Q23
Would an opinion of "None" for part a work?
and then making the same point for part b with the proper wording and then saying "they're deficient by $2M of what I believe to be a reasonable provision but because not calculated in accordance with actuarial standards & practices I am not able to issue an opinion".
I can understand why this wouldn't be the case, just wasn't sure if failure of conditions [A] or [B] meant it could receive "no opinion" as well.
Comments
I think you might be able to successfully argue for no opinion. My thinking when I created the question is that the company's booked reserves were lower than the actuary's estimates and the actuary's estimates didn't even include Unearned Premium Reserves for P&C Long Duration Contracts so they are very clearly deficient by probably much more than 2 million before considering anything else. I should maybe revise the wording of the question to explicitly state that the booked reserves of 79 million include everything but the actuary's estimates do not include the items that are out of scope.
Anyway, here are some general guidelines:
An appointed actuary may give a "no opinion" regarding an insurance company's reserves under certain circumstances. While this is not a comprehensive list, some possible reasons include:
In any of these situations, the actuary should communicate the reasons for providing "no opinion" to the insurance company and any relevant regulatory bodies. It is essential for actuaries to maintain their professional integrity and ethical standards when providing opinions on the adequacy of insurance company reserves.
For the practice exam problem, I think Scope Limitations and Non-compliance with actuarial standards: