CAS Exam 6C Fall 2016, Question 27

Study guide: Exam 6C

A federally licensed Canadian insurer is replacing its current Appointed Actuary (AA). The following information is available:

Associate of the Canadian Institute of Actuaries (ACIA)
Fellow of the Canadian Institute of Actuaries (FCIA)

Candidate	Designation	Information available about the Candidate
A	ACIA	has been working as a reserving actuary for twenty years
B	FCIA	has been working as a reserving actuary in the company's subsidiary in the U.S. for the past ten years
C	FCIA	has been working in a Canadian consulting firm and acts as AA for five Canadian insurers for the past fifteen years
D	FCIA	has been working as CEO of the company for three years
E	FCIA	has been working as a pricing actuary of the company for twelve years

Part a (1.25 points)

For each of the above candidates, explain whether they are eligible to serve as the AA.

Part b (0.75 points)

Upon appointment of the new AA, identify three disclosures that must be made in the company's upcoming AA report.

Part c (1 point)

Briefly describe four roles or duties of the AA.

Part d (0.5 points)

Briefly describe whether an insurance company's provision for policy liabilities shown in the Annual Return may be different from the AA's estimated policy liabilities.

Part e (0.75 points)

Identify three components in the calculation of premium liabilities.

Part f (0.75 points)

Briefly describe OSFI's three objectives for requiring peer review of the work of the AA.

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