ABCD Proposes Actuarial Bill of Rights

ABCD Proposes Actuarial Bill of Rights
by Jerome A. Scheibl

WASHINGTON, D.C.—The ABCD has proposed that a "bill of rights" for actuaries appearing before the ABCD be included in the American Academy of Actuaries’ bylaws. The ABCD drafted the new proposal in response to concern by actuaries about removing certain procedural details from the Academy’s bylaws.

This past summer, the American Academy of Actuaries exposed for comment a proposed revision to Article X of its bylaws. Article X establishes the ABCD and sets forth its procedures. The draft changes proposed, among other things, that certain procedural details be removed from the bylaws and provided for in the ABCD’s Rules of Procedure to eliminate some of the rigidity inherent in prescribed practices. The ABCD believes this would enable the ABCD to function in a manner that is more consistent with the fact-finding, non-adversarial nature of its charge.

This proposal caused a great deal of comment from members of the actuarial profession—much of this coming from members of the CAS. The main objection was that removal of certain guarantees of due process from the bylaws would give too much discretionary authority to the ABCD.

The ABCD never intended to reduce actuaries’ procedural rights; its plan had been to move the procedures into its Rules of Procedure. However, it is apparent that a number of actuaries feel very strongly that these protections should continue to appear in the bylaws. The ABCD plans to address these actuaries’ concerns by suggesting that the bylaws include a "bill of rights" that promises actuaries who appear before the ABCD certain procedural rights.

The new draft provides that an actuary who is the subject of an inquiry is given the following rights:

Notice of the inquiry along with the factual basis for the inquiry and an opportunity to comment on the matter before the ABCD determines whether an investigation should be initiated;

Notice of the ABCD’s decision to refer the inquiry to investigators, their names, and an opportunity to object, for cause and in writing, to any of them;

The opportunity to comment on an Investigative Report before the ABCD uses the report to vote on disposition of the inquiry;

Reasonable notice of a hearing to be conducted regarding the actuary’s work and/or conduct, including the issues for inquiry and the date, time, and place of the hearing;

Within a reasonable period of time prior to a hearing, the names of any witnesses whose testimony the ABCD expects to consider and copies of case-specific documents not previously provided to the subject of the inquiry that the ABCD expects to consider;

Notice and a reasonable opportunity to respond to additional relevant material, case-specific documents and witnesses that the ABCD first learns of during a hearing, if the ABCD intends to consider such. The notice shall include a copy of such documents and the names and last known addresses of witnesses;

Prompt notification of the results of an ABCD hearing after they have been determined and formulated.

A discussion of other changes in the Article X draft resulting from comments received during the initial exposure process can be found on page 3 of the November 1997 Actuarial Update. The CAS Board of Directors will discuss the new draft at its February 1998 meeting. The new draft, if approved by the Academy Board in June 1998, will go to the Academy membership for a vote. At the same time, the ABCD also plans to expose its new Rules of Procedure for comment before formal adoption.