RMAD when Deficient

WolverineWolverine
in Odomirok.16-17-SAO

This seems like it wouldn't be necessary as the actuary has already established that reserves are deficient. Is the actuary required to Comment on RMAD if issuing a Deficient Opinion?

Comments

  • Staff - SJStaff - SJ
    The AA should still comment on potential RMAD regardless of the opinion type. It’s probably even more important if the opinion is deficient to comment on RMAD, because the company is short on reserves to begin with. There would be an even bigger risk of this hypothetically reserve deficient company going insolvent if they have a lot of RMAD, and therefore it would be something a regulator would be very interested in.
  • WolverineWolverine

    thanks. it helps me frame RMAD as not necessarily "prob of being wrong" but "prob of regulator intervention"

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