CAS Exam 6C Spring 2014, Question 24
Study guide: Exam 6C
OSFI's "Guideline A-4: Internal Target Capital Ratio for Insurance Companies" sets out OSFI's expectations with respect to the setting of an internal target capital ratio and capital management policies for federally regulated insurance companies.
Part a (1 point)
Describe an approach an insurer could use to determine its internal target capital ratio.
Part b (0.5 points)
Explain whether or not it is appropriate to consider a future injection of capital when setting the internal target capital ratio.
Part c (0.5 points)
Describe the actions OSFI requires of an insurer that anticipates falling below its internal target capital ratio.
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