Letter of Representation

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. Maybe because the company is representing themselves as having provided all the pertinent information? 😐