Guidance on Fairness Opinions Required Under the Insurance Companies Act

Publication date: 17-10-2023

Version: Current

Language available: Bilingual

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The Insurance Companies Act (ICA) includes governance requirements for directors of a company with respect to dividend policies for participating policyholders, management of participating accounts and discretionary management of adjustable policies. The same legislation imposes on Appointed Actuaries the requirement to opine on the fairness of those policies and management practices. The purpose of this educational note is to assist the actuary in forming these fairness opinions.

This educational note is being updated in 2023 to reflect recent revisions to guideline E-16 (E-16), as published by the Office of the Superintendent of Financial Institutions (OSFI), which sets out their expectations for participating account management and disclosures to participating policyholders and policyholders with adjustable products.

This educational note contains a general section and sections dealing with management of participating accounts, dividends and adjustable policies.

Categories: Practice

Types: Educational notes

Topics: Life insurance

Pages: 29

Format: PDF

Accession no.: 223151

Other versions

Educational Note: Guidance on Fairness Opinions Required Under the Insurance Companies Act Pursuant to Bill C-57 (2005)

14-12-2011