OSFI Memo to the AA Flashcards

1
Q

What should be included in the AAR?

A

OPINION on whether the Policy Liabilities as determined by the AA are fairly represented in the Insurer’s F/S (financial statement)
- also includes detailed commentary, data, calculations

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2
Q

What is the Fall Letter and what should the actuary disclose in the AAR?

A

The Fall Letter issued every fall by the CIA from PCFRC, providing guidance to the AA regarding the AAR. The AA should disclose any deviations from the guidance in the Fall Letter.

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3
Q

Can AA’s valuation be different from amounts booked in Annual Return?

A

Yes, but if the difference is greater than the AA’s materiality standard, the AAR must provide an explanation.

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4
Q

Opinion - items in an unqualified opinion. (2)

A
  • that the policy liabilities on the B/S make appropriate provision for all the policy obligations
  • that the Annual Return fairly represents the results of the valuation
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5
Q

AA’s main responsibility regarding data in the AAR.

A

That the data is reliable and sufficient for valuation purposes.

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6
Q

What disclosures are required by the new AA in the next AAR? (3)

A

DATES: outgoing AA exit date, incoming AA start date, OSFI notification date
COMMUNICATION: between incoming AA and outgoing AA
QUALIFICATIONS: of new AA

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