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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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 appointed actuary that they have all the relevant information on which to form an opinion. | 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 appointed actuary that they have all the relevant information on which to form an opinion. | ||
Revision as of 22:01, 11 June 2022
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 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 don't know. 😐
