocation of Appointment

Actuaries

A

Company (directors) may revoke the appointment of the actuary, but must notify the Supt in writing

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8
Q

ICA: Section 361: Ceasing to Hold Office

Actuaries

A

• Actuary ceases to hold office if resigns, ceases to be an actuary, dies, or had appointment revoked by directors

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9
Q

ICA: Section 362-364: Filling Vacancy

Actuaries

A

• 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)

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10
Q

ICA: Section 365: Actuary’s Valuation

Actuaries

A
  • 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
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11
Q

ICA: Section 366: Right to Information; Liability

Actuaries

A
  • 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
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12
Q

ICA: Section 367: Actuary’s Report

Actuaries

A
  • 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
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13
Q

ICA: Section 368: Report to Directors

Actuaries

A

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

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14
Q

ICA: Section 369: Report to the Officers

Actuaries

A
  • 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.
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15
Q

ICA: Section 370: Qualified Privilege

Actuaries

A
  • Qualified privilege given to the actuary’s oral/written statements
  • Actuary has no civil liab for statements made in good faith
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16
Q

ICA: Section 464: Declaration of Policy Dividend or Bonus

Business and power

A
  • Directors may declare such in accordance with policy
  • Actuary to make a report that declaration in accordance with cie policy. Directors must consider report before declaring dividend/bonus
  • Must be prepared in accordance with GAAP
17
Q

ICA: Section 465: Regulations

Business and power

A
  • Governor in Council may enact regulations limiting a cie’s Re
  • Supt may be given discretion in this regard
18
Q

ICA: Section 476: General Restriction on P&C Companies

Business and power

A

PC cie should not agree to a debt obligation or issue, other than a common share, if total debt and stated capital would exceed the prescribed % of total assets

19
Q

ICA: Section 477: Restriction on Guarantees

Business and power

A
  • PC insurer not to guarantee another’s obligation unless that of a subsidiary who will reimburse
  • Not prevented from insuring a risk in a class specified in the Supt.’s order
20
Q

ICA: Section 478: Restriction on Leasing

Business and power

A

PC cie shall not lease personal property in Canada

21
Q

ICA: Section 517: Notice of Value

Adequacy of capital and liquidity ans assets

A

Supt to notify the cie auditor, and actuary regarding the value of an appraised asset that differs materially from the cie

22
Q

ICA: Section 581: Conditions for Order

Foreign Company

A

• Supt shall not allow the insuring of risks until shown that the cie has assets with a prescribed value (at least 5M$), an AA, an appointed auditor, and a location
for its chief agency, and has complied with other relevant requirements of the act
• Until returned, such assets form part of the Canadian assets of the cie

23
Q

ICA: Section 664: Required Information

Regulation of cies, societies, foreign and provincial cies

A

Information to be provided when and in the form the Supt requires

24
Q

ICA: Section 665: Annual Return

Regulation of cies, societies, foreign and provincial cies

A
  • Shall prepare AR showing info required by the supt

* AR filed within 105 days of the year-end for the cie involved only in Re and within 60 days otherwise

25
Q

ICA: Section 667: Valuation of Actuarial and Other Policy Liabs

(Regulation of cies, societies, foreign and provincial cies)

A
  • AR reserve to reflect actuarial and other policy liabs

* Company to file the AA’s Report with the AR

26
Q

ICA: Section 674: Inspection of Cies, Societies, Foreign Cies and Provincial Cies

(Regulation of cies, societies, foreign and provincial cies)

A
  • Supt may examine company and report to Minister
  • Inquiry made triennially except for fraternal benefit society (no specific)
  • Supt can access any records and require explanations