CAS Exam 6: Regulation and Financial Reporting

Regulatory Framework

Exam 6 covers the regulatory environment for insurance companies in the United States. Topics include state-based regulation, rate regulation approaches (prior approval, file and use, use and file), solvency regulation, and the role of the NAIC. You must understand the Annual Statement, risk-based capital requirements, and the Insurance Regulatory Information System (IRIS) ratios used to identify financially troubled insurers.

Financial Reporting

The financial reporting section covers statutory accounting principles (SAP) and their differences from GAAP. You need to understand how insurance transactions are recorded, how reserves appear on financial statements, and how reinsurance affects reported results. The exam also covers actuarial opinions and the appointed actuary's responsibilities. This exam is more reading-intensive than calculation-intensive compared to other CAS exams. Success requires careful study of the source materials and the ability to apply regulatory concepts to practical scenarios presented in exam questions.