Professional Ethics and Standards 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 Professional Ethics and Standards flashcards as text
An actuary issues a reserve opinion and later learns a colleague at the same firm issued a conflicting reserve opinion on the same portfolio. Under the CAS Code, what is the first step?
Answer: Attempt to resolve the conflict with the colleague, and if unresolved, consider notifying principals
Actuaries should first attempt to resolve conflicts with colleagues professionally, and if unresolved, may need to notify principals of the conflicting opinions.
The continuing education (CE) requirements for actuaries signing U.S. Property-Casualty Statements of Actuarial Opinion include which of the following?
Answer: 30 hours of general actuarial CE every two years with at least 3 hours in professionalism
U.S. Qualification Standards require at least 30 CE hours every two calendar years, including a minimum of 3 hours in professionalism topics.
An actuary using a model built by a third-party vendor is responsible for:
Answer: Understanding the model's key assumptions and limitations before relying on it
Actuaries who rely on third-party models must understand the model's assumptions, limitations, and appropriateness for the intended use.
Which statement best describes the concept of 'intended user' under ASOP No. 41?
Answer: Any person or organization the actuary designates as a user of the work product
An intended user is any person or organization the actuary identifies as someone to whom the actuarial communication is directed and who may rely on it.
If an actuary is uncertain whether a specific action is ethical, the CAS Code of Professional Conduct recommends that the actuary:
Answer: Seek guidance from the ABCD's counseling service
The ABCD offers a confidential counseling service for actuaries uncertain about the ethical implications of a proposed course of action.
An actuarial opinion on workers' compensation reserves is described as 'reasonable' by the signing actuary. This term in the context of ASOPs most closely means:
Answer: The result falls within the range of actuarially sound estimates
In actuarial standards, 'reasonable' means the estimate falls within the range of results that could be produced by actuaries following applicable ASOPs.
When must an actuary provide a 'statement of actuarial opinion' (SAO) as opposed to a general actuarial report?
Answer: When specifically required by law, regulation, or professional standards
An SAO is a specific type of formal actuarial communication required by applicable laws, regulations, or professional standards for designated purposes.