Difference between revisions of "Letter of Representation"
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(Created page with "From the source text, section 3.5.3: : ''Although not explicitly referenced, nor required, in the NAIC SAO instructions or AOWG Regulatory Guidance, non-employee Appointed Ac...") |
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| + | || This addition for '''2022-Fall''' doesn't seem very important but it might be wise to at least know what a '''Letter of Representation''' is. | ||
| + | |} | ||
| + | |||
From the source text, section 3.5.3: | From the source text, section 3.5.3: | ||
| − | : ''Although not explicitly referenced, nor required, in the NAIC SAO instructions or AOWG Regulatory Guidance, non-employee Appointed Actuaries often request a '''letter of representation''' from company management.'' | + | : ''Although not explicitly referenced, nor required, in the NAIC SAO instructions or AOWG Regulatory Guidance, <u>non-employee Appointed Actuaries</u> often request a '''letter of representation''' from company management.'' |
Items cited in this could include: | Items cited in this could include: | ||
| − | * company-provided complete and accurate data | + | * company-provided complete and accurate <u>data</u> |
| − | * information on subsequent events | + | * information on <u>subsequent events</u> |
| − | * basis of carried reserves ''(net/gross of reinsurance, salvage & subrogation, risk margin,...)'' | + | * <u>basis</u> of carried reserves ''(net/gross of reinsurance, salvage & subrogation, risk margin,...)'' |
| − | * changes in reserving methodology | + | * <u>changes</u> in reserving methodology |
| + | |||
| + | The text lists a few other items but I don't think they are important. You look them up if you want but the <u>main idea</u> is that the '''letter of representation''' is a document from company management assuring the <u>non-employee Appointed Actuary</u> that they have all the relevant information on which to form an opinion. | ||
| − | |||
'''Riddle''': Why is this document called a "letter of representation". | '''Riddle''': Why is this document called a "letter of representation". | ||
| − | '''Answer''': I | + | '''Answer''': I'm not sure. <span style="font-size: 24px;">😐</span> Maybe because the company is representing themselves as having provided all the pertinent information to the <u>non-employee Appointed Actuary</u>? |
Latest revision as of 22:15, 11 June 2022
| This addition for 2022-Fall doesn't seem very important but it might be wise to at least know what a Letter of Representation is. |
From the source text, section 3.5.3:
- Although not explicitly referenced, nor required, in the NAIC SAO instructions or AOWG Regulatory Guidance, non-employee Appointed Actuaries often request a letter of representation from company management.
Items cited in this could include:
- company-provided complete and accurate data
- information on subsequent events
- basis of carried reserves (net/gross of reinsurance, salvage & subrogation, risk margin,...)
- changes in reserving methodology
The text lists a few other items but I don't think they are important. You look them up if you want but the main idea is that the letter of representation is a document from company management assuring the non-employee Appointed Actuary that they have all the relevant information on which to form an opinion.
Riddle: Why is this document called a "letter of representation".
Answer: I'm not sure. 😐 Maybe because the company is representing themselves as having provided all the pertinent information to the non-employee Appointed Actuary?
