KPMG PACICC

Question 1

Identify changes to ICA (Insurance Company Act) in 1990s following insurer failures of the 80s. (3)

Answer 1

SURPLUS: strengthened surplus minimum based on premiums and claims
REINSURANCE: addressed excessive use of reinsurance
CERTIFICATION: required actuarial certification FOR policy liabilities, financial condition, material adverse events

Question 2

What was the motivation for creation of PACICC in the 1990s?

Answer 2

There were many insurance company failures in the 1980s.

Question 3

Identify changes in federal regulations of insurance 2000s. (3)

Answer 3

DISCOUNTING: required discounting of liabilities on financial statements starting in 2003
MCT requirements introduced in 2003
PEER REVIEWS: required external review of AA reports starting in 2003