Actuarial Standards & Ethical Guidelines Flashcards
7 cards from real CAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Actuarial Standards & Ethical Guidelines flashcards as text
Under the CAS Code of Professional Conduct, which obligation does an actuary have when they discover a material error in a prior actuarial communication they issued?
Answer: Notify the principal and take appropriate corrective action
The Code requires an actuary to promptly notify the principal and take corrective action when a material error is discovered in a prior communication.
ASOP No. 23 (Data Quality) requires an actuary to do which of the following when data limitations exist?
Answer: Disclose any significant data limitations and their potential impact in the actuarial communication
ASOP No. 23 mandates disclosure of significant data limitations and their potential impact on the actuarial work product.
Which CAS body is primarily responsible for investigating and adjudicating alleged violations of the Code of Professional Conduct by CAS members?
Answer: The Actuarial Board for Counseling and Discipline (ABCD)
The ABCD, a joint body of the major US actuarial organizations, handles counseling and discipline for alleged Code violations.
An actuary is asked to opine on a reserve level that is below the range the actuary considers reasonable. Under the Code of Professional Conduct, the actuary should:
Answer: Decline to issue the opinion or disclose the departure clearly in the actuarial communication
An actuary must not issue an opinion outside a reasonable range without clear disclosure, and may need to decline the engagement.
ASOP No. 41 (Actuarial Communications) specifies that an actuarial report must identify which of the following?
Answer: The intended users of the report
ASOP No. 41 requires identification of intended users so the report's scope and limitations are properly understood.
Which precept of the CAS Code of Professional Conduct addresses the duty to maintain confidentiality of client information?
Answer: Precept 9
Precept 9 obligates actuaries to keep client information confidential except in specific circumstances such as legal or professional requirements.
When an actuary provides actuarial services to a client with interests adverse to a third party, the concept of 'conflict of interest' under the Code requires the actuary to:
Answer: Disclose the conflict to all affected principals and obtain their consent or withdraw
The Code requires disclosure of conflicts to all affected principals and their consent before proceeding, or the actuary must withdraw.