1

f~ AMERICAN~ ~ ACADEMY OF

ACTUARIES

AMERICAN ACADEMY OF ACTUARIES

1994 YEARBOOK

When we build, let it be such work as our descendants will thank us for :and let us think, as we lay stone on stone,

that the time will come when men will say as they look upon the labor and the substance,"See! this our fathers did for us ."

-John Ruskin

January 1994

TABLE OF CONTENTSAcademy Leadership & Staff

Board of DirectorsHcad9uartcrs & StaffAcademy Committees

Actuarial Board for Counseling & Discipline 20

Actuarial Standards Board & Committees 21

Past Officers '3

Jarvis Farley Service Award 24

OriginsHistory- 25Statement of Purpose 28

Bylaws of the American Academy of Actuaries 29

Statementof Policy 39

Code of ProfessionalConduct 40

ProfessionalStandards 44

GuidelinesCommittee Appointment Guidelines 46Guidelines for Making Public Statements 47Guidelines for the Development of Practice Notes - 51

MembershipMembershipStatistics 53Application for Admission _ 54Dues 5 cPrescribedExaminations 55

Other Actuarial Organizations 56

Actuarial Clubs 59

CalendarsBoard & Committee Meetings 63Meetings Calendar 63

Publications bf

ACADEMY LEADERSHIP & STAFF

I Ioward J . Bolnicki'tre Pt etdent

19Q4

BoARD OF DIRECTORS

David G. HartmanPresident1994

Howard Fluhr['ice President

1995

Charles A. BryanPresident-Elect

1994

Paul F . KolkinanT 'ice President

1995

Jack M Turnquist James R. Swenson Harry D GarberI ice Pr esident Secretary-1 reasurer Past President1995 1994 1994

Stephen P . LoweI' tie President

19Q4

John H. HardingPast President

1995

5

Larry D Baherloos

Barnet N. Berm1995

Irene K, Bass1994

John M . Kcrtl.u1995

Bruce C Bassluan1996

William F Bluhm1996

Robert 1V. Gossron' :Man M. Kaufman Stephen R Kern1994 1995 1995

T1%113 Bastlan1995

Glen ;M Ganunill1995

Larry D . keys1994

6

Roland E . (Guy) Kung1995

Howard M Phillips1996

R. Stephen Radcliffe1994

Paul S Polapink1994

Brian E. Scott1994

Kenneth W . Porter1994

Years indicate the year that directors ' terms expire

7

l;~James J . Murphy

Executive Vice President

Lauren M. BloomGeneral Counsel

Christine E . NickersonDirector,

Standards Programand Director of Operations

Gary D . HendricksDirector

of Government Informationand ChiefEconomist

Erich ParkerDirector

of Public Relations

8

HEADQUARTERS & STAFF

1720 1 Street, NW, 7th FloorWashington, DC 20006

Telephone (202) 223-8196Facsimile (202) 872-1948

James J . Murphy, M.A.A.A,, Executive Vice President

Joanne B . AndersonFinancial Officer

Gwendolyn E. HughesMeetings Manager

Michael A. AnzickHealth Policy Analyst

Cheryl AyamanSecretary/Editorial Assistant

Lauren M . BloomGeneral Counsel

David A . BryantAssistant Director of Government Information

Christine M . CassidyAssistant Director of Government Information

Kathleen M. Clark-BlandFinancial Assistant

Renee CoxPublications Manager/Graphic Designer

Pamela S . CrumptonExecutive Assistant

Anna E . FierstAssistant Editor, Contingencies

Maria C. JohnsonReceptzonrst/Administrative Assistant

Alan M . KennedyEditor and Assistant Director, Standards Program

Ken KrehbielAssistant Director of Public Relations

Doreen M. MoaningAdministrattt'eAm'stant, Government Information

Dana H MurphyEditor, Contingencies

Christine E. NickersonDirector, Standards Programand Director of Operations

Erich ParkerDirector ofPublic Relations

Andrea A. PinkneySecretary/Public Relations

David F. RiveraLegislative Assistant, Government Information

Elizabeth Banks HartsfieldMeetings Assistant Jeffrey P . Speicher

Public Relations SpecialistGary D. HendricksDirector of Government Information Rita Hoffman Winkeland CheifEconomist Legal Assistant

Membership Administration475 North Martingale Road, Suite 800

Schaumburg, IL 60173Telephone (708) 706-3513Facsimile (708) 706-3599

Susan C . Steinbach, Membership Manager

9

ACADEMY COMMITTEES

Academy committees and task forces are appointed annually , the period running from the close of oneannual meeting to the next.

Committees of the BoardExecutive Committee

Between meetings of the Board of Directors, thiscommittee has the same powers as the board,with certain exceptions listed in Article IV of thebylaws . Ordinarily, it acts only in matters ofurgency and makes recommendations to theBoard of Directors in important matters .

David G. HartmanPresident

James R. SwensonSecretary-'I reasttrer

Howard J BolnickVice President

Charles A. BranPresident-Elect

Paul F . Kolkinan['ice President

Stephen P LoweVice President

Howard FluhrVice President

John H. HardingImmediate Past President

Jack M. TurnquistVice President

Staff Liaison : James J. Murphy,Lauren M. Bloom

Review CommitteeThis committee reviews all Academy statementsfor consistency with the Academy mission andestablished policy and reports to the Board ofDirectors as needed, but at least annually .

Kenneth W. Porter, ChairperonBruce C. Bassinan Glen 11'I . Gammill

Staff Liaison . Gary D . Hendricks

Presidential CommitteesPresident's Advisory Committee

This council oversees Academy management andprepares recommendations for the ExecutiveCommittee on policy issues

David G. Hartman, ChairpersonCharles A. Bryan James J . MurphyJohn H. Harding

Nominating CommitteeThis committee nominates a slate of candidatesfor the Board of Directors for presentation at theannual meeting and nominates a slate of candi-dates for Academy officers for presentation tothe Board of Directors .

Harry D. Garber, ChairpersonJohn H. Harding, Vice Chairperson

Larry D. Baber David G. HartnianBarnet N. Berm Allan M. KaufmanCharles A Bryan Stephen R. Kern

StaffLiaison James J. Murphy

Committee on PlanningThis committee reviews the Academy's objec-tives and recommends alternative strategiesthat should be considered to achieve theseobjectives and how these strategies might bemodified under alternative external develop-ments or future changes in the Academy'senvironment .

Steering CommitteeCharles A . Bryan, Chairperson

Larry D. Baber Allan iMT . KaufmanBarnetN Berm Stephen R. Kern

Operating CommitteeWalter S.Rugland, Chairperson

Paul A Gewirtz Carl ShalitStephen Goldberg Larry D . ZimplemanJohn D. Radek

Staff Liaison- James J Murphy

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Litigation Review CommitteeThis committee provides broad-based oversightreview of briefs to he submitted on behalf of theAcademy as amicus curiae to assure that the sub-ject matter is appropriate for Academy comment,that statements contained therein do not contra-dict any existing Academy positions, that thebriefs hate been prepared in accord withAcademy guidelines, and to authorize submissionof the briefs to the appropriate courts .

Charles A. Bryan, ChairpersonHoward J Bolnick Stephen P . LoweHoward Fluhr Jack ?V1 TurnquistPaul F Kolkman

Staff Liaison . Lauren M Bloom

Cont igenries Task Force Review CommitteeThe task force "as foimed to assist the magazinewith strategic planning for the next five years . Areview of Contingencies' original goals, as deter-mined in 1988, will also take place .

Twila Bastian, ChairpersonHarold J . Brownlee Bradley IM SouthDouglas Collins Larry D ZimplemanRobert D . Shapiro

Staff Liarvin Dana Murphy

Task Force on Solvency IssuesThis task force assures that the actuarial profes-sion is actively, effectively, and publiclyaddressing the issues relating to the solvency ofUnited States financial institutions, particularlylife, health, and property/casualty insurers .

John H. Harding, ChanpenorDaphne D . Bartlett Stephen P . LoweHoward J. Bolnick Walter N. MillerRonald L . Bornhuetter James J MurphyArnold A. Dicke 'f crrence M . O'BrienCharles E . FarrHarry D. GarbcrDavid G. HartmanDavid M. HollandAllan M. KaufmanHenry K. KnowltonPaul F. Kolkman

R. Stephen RadcliffeWalter S. RuglandBrian E . ScottJames R. SwensonJohn G TurnerMichael A Walters

Staff Liaison. Gary D . Hendricks,Erich Parker

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Casualty P ractice CouncilStephen P. Lowe, Vice President

Manuel Almagro, Jr Allan M . KaufmanIrene K. Bass Frederick W. KilhourncBruce C. Bassman Frederick O . KistLinda L Bell John H. A'fuettertiesLeRoy A. Boison, Jr Jerome A . SehiehlPaul Braithwaite Brian F . ScottRobert W Gossrow Edward C. ShoopPatrick J. Grannan P. Adger Williams

Staff Liaison Gary D. Hendricks

Committee on Property and Liability IssuesThis committee monitors legislative and regula-tory activities in the property and liability area(excluding financial reporting and risk classifica-tion issues) . It prepares statements on propertyand liability issues for submission to the publicand private sectors .

.Manuel Almagro, Jr ., ChairpersonPamela Sealand Reale, I ice Chauperson

John G. Aquino Dale F. OgdenWilliam N. Bartlett Mark B PearlAmy S. Bouska Charles M. PotokJohn Dawson Patrick B WoodsMichael C. Dolan Edward M. Wrobel, Jr.Michael A LaMonica

Staff Liaison . Gary D . Hendricks,David A Bryant

Committee on Propertyand Liability Financial Reporting

This committee monitors activities regardingfinancial reporting related to property and liabilityasks, reviews proposals made by various or-ganiia-tions affecting the actuarial aspects of financialreporting and auditing issues related to propertyand liability risks, and property and liability insur-ance and self- insurance accounting issues .

Patrick j Grannan, Cbai personRalph S . Blanchard III Joseph L . PetrelliLinda A. Dcmbiec Sheldon RosenbergJanet L. Fagan William J . RowlandAlan E Kaliski Harvey A. ShermanElise C. Licbcrs Susan T, SzkodaJan A. Lommele John P. TierneyMichael G. McCarter Gary G . Venter

Staff Liaison . David A. Bryant

Committee on Risk ClassificationThis committee keeps the membership of theAcademy advised of major developments relatingto risk classification that affect retirement plans,welfare plans, and insurance, both governmentaland private . It may conduct or sponsor researchon issues related to risk classification . It will alsoprepare reports, as appropriate, on such issuesfor dissemination to the membership and forsubmission to appropriate organizations .

David J Christianson, ChairpersonRonald I. Becker Michael F. ManningCecil D. Bykcrk Dennis T. McNeeseJohn A. Hartnedy Kenneth P . QuintilianJoan E. Herman Edward C. ShoopJay D. Hirsch Irwin J. StrickerJames B. Keller Karen TerryMark E, Litow Richard C Woll

Staff Liaison: Gary D. Hendricks

Joint Program Committeefor the Casualty Loss Reserve Seminar

This committee develops the program for theCasualty Loss Reserve Seminar .

Paul Braithwaite, ChairpersonAndrew F Kudera, Vice Chairperson

William N. Bartlett Stephen T . MorganBrian Z. Brown Karen L. NesterDavid Engles Jane C TaylorLouise A. Francis Warren B . TuckerGavle F. Haskell Susan K . WocrnerTodd J . Hess

Staff Liaison Christine E . Nickersun,Gwendolyn E. Hughes

12

Health Practice CouncilHoward J . Bulnick, T ue PresidentJohn M Bertko, T'ice Chairperson

`Villiam F . Bluhm, T'ice ChaopcrsoniHarold L. Barney Nancy F. NelsonPaul R. Fleischacker Kenneth W. PorterSam Gutterman Alice RosenblattRoland F (Guy) King Harry- L . Sutton, Jr .Ted A. Lyle James R. SwensonBartley L . Munson

Staff Liaison• .Michael A .Anr,ick

Conunittee on Federal HealthThis committee furthers the actuarial profes-sion's involvement in police issues related to thedesign, cost, and financing of the nation's healthcare . The committee monitors fedcrat legislativeand regulatory activities in the health arena andprepares congressional testimony, positionpapers, and other public statements on keyhealth issues. In addition, the committee meetsformally and informally with senior federalhealth policy makers and their staffs issues onspecialty subjects may be referred to an appro-priate work group under the direct supervisionof the Health Practice Council .

Alice Rosenhlatt, ChairpersonStephen D . Brink. T ice CAnnperson

John M. Bertko John J. SchubertAlfred A Bingham, Jr. Gerald R, SheaDonato Gasparro Harry L . Sutton, Jr .David E . Kerr William C. WellerRoland (Guy) King Mark D . WernickeWalter T Liptak Jerome WinkelsteinStephen A. i'MIeskin Norman J . ZwitterMark D . Peavy

Ex Ofcio . Allen Feezor, Erlmg HansenStaff j Lunson . Michael A Anzick

Committee on Long-term CareThis committee addresses actuarial issues affect-ing long-term-care plans . It monitors and com-ments on developments in this area at both thefederal and state levels and works with regulatorsand policy makers to assist in developing publicpolicies in connection with long-term-careinsurance policies . In fulfilling its charge, thecommittee maintains liaison with the NationalAssociation of Insurance Commissioners andother appropriate entities .

Bartley L Munson, Chair personHarold L. Barney Malcolm A Cheung

Staff Liaison . David A. Bryant

Committee on State HealthThis committee furthers the actuarial profes-sion's involvement in policy issues related tostate regulation of health insurance and otherhealth actuarial issues at the state level. Thecommittee works primarily through interstateassociations such as the National Association ofInsurance Commissioners, but also providesassistance directly to states when appropriate .The committee coordinates closely with theFederal Health Committee to assure appropriateAcademy involvement in health-related issues atall levels of government .

William F. Blulim, ChairpersonPeter L . Perk-ins, Vice Chairperson

Robert W. Beal Darrell D . KnappJanet M Carstens Leonard KolomsRobert B Cumming Ernest J . LampronRichard H. Diamond Karl MadreckiAlan D. Ford S Michael McLaughlinP Anthony Hammond William J . Thompson

Staff Liaison : Christine M . Cassidy

Financial Reporting SubcommitteeLeonard Robins, Chauperien

Michael S . Abroe S Michael McLaughlinKenneth S. Avner

Stafff Liaisonr David A. Bryant

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Life Practice CouncilPaul F . Kolkman, 1'i e President

Donna R. Claire Leonard KolomsGary Corbett James J . MurphyArnold A. Dicke Richard S . RobertsonGlen M. Gammdl Edward S SihnsJohn H Harding Barbara L . SnyderJoan E. Herman Diane WallaceFrank S. Irish P. Andrew Ware

Staff Liaison . David A. Bryant

Committee on Life InsuranceThis committee monitors legislative and regulato-ry activities in the life insurance area It preparesstatements on life insurance issues for dissemina-tion to the membership or for submission toappropriate organizations, both governmental andprivate . Issues on certain specialty subjects arereferred to the appropriate committee for action .

P. Andrew Ware, ChairpersonWilliam Carroll James E. PozziDonna R. Claire Craig R RaymondFrank P Dino Jack SeigelMichael J. Hambro Dennis L StanleyLouis j Lombardi Joseph H . TanRandal Mire

Staff Liaison David A. Bryant

Committee on Life InsuranceFinancial Reporting

This committee monitors activities regardingfinancial reporting related to life and healthinsurance, reviews proposals made by variouspublic and private sector organizations affectingaccounting and auditing issues related to life andhealth insurance, and generally is responsible foranalysis and recoininendations on life and healthinsurance accounting issues

Barbara L Snyder, Chau prisonHenry W Siegel, Secretary

NAIC SubcommitteeDonna R Claire, Chairperson

Andrew R . Creighton Anthony T . SpanoDouglas C. Kolsrud Stephen L White

Federal SubcommitteeMichael R vVinn, Chairperson

Arnold A Dicke Frank W. Podrebarac

Health SubcommitteeLeonard Koloms S. Michael McLaughlin

ASS SubcommitteeEdward L Robbins, Chairperson

David Chan Meredith A RatalczakStephen N. Patzman Donald E . Sanning

FASB/AICPA SubcommitteeBarbara L . Snyder, Chairperson

Scott H. DeLong III Eric R. SchueringJames E. Hohmann Henry W. SiegelS Michael McLaughlin

Staff Liaison. David A Bryant

Task Force on ReinsuranceThis task force identifies appropriate issues atboth the federal and state levels that theAcademy could/should respond to, prioritizesthem, and develops appropriate responses consis-tent with its resources and schedule . In addition,the task force ssnuld consider the broad role thatthe Academy can play in this area and whetherthat suggests an ongoing committee be estab-lished to carry on that work .

Diane Wallace, ChanpersonKenneth J . Clark Joseph W ' I,evinStuart B Grodanz Paul A. SchusterMary Rowland I-Iennessy Lee R Steeneck

Staff'Limsoir Gary D Hendricks,David A . Bryant

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Pension Pra ctice CouncilHoward Fluhr, 1"ice President

Mary Hardiman Adams Ethan F KraTwila Bastian Norman S . LoskEdward E. Burrows Howard M . PhillipsMichael E. Callahan Paul S . PolapinkJeff Furnish Gregg P . RichterHarry D. Garber Mary S. RieboldRonald Gebhardtsbauer John C . WilkinDouglas C. Holden Larry D. Zimpleman

Staff Liaison- Christine M . Cassidy

Pension CommitteeThis committee addresses actuarial issues affect-ing public and private pension plans . The com-mittee monitors federal tax, PBGC, and otherERISA related developments . It consults withCongress and relevant regulatory agencies on theeffect of regulation on employer pensions andretirement security and comments on pendinglegislation and regulations .

Gregg P . Richter, Chairperson

Committee on Social InsuranceThis committee provides and promotes actuarialreviews and analyses of U.S . social insurance sys-tems. The committee prepares comments onpending legislation regarding federal social insur-ance programs and government reports on theseprograms.

John C . Wilkin, ChairpersonHarry C. Ballantyne Peter G . HendeeJames A. Beirne Edwin C . HusteadDonato Gasparro Gregory J . SavordBenjamin I. Gottlieb Ronald L . Solomon

Staff Liaison: Christine M. Cassidy

Task Force on Trendsin Retirement Income Security

This task force is charged with studying trends inretirement income with the emphasis on thelonger-term future . The task force will report itsfindings regarding the outlook of retirementincome security and make recommendations.

Larry D Zimpleman, ChairpersonMary- H. Adams A. Frederick Rohlfs, Jr. Edward E Burrows Fred W. MunzenmaierFrederick B . Bass Rid" G. Schieitmueller Robert Clark Sheila R. ZcdlewskiEdward E . Burrows Donald J. Segal Toni S. HusteadLawrence Deutsch William J . Sohn Staff Liaison . Gary Hendricks,David P . Friedlander Robert D . Steinhorn Christine M . CassidyRonald Gehhardtsbauer Michael E . SwiccickiAllen Gorrelick Gregory T. TrappSteven J . Haas James E. TurpinLawrence A. Johansen James F Verlautz Joint Program CommitteeDavid R. Kass Lane B. West for the Enrolled Actuaries Meeting

Jr.Samuel S Lyons Wallace W. Wilson, This committee develops a program for theFranklin D Pendleton. cos onsored by theEnrolled Actuaries MeetinStaff Liaison : Christine M . Cassidy

g, pAcademy, the Conference of Consulting

Committee on Pension AccountingThis committee monitors activities and reviewsproposals regarding financial reporting related topension plans . The committee is generallyresponsible for analysis and recommendations onpension accounting issues .

Norman S . Losk, ChairpersonPaul W. Barker Lawrence A. JohansenMark G. Beilke Robert D . SteinhornSteven Bland Joseph P. StrazemskiBenjamin I. Gottlieb Stanley H. TannebaumJames M. Jackson Henry N. Wiinslow

.Staff Liaison: Christine M Cassidy

Actuaries, and the Society of Actuaries .

Jeffrey A. Levy, ChairpersonLawrence J Sher, 6 ice Chairperson

Twila Bastian Neil A . ParmenterBetty Berni William D. PartridgeHoward Fluhr Eugene SchlossWilliam P. Fornia Peter D . VerneDouglas C. Holden Richard A. WattsBarbara Blatt Kalben Vickie N. WilliamsEric P. Larson

Staff j Liaison: Christine E. Nickerson,Gwendolyn E. Hughes

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Council on ProfessionalismJack M. ' I urnquist, Vice President

Linden N Cole Howard M . PhillipsA. Norman Crowder III Donald E. SinningHarry D. Garber Jerome A. ScheiblJohn H. Harding Charles Barry H. WatsonKenneth W Hartwell Alfred O . WellerMary Frances Miller P . Adger Williams

StaffLiazson: Lauren M Bloom

Committee on Professional ResponsibilityThis committee promotes within the professionknowledge of standards of conduct, qualification,and practice, and suggests ways and means forenforcement, compliance, and monitoring of theeffectiveness of those standards .

Kenneth W. Hartwell, ChairpersonRobert B. Crompton David S . PowellThomas K Cusps Allan W. RyanRobert H. Dreyer Donald E . SanningRussell S. Fisher William David SmithFrank L. Katz John W. C . StarkEric L. Kranke Jerome M. SteinW. James MacGinnitie Wallace W. WilsonJames A. Miles

Staff Liaison: James J . Murphy,Christine E . Nickerson

Committee on QualificationsThis committee investigates issues arising withrespect to the minimum requirements necessaryto qualify members to perform publicly requiredactuarial functions, recommends to the Board ofDirectors minimum Qualification Standards(including Continuing Education Requirements)for such members, and counsels members onquestions relating to individual qualifications . Italso develops guidelines for the administration ofthe Academy Qualification Standards (includingContinuing Education Requirements) .

Charles Barry H . Watson, ChairpersonJohn K. Booth Damel J . McCarthyRuth F. Frew Charles L. McClenahanBrian A. Jones Stephen A. MeskinJames L . Lewis, Jr. Mark J. SobelRobert B Likms, Jr . Walter C. Woodward

Staff Liaison: Lauren M. Bloom

Special Casualty Qualifications SubcommitteeDavid S . Powell, Chairperson

Walter J . Fitzgibbon, Jr Joseph W . LevmPatrick j Grannan Charles L . McClenahan

Staff Liaison . Lauren M . Bloom

Joint Committee on the Code ofProfessional Conduct

This committee comprises five members, onefrom each of the United States organizations,and an observer from the CIA. The committee isappointed by and reports to the Council ofPresidents, which designates the chairperson .

The committee's responsibilities include- theformulation of the Code of ProfessionalConduct, including exposure to the members ofthe participating organizations ; assistance to theparticipating organizations in consideration andadoption of the Code, as is or in modified form;once step one is complete, ongoing maintenanceof the Code of Professional Conduct.

Jerome A. Scheibl, ChairpermnMary H. Adams, CCA Peter F . Morse, CIAAlan N. Ferguson, SOA Richard D. Pearce, ASPADavid P . Flynn, CAS

StaffLiaison. Lauren M . Bloom

Task Force on Professionalism CourseDonald E. Sanning, Chairperson

Nancy A. Behrens Mary F. MillerLinden N. Cole Richard D. PearceLawrence Grabel David S. PowellW. James MacGinnitie Jerome M. Stein

Staff Liaison: Christine E . Nickerson

Committee on Actuarial Public ServiceThis committee develops recommendations andplans for implementation of those recommenda-tions for encouraging and promoting the impor-tance of public sector employment for actuaries .

Edwin C. Ilustead, ChairpersonJames A. Beirne Michael W. MorganWilliam Carmello Anthony T. SpanoBenjamin I. Gottlieb

StaffLiaison : Christine M. Cassidy

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Committees Under the Supervisionof the Secretary-Treasurer----

James R. Swenson, Secretary-Treasurer

Budget and Finance CommitteeThis committee prepares financial projectionsand the annual budget, and recommends thedues structure to the Board of Directors . It alsodevelops and maintains the investment policy forAcademy funds, such policy to be implementedby the Secretary-Treasurer .

James R. Swenson, ChairpersonRobert W. Gossrow Kenneth W. PorterRoland F (Guy) King

Staff Liaison, James J . Murphy,Joanne B. Anderson

Committees Under the Supervisionof the Executive Vice PresidentJames J . Murphy, Evecutive Vice President

Committee on Relations with AccountantsThis committee and the parallel AICPARelations with Actuaries Committee provide afacility for communication between the actuarialand accounting professions . This committeedevelops and maintains cooperative relationsbetween actuaries and CPAs and explores areasof mutual concern; comments on proposedaccounting and auditing standards and guidanceaffecting the profession; coordinates develop-ment, as necessary, of actuarial guidance relatedto accounting and auditing matters ; works withregulatory bodies on related issues, in coordina-tion with the Academy casualty, health, life, andpension financial reporting committees ; andadvises the Actuarial Standards Board andAcademy leadership and membership of develop-ments in such matters.

Glen M. Gammill, ChairpersonHarold L. Barnet/ Paul F. KulkmanDarrel J. Croot Norman S . LoskRobert H. Dobson Stephen P . LoweSteven J . Ferruggia Barbara I_.. SnyderPatrick J. Grannan Diane WallaceJohn W. Harding P. Adger WilliamsStephen G . Kellison

Staff Liaison. Christine E . Nickerson,Gary Hendricks

17

Committee on International IssuesThis committee responds to requests from out-side the United States regarding Standards ofPractice and Qualification to sign U .S publicstatements, to share information with the interna-tional issues committees of the other U .S . actuar-ial organizations, and to initiate discussions withnon-U S actuarial organizations about havingcommon standards for accieditation .

Curtis E. Huntington, ChairpersonAllan D. Affleck Bruce D. MooreCharles Greeley James N . StanardCharles A. Hachemeister James A . TillevHeidi E Hotter J Philip TurnerHarold G . Ingrahant, Jr. Charles Barry H. WatsonW James MacGmnitie James W. Yow

StaffLuuson: Lauren A/ Bloom

Committee on PublicationsThis committee provides policy direction andguidance for Academy publications .

E. Toni Mulder, Chanperson

heartnariai U dateAdam Reese , Editor

Associate Editors«'illiam Carroll Patrick) GrannanRonald Gebhardtsbauer

Em oiled Aetnaries ReportRichard G. Schreitmueller, Editor

Associate EditorsJohn W Attendg Donald J. SegalJames A. Kennev James F .TurpinAdncn R. LaBombarde

StaffLiaison : Erich Parker,Jeffrey P Speicher

Editorial Advisory Board for ContingenciesThis board provides policy guidance, technicalreview . and oversight to staff editor, in the pro-duction of Contingencies, the magazine of theactuarial profession

E. Toni Mulder, ChairpersonHarold J . Brownlee Julia T PhilipsCurtis E . Huntington Richard S . RobertsonFrederick W. Kilbourne Bruce D . SchobelCraig A. Olney Mavis A Walters

Department EditorsArthur W. Anderson Ken KrehbielThomas L. Bakos W. Keith SloanRalph E Edwards Jeffrey SpeicherYves G. Guerard

Staff Liaison. Erich Parker , Dana H. Murphy

Advisory Group for Forecast 2000This group of representatives from all Forecast'000 sponsoring organizations advises publicrelations staff on the course of the program,reviews results, and makes recommendations tothe Council of Presidents

James J . Murphy, ChairpersonPaul H Abl loft, Jr ., ASPA Anthony T. Spano, SOARobert L Brown, CIA Mows A . Walters, GASFrederick W. Kilboume, CCA

Staff Liaison . Erich Parker

18

Joint CommitteesCouncil of Presidents

This is an informal body established to cootdmateactivities of the actuarial organizations on this con-tinent and to address professional questions .

Larry D. Baber, CCA Larry D . Keys, CCAIrene K . Bass, CAS Hector H. Llamas,Barnet N . Bertn, SOA CONACJames A, Brierley, CIA. Pablo Nonega, CONACCharles A . Bryan, AAA Paul S . Polapink, ASPADavid G. Hariman, AAA R . Stephen Radcliffe,Allan M. Kaufinan, CAS SOAStephen R . Kern, ASPA Kurt K. von Schilling,

CIA -

Council of Presidents Task Forceon the Working AgreementRuth F. Frew, Facilitator

Larrv D. Baber Stephen R. KernBarnet N. Benn Hector H. LlamasCharles A. Bryan Kurt K. oon SchtllingAllan M. Kaufinan

StajJ Liaison James J . Murphy

Liaison Appointments

Liaison Memberon the Education & Management Committee

of the Society of ActuariesPeter Flepokoski

Liaison Memberon the Education Policy Committee

of the Casualty Actuarial SocietyGustave A. Krause

Liaison Memberon the Public Relations Committee

of the Society of ActuariesAnthony T. Spano

Liaison Memberon the Credit Insurance Experience Committee

of the Society of ActuariesWilliam C . Meycr, Jr .

19

ACTUARIAL BOARDFOR COUNSELING & DISCIPLINE

The Actuarial Board for Counseling and Discipline ( .ABCD) was established as an independent entitywithin the Academy on January 1, 1992 .

Upon delegation of appropriate authority from a participating actuarial organization and acceptanceof that delegation by the ABCD, the ABCD is authorized : (1) To consider all complaints and/or ques-tions concerning alleged violations of the applicable Code of Professional Conduct and all questions thatmay arise as to the conduct of a member of a participating actuarial organization in the member's rela-tionship to the organization or its members, or in the member's professional practice, or affecting theinterests of the actuarial profession, (2) To counsel individuals accused of violations of the applicableCode of Professional Conduct regarding their actions ; (3) To recommend a public disciplinary actionagainst an individual to any participating organization of which that individual is a member ; (4) Toaccept and respond to requests for guidance from members of the participating organizations, and (5)To serve as ombudsman between members of participating actuarial organizations, or between suchmembers and the public, for the purpose of informally resolving complaints concerning the professionalconduct of such members .

AcIVARIAL BOARDFOR COUNSELING & DISCIPLINEA Norman Crowder III, ChairprrrsonDaphne D. Bartlett, Vice Chairperson

Walter J . Fitzgibbon, Jr., I ire ChairpersonAlan N. Ferguson Henry K. KnowltonCurtis D. Hamilton Joseph J . LeubeDavid L. Hewitt Jerome A . Scheibl

StafLraison Lauren M . Bloom

20

ACTUARIAL STANDARDS BOARD& COMMITTEES

The Actuarial Standards Board (ASB) was established as an independent entity within the Academy onJuly 1, 1988 . The ASB has the authority to prescribe its own operating procedures, to establish corn-mittees, subcommittees, and task forces it may deem necessary in carrying out its assigned functions,and to appoint individuals to positions on such committees, subcommittees, and task forces . The oper-ating committees report to the ASB and function under its direction . The ASB also has the authority toauthorize exposure of proposed standards and public hearings on them, and to adopt recommendedStandards of Practice .

The ASB is charged (1) To direct and manage the development of actuarial Standards of Practiceby its operating committees in all areas of actuarial practice, (2) To expose, promulgate or adopt, andpublish actuarial Standards of Practice, within its sole discretion and pursuant to such procedures as itdeems appropriate, in all areas of actuarial practice ; and (3) To provide continuous review of existingStandards of Practice and determine whether they are in need of amendment, alteration, expansion, orelimination .

ACTUARIAL, STANDARDS BOARDP. Adger Williams, ChairpersonGar, Corbett, lice Chairperson

Daniel). McCarthy, Vice ChairpersonEdward E. Burrows Frederick W KilbourneHarper L . Garrett, Jr. Richard S. RobertsonFrank S. Irish Harry L . Sutton, Jr.

Staff Liaison Christine E . Nickerson,Alan M. Kennedy

Casualty Committee of the ASBIn accordance with procedures prescribed by theActuarial Standards Board, this committee devel-ops actuarial Standards of Practice in the proper-ty and casualty insurance area .

LeRoy A. Boison, Jr ., ChairpersonAlartin Adler Bertram A . Horowiti.Douglas J. Collins R. Michael LambFrederick Cripe Stuart N . LerwickDaniel j Flaherty Robert J . i .indquistSpencer M. Gluck Marc B PearlRobert W. Gossrow Patricia A . TeufelDavid J. Grady Mark WhitmanGary Grant Paul E XVulterkensE. LeRoy Heer

Subcommittee on RatemakingGan, Grant, Chanperson

Subcommittee on ReservingMartin Adler, Chair person

Subcommittee on Special IssuesDouglas J. Collms, Chairperson

Task Force on Rate of ReturnMark Whitman, Chairperson

David Appel Claus S MetznerRobert A. Bailey Michael J . MillerSteven G. Lehmann Richard G . Woll

Task Force on ReinsuranceDavid J . Grady, Chairperson

Richard M . Beverage Gary K. RansomJames A Hall III

Task Force on Risk MarginsSpencer M Gluck, Chairperson

Ralph S . Blanchard III Roger M . HaynePaul Braithwaite Thomas J . KosikRobert P . Butsic Stephen P. LoweLinda A . Dembtec Lewis H. Roberts

21

Health Committee of the ASBIn accordance with procedures prescribed by theActuarial Standards Board, this committee developsactuarial Standards of Practice in the health field .

Ted A. Lyle, ChairpersonWilliam F. Bluhm David F . OgdenRobert M . Demean, Jr. Mark D . PeavyLarry M . Gorski John A . PriceRobert J . Ingram Richard J . SheplerEllen Lamale Allen j Sorbo'A illiam H Odell Joe P Sternfeld

Life Committee of the ASBIn accordance with procedures prescribed by theActuarial Standards Board, this committee devel-ops actuarial Standards of Practice in the lifeinsurance area .

Edward S . Silms, ChairpersonDonald F Behan Robert W . Maul[Robert M . Beuerlein Richard S . MillerLarry N1 . Gorski Lew NathanTimothy F Harris Frederick j SievertAllan Hale Johnson Michael L . Zurcher

Pension Committee of the ASBIn accordance with procedures prescribed by theActuarial Standards Board, this committee devel-ops actuarial Standards of Practice in the pensionarea

Mary H . Adams, Chairpei sonSilvio ingui, Vice L'harrperson

Steven I. Alin Lawrence J. SherC. David Gustafson Kenneth A . SteinerNorman L. Jones Lee J . TradJames Laws Richard Q WendtIIeidi Rackley

Retiree Health Care Committee of the ASBIn accordance with procedures prescribed by theActuarial Standards Board, this committee devel-ops actuarial Standards of Practice in the retireehealth care and death benefits area .

Robert W. Haver, ChairpersonDonald E. Sanning , i ice Chairperson

Alan S. Breitman JosephJ PoplaskiHarry A. Don Kenneth W. PorterSteven J . Ferruggia William A. ReimertJoseph P . Macaulay George J RoccasStephen A . Meskin

Specialty Committee of the ASBIn ccordance with procedures prescribed by theActuarial Standards Board . this committee devel-ops actuarial Standards of Practice in areas notaddressed by the preceding committees.

Stephen G . Kellison, ChairpersonHarold L. Barney Philip D. MillerSteven A. Harrold Alwyn V'. Powell

~ Task force on Long-term Care VIii accordance with procedures prescribed by theActuarial Standards Board, this task force devel-ops actuarial Standards of Practice in the area oflong-term care .

Bartley L . Munson, ChairpersonVincent L Bodnar John P . Kinney IIIDonald M. Charsky Edward A . MurphyAbraham S . Gootzert Dennis Al . O'BrienRobert A. Hall Gerald R. SheaJames T. Helton

Task Force enContinuing Care Retirement Communities

In accordance with procedures prescribed by theActuarial Standards Board, this task force devel-ops actuarial Standards of Practice in the area ofContinuing Care Retirement Communities .

Gary L. Brace, ChanpersonHarold L . Barnet' Bruce L . WorkmanDavid L. Hewitt

Editorial Advisory Committee of the ASB '~This committee assists the operating committeesin reformatting csisting standards into theapproved pattern and advises the operating com-mittees on the format, style, structure, and con-sistency of proposed standards . The committeealso serves as coordinator for staff writers andeditors involved in A.SB activities. J

Jerome A Scheibl, ('haaperinn o}5Charles F . Fair, [ice Chairperson, 7OJJ'

Janet L Fagan I Ienry W. Siege)David E. Scarlett

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PAST OFFICERS1465 fit, 19(fi,-07 P79- 511 P159-51

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JRRVIS PARLEY SERVICE AWARDIn 1991, the Academy established a perpetualaward to honor the memory of one of its long-time, indefatigable volunteers . Jarvis Farley wasa charter member of the Academy and an invalu-able resource for Academy staff and the entireactuarial profession His untiring volunteerwork for the Academy epitonuzed the caliber ofservice to he honored by this award . He beganserving on Academy committees in 1972 andcontinued until his death in 1991 .

The Academy Executive Committee eachyear will select the Jan-is Farley Service Awardrecipient, if it determines there is a deserving

candidate . The recipients are announced andhonored at the Academy' s annual meeting. Eachhonoree receives an engraved pewter PaulRevere bowl, custom designed by lurk Stteff. Aslightly larger, permanent howl, engraved withthe name of each recipient, is displayed at theAcademy.

Jarvis Farley Service Award Recipients

1992 Mary Hardiman Adams1993 Jerome A. Scheibl

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ORIGINSHISTORY

On October 25, 1965, the AmericanAcademy of Actuaries was organized as anunincorporated association to serve the

actuarial profession in the United States . Thecorresponding national body in Canada, theCanadian Institute of Actuaries, had been incor-porated earlier that same year. For many years,the actuarial profession in North America hadconsisted of four bodies : the Casualty ActuarialSociety, the Conference of Actuaries in PublicPractice, the Fraternal Actuarial Association, andthe Society of Actuaries . In 1964, the membersof those four organizations, recognizing the needfor a single body to represent actuaries of all spe-cialties, approved formation of an all-inclusiveorganization of qualified United States actuaries .

The original plan had been to obtain a feder-al charter as the first step toward seeking legalrecognition of the profession When this couldnot be promptly obtained, the Academy was dis-solved as an unincorporated association and, onApril 29, 1966, vvas reorganized as a corporationunder the Illinois General Not For ProfitCorporation Act . Henry F . Rood, whose presi-dential address to the Society of Actuaries in1958 had voiced the first formal proposal forsuch a national body, was elected president

In September 1980, the Fraternal ActuarialAssociation, one of the four founding organiza-tions, closed its doors its dissolution indicatedthat the needs of fraternal actuaries had beenincreasingly met by other actuarial organiza-tions and that the National Fraternal Congresshad increasingly been providing a forum for fra-ternal actuaries .

A new statement of purpose for the Academywas adopted by the Board of Directors onDecember 9, 1981, following an exposure pro-cess with the membership and extensive deliber-ations by the board.

Membership RequirementsAcademy membership is intended to serve as thehallmark of a qualified actuary in the UnitedStates.

All United States residents who were Fellows(or the equivalent) of the four existing bodies onOctober 25, 1965, were automatically enrolled asAcademy members, subject to their indicated

assent by paying the dues . There were 1,427charter members of the American Academy ofActuaries

The Academy immediately set about makingits existence known to other actuaries not eligi-ble as charter members. It was required that anysuch actuary demonstrate adequate knowledgeand skills . Many were admitted by this route,some after passing special proctored examina-tions A requirement of seven years of responsi-ble actuarial experience ( five years for Fellows byexamination of the existing bodies ) was imposed .

After January 1, 1970, educational require-ments were gradually increased until 1976 . InJanuary 1976, an amendment to the bylaws creat-ed a new nonvoting class of membership designat-ed Affiliate of the American Academy ofActuaries This class consisted of nonmembers ofthe Academy who became enrolled actuariesunder the Employee Retirement Income SecurityAct of 1974 (ERISA), subject to acceptance oftheir applications by the Academy. Subsequently,m January 1979, the bylaws were further amendedto eliminate the distinction between Affiliates andmembers of the American Academy of Actuaries,as well as to set the experience required at threeyears of responsible work . Subsequently, theAcademy board set the basic educational require-ment at that of the Associateship level in theCasualty Actuarial Society or the Society ofActuaries or that required for status as an enrolledactuary tinder ERISA .

Nonresidents of the United States can beadmitted to membership if they meet theAcademy 's educational and experience standards,can demonstrate familiarity with United Statesactuarial practices , and have a need to performactuarial duties in the United States .

Professional ConductIn December 1965, the Guides to ProfessionalConduct were first issued . Over time, thesewere revised and supplemented by InterpretativeOpinions. Together, the Guides and Opinionsformed a core of ethical guidance for membersin all phases of their professional lives . InSeptember 1991, the Board of Directorsapproved a new set of ethical precepts as recom-mended by the Council of Presidents Task Force

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on the Code of Professional Conduct . Theintent of the task force was to seek adoption of acommon code of ethical tenets by all organiza-tions representing actuaries in North America .The Academy was the first body to adopt theCode, which became effective January 1, 1992 .

The Code of Professional Conduct includesPrecepts and Annotations that require a highstandard of ethics and responsible performanceexpected of professionals . Specifically, thePrecepts require actuaries to abide by Standardsof Practice, as promulgated by the ActuarialStandards Board, and by QualificationStandards, adopted by the American Academy ofActuaries . The Code has been adopted in sub-stantially similar form by all the professionalsocieties representing actuaries in the UnitedStates and Canada . uniting the profession in thisarea for the first time .

Counseling & DisciplineSince its inception, the Academy has recognizedthe need for a disciplinary procedure to enforcestandards of conduct and the need to provide thepublic and fellow actuaries with an avenue toexpress grievances regarding the professionalactivities of Academy members . For many years,the responsibility for handling complaints, investi-gating charges, and proposing disciplinary mea-sures rested with the Committee on Discipline .Largely because duplications of effort by the disci-plinary committees of the various actuarial orga-nizations frustrated effective discipline, and also asa result of the adoption by all actuarial organiza-tions of a common Code of Professional Conduct,in 1991 the members of the Academy voted toamend the bylaws and create the Actuarial Boardfor Counseling and Discipline (ABCD)

The ABCD is a separate entity affiliated withthe Academy . It investigates alleged violations ofthe Code of Conduct lodged against members ofany actuarial organization that delegates inves-tigative authority to the ABCD . The Academyand other organizations have delegated suchauthority . For those activities that in the opin-ion of the ABCD do not ment public discipline,or in response to actuaries' requests for guidance,actuaries will be counseled privately and assisted mcomplying with the requirements of the Code ofConduct, Qualification Standards, andStandards of Practice .

Standards of PracticeThe Academy commenced issuing Standards ofPractice, called Recommendations, in 1973 .These Recommendations were supplemented byInterpretations . A major step forward in thedevelopment and management of Standards ofPractice was taken in 1985 with the creation ofthe interim Actuarial Standards Board (IASB) .The IASB served as the prototype for a perma-nent Actuarial Standards Board (ASB), which wascreated in June 1988 by a bylaw amendment vote .

The kSB is a separate entity affiliated withthe Academy . It has sole responsibility to initiatethe development of and to adopt new standards .Standards of Practice include statements on thetechniques, applications, procedures, and meth-ods that have been generally accepted by theprofession . The Code of Professional Conductrequires actuaries to be knowledgeable about andabide by these pronouncements .

Legal RecognitionIn December 1966, the National Association ofInsurance Commissioners (NATC) adopted a res-olution supporting recognized standards of actu-arial competence and conduct and urging eachcommissioner to support the efforts of theAcademy to gain official recognition . All statesnow have regulations that recognize Academymembership as qualification for signing insur-ance company annual statements ; some have cor-responding recognition for public employeeretirement systems . The first state to act wasIndiana , which provided for certification of actu-aries by a state board in a 1968 lays . The generalpattern followed in other states has been issuanceof administrative orders or regulations .

In 1975, the responsibility expected of actuar-ies was spelled out by a new requirement that theactuary who signs a life insurance companyannual statement must express an opinion on theactuarial elements, including an opinion on theadequacy of reserves. The Academy respondedwith Rcconioiendatrons to the profession on howthis responsibility should be met

In 1980, a similar requirement was added tothe property and liability insurance companyannual statement, except that the requirement wasat the discretion of the domiciliary insurance com-missioner . Again the Academy responded withappropriate Recommendations to the profession

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In 1990, at the urging of the Academy, theNAIC eliminated the discretion of individualstates . As a result , virtually all annual state-ments from property/casualty companies in theUnited States must be accompanied by a lossreserve opinion from a "qualified actuary,"defined as a member of the American Academyof Actuaries approved by the Casualty PracticeCouncil, or as a member of the CasualtyActuarial Society, or otherwise approved by thedomiciliary commissioner .

In 1983, a statement of actuarial opinion sim-ilar to those cited above was added to the annualstatement blanks for both health service corpora-tions and health maintenance organizations ; itwas supported by Recommendations .

In the pension field, the 1974 ERISA legisla-tion established extensive and specific standardsfor actuarial reports, for disclosure and fiduciaryrelationships, and for die qualifications of actuar-ies in pension work.

Expressions of Professional OpinionThe first major influence of the Academybeyond the boundaries of the profession was inits response . beginning in 1972, to the auditguide for stock life insurance companies by theAmerican Institute of Certified PublicAccountants . This cooperative endeavor has ledto regular and close association between theactuarial and accounting professions

The Academy has also become increasinglyactive in dealing with various government entitieson a variety of public issues In 1982, the Boardof Directors adopted Guidelines for MakingPublic Statements in connection with this activi-ty . The Guidelines were updated in 1987 .

Joint Activities of Actuarial OrganizationsThe North American actuarial bodies cooperatein many ways, largely through joint sponsorshipof actuarial examinations and the work of jointcommittees. In December 1972, the Academywas instrumental in launching an informal body,the Council of Presidents, to foster even greaterunderstanding and common purpose . In 1976,the actuarial organizations jointly formed theActuarial Education and Research Fund to fosterthe growth of basic actuarial research through-out the profession and to arrange for necessaryfinancing of such research .

AdministrationAt the outset, the Academy shared administrativefacilities with the Society of Actuaries in Chicago(since moved to Schaumburg, Illinois), whichhave since been broadened to serve theConference of Consulting Actuaries (formerlythe Conference of Actuaries in Public Practice)as well A major step to increase the value andinfluence of tile Academy was taken in January1976 when the Academy became headquarteredin Washington, D C . The Washington office isresponsible for all staff functions other thanthose related to the membership database, whichremain in Schaumburg

MeetingsHistorically, the Academy held its annual meet-ings in the fall of the year, in conjunction withthe annual meeting of one of its founding orga-nizations . In 1990, the Academy began holdingits own separate annual meeting, essentially anoutgrowth of the established Washington brief-ing and luncheon . Starting in 1976, theAcademy and the Conference of ConsultingActuaries began cosponsoring the EnrolledActuaries Meeting; in 1989, the Society ofActuaries was added as a cosponsor . Thesemeetings are a primary means of continuing edu-cation for pension actuaries across the nation .Nineteen eighty-one saw the introduction of aseries of Casualty Loss Reserve Seminars, whichwere initially jointly sponsored by the Academyand the Casualty Actuarial Society. In 1990, theConference of Consulting Actuaries was addedas a cosponsoring organization The seminarsare of particular interest to property/casualtyactuaries and loss reserve specialists . In additionto these meetings, each year brings other jointlysponsored meetings, seminars, and workshops ona variety of subjects .

PublicationsThe Academy continues to expand the numberand scope of its publications . Each year, theassociation publishes this yearbook, whichincludes committee listings, the Board ofDirectors, and Academy staff, as well as suchmaterial as bylaws and application for admissionto the organization . The journal, which beganannual publication in 1975, a record of the asso-ciation's annual meeting and official public state-

27

ments, ceased publication with the 1087 editionThat information is now included in a specialsubject supplement to the Academy's newsletter,l he .-Ictnaruil Update .

Each month the Academy publishes TheActuarial Update (which became a bimonthlypublication in 1977, and began monthly produc-tion in 1981) and several enclosures, includingthe "ASB Boxscore" (started in 1987), a statusreport on various standards projects andActuarial Standards Board news . In addition, theEnrolled .lctuarice Report, a newsletter focusing onthe concerns of pension actuaries, is publishedfour times during the year .

In recent years the publications roster hasgiown to include a Fart Book on the organization,as well as the Actuarial Standards Board Fart Book,the Issues Digest, a communications primer, andannual reports for the Actuarial Standards Boardand the Actuarial Board for Counseling andDiscipline . The single most significant additionto the array of publications occurred in June1989, with the premiere of Contingencies, a four-color, bimonthly magazine with advertising,aimed at both actuarial and non-actuarial audi-ences . Contingencies has garnered five prestigiousmagazine awards since its launch .

STATEMENT OF PURPOSE*

The purpose of the American Academy ofActuaries is to :∎ Establish, promote, and maintain high stan-dards of competence, conduct, and practicewithin the actuarial profession .∎ Stimulate and encourage the advancement ofthe knowledge and the methods of practice inthe actuarial profession .∎ Encourage and promote public understand-ing of the nature and scope of actuarial science .

∎ Provide for communication between actuariesand the public on questions of qualification, certifi-cation or licensing, and identification of actuaries .∎ Represent the actuarial profession in areas ofpublic issues and discussions involving actuarialconcepts .∎ Coordinate and interact with other profes-sions and organizations in areas where joint par-ticipation can contribute to fulfilling publicneeds .

The Academy' s Statement of Purpose was adopted by theBoard of Directors in 1981

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BYLAWS OF THE AMERICAN ACADEMYOF ACTUARIES

A CORPORATION ORGANIZED UN DER TI FFILLINOIS GENERAL NOT FOR PROFIT CORPORATION ACT(ADOPTED APRIL Ii, 1966, AND LAST VEND( DIN 1993)

Article IMembership

SECTION 1, Members . Individuals havingmembership in the Academy shall he called"members ."

Members shall be entitled to attend meetingsof the Academy, vote, hold office, serve as elect-ed Directors, make nominations, serve on com-mittees, and generally exercise the rights of fullmembership . They are authorized to designatethemselves as "members" of the AmericanAcademy of Actuaries and to append to theirnames the initials iM .A.A.A.

of character or professional integrity, the candi-date may appeal to the Board . The proceduresfor the conduct of such appeal shall be as pre-scribed by the Board .

E Nonresidents . A candidate who is not a resi-dent of the United States must meet such otherrequirements as are prescribed by the Board .

F. Approval. Each application shall be actedupon by the Executive Committee A candi-date's application is approved if accepted by amajority of the whole Executive Committee . Ifrefused, the applicant may request review by theBoard, pursuant to such procedures as may beadopted by the Board .

SECTION 2 . Requirements for Admission toMembership . Any person may apply for member-ship and shall become a member by meeting therequirements contained in this section.

A. Application. Each candidate for admissionmust submit a written application that shallinclude a resume of the candidate's education,background, and experience, the names of tworeferences who are members, and such additionalinformation as the Executive Committee mayrequest .

B . Education . Each candidate shall havepassed, or have received credit for, the examina-tions prescribed from time to time by the Boardof Directors, hereinafter called the "Board r

C. Experience . Each candidate must, at the dateof application, have had at least three years ofexperience in responsible actuarial work ."Responsible actuarial work" is defined as workthat has required knowledge and skill in solvingpractical actuarial problems in any of the follow-ing fields life and health insurance involving indi-vidual policies, group insurance, social insurance,pensions, or property and liability insurance .

D References, Evidence of character and pro-fessional integrity of the candidate shall havebeen deduced by references from two memberswho have known the candidate for at least eigh-teen months or from other sources If the appli-cation is rejected on the basis of evidence of lack

Article IIMeetings of the Members

There shall be an annual meeting of the mem-bers each fall at such time and place as the Boardshall designate .

Special meetings may be called by the Board .Upon request of not less than five percent of themembers, the President shall call a meeting ofthe members . At all meetings fifty members shallconstitute a quorum. Notice of a meeting, speci-fying the place, date, and hour of the meeting,shall be given not less than twenty nor more thanforty days before each meeting .

Article IllBoard of Directors

SECTION 1. Composition . The Board shall con-sist of twenty-eight Directors, comprising theeight Officers , the two immediate PastPresidents and eighteen elected Directors .

SECTION 2 . Election and Term of OfficeA. Special Directors. The Board shall desig-

nate a number of seats on the Board, not toexceed eight, to he filled by a class of specialDirectors consisting of representatives of otherUnited States actuarial organizations whosepresence on the Board is deemed helpful to the

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Academy Special Directors shall be elected bymajority vote of the whole Board and shall servefor a period of two years . If a vacancy occursamong the special Directors, the vacancy may befilled for the remainder of the unexpired term bymajority vote of the whole Board The term ofoffice of a special Director shall begin at theclose of the annual meeting of the Academy inthe calendar year of the election and shall con-tinue until the close of the annual meeting at theend of the term for which the special Directorwas elected .

B . Regular Directors . Directors who are notspecial Directors shall be regular Directors .Each year the members shall elect a number ofregular Directors to bring the total number ofDirectors to eighteen. Candidates receiving thegreatest number of votes shall be elected Suchregular Directors shall serve for a period of threeyears . A retiring regular Director, other thanone who was elected to fill a vacancy, whoseterm as a regular Director expires shall not beeligible for re-election as a regular Director atthat time . A Past President whose ex officiomembership on the Board as Past Presidentexpires shall not be eligible for election as a reg-ular Director at that time . If a vacancy occursamong the regular Directors, including a vacan-cy created by the election of a regular Directorto an office or to the position of SpecialDirector, the vacancy may he filled for theremainder of the unexpired term by majorityvote of the whole Board The term of office of aregular Director shall begin at the close of theannual meeting of the Academy in the calendaryear of the election and shall continue until theclose of the annual meeting at the end of theterra for which the regular Director was elected

SECTION 3 . Meetings There shall he an annualmeeting of the Board within sixty days prior tothe annual meeting of the Academy . Specialmeetings of the Board shall be called wheneverthe President or at least five members of theBoard so request.

Meetings of the Board may be held eitherwithin or outside the state of Illinois . Notice ofthe meetings of the Board shall be given not lessthan ten days nor more than thirty days before themeeting, except in the event of a meeting of theBoard following the annual meeting of the

Academy, in which event newly elected Directorsshall be given notice of such meeting of the Boardas promptly as possible Such notice to newlyelected Directors may be given personally, bytelephone, by mail, or by facsimile transmission .

Any action required to be taken at a meetingof the Board may be taken without a meeting if aconsent in writing, setting forth the action sotaken, shall be signed by all of the members ofthe Board.

SECTION 4 . Quorum . At meetings of theBoard, a majority of the members of the Boardshall constitute a quorum .

SECTION 5. Duties and Powers. The Board shallhave, in addition to the powers and authorityexpressly conferred upon it by these Bylaws, theright, power, and authority to exercise all suchpowers and to do all such acts and things as maybe appropriate to carry out the purposes of theAcademy. Without prejudice to the generalpowers so conferred, the Board shall have thefollowing specific powers :

(a) To act in accordance with the provi-sions of the Articles of Incorporation of theAcademy and the laws of the state of Illinois .

(h) To establish the location of the officesof the Academy .

(c) To invest and administer the funds ofthe Academy .

(d) To arrange an annual audit of theaccounts of the Secretary-Treasurer

(e) To prescribe examinations and otherrequirements for admission, as provided inArticle I, Section 2, of the Bylaws .

(f) To elect the Officers of the Academy .(g) To authorize such committees as it

may deem necessary for the conduct of theaffairs of the Academy .

Article IVExecutive Committee

During any interim between meetings of theBoard, the business of the Academy shall be con-ducted by an Executive Committee comprised ofthe Officers and the immediate Past President.The Executive Committee shall have such pow-ers as may be provided by these Bylaws or asmay be delegated to it by the Board, except thespecific powers enumerated (b), (d), (e), (f), and(g) in Section 5 of Article III .

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Article VOfficers

SECTION 1 Officers . The Officers of theAcademy, all of whom shall be members, shallconsist of a President, a President -Elect, fiveVice Presidents, and a Secretary-Treasurer .

SECTION Electron and Term of Office . Ateach annual meeting of the Board , the Directorspresent, by a vote of a majority of the wholeBoard, shall elect , separately and in the ordernamed , a President-Flect , two or more VicePresidents , and a Secretary-Treasurer .

At the annual meeting of the Board , if either(a) the President-Elect has succeeded thePresident and has served in that capacity for sixmonths or more by reason of the office ofPresident becoming vacant or (b) the office ofthe President - Elect is vacant , except in the casewhere the President - Elect has succeeded to theoffice of the President and has served in thatcapacity for less than six months , the Directors,by a vote of a majority of the whole Board, shall,prior to the election of the President-Elect, electa President to serve from the close of the firstsubsequent annual meeting of the Academy untilthe close of the second subsequent annual meet-ing of the Academy.

Except as hereinafter provided, the President-Elect, having been so elected at an annual meet-ing of the Board, shall commence the term asPresident - Elect at the close of the first subse-quent annual meeting of the Academy and shallautomatically succeed the President at the closeof the second subsequent annual meeting of theAcademy , and shall serve as the President untilthe close of the third subsequent annual meetingof the Academy In the event the office ofPresident becomes vacant, the President-Electshall automatically succeed to fill the vacancy forthe unexpired term . A President - Elect who sosucceeds the President and serves in that capacityfor less than six months prior to the close of thefirst subsequent annual meeting of the Academyfollowing succession to the Presidency shall fur-ther serve as President until the close of the sec-ond subsequent annual meeting of the Academy.

The term of Vice President shall be twoyears . At the first annual meeting of the Boardfollowing adoption of this provision , three VicePresidents shall be elected . At the second annual

meeting of the Board following adoption of thisprovision, two Vice Presidents shall be elected .The term of each Vice President elected at eachannual meeting of the Board shall be from theclose of the first subsequent annual meeting ofthe Academy until the close of the third subse-quent annual meeting of the Academy . In theevent of a vacancy in the office of Vice President,the Board may elect a replacement for theremainder of the vacancy of that office . Saidreplacement may thereafter be eligible for re-election as a Vice President at the meeting atwhich the term expires A retiring VicePresident is not otherwise eligible foi ie-electionas a Vice President at the meeting at which theterm expires .

Fxcept as provided above, a retiringPresident shall thereafter be permanently ineligi-ble for election for another term as President orPresident-Elect .

A retiring Vice President shall not be eligiblefor re-election as a Vice President at the meetingat which the term expires .

Each Officer shall hold office for the termelected and until a successor shall have beenelected .

In the event of vacancy in the office of boththe Piesident and President-Elect, the Boardshall by majority vote of the whole Board elect amember to fill the vacancy for the unexpiredterm of the President .

In the event a vacancy occurs among the VicePresidents, or in the office of Secretary-Treasurer, the Board Shall by majority vote ofthe whole Board elect a member to fill the vacan-cy for the unexpired term

Article VIDuties of Officers

SECTION 1 President. The President shall pre-side at the meetings of the Board and of theAcademy, shall appoint committees authorizedby the Board, and may sign with the Secretary-Treasurer, or any other person authon7cd by theBoard, contracts or other instruments that theBoard has authorized to be executed

SECTION President-Elect The President-Elect shall have such duties as may he assigned bythe President or by the Board In the absence of

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the President, or in the event of the President'sinability or refusal to act, the President-Electshall perform the duties of the President's office .

SECTION 3 . d ice Precideuts. Each of the VicePresidents shall have such duties as may heassigned by the President or by the Board .

SECTION 4 . Secretary-Treasurer. The Secretary-Treasurer shall record and file minutes of allmeetings of the Board, give all notices, be custo-dian of the corporate records of the Academy,and in general shall perform all customary dutiesincident to the office of Secretary-Treasurer

The Secretary-Treasurer shall also keep aregister of the members, have charge of thepreparation and publication of any yearbook thatmay be published, have general supervision ofany arrangements for holding examinations, havecharge and custody of all funds and securities,collect dues, pay bills, prepare financial state-ments, and in general perform all customaryduties incident to the office of Secretary-Treasurer The Secretary-Treasurer shall give abond for the faithful discharge of all such duties,the cost of which shall be paid by the Academy .

Article VIIFinances and Contracts

SECTION 1 . Dues. Except as hereinafter pro-vided, each member shall pay such dues for eachcalendar year as may be established by the Board .Such dues shall he payable as ofJanuary 1 of thecalendar year . At the time when dues arepayable, any member who has become totallydisabled or who, having attained an age to beselected by the Board, and having retired fromactive work or who has attained age 70, so noti-fies the Secretary-Treasurer in writing shall begranted exemption from the payment of dues bythe Executive Committee . In addition, any mem-ber who is (a) expected to earn no significantincome for the calendar year from actuarialactivities, and (b) is within a class of memberseligible for dues waiver as determined by theBoard shall be granted exemption from the pay-ment of dues by the Executive Committee .

It shall be the duty of the Secretary-Treasurerto cause to be notified by mail any memberwhose dues may be six months in arrears and to

accompany such notice by a copy of this Section .If dues remain unpaid, such person shall, on thedate that falls three months after the date of mail-ing such notice, cease to be a member of theAcademy for all purposes other than with respectto any penalty or other action determined underdisciplinary procedures as provided in Article IX,relating to conduct prior to such date .Reinstatement as a member shall he subject tosuch conditions as the Board may prescribe .

SECTION 2 . Publications. The Board shalldetermine the extent of distribution of publica-tions of the Academy and the fees or prices to becharged any classes of recipients .

SECTION 3 . Contracts. The Board may autho-rize any Officer or agent to enter into any con-tract or execute and deliver any instrument inthe name or on behalf of the Academy.

SECTION 4 . Checks- All checks, drafts, or otherorders for a payment of money, notes , or otherevidences of indebtedness shall he signed bysuch Officer or agent of the Academy as shallfrom time to time be determined by the Board .

SECTION 5 Deposits, All funds of the Academynot otherwise employed or invested shall bedeposited to the credit of the Academy in suchbanks, trust companies, or other depositories asthe Board may select.

Article VIIIResignation of Members

Any member who is not in default in payment ofdues and against whom no complaints or chargesare pending may at any time file a resignation inwriting with the Secretary -Treasurer, and, ifaccepted by the Board, it shall become effectiveas of the date it was filed . Notwithstanding theforegoing, the Board may in its discretion permitthe resignation of a member against whom acomplaint or charge is pending . The Board, onwritten application of any member who hasresigned, may reinstate such member subject tosuch conditions as it may prescribe

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Article IXPublic Discipline

SECTION 1. Complaints and Refe7ralsA. Complaints concerning alleged violations

of the Academy' s Code of Professional Conduct,and all questions that may arise as to the conductof a member, in the member's relationship to theAcademy or its members, or in the member'sprofessional practice , or affecting the interests ofthe actuarial profession , constitute matters forserious consideration .

B . Such complaints and questions shall hereferred to the national organization responsiblefor profession -wide counseling and discipline inthe nation where the action occurred : theActuarial Board for Counseling and Discipline(ABCD) in the United States and the CanadianInstitute of Actuaries (CIA) in Canada

SECTION 2 . Coucuderation of Public Drcciplinari,Action.

A. The President shall appoint a six-personDisciplinary Committee from among the mem-bers of the Board to consider and act on a rec-ommendation from the ABCD or the CIA forpublic discipline of an Academy member .

B . Public disciplinary action includes a pub-lic reprimand, suspension of Academy member-ship, or expulsion from the Academy .

C. The member who is the subject of a publicdisciplinary recommendation from the ABCD orthe CIA shall have the right to appear personallyand by counsel (at the member's expense) beforethe Disciplinary Committee to explain why thatrecommendation should not be followed .

D The member involved shall be notifiednot less than forty-five days in advance as to thetime, date, and place where the DisciplinaryCommittee will consider the matter . The notifi-cation may he made by certified mail or in suchother manner as the Disciplinary Committeemay direct. The time limit may be waived bymutual agreement of the parties .

F An action of the Disciplinary Committeeto publicly reprimand, suspend, or expel a mem-ber requires an affirmative vote of two-thirds ofthe whole membership of the DisciplinaryCommittee .

F. An action by the Disciplinary Committeeto publicly reprimand, suspend the membershipof, or expel a member is effective forty-five days

after the date of the action , if the member doesnot appeal the action to the Board, and, in theevent of such an appeal, the action is effective onthe date when the appeal is decided by theBoard .

SECTION 3 . 4ppeali to the Board. A memberagainst whom an order of public reprimand, sus-pension, or expulsion has been rendered shall,upon application to the Board within forty-fivedays after the action of the DisciplinaryCommittee. be entitled to appeal to the Board atits next regularly scheduled meeting, under thefollowing conditions :

A . All rights and privileges of membershipshall be retained during the pendency of theappeal .

B. The notice of appeal shall be in writingand shall stipulate that the appealing memberconsents to the mailing to the members of theBoard of a transcript and all applicable evidence ina form approved by the Disciplinary Committee .

C. The member may appear personally andby counsel ( at the member's expense ) befoie theBoard when it meets to hear the appeal .

D. The decision of the DisciplinaryCommittee may- be affirmed , reduced, or setaside by a majority of the members of the wholeBoard. Members of the Board who serve on theDisciplinary Committee may participate andvote in deliberations of the Board .

SECTION 4 Reinstatement. An individual whohas been expelled from the Academy- may bereinstated only through an action of the Board ofDirectors.

SECTION 5 . Connfideutiality of ProceedingsExcept as otherwise provided in these Bylaws orby waiver of the person under investigation, allproceedings under this Article shall be confiden-tial and kept secret .

SECTION 6 . NotificationsA. The Board of Directors shall notify

Academy members in all instances in which amember is suhlect to public discipline . At thesame time notification is given to the members,the Board of Directors shall also give notice ofthe public discipline to all other actuarial organi-zations of which the individual is a member andto other organizations , including governmental

33

entities, that, in the opinion of the Board, shouldalso receive notice of the action. The Board ofDirectors may also give notice of public disciplineto such newspapers or journals as it may select .

B . If the case arises from a written com-plaint, notice of the disposition of the case shallbe furnished to the complainant .

C. In the case of an action by the DisciplinaryCommittee to publicly reprimand, suspend, orexpel a member, the notification should take placeforty-five days after the Committee',, action, and,if the member is appealing the decision to theBoard of Directors, the notification should statethat the decision is being appealed . Once theBoard of Directors has acted on this appeal, thereshould he a notification of that action

D In the event of subsequent reinstatementof an expelled member, the Board of Directorsshall give notice of such action to all membersand also to entities previously advised by theBoard of the expulsion

Article XActuarial Board for Counseling and DisciplineSECTION 1 Establishment and Puiposrs

A. There shall be established within theAcademy an entity to be known as the ActuarialBoard for Counseling and Discipline (ABCD)Upon delegation of appropriate authority from aparticipating actuarial organization and accep-tance of that delegation by the ABCD, theABCD will be authorized :

1 To consider all complaints and/orquestions concerning alleged violations ofthe applicable Code of Professional Conductand all questions that may arise as to theconduct of a member of a participating actu-arial organization in the member's relation-ship to the organization or its members, inthe member's professional practice, or affect-ing the interests of the actuarial profession.

2 . To counsel individuals accused of vio-lations of the applicable Code of ProfessionalConduct, regarding their actions .

3 To recommend a public disciplinaryaction against an individual to any participat-ing organization of which that individual is amember

4. To serve as ombudsman betweenmembers of participating actuarial organiza-

tions, or between such members and thepublic. for the purpose of informally resolv-ing complaints concerning the professionalconduct of such members

5. To accept and respond to requests forguidance from members of the participatingorganizations .B. The \BCD is authorized to issue such

rules of procedure and operating guidelines notinconsistent with the requirements of this Articleas it deems appropriate

SECTION 2 Members rind AppointmentsA The ABCD shall consist of nine persons

appointed from the membership of the partici-pating organizations . Appointments will usuallybe made for three-year terms, but appointmentsfor shorter terms may be made to assure thatone-third of the members will be appointed eachyear . A member may serve no more than threeconsecutive terms .

B. Members of the ABCD shall be broadlyrepresentative of all areas of actuarial practice .They shall be appointed by and serve at the plea-sure of a Selection Committee composed of thePresidents and Presidents-Elect of the participat-ing organizations The President of theAcademy shall serve as Chairperson of theSelection Committee If a vacancy arises amongthe members of the ABCD, the SelectionCommittee shall designate a replacement to fillout the remainder of the term . The replacementwill complete that term, and may be reappointedfor two additional consecutive three-year terms .Where three or more members of the ABCDhave an actual or potential conflict of interestwith regard to a particular matter, with the resultthat a quoniin of the ABCD cannot practicablybe convened to consider the matter, theSelection Committee may, in response to arequest from the ABCD, appoint enough specialmembers to the ABCD to form a quorum toconsider that matter. The term of such a specialmember shall end at the conclusion of theABCD's consideration of the matter that the spe-cial member was appointed to consider, specialmembers shall not participate in ABCD consid-eration of any matters other than the specificmatters for which the special niemhers wereappointed .

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SECTION 3 . Officers .A. The Officers of the ABCD shall consist

of the Chairperson and two Vice Chairpersons.B. The Chairperson shall he appointed

annually from among the members of the ABCDby the Selection Committee The Chairpersonshall preside at meetings of the ABCD and shallhave the other iesponsibilities described inSection 5

C. The Vice Chairpersons shall be appoint-ed annually from among the members of theABCD by the Selection Committee . A ViceChairperson shall he designated by theChairperson as the presiding Officer in theabsence of the Chairperson . Vice Chairpersonsshall have such other duties as may be assignedby the Chairperson

SECTION 4 Meetings and Conduct of BuszneiiThe ABCD shall meet at least once each year .Additional business shall be conducted wheneverrequested by the Chairperson or at least threemembers. Business may be conducted duringmeetings or via mail or telephone . Two-thirdsof the members of the ABCD shall constitute aquorum .

SECTION 5 Prorednres for Discipli naryRec17717771 endatwns

A For any matter that arises as the result ofthe receipt of a complaint or question or anABCD initiative, the Chairperson and the twoVice Chairpersons may by majority vote :

1 . Dismiss the matter.2 Authorize an ombudsman to resolve

the natter, or3 . Authorize a review of the matter .

B To review a matter, the Chairperson shallappoint an Investigative Officer who mayappoint up to two additional persons with theapproval of the Chairperson . Such InvestigativeOfficer and such additional persons, if any, shallconstitute the Investigative CommitteeInvestigative Committees shall not includemembers of the ABCD .

1 . The Investigative Committee shallinvestigate alleged violations of the applicableCode of Professional Conduct . TheInvestigative Committee shall then recom-mend to the Chairperson either :

a . Dismissal of the allegation,

h . That the actuary he counseled, orc That public disciplinary action be

recommended .2 . The Investigative Committee shall

observe operating piocedures and guidelinesthat are established by the ABCD that are notinconsistent with the requirements of thisArticleC. Following receipt of a report of the

Investigative Committee, the ABCD shall deter-mine by nia)oriry vote whether to :

1 . Dismiss the matter,2 . Counsel the actuary, or3 Schedule a hearing before the ABCD

to consider the matter In such a case, a writ-ten notice shall be prepared stating plainly thecharges against the individual, together with anotice of the time, date, and place where theABCD will meet for consideration thereot,The charges and notice shall be served on theindividual not less than forty-five days beforethe hearing of the ABCD, either personally orby certified mail, or in such other manner asthe ABCD may direct. The time limit may hewaived by mutual agreement of the parties .D. In any hearing before the ABCD, the

individual against whom charges have been madeshall have the right to appear personally and bycounsel (at the member's expense), to examinethe evidence presented, to examine adverse wit-nesses, and to present exculpatory witnesses andevidence, The Investigative Officer or designeeshall appear to present the findings of theInvestigative Committee . Witnesses called inthe course of hearings before the ABCD shallvouch for the truth of their statements on theirword of honor A written transcript shall bemade of the proceedings . The ABCD shalldecide all questions of evidence at the hearing,

E. If, in the course of any hearing under thisSection, evidence shall he presented upon whichanother charge or charges against the individualmight be made, it shall not be necessary for theABCD to prepare and seive such additionalcharge or charges on the individual . Instead, theABCD may, after reasonable notice to the indi-vidual and opportunity for the idvidual torespond, proceed to the consideration of suchadditional charge or charges as if they had beenmade and served at the time of the service of theoriginal charge or charges, and the ABCD may

35

render such decision or recommendation uponall such charges as may be justified by the evi-dence in the case

F. Throughout proceedings under thisSection, the Investigative Committee or theABCD may consult confidentially with membersof the profession who have information or experi-ence relevant to the matter under considerationHowever, no information may be used unless thatinformation is placed into evidence and the indi-vidual against whom charges have been filed hasan opportunity to respond to such information .G. At the conclusion of the hearing, the ABCD

shall determine by majority vote whether to :1 . Dismiss the matter,2 . Counsel the actuary, or3 . Prepare a written report including a

recommendation for public reprimand, sus-pension, or expulsion of the individualaddressed to each participating organizationof which the individual is a member . Amajority of the whole ABCD must vote inthe affirmative if a recommendation is to bemade for public disciplinary action . Thereport shall state plainly the charge orcharges against the individual, and shall beaccompanied by a transcript of the proceed-ings, copies of all evidence, and a rationalefur the recommendation . A copy of thereport and the accompanying material shallbe provided to the individual against whomthe charge or charges have been made

SECTION 6 . Counseling. Any counseling con-ducted pursuant to this Article shall not be con-sidered to be disciplinary action, nor shall coun-seling imply that there has been any determina-tion that a violation of the applicable Code ofProfessional Conduct has occurred.

SECTION 7 . .-I Ltuarial Ombudsman . TheABCD is authorized to act as an ombudsmanregarding complaints between actuaries orbetween actuaries and others . The ABCD isauthorized to promulgate such rules and regula-tions as are necessary to effectuate this Section.

SECTION 8 Staff The ABCD will utilize thestaff of the Academy for necessary logistical andtechnical support . In addition, the ABCD mayretain counsel for assistance in its deliberations .

SECTION 9, Finances,A. The finances of the ABCD will be

accounted for separately within the Academy sys-tem of accounts . The ABCD will submit a bud-get request to the Secretary-Treasurer, listing allplanned income sources and potential expenses,in such form and in such detail as is mutuallydetermined by the Secretary-Treasurer and theABCD. The Board of the Academy will considerthis request when adopting its annual budget andwill make provision within such budget for theoperating expenses of the ABCD .

B. The ABCD will have discretion withregard to the expenditure of all funds allocated toit, subject only to such accounting and auditrequirements as may be mutually determined bythe Secretary-Treasurer and the ABCD

SECTION 10 . Confrdentiakty Except as other-wise provided in these Bylaws or by waiver of theperson tinder investigation, all proceedings underthis Article shall be confidential and kept secret .This requirement as to confidentiality shall notpreclude the ABCD from advising, at its discre-tion, complainants and members complained ofabout the progress and outcome of complaints.This requirement of confidentiality shall not pre-clude the ABCD from reviewing previouslyclosed files as they may relate, in any manner, tothe consideration of a new matter before it .

SECTION 11 . Communications The ABCDshall issue an annual report that will include adescription of its activities for the prior fiscalyear, including commentary on the types of casespending, resolved, and dismissed. These reportsshall not reveal any information otherwise confi-dential. The ABCD shall also report quarterlyto the President of each participating organiza-tion concerning complaints and counseling activ-ities related to members of the organization

Article XIActuarial Standards Board

SECTION 1. Establishment and Pusposcs . Thereshall be established within the Academy an entityto be known as the Actuarial Standards Board(ASH), whose purposes shall be to :

A. (i) Expose, (u) promulgate or adopt, and(iii) publish actuarial Standards of Practice, with-

36

in its sole discretion and pursuant to such proce-dures as it deems appropriate , in all areas of actu-arial practice, subject to the specific require-ments of this article.

B. Provide continuous review of existingStandards of Practice and determine whetherthey are in need of amendment, alteration,expansion, or elimination

C. Direct and manage the development ofactuarial Standards of Practice by its operatingcommittees in all areas of actuarial practice .

SECTION 2 . tllembers and AppointmentsA The ASB shall consist of nine members,

each of whom shall be appointed for three-yearterms. No individual may serve more than twoconsecutive terms on the ASB . Teams of mem-bership shall be staggered, so that one-third ofthe members are appointed annually .

B. Members of the ASB shall be broadly rep-resentative of all areas of actuarial practice .They shall be appointed by and serve at the plea-sure of a Selection Committee composed of thePresidents and the Presidents-Elect of the orga-nizations that participate in the ABCD, or theirsuccessor organizations The President of theAcademy shall serve as Chairperson of theSelection Committee. The Selection Committeeshall annually appoint the Chairperson of theASB. An individual appointed Chairperson maynot serve more than two consecutive terms asChairperson If a vacancy arises among themembers of the ASH, the Selection Committeeshall designate a replacement . The replacementwill complete that term, and may be reappointedfor one additional consecutive three-year term .

SECTION 3 . ,Aleetrngi . The ASB shall meet atleast four times annually . Additional meetings ofthe ASB shall be called whenever theChairperson or at least four members of the ASBso request . At meetings of the ASB , two -thirds ofthe members of the ASB shall constitute a quo-rum. At least six affirmative votes are requiredfor the ASB to expose , promulgate , or adoptactuarial Standards of Practice .

SECTION 4. Officers .A. Officers of the ASB shall consist of a

Chairperson and two Vice Chairpersons. TheVice Chairpersons shall be appointed annually

from among the members of the ASB by theChairperson with the consent of the ASB .

(1) One Vice Chairperson shall he thepresiding officer in the absence of theChairperson and shall have such other dutiesas may he assigned by the Chairperson .

(2) The other Vice Chairperson shallmonitor the disposition and be responsiblefur the authorization of expenditure of allfunds associated with the ASHB. The Chairperson of the ASB shall preside

at meetings of the ASB and shall designate oper-ating committee Chairpersons with the consentof the ASB. Members of the operating commit-tees shall he appointed by each operating com-mittee Chairperson with the consent of the ASB .

SECTION 5 Committees. The ASB shall estab-lish operating committees to prepare and draftStandards of Practice for consideration by theASB. The number and membership of such corn-mittees shall be determined by the ASB. TheASB may establish additional committees, sub-committees , or task forces as it deems appropri-ate to carry out administrative or advisory func-tions in support of its operations .

SECTION 6 . Finance.A Financial activities pertaining to the ASB

will be accounted for sepaiately within theAcademy system of accounts The ASB will sub-mit a budget request to the Secretary-Treasurer,listing all planned income sources and potentialexpenses. in such form and in such detail as ismutually determined by the Secretary-Treasurerand the ASB . The Academy Board will considerthis request when adopting the Academy annualbudget and will make provision within such bud-get for ASB operating expenses

B, The ASB will have discretion with regardto the expenditure of all funds allocated to it,subject only to such accounting and auditrequirements as mutually determined by theSecretary-Treasurer and the ASB .

SECTION 7. Staff: The ASB will utilize the staffof the Academy for all support , within the bud-getarv constraints of the ASB , and the Academywill make available to the ASB such staff supportas may be requested . Costs for such staff support,including overhead expenses ascertained put-

37

suant to a formula mutually determined by theSecretary-Treasurer and the ASH, will he includ-ed in the ASH budget .

SECTION 8 . Communications with the ActuarialProfession . The ASB shall issue an annual reportthat will include a description of its activities forthe prior fiscal year, including commentary onits standais activities, administrative matters,and finances. The ASB shall cooperate with dulyconstituted actuarial authorities charged withenforcing standards of professional practice, andrespond to inquiries regarding actions of theASB, including the interpretation of standardspromulgated or adopted by the ASB .

Article XIINotice

The requirement that notice be given to mem-bers or other persons shall be satisfied when aletter has been deposited in a United StatesPostal Service mailbox addressed to the lastknown address of such person

Article XIIIIndemnification

Each person who at any time shall serve or shallhave served as an Officer, member of the Board,committee member, or member of any disci-plinary board of the Academy (and any such per-son's heirs, executors, administrators, and per-sonal representatives) shall be indemnified bythe Academy against all costs and expenses(including but not limited to legal fees, amountsof judgments paid, and amounts paid in settle-ment) reasonably incurred in connection withthe defense of any claim, action, suit, or pro-ceeding, whether civil, criminal, administrative,or other, in which one or more of them may beinvolved by virtue of such person being or hav-ing been an Officer, member of the Board, com-mittee member, or member of any disciplinaryboard of the Academy, or in connection withany appeal therein ; provided, however, that inthe event of a settlement the indemnificationheiem provided shall apply only when the Boardapproves such settlement, and provided furtherthat such indemnity shall not be operative with

respect to any matter as to which such personshall have been finally adjudged liable in suchclaim, action, suit, or proceeding on account ofwillful misconduct.

The rights accruing to any person under thisArticle shall be without prejudice to an sy rightsor benefits given by the Board inconsistenttherewith in special cases and shall not excludeany other rights or benefits to which the individ-ual may be lawfully entitled.

Article XNUse of Financial Resources : Dissolution

The funds of the Academy shall be devoted exclu-sively to the purposes stated in paragraph 5 of theArticles of Incorporation . No part of the net earn-ings of the Academy shall ever inure in whole orin part to the benefit of any member or individualIf the Academy is dissolved, all of its remainingassets shall be transferred to one or more organi-zations organized and operated exclusively forpurposes similar to those of the Academy .

Article XVAmendments

Administrative, editorial, and technical amend-ments to the Bylaws that do not involve ques-tions of policy or affect the substantive rights ofthe Academy's members may be made by a voteof two-thirds of the Directors present at a dulyconvened meeting of the Board . Otherwise,amendments to the Bylaws may he proposedeither by a vote of two-thirds of the Directorspresent at a duly convened meeting of the Boardor by written request of not less than three per-cent of the members . The Board shall specify areasonable period of time within which the pro-posed amendment shall be transmitted by theSecretary-Treasurer to the members by mail,and the time for votes to be mailed by the mem-bers to the Secretary-Treasurer . Such proposedamendment shall be accompanied by an appro-priate discussion of the issues, and it shallbecome effective ten days following the end ofthe voting period upon the affirmative vote oftwo-thirds of the members voting .

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STATEMENT OF POLICYADOPTED BY THE EXECUTIVE COMMITTEEoP THE AMERICAN ACAIJI~ A1Y DF ACTUARIES

AUGUST 18,10()3

The American Academy of Actuaries ("theAcademy") is an equal opportunity employer italso offers services, membership benefits, andopportunities to its present and prospectivemembers (referred to hereinafter collective]- as"members") on a nondiscriminatory basis . It isthe Academy's policy to refrain from unlawfuldiscrimination against employees and memberson the basis of race, color , national origin , ances-try, personal appearance, age, gender, pregnancy,marital status, sexual orientation . family responsi-bilities, religious affiliation, matriculation, politi-

'The list of piotr ird Lhara(terutics is enmpiled from applica-ble District of Columbia, Illinois, and fedeiel laic

'This statement is nor tntendcd to preclude the grind-fairhexercise of to indnidual 's legal rights

cal affiliation, physical, mental, or emotional dis-ability, source of income, place of residence, orunfavorable discharge from military service, asthose terms are defined by applicable state andfederal law. These characteristics are referred tohereinafter as "protected characteristics ."'

Further, it is the Academy's policy to provideits employees and members with a working envi-ronment that is free from unlawful discrimina-tion based upon any of die protected characteris-tics described above No Academy employee ormember should be subjected to such discrnnina-tion while working for, or engaging in activitiesconducted by, the Academy.

It is also a violation of this policy for anAcademy employee or member to seek to retaliateagainst any individual for complaining of a viola-tion of the Academy's anti-discrimination policy .'

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CODE OF PROFESSIONAL CONDUCTPreamble

The Precepts of this Code of ProfessionalConduct identify the professional and ethicalstandards with which an actuary must comply .The Annotations provide additional explanatory,educational, and advisory material to members ofthe actuarial profession on how the Precepts areto be interpreted and applied . An actuary mustbe familiar with, and keep current with revisionsto, the Code of Professional Conduct and itsPrecepts and Annotations.

Professional IntegrityPRECEPT 1 An actuary shall act honestly andin a manner to uphold the reputation of the actu-arial profession and to fulfill the profession'sresponsibility to the public .

ANNOTATION 1-1 An actuary fulfills theprofession's responsibility to the publicthrough compliance with this Code, and byoffering actuarial advice, recommendations,and opinions that are the product of the actu-, ry's exercise of professional judgment.

J NOT4TION 1-2 An actuary who pleadsguilty to or is found guilty of any misdemeanorrelated to financial matters or any felony shallbe presumed to have contravened Precept 1 ofthis Code, and shall he subject to the profes-sion's counseling and discipline procedures .

.4NNO7:17ION 1-3 An actuary shall not usea relationship with a third party to attempt toobtain illegal or materially improper treat-ment from such third party on behalf of aprincipal (i c, present or prospective client oremployer) .

PRECEPT 2 An actuary shall perform profes-sional services with integrity, skill, and care .

ANNOTATION 2- 1 "Professional services"refers to the rendering of advice , recommenda-tions, or opinions based upon actuarial consid-erations , and also includes other services pro-vided to a principal (i .e ., present or prospectiveclient or employer) by one acting as an actuary .

Qualification StandardsPRECEPT 3 An actuary shall perform profes-sional services only when the actuary is qualified todo so and meets applicable qualification standards .

ANNOTATION 3-1 It is the professionalresponsibility of the actuary to observe appli-cable qualification standards in the jurisdic-tion in which the actuary renders professionalservices, and to keep current regardingchanges in these standards . For example, forpractice in the United States, theQualification Standards promulgated by theAinerican Academy of Actuaries apply; forpractice in Canada, the eligibility conditionspromulgated by the Canadian Institute ofActuaries as set out in the Canadian Instituteof Actuaries' bylaws apply

Standards of PracticePRECEPT 4. An actuary shall ensure that pro-fessional services performed by or under thedirection of the actuary meet applicable stan-dards of practice

ANNOTATION 4-1 . It is the professionalresponsibility of the actuary to observe appli-cable standards of practice in the jurisdictionin which the actuary renders professional ser-vices, and to keep current regarding changesin these standards For example, for practicein the United States, the Standards ofPractice promulgated by the ActuarialStandards Board apply ; for practice inCanada, the Standards of Practice promulgat-ed by the Canadian Institute of Actuariesapply .

ANNOTATION 4-2 Where there is a ques-tion regarding the applicability of a standardof practice, the professional judgment of theactuary, taking into account the applicableaccepted principles of actuarial practice, shallprevail

Effectist January 1, 1994 ldoptcd bi the Board of Dtrndorsof the Anencan Academy of Actuaries in Septcmhet 1993

40

DisclosurePRECEPT 5 . An actuary shall, in communicat-ing professional findings, indicate clearly that theactuary is responsible foi the findings .

ANNOTATION 5-1 An actuary who makesan actuarial communication should indicateclearly the extent to which the actuary orother source(s) are available to provide sup-plementary information and explanation.

ANNOTATION )-2 . An actuary who makesan actuarial communication assumes respon-sibility for it except to the extent the actuarydisclaims responsibility by stating reliance onother sources . Reliance on other sourcesmeans making use of those sources withoutassuming responsibility therefor . A cominu-nication making use of such reliance shoulddefine the extent of reliance . air actuary mayrely upon other sources for informationexcept where limited or prohibited by appli-cable standards of practice .

.4N7JOT-1ITON S-3. Any written communi-cation of professional findings must be signedwith the name of the actuary who is responsi-ble for it The name of an organization withwhich the actuary is affiliated may he incor-poiated into the signature, but the actuary'sresponsibilities and those of the organizationare not affected by the torm of the signature .

PRECEPT 6. An actuary shall, in cumrnunicat-ing professional findings, identify the principal(s)(i .e., the client[s] or employer[s]) for whom suchfindings are made and shall describe the capacityin which the actuary serves

PRECEPT 7. An actuary shall make full andtimely disclosure to a principal ( i .e., present orprospective client or employer ) of the sources ofall direct and indirect compensation that theactuary or the actuary ' s firm may receive in rela-tion to an assignment for which the actuary pio-vides professional services for that principal

ANNOTATION '- 1 . An actuary who is notfinancially and organizationally independentconcerning any matter related to the subject

of an actuarial communication should dis-close to the principal any pertinent relation-ship that is not apparent

ANNOTATION 7-2 "Indirect compensa-tion " is any material consideration receivedfrom any source in relation to an assignmentfar which the actuary provides professionalservices , other than direct remuneration forthose services .

ANNOTATION ?-3. Actuaries employed byfirms that operate in multiple sites are subjectto the requirement of disclosure of sources ofcompensation that the actuary's firm mayreceive in relation to professional serviceswith respect to a specific assignment for thatprincipal, regardless of the location in whichsuch compensation is received .

Conflict of InterestPRECEPT 8. An actuary shall not perform pro-fessional services involving an actual or potentialconflict of interest unless-

(a) the actuary's ability to act fairly isunimpaired, and

(h) there has been disclosure of the con-flict to all known direct users whose interestswould be affected by the conflict, and

(c) all such known direct users haveexpressly agreed to the performance of theservices by the actuary .

AN7\TOT.4TIO11T 8 -1 A "direct user" of anactuary' s services is a principal (i.e ., presentor prospective client or employer ) having theopportunity to select the actuary and able tocommunicate directly with the actuary aboutqualifications , work, and recommendations .

ANNOTATION 8-2. If the actuary is awareof any significant conflict Between the inter-ests of the direct user and the interests ofanother party relative to the actuary's work,the actuary should advise the direct user ofthe conflict The actuary should also includeappropriate qualifications or disclosures inany related actuarial communication .

4 1

Control of Work ProductPRECEPT 9. An actuary shall not perform pro-fessional services when the actuary has reason tobelieve that they may be used to mislead or toviolate or evade the law .

ANNO'JATION 9-1 Material prepared by anactuary may be used by another party in a waythat may influence the actions of a third party .The actuary should recognize the risks ofmisquotation, misinterpretation, or othermisuse of such material and should take rea-sonable steps to ensure that the material isclear and presented fairly and that the actuaryis identified as responsible for the material asrequired by Precept 5 of this Code

ConfidentialityPRECEPT 10. An actuary shall not disclose toanother party any confidential informationobtained through professional services per-formed for a principal (i .e ., client or employer)unless authorized to do so by the principal orrequired to do so by law .

. INNOT.ATION 10-1 "Confidential infor-mation " refers to information not in the pub-lic domain of which the actuary becomesaware in conjunction with the rendering ofprofessional services to a principal It stayinclude information of a proprietary nature,information that is legally restricted from cir-culation , or information that the actuary hasreason to believe the principal would notwish to be divulged

Courtesy and CooperationPRECEPT 11 . An actuary shall perform profes-sional services with courtesy and shall cooperatewith others in the principal's (i .e ., client's oremployer's) interest .

ANNOTATION 11-1 . Differences of opin-ion among actuaries may arise . particularly inchoices of assumptions and methods .Discussions of such differences, whetherdirectly between actuaries or in observations

made to a principal by one actuary on thework of another, should be conducted objec-tiveh• and with courtesy .

ANNOTATION 11-2 An actuary in thecourse of an engagement or employment mayencounter a situation such that the best inter-est of the principal would be served by theactuary's setting out an alternative opinion toone expressed by another actuary togetherwith an explanation of the factors that lendsupport to the alternative opinion . Nothingin this Code should be construed as prevent-ing the actuary from expressing such an alter-native opinion to the principal .

ANNOTATION 11-3 A principal has anindisputable right to choose a professionaladvisor . An actuary may provide service toany principal who requests it, even thoughsuch principal is being or has been served byanother actuary in the same manner

If an actuary is invited to advise a principalfor whom the actuary knows or has reasonablegrounds to believe that another actuary isalready acting in a professional capacity withrespect to the same matter or has recently soacted, it may he prudent to consult with theother actuary both to prepare adequately forthe assignment and to make an informed judg-ment whether there are circumstances involv-ing a potential violation of this Code thatnight affect acceptance of the assignment

"i'hc prospective new or additional actuaryshould request the principal's consent to suchconsultation . \Vhen the principal has givenconsent, the original actuary may require rea-sonable compensation for the work requiredto assemble and transmit the relevant infor-mation such as pertinent data, work papers,and documents . The actuary need not pro-vide any items of a proprietary nature, such ascomputer programs

42

AdvertisingPRECEPT 12 . An actuary shall not engage inany advertising or business solicitation activitieswith respect to professional services that the actu-ary knows or should know are false or misleading

ANNOTATION 12-1 . "Advertising" encom-passes all communications by whatever inedi-um, including oral communications, that maydirectly or indirectly influence any person ororganization to decide whether there is a needfor actuaiial services or to select a specific per-son or firm to perform actuarial services .

Tides and DesignationsPRECEPT 13 . An actuary shall make use ofmembership titles and designations of an actuan-al organization only in a manner that conformsto the practices authorized by that organization .

ANNOTATION 13-1, "Title" means anytitle conferred by an actuarial organizationrelated to a specific position within that oiga-nization . "Designation" means a specific ref-erence to membership status within an actu-arial organization .

Collateral ObligationsPRECEPT 14. An actuary with knowledge of anapparent, unresolved material violation of thisCode shall disclose such violation to the appropri-ate counseling and discipline body of the profes-sion, except where the disclosure would divulgeconfidential information or be contrary to lass .

ANNOTATION 14-1 A material violationof this Code is one that is important, hasinfluence or effect, or affects the merits of asituation, as opposed to one that is trivial,does not affect an outcome, or is line merelyof form .

AN OT ITION 1-1-Z. Except when an actu-ary is prohibited by law or while the actuaryis acting in an adversarial environmentinvolving another actuary or actuaries, whenthe actuary becomes aware of an apparentmaterial violation of this Code, the actuary isrequired to undertake promptly the follow-ing course of action :

(a) If appropriate, discuss the situationwith the other actuan• or actuaries and, ifnecessary, agree upon a course of action toensure that the apparent violation is resolved ;

(b) If (a) is not appropriate or is not suc-cessful, bring the apparent violation to theattention of the appropriate investigatorybody. For example, for violations of thisCode arising out of practice in the UnitedStates, the actuary should refer the matter tothe Actuarial Board for Counseling andDiscipline ; for violations of this Code arisingout of practice in Canada, the actuary shouldfollow procedures established by theCanadian Institute of Actuaries .

PRECEPT 15 . An actuary or the actuary's repre-sentative shall respond promptly in writing to anyletter received from a person duly authorized bythe appropriate counseling and disciplinary bodyof the profession to obtain information or assis-tance regarding possible violations of this Code .

PRECEPT 16 An actuary shall abide by thisCode of Professional Conduct whenever provid-ing professional services .

ANNOTATION 16-1 . Laws and regulationsmay impose obligations upon the actuary"here the requirements of law or regulationconflict with this Code, the requirements oflaw or regulation shall take precedence .

.-111N, OTATION 16-2 For professional ser-vices rendered in Canada, the rules of theCanadian Institute of Actuaries apply

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PROFESSIONAL STANDARDSThe table below displays the array of professional standards. These materials, unless otherwise noted, arecontained in the actuarial standards handbooks

Code General Specificof Professional Qualification QualificationConduct Standards Standards

Developing Committee Joint Committee Committee on Committee onon Code of Qualifications QualificationsProfessional Conduct

Published Guidance: Code of Professional Qualification QualificationConduct booklet Standards Standards

booklet booklet

Guidance fur Individual Those qualified Those qualifiedac tuarv to give to gis a

Public Statements Public Statementsof Actuarial of ActuarialOpmion* Opinion*

Practice Areas All four major All four major NAIC AnnualCoffered practice areas' practice areas Statement

• Life • Life opinions tot• Health • Health • Life & A&H• Pension • Pension • Fire & Casualty• Casualty • Casualty • Hosp ., Ted , &

Dent Serv., etc

Public Statements of Actuarial Opinion ate those statements called foi h} Lm, hi re iilatinn, or ht a Standard of Prasnce broughtinto contormance with hoard edits as promulgated Lv the Actuarial Standaids Bond Common c .aniples include rate tilmgs,loss ratio demonstrations, demanstraunns of compliance suili ilonforteiture lass, and Schedule B ceitificationsfor defined hencfit pension plans

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ContinuingEducationRequirements

Standardsof Practice

ComplianceGuidelines

Counseling& Discipline

Committee on Actuarial Actuarial Actuarial BoaidQualifications Standards Standards fai Counseling & Discipline

Board Board

Qualification Standards of Compliance Academy Bylaws asStandards Practice Guideline published in 1994 Fenbuskbooklet booklets booklets iPrncedural guidelines

have been sepaiately issued)

Retention of Range of Day-to-dav Compliance with Ethics,the actuary's procedures for work Qualification Standards,qualificannns dai,-to-day outside and Actuarial Standardsto give Public work requirements of PracticeStatements of actuarv s OwnActuarial Opinion methods

All Public Practice Practice All four major practice areas .Statements area described area described • Lifeof Actuarial in the Standard in the Guideline • HealthOpinion • Pension

• Casualty

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GUIDELINESCOMMITTEE APPOINTMENT GUIDELINES

PreambleIn accordance with the Bylaws of the AmericanAcademy of Actuaries, the President appointscommittees authorized by the Board ofDirectors To aid the President in making suchappointments, the board adopted the followingguidelines with this preamble at its meeting onOctober 31, 1980, These guidelines reflect theboard's intention to involve as many rncmhers aspossible in committee activities 'a ithout sacrific-ing continuity However, the effectiveness ofcommittee work is paramount, and as a conse-quence, strict adherence to the guidelines is notexpected, particularly s~ith respect to committeesthat interface regularly with other professionsand/or government .

Committees for which specific appointmentrules are established by the board (e .g ,Nominating Committee, Actuarial StandardsBoard) are exempt from the guidelines .Appointments to joint committees and liaisonappointments are subject to the guidelines appli-cable to standing committees, although certain ofthe liaison appointments must be hoard memberspursuant to Academy policy and agreements withother organizations

Guidelines(1) All members of the Academy are eligible

to serve on committees .(2) An officer of the Academy- should not

serve on any committee except in an ex officiocapacity

(3) A person should he chairperson of astanding committee for no more than three yearsand should retire from the committee after serv-ing as chairperson

(4) A person should remain on a standingcommittee for no more than three years unlesssuch person becomes chairperson by the end ofthat period

(5) In general, a person should not serve con-currently on more than one standing committee

(6) In general, a person appointed to a taskforce or a special committee is expected to serveuntil the task force or special committee is dis-charged .

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GUIDELINES FOR MAKING PUBLIC STATEMENTS

A lI hrrt Csii tztiites a Public StaterrrcratA public statement is a formal, written state-

ment on behalf of some Academy entity (board,committee, task force, etc .) to an external group .This does not include a statement representingthe views of an individual member . Public state-ments include

1 . Statements to Governmental Entities-such as testimony or other formal commentssubmitted to regulatory, legislative, andinvestigative bodies at both the federal andstate levels .

2 . Statements to Professional and OtherGroups-defined as organizations that effec-tively have some regulatory powers, even ifthey are not primarily regulatory bodies, e .g .,the Financial Accounting Standards Board,the American Institute of Certified PublicAccountants, the National Association ofInsurance Commissioners, or the AmericanBar Association

3. Statements to External Publications-including articles and other expository mate-rial to newspapers and periodicals, exceptwhere such statements would fall under theexception for media communications below .

Media communications, including lettersto the editor or other editorial and expositorycomments to newspapers and periodicals, areconsidered to he a special foam of publiccommunication that generally is not subjectto the procedural requirements of theseguidelines . This special status is in recogni-tion of the fact that media deadlines preventthe utilization of the review procedures appli-cable to formal public statements When let-ters or other media opportunities (such asradio or television interview s) are anticipated,the spokesperson should consult theAcademy's director of public relations forspecial guidance . It is generally appropriatein such circumstances for the individual tonote that the views expressed are not neces-sardy those of the Academy Fur media com-munications related to Foi ecast 2000, specialprotocols apply These are presented inAttachment 1. Although the proceduralrequirements of these guidelines are not

applicable to media communications meetingthe above definitions, the spokesperson isnevertheless expected to be guided by thesection below entitled "The Scope of PublicStatements ."

B. The Scope of Public StatementsClearly, a public statement based on the

insights of actuarial science should be the prima-ry focus in the profession's public pronounce-ments. It is important to note, however, that theprofession's technical expertise encoinpasses abroader spectrum than is reflected by the con-cerns of what normally would be considered pureactuarial science . 'T'here are numerous instanceswhen the actuary's knowledge is a valuable addi-tion to the information surrounding a givenissue . It would be a disservice to all parties forthe profession to make public statements only inthe nairow areas wheie the actuary's knowledgeis unique

Each situation must be evaluated on its ownmerits to determine whether a public statementby the Academy is appropriate The tone andnature ofa statement must reflect the dignity andstandards of the profession Statements shouldcontain a clear, concise, and balanced presenta-tion of the significant facts, including relevantbenefits and costs . A statement need not, howev-er, limit itself solely to statements of fact .

It is also appropriate for statements to drawinferences from statements of fact, so long asthese inferences are valid . To limit a publicstatement to a mere recitation of facts woulddeny the public the benefit of the full range ofthe profession's capabilities

A public statement generally should not takepositions on the social and political implicationsof issues It may be appropriate, however, topoint out social and political implications insofaras these implications may he objectively deter-mined. In certain circumstances, it may not bepossible to divorce social or political implicationsfrom actuarial considerations

There may be some issues that have actuarialimplications that are better dealt with by tradeassociations, companies, or individuals Publicstatements that appear to be self-serving will beless effective, but the Academy should not hesi-

47

rate to speak out on matters that involve legiti-mate professional interests In fact, the Academyhas a responsibility to do so .

C. Development and Delivery of PublicStatements

Academy officers, committees , and staffshould generally follow the guidelines presentedbelow in the development and delivery of publicstatements . At times, these procedures may needto he modified in order to ensure the timelinessand effectiveness of statements .

1 Identification of Issues-Many peoplecontribute to this activity : staff, officers,practice councils , committees, and individualAcademy members When an issue is identi-fied by Academy staff, staff will contact theappropriate committee or task force chairper-son directly and copy the appropriateAcademy vice president ( hereinafter referredto as supervisory officer), unless there is ajurisdictional question to be resolved (see [2]below ) . Early identification is critical to theAcademy's development of sell - prepared,timely statements.

2 . Authority to Proceed-If staff orsupervisory officers identify an issue that maywarrant a public statement, they will assign itto the committee or task force best able todevelop the statement if an issue is signifi-cant for more than one practice area, the staffand appropriate supervisory officers will dis-cuss the matter with the appropriate commit-tee chairpersons, determine which committeeor task force receives the assignment, andassure that proper coordination is establishedand maintained through the use of joint taskforces, committee liaisons, dual practicecouncil reviews , or other appropriate meansSupervisory officers , at their discretion, mayseek the advice of their practice council inresolving jurisdictional issues and achievingappropriate coordination

If a committee or task force identifies amatter that may warrant a public statement,the chairperson will promptly advise thesupervisory officer and appropriate staff liai-son. Unless otherwise instructed by thesupervisory officer, the committee/task forcechairperson may proceed in the developmentof a statement Committees and task forces

have the authority to develop statements solong as they are consistent with well-estab-lished principles of the profession and so longas the appropriate peer review and approvalprocedures are followed

3 Notice of Public Statement Prepa-ration-Members will be kept apprised ofmajor issues of concern to Academy commit-tees and task forces through articles andannouncements in The Actuarial Update, andinput from members will be solicited by sug-gesting that they contact the relevant chair-person . Because of the large number of pub-lic statements, not all statements tinder devel-opment can he announced in The ActuarialLpdate . Reports summarizing committee andtask force activities during the previoustwelve months will appear in a supplement toThe Actuarial Update soon after the end of theAcademy year. A complete listing of com-mittee and task force statements for the pre-vious calendar year also will appear in anannual supplement.

4. Development of Statements-Committees and task forces will preparepublic statements and any supporting back-ground material in accordance with the fol-lowing guidelines

(a) Public statements generally repre-sent the opinion of a committee or taskforce Generally, a public statement willbe developed by nicnihers of a standingAcademy committee, a presidentiallyappointed task force, or a working groupestablished by one of the Academy's fourpractice councils . It is always appropriate,however, to involve other Academy mem-bers considered by the committee, taskforce, or working group to have pertinentexpertise or experience . From time totime, it may also be appropriate to solicitthe input of non-actuaries . When andhow such input is solicited is at the discre-tion of the committee chair with the con-currence of the supervisory officer .

(b) On major issues that arc likely to hehighly controversial within the profession,the chairperson and the supervisory officershould seek broader input from Academymembers and leaders of the profession .Options for obtaining such input include

48

requests for comments published in TheActuataal Update, discussions with Academyleadership and the leadership of otheractuarial organizations, discussions withappropriate committees of other actuarialorganizations, solicitations and special ses-sions at widely attended actuarial meetings,special seminars on the issue, and discus-sions with other Academy committees, taskforces, and working groups . If time allows,the Academy exposure draft proceduresalso should be considered . The superviso-ry officer will determine the most appro-priate means of obtaining member input inconsultation with the area's practice coun-cil, the Academy president, the committeechairperson, and the executive vice presi-dent. Academy staff and the supervisoryofficer are initially responsible for deter-mining if an issue is highly controversial .

(c) The Academy staff is available toassist in the preparation of public state-ments. In some instances, it may not bepractical to involve the staff directly instatement preparation , although commit-tee chairpersons are strongly encouragedto do so . The involvement of Academystaff can he helpful in assuring the consis-tency of the statement with previous pub-lic statements and policy decisions .

(d) In some circumstances, the Academystaff may develop a public statement on itsown initiative. Staff-developed statementsmust have the approval of the appropriatechairperson and supervisory officer andshould be circulated to all conirruttee, taskforce, or working group members even ifthe time for comment is limited . Onlyunder extraordmary circumstances may thechair and supervisory officer release astatement before circulation to the fullcommittee, task force, or working group .Statements developed by staff shouldreflect previous public statements and poli-cy decisions

(e) The chairperson should seek aconsensus of the committee, task force, orworking group members . If there is sub-stantial lack of consensus, the chairpersonmay elect to incorporate the majority andminority perspectives into the statement,

to refer the issue to the supervisory offi-cer, or not to issue a public statement . Insome cases, time constraints may preventthe entire committee, task force, or work-ing group from participating in thepreparation of a particular statement, andthe task of drafting the statement may beleft to the chairperson or the chairper-son's designee (s) . In such cases, thedrafters should seek maximum input fromavailable comrmttee, task force, or work-ing group members.

(f) No statement should be presentedwithout appropriate peer review . Thelevel of peer review should depend uponthe level of risk and exposure of the state-ment. Before release, statements shouldgenerally be reviewed by the supervisoryofficer, or designee thereof, and Academystaff. For statements that are the work ofindividuals or small subgroups and thathave not had the benefit of the fullgroup's deliberation, peer review shouldinclude the committee/task force/workinggroup chair and two senior reviewers inaddition to the supervisory officer (ordesignee) and staff. The senior reviewpersons, to be selected by the chairpersonwith approval of the supervisory officer,should be knowledgeable and experiencedin the subject at hand and should beknown to reflect broadly held views of theprofession . In extraordinary circum-stances, the supervisory officer and staffmay agree to release a statement beforecompletion of peer review.

(g) Staff, in consultation with thesupervisory officer, is to determine if astatement requires review by the generalcounsel and will arrange with counsel forsuch review .

(h) The decision to issue the finalstatement generally rests with the supervi-sory officer, who may delegate this respon-sibility to the committee , task force, orworking group chairperson or otherdesignee . For issues of major importanceor those deemed highly controversial, theexecutive vice president and president alsoshould be consulted before the statementis released to its intended audience.

49

(i) When deemed appropriate by thesupervisory officer, a recommendationshould be made to the president that aproposed statement be submitted to theBoard of Directors for review beforeissuance. The board may modify or disap-prove a public statement if it believes suchaction is in the best interest of theAcademy .

5 . Presentation of Statement The com-rmttee or group issuing a statement must bestated . The group will ordinarily be a prac-tice council working group, task force, com-mittee, or the Board of Directors Blanketsponsorship by the Academy is not to heimplied .

When the audience is familiar with theAcademy and its committee structure, a state-ment such as the following will usually be suffi-cient- "This statement was prepared by theAmerican Academy of Actuaries' XYZCommittee "

In instances when further explanation isappropriate, the committee, task force, or work-ing group should consider including additionallanguage such as the following . "The committeeis made up of representatives from the entirerange of (name of actuarial practice area) . Thecommittee includes actuaries who work as consul-tants, are employed by insurance companies, areactuaries for government (specify type of govern-ment programs, if appropriate) and the NationalAssociation of Insurance Commissioners, and areemployed by nonprofit (specify type, if appropri-ate) organizations . The expertise of other senior(practice area) actuaries knowledgeable of (issue)was drawn upon to prepare this statement."

As a general rule, Academy statements do notidentify the individual members of the groupthat developed them . In some cases, however,identifying members of the group may add to thecredibility of the statement or serve some otherpurpose such as meeting the requirements of theintended audience. The decision to identifyindividual authors should be made in consulta-tion with the supervisory officer and Academystaff. Unless there is good reason not to do so,non-actuaries who participated in the formula-tion of the statement should be identified and

their non-Academy-member status and roleidentified in footnotes or otherwise

Any statement that involves issues of signifi-cance to multiple practice areas should clearlyidentify the practice area to which the statementis intended to apply .

All public statements should be dated and sub-mitted in written form, with an oral presentationas appropriate. Statements should be submittedon Academy letterhead Even when statementsare responses to highly technical methodologicalinquiries, the general issue being addressed shouldbe clearly specified in an initial sentence or two .Except when the Academy is well-known to theaudience, a formal statement about the Academy(sample below) should be included in the publicstatement . If an oral statement is to be presentedat a formal hearing, the group's chairperson andsupervisory officer will select the person or per-sons to make the presentation .

6 . Distribution of Statements-After thestatement has been formally submitted, thefinal statement will be available for broaderdistribution . Members can request a copy ofthe statement by writing or calling theAcademy's Washington office .

D Sample Description of the AcademyThe American Academy of Actuaries is a

national organization formed in 1965 to bringtogether, in a single entity, actuaries of all spe-cializations within the United States A majorpurpose of the Academy is to act as a publicinformation organization for the profession .Academy committees regularly prepare testimo-ny fur Congress, provide information to con-gressional staff and senior federal policy makers,comment on proposed federal and state regula-tions, and work closely with the NationalAssociation of Insurance Commissioners andstate officials on issues related to insurance andother forms of risk financing . The Academyestablishes qualification standards for the actuar-ial profession in the United States and housestwo independent boards . The ActuarialStandards Board promulgates standards of prac-tice for the profession, and the Actuarial Boardfor Counseling and Discipline helps to ensurehigh standards of professional conduct are met .

50

ATTACHMENT 1

Protocol for Forecast 2000 Statements∎ Each year the practice councils should dis-cuss Forecast 2000 priorities for their practicearea and give public relations staff input andideas on major points to pursue with media andwith policy makers .∎ Forecast 2000 public relations staff are freeto use material adapted from any Academy pub-lic statement (including statements by commit-tees, task forces, the board, etc .) in preparingmaterial and statements for approved major andminor topic areas . Material adapted fromAcademy public statements should be appropri-ately referenced∎ Except when time constraints are over-whelming, the practice councils, through thecouncil chairpersons, should be asked to reviewany new material or statements that go with thepublic statements referenced above∎ When time constraints preclude the practicecouncil review above, the appropriate vice presi-dent must approve any new material beforerelease of such material to the public .∎ Costing of proposed legislation (federal andstate) should always be subject to PracticeCouncil review and approval after hill considera-tion of the potential impacts . On the other hand,

Foi einst 2000 material should (when commentingon proposed legislation) idennhr and clearly artic-ulate the relevant critical cost factors and say whyactuaries are the professionals best equipped toprovide cost estimates of these factors∎ Public relations staff will, to the maximumextent possible. seek to develop all concepts andprepare materials u ell in advance of their useand seek Practice Council input during suchdevelopment and preparation

Protocol for Interactionwith Trade and Other Interested Groups

Regarding Forecast 2000 Activity∎ Interaction with trade groups or other enti-ties should be goveined by two objectives :

-To maintain both actual and perceivedindependence for the Academy .

-To foster cooperative relationshipswith groups interested in our issues .

∎ Staff will seek input from appropriate groupsas necessary in the development and implemen-tation ofFo east 2000 activities .∎ When appropriate, anticipated statementswill be discussed with key staff of such groups asACLL, ALA, AAI, Nat, HIAA, HMO groups,Blue Cross Associations, ERIC, APFINT, theU S Chamber of Commerce, and NAM

GUIDELINES FOR THE DEVELOPMENT OF PRACTICE NOTES

The purpose of practice notes is to provideinformation to actuaries on current actuarialpractices in areas that are intended to supple-ment the available actuarial literature, especiallywhere the areas of practice addressed are subjectto emerging technology or recently adoptedexternal requirements Practice notes are notinterpretations of standards, nor do they conveygenerally accepted actuarial practices in the samesense that standards of practice do Actuaries arenot in anyway hound to follow practice notes

Practice notes are written by groups of actu-aries having practical experience and expertise ina particular area of practice . There may be

informal exposure of draft practice notes by theoriginating group to meetings of other interestedactuaries, but there is no formal process forrecording or responding to any comments thatmight be generated . The practice notes devel-oped are reviewed and edited by Academy staffand, if approved by, the appropriate practicecouncil, are published and distributed by theAcademy, In contrast, actuarial standards ofpractice and compliance guidelines are promul-gated by the Actuarial Standards Board, whichadheres to procedures that are intended to pro-vide due process and exposure to professionali eview .

51

The following guidelines arc intended toassist Academy officers, committees, and staff indeveloping and maintaining the timeliness andeffectiveness of practice notes . These guidelinesare designed to promote consistency of qualityand style and to ensure that the practices identi-fied are i n conformity with the standards of prac-tice and existing regulatory requirements .Nothing in these guidelines is intended to inhibitother actuarial organizations from publishingmaterials that provide information on currentactuarial practices to assist practicing actuaries .

1 . Practice Council Oversight-Practicenotes are primarily the responsibility of thepractice councils of the Academy, with supportfrom Academy staff, officers, and committees .committees or task forces of other actuarial orga-nizations ; and individual actuaries

2. Initiation of Request-While the practicecouncils are charged with monitoring the needfur new practice notes and the revision of exist-ing practice notes, any actuary or entity mayrequest that the development or rcv tsion of prac-tice notes he considered for a specific area ofpractice . Such requests may be directed to theappropriate practice council for evaluation ofneed, approval, and implementation .

3 . Authority to Proceed If a practice coun-cil determines that a new or revised practice noteis needed in a particular area of practice, thepractice council chairperson ("PC chair") willrequest that an appropriate committee or taskforce within the profession develop the practicenote .

4. Development Procedures-Practice noteswill generally be developed by a committee ortask force and will he identified as a product ofthat group . It may he appropriate, however, toinvolve other actuaiies believed b~ the commit-tee or task force to have pertinent expertise orexperience From time to time it may also heappropriate to solicit the input of non-actuaries

When and how such additional input is solicitedis at the discretion of the committee chair withconcurrence of the PC chair .

i . Required Disclosures Each practice noteshould begin with a paragraph stating that thepractice note is not a promulgation of theActuarial Standards Board or of any otherauthoritative hodv of the American Academy ofActuaries, identifying the group that developedthe practice note, and explaining that informa-tion contained in the practice note is not bindingon any actuary and is not a definitive statementas to what constitutes generally accepted practicein the area under discussion Blanket sponsor-ship by the Academy should not be stated orimplied .

6. Consensus-The chairperson should seeka general consensus of the committee members .If there is substantial lack of consensus, thechairperson may elect not to issue a practicenote, to refer the issue to the PC chair, or toincorporate the alternate peispectives into thepractice note .

7 Review Procedures-No practice noteshould he released without appropriate peerreview At a minimum, practice notes should bereviewed by the committee or task force chairper-son, the PC chair and/or his or her designee(s),and Academy staff All practice notes mustreceive legal and editorial review by the Academystaff to assure legality and consistency with previ-ous notes and standards of practice .

8 . Final Approval-the ultimate decision toissue a practice note rests with the PC chair Forissues of major significance, the PC chair mayconsult with the Academy executive vice presi-dent, as well as the president, prior to the releaseof the note .

9. Production and Distribution-Productionand distribution of final practice notes will behandled by the Academy . Distribution may varydepending on the audience for the notes .

52

MEMBERSHIPMEMBERSHIP STATISTICS

Academy Membership Memberships Held by Academy Membersin Casualty Actuarial Society (CAS),

1992 11Membership as of Nrn 1 051Conference of Consulting Actuaries (CCA),

, ,L kreases : and Society of Actuaries (SOA)Admissions 631 IAs of November 1, 1993)Reinstatements 12

Decreases GAS CCA SOA TotalDeaths 45L 'ithdrassals 120 In all three 11 I I I I 11

as of Nov I I993 11Membershi 529,p , CAS & CCA 501 59 - 59CAS & SOA 74 - 74 74CCA & SOA - 736 736 736

In one only 1,522 191 7,842 9,555

In none - - - 1,094Academy Membership by Employment

I As of November I) Total 1,666 997 8,663 11,520

Membership

Employment 1991 1992 1993

Insurance and relatedorganizations 4,959 5 .186 5,245

Academy Members WhoConsulting pracrice 4,124 4,245 4,312 Are Enrolled ActuariesGovernment 168 172 ISi (As of November 1, 1993)Academic institutions 46 45 47Other 211 234 475 CAS CCA SOA TotalRetired or not known 1,069 1,169 1,105Unaffiliated 160 In all three 3 3 3 3

Total 10,577 11,051 11,529 CAS&CCA 1 1 1SOA 10 10CAS 10&

CCA & SOA -- 533 533 i33

In one only 1 89 1,897 1,987

In none - 777

Subtotal - 3,311

Non-AcademyEnrolled Actuanes - - - 658

TotalEnrolled Actuanes 3,969

53

APPLICATION FOR ADMISSION

The requirements for admission to the Academyare set forth in Article I of the Bylaws An indi-vidual who meets the experience and educationalrequirements and wishes to apply may request anapplication form from either the Washington orSchaunihuig office

The application form is designed to developsufficient information conceinmg both the appli-cant's actuarial education and experience inresponsible actuarial work to enable theExecutive Committee to determine whether theestablished requirements for admission are satis-fied . The applicant should be sure to give com-plete information with respect to each section ofthe application If insufficient space is providedfor thi, purpose, a supplemental statement shouldhe appended to the application Applicationsshould be handwritten legibly, preferably type-written Applicants should take care to submitreferences who meet the requirements set forthin the general instructions of the applicationform. They should also encourage their refer-ences to return the reference form promptly .

In order to aid applicants, certain guidelineshave been established in the areas of experienceand residency. In the area of experience, the fol-lowing guidelines apply :

I At least one of the three years of responsi-ble actuarial experience must fall within the fiveyears preceding the date of application

2 . Teaching experience will count towardthe three-year requirement only to the extentthat the teaching is at the Parts 4 and 5 level .Higher level courses may also be considereddepending on their actuarial content .

3 . Summer, part-time, and other mteimit-tent experience may be considered for the threeyears, but it is especially important to demon-strate that this is "responsible actuarial work "

4. At least two of the three years must havecome on a full-time, uninterrupted basis .

5 . While experience obtained outside theUnited States may be considered for the threeyears, it should be similar to the type of "respon-sible actuarial work" a person would obtain inthe United States .

In the area of residency, the following guide-lines/requirements must be met :

I Residents of the United States for lessthan three veais will be subject to the samerequirements to which nonresidents arc subject .

2 . Nonresidents must state their need formembership .

3 . Nonresidents must state their familiaritywith United States laws and practices in theiractuarial specialty area

The above guidelines/requirements are sub-ject to interpretation, and applicants arc cncout-aged to review their answers in light of theseguidelines in order to expedite their application .

A nonrefundable application fee of S50 mustaccompany the application This is a charge forprocessing the application and will not beapplied toward the payment of dues for thosecandidates accepted Application tees paid bycandidates who are not accepted will not berefunded

Applications and all inquiries should beaddressed to .

Membership ManagerAmerican Academy of Actuaries475 N Alartmgale Road, Suite 800Schaumbuig,IL 60173(708) 706-3513 Telephone(",08)706-3599 Farsiniile

54

DUESDues as presently approved by the Board ofDirectors are $310 per year for members,payable on January 1 . Admission in the firstthird of the year will require full payment ofdues for that year, admission in the second thirdof the year will require payment of two-thirds ofthe annual amount, and admission in the lastthird of the year will require payment of one-third of the annual amount .

Article VII, Section 1 of the Bylaws of theAcademy provides that, subject to certain provi-sions with respect to disability and retirement,each member shall pay such dues for each calen-dar year as may be established by the Board ofDirectors of the Academy Under this authority,the Board of Directors has determined that duesmay be waived for members who (a) are full-timestudents, involved in full-time dependent care, orserving in the military or the Peace Corps, and(b) anticipate no material actuarial income duringthe forthcoming calendar year . Dues may also bewaived for members who have been unemployedfor at least one year prior to January 1, 1994, aridwho have made no more than $10,000 from actu-arial activities or $25,000 overall in 1993 ; do not

currently anticipate earning any significantincome from actuarial activities in calendar year1994, and are actively seeking work as an actuaryor planning reentry into the actuarial professionin the foreseeable future The minimum retire-ment age has been set by the board as 55 . Themaximum limit on earned income in order toqualify for dues waiver on account of retirementor other categories shown above between ages 55and 70 is $10,000 per year.

Members on dues waiver automaticallyreceive the yearbook and the directory, notices ofannual meetings, and voting materials for pro-posed bylaws amendments. There is an annualcharge of $40 to receive other Academy mailings.

Forms for permanent and temporary dueswaiver requests can he obtained from .

Membership ManagerAmerican Academy of Actuaries475 N. Martingale Road, Suite 800Schaumburg, IL 60173(708) 706-3513 Telephone(708) 706-3599 Facsimile

PRESCRIBED EXAM NATIONS

The Academy Board of Directors , in accordancewith Article 1, Section 2B of the Bylaws, pre-scribes examinations as follows :

A candidate who has attained by examinationthe indicated status listed below shall be deemedto have met the education requirements foradmission to membership .

I Associateship in the Casualty ActuarialSociety and the Society of Actuaries.

2 . Fellowship in the Canadian Institute of

Actuaries, the Conference of Consulting Actuaries,the Faculty of Actuaries in Scotland , and theInstitute of Actuaries.

3 . Enrolled Actuary under Subtitle C ofTitle III of the Employee Retirement IncomeSecurity Act of 1974 .

In those cases where familiarity with actuarialpractices and principles in the United States can-not be assumed , the Executive Committee isempowered to call for evidence of such familiarity

55

OTHER ACTUARIAL ORGANIZATIONSAmerican Society

of Pension Actuaries

President Paul S . Pola mkPresident-Elect Stephen R. KernImmediate Past President Robert E. GuarneraVice Presidents Michael E. Callahan

Karen A. JordanRichard D. Pearce

Secretary Michael C . PerryTreasurer Robert H. Schramm

4350 N . Fairfax Drive , Suite 820Arlington, VA 22203

(703) 516-9300Facsimile ( 703) 516-9308

Executive Director., Chester J . Salkind

Casualty Actuarial Society

President Irene K. BassPresident-Elect Allan M . KaufrnanImmediate Past President David P . FlynnVice Presidents Alice 1 1. Gannon

David N. HaflmgJohn J. KollarMichael J . MillerJohn M . Purple

Assistant Secretary Regina M. Berens

1100 N. Glebe Road, Suite 600Arlington, VA 22201

(703) 276-3100Facsimile (703) 276-3108

Executive Director James H. Tinsley

Canadian Institute of Actuaries

President James A. BrierleyPresident-Elect Kurt K . von SchillingImmeduite Past President Morris W. ChambersVice Presidents Yvon Charest

Neville S . HendersonPeter F . MorseAndrew C . Muirhead-

GouldDavid J . OakdenOwen A Reed

Constitution Square, Suite 820360 Albert Street

Ottawa, Ontario, Canada KIR 7X7(613) 236-8196

Facsimile (613) 233-4552Executive Director . Brian Wooding

Conference of Consulting Actuaries

President Larry D . KeysPresident-Elect Larrv D . BaberImmediate Pact President Robert H . DobsonT 'ice Presidents Alice H . Edmondson

Howard FluhrPaul A . GewirtzMark V. Mactas

Secretaiy Jeff FurnishTreasurer Thomas G. Nelson

475 North Martingale Road, Suite 800Schaumburg, IL 60173

(708) 706-3535Facsimile (708) 706-3599

Executive Director Rita Chastain

56

Society of Actuaries

President R. Stephen RadcliffePresident-Elect BarnetN BerinImmediate Past President Walter S . RuglandE ice Presidents Cecil D B ~ykerk

Shane A. ChaIkeArnold A. DickeHarry D GarberSam GuttermanDiane Wallace

Secretary/Treasurer Harry D. Garher

475 North Martingale Road , Suite 800Schaumburg, IL 60173

(708) 706-3500Facsimile (708) 706-3599

Executive Director. John E . O'Connor, Jr

Actuarial Education and Research FundChanperson Charles Barry H. Watson,

CCATreasurer Brendan O'Farrell, AAASeereeny Craig A. Miller, ASPADirectors LeRoy A. Boison, Jr., CAS

ik1ichigan Unit

Douglas C. Borton,CCAAllan Brender. CIARandall J . Dutka, CIASam Gutterman, AAADavid Al . Holland, SOACures E. Huntington, SOAMichael J. Miller, CASHoward M. Phillips, ASPA

Coordinator Cecil J. Nesbitt475 North Martingale Road , Suite 800

Schaumburg , IL 60173(708) 706- ;570

Facsimile (708) 706-3599Executive Director: Mark G . Doherty

International Actuarial Association

Canadian Officersb ice President Claude M. GenestSecretary- NationalCorrespondent

Council

W. Paul McCrossanEckler Partners, Ltd .789 Don Mills Road4th FloorDon Mills,OntarioM3C 1T8 Canada(416)429-3330

Jean-Louis BourbeauYves Guerard

United States OfficersVice President Ronald L . BornhuetterSecretary-NationalCorrespondent W. James MacGmnitie

Tilhnghast/lbwers PernnOne Atlanta Plaza950 Fast Paces Ferry RoadAtlanta, GA 30326-1119(404) 365-1602

Council Allan D . AffleckCurtis E . HuntingtonCharles GreeleyCharles Barry H . Watson

Next CongressSeptember 10-15,1995 Brussels, Belgium

AFIR SectionCanadian Ilember Michael Cohen

W. M. Mercer Itee275 Slater StreetSuite 1200Ottawa, OntarioKIP 5H9 Canada(613) 230-9348

ITS. Member James A . TilleyMorgan Stanley& Company

1221 Avenue of theAmericas

New York, NY 10020(212) 296-5780

Next ColloquiumApril 20-22, 1994 Orlando, FL

57

ASTIN SectionU.S Contact James N. Stanard

RenaissanceReinsurance, Ltd .

Sofia Ilouse48 Church StreetHamilton HM GXBermuda(809) 295-4513

Next ColloquiumSeptember 11-1 5,1994 Cannes, France

International Associationof Consulting Actuaries

Chairperson Robert D Masding

Secretary-Trearurer Dudley Funnell2175 Marine DriveSuite 607Oakville, OntarioL6L 5L5 Canada

U S. CommitteeMembers Robert J . Dyrnowski

John J . Hale),W. James M~ae.Gmnitic

Canadian Reprerentateve Frank LmseyHewitt Associates4110 Yonge StreetNorth York, OntarioM2P 2B7 Canada

Next MeetingOctober 16-21, 1994 Hong Kong

58

AcTUAIIAL CLUBS

Correspondence to the local clubs should be directed to the secretary at the address listed on thesepages. If a secretary is not listed, the address shown is that of the president Addresses for club presi-dents may be found in the Directoiy of_4ctuarial Memberships .

Adirondack Actuaries ClubEdward W. Brown, PresidentRobert Priest, T ice President of Public RelationsTimothy Summers, ['ice President

of MeetingAdmm~strationAlona Wasserman , TreasurerMichele Saxe, Seeretarv

(clu Farm Family Life Insurance Company,P.O Box 656, Albany, NY 12201)

Arizona Actuarial ClubJames H. Gordon, PresidentWilliam K. Robinson, Secretary-Treasurer

(c/o Millmmn & Robertson, Inc .,4(141 North Central, Suite 1430,Phoenix, AZ 85012)

Atlanta Actuarial ClubTom Loftis, PresidentRalph Reese, f ice PresidentKaren Shelly Purcell, Sec; etaiy-Treasurer

(c/o Hazh,hurst & Associates, Inc .,400 Perimeter Center Terrace, Suite 850,Atlanta, GA 30348)

Baltimore Actuaries ClubLawrence E . Isaacs, PresidentMary S. McKav, Vice PresidentAmy S . Ziff, Secretary-Treesarer-

(c/o Blue Cress/Blue Shield of MD,10455 Mill Run Circle,Owmgs Mlills . MD 21117-5559)

Casualty Actuaries of the Bay AreaRoberta J Garland, PresidentDaniel N. Abellera, See, etary-Treasurer

(c/o Crum & Forster Corporation,255 California Street,San Francisco, CA 94111)

Actuaries Club of BostonAllan Ming Fen, PresidentStephen M . Batla , E ice PresidentMarshall H . I,ykins, TreasurerGerald F Boulet, Director of Continuing EducationM. Carolvn Mel lugh, Director of StrulentEducatianAndrew P. Johnson, Secretary

(c/o John Hancock MutualLife Insurance Company . T-2 5,P.O. Box 111, Boston, MA 02117-0111)

Central Illinois Actuarial ClubKevin Roper, PresidentJoseph Herbers, President-EleeiAlison Dossett, Secretary-Treasnr ei

(c/o State Farm Life Insurance Company,I State Farm Plaza , Bloomington, IL 61710)

Chicago Actuarial AssociationMark A. Davis, PresidentJohn 11'. Harding, President-ElectJeffrey G . Allen, 1 ice Presideat, Public RelationsJohn K Heins, T ice President, ProgramsWarren R . Luckner, T ice President, EducationJohn O . Norton, TreasurerVirginia M . Vlcek, Secretary

(do TPF & C/Towers Perrin,200 W. Madison, Suite 3300,Chi(ago, IL 60606)

Cincinnati Actuarial ClubGerald A. Lockwood, PresidentRichard A Ballard, Lice PresidentHarold V'. Lyons, Secretary-Treasurer

(c/o Western-Southern Life.400 Broadway, Cincinnati, OH 45202)

Columbus Actuarial ClubShelley Gabel, PresidentJoe Falk, Vice President1 .isa'1 hompson, Serretary-Treasurer

(c/o Nationwide Insurance Company,One Nationwide Plaza, Life Actuarial, 1-11-03,Columbus, OH 43216)

59

Actuaries Club of Des MoinesPaul H Wenz , Pre identJoAnn Rmnelhart, [ ice PresidentMark S. Movic, Secretary- Treasurer

(c/o The Principal Financial Group,711 High Street, Des Moines , IA 50392)

Actuaries Club of HartfordNeil Kelsey, PresidentDoug Taylor, Vice PresidentPat Cesaro, TreasurerMeg Gresham, Secretary

(c/o Massachusetts Mutual LifeInsurance Company,1295 State Street, Springfield, MA 01111)

Actuaries Club of Indiana,Kentucky, and Ohio (U-State)

Nora E. i\Ioushey, PresidentJeffrey A . Beck-ley, Secretary-7reasrnrer

((/o Beckley C Associates, Inc .,11495 North Pennsylvania, Suite 200,Carmel, IN 46032)

Actuarial Club of IndianapolisArthur L . Wilmes, PresidentLarry A Hacfncr, [ice PresidentDiane R. Seaman, Secretary-Treasurer

(c/o The Associated Group .120 Monument Circle,Indianapolis, IN 46204)

Actuarial Club of JacksonBeverly S . Pogue, PresidentJohn T. Robinson, T ice PresidentDavid Simmonds, Secretary-Treasurer

(c/o Southern Faim BureauLife Insurance Company,P O Box 78, Jackson, MS 39205-0078)

Kansas City Actuarial ClubJames R Makin, PresidentJohn R . Miller, Vice PresidentMichael G Baker, Secretary-Treasurer

(c/o William M . Mercer, Inc .,2405 Grand Avenue, Suite 1100,Kansas City, MO 6}108)

Little Rock Actuarial ClubJerry F . Enoch, PrendentJoseph A . Krenz, ['ice PresidentJudith Kirk, Secrewry Treasurer

(c/o USAble Corporation,312 West Capitol, Suite 718,Little Rock, AR 72203)

Los Angeles Actuarial ClubPat Gallagher, PresidentRichard G . Lemieux, Vice PresidentEddic C . Tong, 7reresur-erAngelica M Michail, Secretary

( c/o Michail Associates,17951 Calle Barcelona,Rowland Heights, CA 91748)

Michigan Actuarial SocietyWilliam A. Gee, PresidentMartha .1% . Spenny, Vice PresidentJames D Anderson, TreasurerBenjamin G . Peters, Seer etaiy

(do Royal Maccabees Life lnsoirance Company,2 5800 Northwestern Highway,Southfield, MI 48037-2165)

Casualty Actuaries of the Mid -Atlantic RegionSusan R. Pino, PresidentDavid IV. Lacefield, E ice PresidcntJennifer A . Polson, Secretary-Treasurer

(do CIGNA Property & Casualty Companies,1601 Chestnut Street, TLP-30,Philadelphia, PA 19192)

Middle Atlantic Actuarial ClubRoland E . (Guy) King, PresidentWillis B . Howard. Vice PresidentThomas B Bowling, Secretary-Treasurer

(c/o Union Labor Life Insurance Company,111 Massachusetts Avenue, N-VV .Washington, DC 20001)

Midwestern Actuarial ForumKaren Pachyn Gorvett, PresidentJerry \V. Rapp, Vice PresidentKaren F . Schmitt, Education OfficerDavid N . Hafting, Secretary Treasurer

(c/o American States Insurance Companies,P.O. Box 1636, Indianapolis, IN 46206)

60

Nashville Actuarial ClubRandall H. Smith, PresidentSam \'V. Talley, Sec etary-Trcasarca

(c/o American GeneralLife & Accident Insurance Company,Mail Code 2614, Seventh & Union,Nashville, TN 37250)

Nebraska Actuaries ClubDavid Nnlm Cook, PresidentLori Stevens Gohde, Sect etaiT-Treyvurer

(c/o Woodmen Accident & Life,1520K Street, Lincoln, NE 68508)

Casualty Actuaries of New EnglandJeffrey P . Kadisun, PresidentAnn M. Conway, ['ice President of EducationRoland D Letourneau, Secretary-Treasurer

(c/o Amica Mutual Insurance Company,P O. Box 6008, Providence, RI 02940)

Actuarial Society of Greater New YorkLeonard E Tandul, PresidentPaul Puleo, [ice Pi-eedeut o f Student EducationRobei t M . Sackel, Ti casurerJacqueline MM . Keating, Secretary

(e/o Milliman & Robertson,3 Garret Mountain Plaza, Suite 303,West Paterson, NJ 07424)

Casualty Actuaries of Greater New YorkOrin i1I . Linden, PresidentRegina iht . Berens, [ice PresidentBrian A . Hughes, Secretary-Treasurer

(c/o Skandia America Group,Zurich Reinsurance Centre,1 Liberty Plaza, 53rd Floor,New York, NY 10000)

Casualty Actuaries of the NorthwestNorman F. Donelson, PresidentHeidi J IvIcBride, d ice PrecedentGordon K. Hay, Secretary-Treasurer

(clo SAFECO Insurance Company,SAFECO Plaza, Seattle, WA 98185)

Oklahoma Actuaries ClubRonald J . Byrne, PresidentWarren L . Shepherd, Vice PresidentLyle E . Nelson, Secretary-Treasurer

(do American Fidelity Group,P.0 Box 25523,Oklahoma City, OK 73125)

Actuarial Club of the Pacific StatesJohn F . Fritz, PresidentMartin F . Gibson, [ice PresidentLouis A. Kent, Secretary-Treasurer-

(c/o Blue Shield of California,Two North Point, 3rd Floor,San Francisco, CA 94120)

Actuaries Club of PhiladelphiaMark J . Freedman, PresidentNeville Arum, [ice PresidentDiana Goodman, TreasurerMart- Preminger, Secretary

(c/o CIGNA Corporation,1601 Chestnut Street, FLP-24,Philadelphia, PA 1919-2235)

Portland Actuarial ClubCharles R . Dolezal, PresidentGang WV. Hirschkron, Vice PresidentDonald A Jones, Secretary-Tieasirer-

(do Oregon State Uniscrsity,Department of Mathematics, Kidder 368 .Corvallis, OR 97331)

St. Louis Actuaries ClubKeith Kowalczyk, PrecedentKaren A King, [/ire PrecedentDaniel E. Kirner, Secretary-Treasurer

(c/o TPF&C/Towers Perrin,INTERCO Tower, 101 South IIanlc .%St. Louis, MO 63105-3411)

Salt Lake Actuarial ClubMark IV. Birdsall, PresidentPaul Daniels, lice PresidentMark -W Birdsall , Secretey-Tieaczuer

( c/o Beneficial Life Insurance Company,36 South State Street,Salt Lake City, UT 84136)

San Francisco Actuarial ClubThomas D Mattliews, PresidentLeslie L Thompson, T ice President u Secretary

(c/o CIGNA,101 California Street, Suite 1910,San Francisco, CA 94111)

61

Seattle Actuarial ClubJ Lynn Peabody, PresidentJean B. Liebmann, [ice PresidentGwendolyn Walker, TreasurerMichael N. Morm, Secretary

(c/o Milliman & Robertson, Inc .,1301 Fifth Avenue, Suite 3800,Seattle, WA 98101)

Southeastern Actuaries ClubWilliam H. Bowman, PresidentDouglas C. Doll, Vice PresidentPeggy NI Ruhin, Secretary-Treasurer

(c/o Southern EducatorsLife Insurance Ctnpany,3320 Holcomb Bridge Road,Norcross, GA 3009_2)

Casualty Actuaries of the SoutheastMark Crawshaa, PreudentFrederick 0, Kist, President-ElectAndrew E. Kudera, F ice President of Progr-antsBryan G. Young, V itt, President of EdittationRoberto G Blanco, frce President o f College Rekitim iMonty j . `Vashburn, Vice President ofAdninusn ationV .Secretary-Treasurer"

lc/o National Council onCompensation Insurance,750 Park of Coinnierce Drive,Boca Raton, FL 33487)

Southern California Casualty Actuaries ClubWarren B. Tucker, PresidentCharles 1. Petit, Vice PresidentTodd J Hess, Secretary-Treasurer

(c/o Underwriters Reinsurance Company,22801 Ventura Boulevard,Woodland Hills, CA 91364)

South Florida Actuarial ClubSanford 1. Nuebarth , PresidentChristine L Moore, f ite PresidentJeffrey C. Harper, Treasurer

(c/n American Bankers Insurance Group,11222 Quail Roost Dnve, Ahami, FL 33157)

Southwest Actuarial Forum (SWAF)Catherine Taylor, PresidentIV Dale Montgomery-, free PresidentDaniel C. Goddard, Secretary-Treasurer

(c/o Houston General Insurance Company,4055 International Plaza,Fort Worth, TX 76109)

Actuaries Club of tie SouthwestJames E Pozzi, PresidentAV Michael Pressley, 1 ,ice PremleutGary P. Monnm, Secretary-Treasurer

(c/o Allen Bailey & Associates,12710 Research Blvd ., Suite 265,Austin, TX 78759)

Twin Cities Actuarial ClubJ ulia .1 . Philips, PresidentJerome A . Degerness, l 'ice PresidentB radlev E. Barks, Secretary-Treasurer

(c/u Ltfc USA,300 South Highway 169, Suite 700,Minneapolis , MN 55426)

Vermont Enrolled Actuaries ClubAnnie Brown Voldman, President\VilliamJ Callnan, Secretary-Treasurer

(c/o National Life Insurance,One National Life Drive,Montpelier, VT 05604)

Actuarial Club of Washington, D .C.Charles M. kranrer, PresidentKenneth A. Kent, Pie e PresidentEli Greenblum, TreasurerJosiah Lynch, Secretary

(c/o Lynchval Systems, Inc .,One Fountain Square, 11911 Freedom Drive,Suite 11110, Reston, VA 22090)

West Michigan Actuarial ClubWilliam T. Billard, President &Secretary-Treasu Secretary-Treasurer

(c/o Delta Dental Plan of Michigan,P.O . Box 30416.Lansing, MI 48909)

Wisconsin Actuaries ClubJames A Youngquist, PresidentJanet W. Reinke . Meeting Coordutatos-Daniel L . Shinnick, Seaetary- 1 reasurer

(c/o Aid Association for Lutherans,4321 North Ballard Road,Appleton, WI 54919)

62

CALENDARSBOARD & COMMITTEE MEETINGS

The Board of Directors has adopted the follow-ing policy with respect to attendance at and par-ticipation in Academy meetings .

1 All meetings of Academy committees(with exceptions noted in paragraph 2 below) areopen to members of the Academy .

2 . Meetings of the Board of Directors or the

Executive, Discipline, and NominatingCommittees are not open to other than membersof those committees and invited guests .

3. Members attending Academy meetingsare free to observe the conduct of those meet-ings; they may participate in discussions onlywith the consent of the chairperson .

MEETINGS CALENDAR

1994

Annual Meeting

September 28 1994

Enrolled Actuaries Meeting

March 7-9JW iMarriottWashington, D .C.

1995

Sheraton Washington HotelWashington, D .C .

March 20-22

1994

Casualty Loss Reserve SeminarSeptember 19-20

Sheraton Washington HotelWashington, D .C .

Sheraton Boston Hotel & Towers 1996 Sheraton Washington Hotel

1995

Boston, Mass

September 18-19

Washington, D .C .

1996

Chicago Marriott DowntownChicago, IL

San Francisco, CA

63

PUBLICATIONSPublications can be obtained from the Washington, D .C ., office . Prices are in U .S . dollars and includepostage in the United States and Canada . Remittance must accompany your order

Contingencies, the magazine of the actuarial profession-bimonthly controlled circulation

The Actuarial Update-monthly controlled circulation newsletter-

Enrolled Actuaries Report-quarterly controlled circulation newsletter-

1993 American Academy of Actuaries Yearbook-S25 .00-

1993 Dzrectozy ofActuarial Meruherchzps$100.00-

Academy Alert ( a news service by category: Health Insurance Issues, Life Insurance Issues,Pension and Employee Benefits, and Property and Liability Insurance Issues)

-$25.00 each-

Issues Digest-S3 .00-

1993 Directory of Enrolled Actuaries-$30.00-

American Academy ofActuaries Fact Book-no charge

Actuarial Standards Board Fart Book-no charge

Actuarial Standards Board Annual Report-no charge-

Actuarial Board for Counseling a Dorzpliae . An Introduction-no charge-

ff,inning in the Public Eve : A Cornnurmrattonc Primer forActuaries-no charge-

American Jradrmy of Ac tuaries Journal-back issues from 1977 to 1987 available at $35 .00 each-

64