the amendments of requirements of laws and other legal acts of the Republic of

The amendments of requirements of laws and other

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the amendments of requirements of laws and other legal acts of the Republic of Armenia, related to the capital, foreign currency position, etc., their possible impact on the indicators, describing the profitability. (Appendix 2 was edited by Resolution No. 317-N, dated 04.11.09; amended, edited, supplemented by Resolution No. 155-N, dated 24.05.11; amended by Resolution No. 18-N, dated 22.01.13)
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Appendix 3 of the Appendix of Regulation 3/08 on “The methodology of calculation of the aggregated evaluation of indicators (CARAMELS) of activity of the insurance companies, operating within the territory of the Republic of Armenia” M – Management 1. The management rating reflects the efficiency of internal control system of the insurance company, the ability of management bodies of the insurance company to manage the risks of the insurance company, to ensure the business continuity of the insurance company. 2. The rating of the “M” component is being calculated by summing up the points given to the questions, listed in this Appendix. Furthermore, each question shall be given “0”, “1”, “2” or “3” points. The highest score is “3”, and the lowest one is “0”. 3. When using the scoring system, the supervisor should also consider the importance of the given question. For example, if the insurance company is fully in compliance the requirements of the given question, but at the same time it does not have a high importance for assessment of the “M” component of the given insurance company, then the supervisor can grant a score lower than 3 to the given question, showing by that the relatively low importance of the given question. 4. Depending on the total value of the points, the “M” component is given the following rating: a) the “M” component is being rated “5” only in the case, if all the questions, mentioned below, have been given “2” or “3” points. Furthermore, the “M” component is being rated “5” if the total value of the points is equal or greater than 81, b) the “M” component is being rated “4” if the total value of the points is in the range of 72-80, c) the “M” component is being rated “3” if the total value of the points is in the range of 54-71, d) the “M” component is being rated “2” if the total value of the points is in the range of 36-53, e) the “M” component is being rated “1” if the total value of the points is below 36.
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N. Question Point (0- 3) 1. Is the structure of the insurance company commensurate with the specificities of the operations, performed by the insurance company? 2. Is there a clear segregation of authorities and responsibilities in the insurance company among the different management bodies (in particular, the Board, executive director, etc. of the insurance company)?
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