CAS Exam 6C Spring 2019, Question 25
Study guide: Exam 6C
Part a (1 point)
Briefly describe four OSFI expectations with respect to the external peer reviewer.
Part b (0.5 points)
Describe the peer review cycle required by OSFI.
Part c (1 point)
Describe two differences in the responsibilities of an external peer reviewer and an external auditor.
Part d (1.25 points)
| Situation | Information available about the Fellow of the Canadian Institute of Actuaries (FCIA) |
|---|---|
| A | FCIA A worked at ABC under the AA for three years, and left four years ago to join a consulting firm where she has been acting as AA for three different Canadian insurance companies since joining. She exercised all ABC stock options and sold all shares one year ago. |
| B | FCIA B works at a small consulting firm. Most of his work relates to ratemaking. The extent of his experience with the valuation of policy liabilities is with respect to the work that he has completed for Company DEF, for which he acted as AA for the last fifteen years. |
| C | FCIA C is a policyholder of ABC and he invested in a mutual fund which owns shares of ABC. |
| D | FCIA D works in a consulting firm. Her colleague was involved in the external audit of ABC this year. |
| E | FCIA E works in a consulting firm. His colleague is involved in the actuarial work related to financial condition reporting for ABC this year. |
ABC Insurance Company (ABC) is a federally regulated insurance company. For each of the above situations, justify whether the respective FCIA is eligible to serve as the peer reviewer of ABC's AA Report.
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