CAS Exam 6C Fall 2013, Question 30
Study guide: Exam 6C
Part a (0.75 points)
Briefly describe the purpose of the following three regulatory capital thresholds used by the Office of the Superintendent of Financial Institutions (OSFI) to assess the adequacy of the Minimum Capital Test (MCT) ratio for federally regulated insurers:
- i. Minimum Capital Ratio
- ii. Supervisory Target Capital Ratio
- iii. Internal Target Capital Ratio
Part b (0.5 points)
Describe the responsibilities of the insurer when the MCT ratio falls under its Internal Target Capital Ratio.
Answer this question and see the worked solution