Importance of ASOPs
ASOPs exist to protect you as an actuary and to protect these two groups.
What are companies and consumers?
This is the time over which trend is applied in projecting from the experience period to the forecast period.
What is Trending Period?
This is the future time period to which the historical data are projected.
What is Forecast Period?
This ASOP provides guidance to actuaries on clear & concise communication of actuarial findings & results.
What is ASOP 41 (Actuarial Communications)?
This is the set of actuarial documents that the actuary determines to be relevant to specific actuarial findings that is available to an intended user.
What is an Actuarial Report?
These documents describe the procedures an actuary should follow when performing actuarial services and identify what the actuary should disclose when communicating the results of those services.
What are Actuarial Standards of Practice (ASOPs)?
This is the period of time to which historical data used for actuarial analysis pertain.
What is Experience Period?
The actuary should prepare and retain these regarding the methods, assumptions, procedures, and the sources of the data used.
What is Documentation?
This is a written, electronic, or oral communication issued by an actuary with respect to actuarial services
What is an Actuarial Communication?
This is the result (including advice, recommendations, opinions, or commentary on another actuary’s work) of actuarial services.
What is an Actuarial Finding?
This organization comprises nine members charged with overseeing the process whereby ASOPs are developed and published.
What is the Actuarial Standards Board (ASB)?
The terms and conditions of a plan or contract, or the requirements of applicable law, that create an obligation for claim payment associated with contingent events.
What is coverage?
This actuarial standard of practice (ASOP) provides guidance to actuaries when performing professional services using trending procedures to estimate future values.
What is ASOP 13 (Trending Procedures in Property/Casualty Insurance)?
These professional services are provided to a principal by an individual acting in the capacity of an actuary. Such services include the rendering of advice, recommendations, findings, or opinions based upon actuarial considerations.
What are Actuarial Services?
The actuary should take steps to ensure this, using language suitable for the intended users & particular circumstances.
What is Clarity?
This code requires that all members comply with the applicable ASOPs.
What is the CAS Code of Professional Conduct?
When analyzing trends, the actuary should select this, considering credibility, time period, relationships, and known biases or distortions on it, which can consist of historical insurance or non-insurance information.
What is data?
These factors include experience and forecast period lengths, changes in data mix, and timing relationships between non-insurance data, historical insurance data, and future estimated values
What are the Criteria for Determining Trending Period?
If an actuary lacks financial, organizational, or other independence related to the subject, they should disclose any pertinent info that's not apparent due to this.
What is Conflict of Interest?
Actuarial reports should include these, such as intended users, scope, qualifications, and cautions about risk and uncertainty, unless deemed inappropriate.
What are Disclosures in Actuarial Reports?
Failure to comply with actuarial standards of practice can result in this, which may include suspension or expulsion from professional organizations.
What is disciplinary action?
This term describes the impact on insurance costs of societal changes such as changes in claim consciousness, court practices, and legal precedents, as well as in other noneconomic factors.
What are Social Influences?
This process by which the actuary evaluates how changes over time affect items such as claim costs, claim frequencies, expenses, exposures, premiums, retention rates, marketing/solicitation response rates, and economic indices.
What is Trending Procedure?
An actuary who makes an actuarial communication assumes responsibility for it, except to the extent the actuary disclaims responsibility by stating this.
What is Reliance on other sources?
If a later actuarial report by the same actuary has materially different results or opinions, it should include this, explaining why the earlier results or opinion are no longer valid.
What is an Explanation of Material Differences?