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A Professionalism Quiz!

1. (True or False) If I am not a Member of the American Academy of Actuaries, I am not required to meet the Qualification Standards for Prescribed Statements of Actuarial Opinions.

2. (True of False) Professionalism education counts towards my continuing education requirements.

3. (True or False) The Actuarial Board for Counseling and Discipline (ABCD) has the power to discipline members of the Casualty Actuarial Society.

4. (True or False) The majority of the issues presented to the ABCD are resolved through counseling, not formal discipline.

5. Name the three components of our professional guidelines.

6. (True or False) The Code of Professional Conduct requires members to report all individuals who have violated one of their professional obligations to the ABCD for disciplinary action.

7.    (True or False) Anyone who produces a rate level indication used to support a rate change must meet the requirements of the Qualification Standards.

8.    Scott is an FCAS and a MAAA who has done property and casualty loss reserving for much of his career, but for the past three years has been VP of Underwriting for his company. Upon the resignation of the company's actuary, Scott has been asked to sign the Statement of Actuarial Opinion for his company. The state of domicile views Scott as   qualified to do so. Scott has attended the CLRS every year, but has not done any reserve work for three years. What should Scott do? Explain your answer.


Answers

1.    False. As a member of the CAS, you are obligated to comply with the CAS Code of Professional Conduct. Precept 3 of this Code indicates that all CAS members are obligated to meet practice and qualification requirements.

2.    True, but there are limits. The Qualification Standards that took effect on January 1, 1999 specifically indicate that up to 25 percent of one's continuing education may be comprised of professionalism education.

3.    False. The ABCD only has the power to make recommendations regarding discipline. It is up to the member organization itself (the CAS, in this case) to impose discipline.

4.    True. And this is the preferred method of resolution, for both the membership and for the ABCD.

5.    Qualifications, Standards of Practice and the Code of Professional Conduct.

6.    False. There are two exceptions. Members are not obligated to report violations if this act either violates a confidentiality or is prevented by law. In addition, the member is only required to report unresolved material violations. Members are encouraged to contact directly those members who have possibly committed a violation to work things out themselves in a less confrontational and more civil manner.

7. True.

8. From the perspective of the Qualification Standards, Scott can sign the   Statement. Paragraph III.B. - Experience Requirements states that three years of experience is required and that "although this experience need not necessarily be recent, it must be relevant to the subject of the PSAO." (Scott might want to perform the "mirror test" by asking himself, one more time, if he truly satisfies the requirements of Precept 3, which states that an actuary shall perform services only when the actuary is qualified to do so.)

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