ICA.CH47 Flashcards

1
Q

Duties of an audit committee (7)

*2013 Fall asks for only 3

A

Meet-meet-review annual statement

  • review annual statement before BoD approval
  • review such company returns as superintendent may specify
  • review investments & transactions with material adverse events brought to audit committee
  • require management to implement & maintain internal controls
  • meet with auditor to discuss the annual report
  • meet with actuary to discuss portion of annual report that relates to the valuation of policy liabilities
  • meet with chief internal auditors to discuss effectiveness of internal controls
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2
Q

Ways an actuary may cease to be the AA (4)

A
  • death
  • appointment revoked by BoD
  • resignation
  • ceases to be an actuary
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3
Q

What must AA do upon revocation/resignment

A
  • write report outlining circumstances & reasons
  • send to BoD and OSFI
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4
Q

What must newly appointed AA do in the event of resignation of the last AA

A
  • request written report on circumstances & reasons for prior AA leaving
  • if not received in 15 days, new AA appointment may simply be accepted
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5
Q

Reporting requirements of AA to BoD

A
  • provide report on Financial position (annually)
  • provide report on Financial condition (FCT)
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6
Q

Reporting requirements of AA to CEO

A
  • report on materially adverse events that require rectification (CEO, CFO, BoD)
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7
Q

What is qualified privilege

A

If AA makes good faith report under (363, 369) then AA won’t be liable in civil action seeking indemnification

363: pertains to report from outgoing AA
369: pertains to report on Material adverse events

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8
Q

Describe the requirements for foreign insurance companies under the insurance companies Act (4)

A
  • must have assets > 5M vested in Canadian trust
  • must appoint an actuary & auditor
  • must establish chief agency
  • must have min MCT ratio
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9
Q

High-level duties of the BoD (3)

A
  • establishing procedures to resolve conflicts of interest
  • establishing committees: audit committee, conduct review committee, committee to monitor conflict resolution procedures
  • BoD is responsible for setting the direction (or overall strategy) and for overseeing management
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