No Risks that could result in MAD

snester24snester24
in Odomirok.16-17-SAO

There is a question in this section that asks, which comment is required in the SAO if there are no risks that could lead to MAD? I searched through all of the texts and could not find reference to this situation. Can someone help direct me?

Comments

  • Staff - SJStaff - SJ

    In that situation, the AA just needs to directly state that there is no RMAD. You can find this in the COPLFR source text in Section 5.2:

    The appointed actuary is required to make "an explicit statement of whether the Appointed Actuary reasonably believes that there are significant risks or uncertainties that could result in material adverse deviation. This determination is also disclosed in item 6 of Exhibit B."

    There is also an example of the wording an AA might use in that situation at the bottom of the section.

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