2 Outline of Presentation Risks and rewards of self-employmentCareer path toward self-employmentProfile of a successful small business ownerSteps to starting a businessRunning a small business: administrative issuesCase StudiesQuestion & Answer
3 My Background Life Insurance Company - 8 years Financial reporting expertiseErnst & Young Consultant – 6 yearsConsulting (M&A, financial reporting, etc)Audit support (Statutory, GAAP)State Ins Dept examination supportIndependent Consultant – 13 yearsLife insurance company financial reportingFinancial reporting systems implementationAudit support (audit firms, dept of ins)
4 Types of Actuarial Jobs Insurance/Reinsurance Co (Life, Health, PC)Pension/Benefits ActuaryEducatorConsultingActuarial consulting firmPension/benefits consulting firmRegulatory (Dept Ins, Fed Govt, other)Other (banks, etc)
5 How to Decide Path Interest and aptitude based on college course work Perceived advancement opportunitiesStrength in interpersonal skillsAbility of various jobs to offer actuarial students study timeGeographic limitations
6 First Job: My Decision Process Summer internship at life insurance companyInterviews through college placement office were all insurance companiesLooked for company with actuarial study program and rotation programGoal of staying close to home (Columbus OH)Ended up at Capital Holding (Life Ins Co) in Louisville KYCompany assigned me to financial reporting25+ years later, I’m still in financial reporting!
7 Factors in Job Changes External Factors Internal Factors Position eliminatedSpouse transferredInternal FactorsPerception of better opportunity or lower stress elsewhereDesire to increase compensationInterest in changing career tracksIns co to consulting or vice versaDesire to move to teaching position or regulatory job
8 Becoming a Self-Employed Actuary It’s not the first step in a career path!If this is your ultimate goal, each step in career path should keep this goal in mindTypical career path might be:Insurance co insurance consulting firm establish own consulting firmPension consulting firm establish own pension consulting firmInsurance Dept establish regulatory services consulting firm
9 Do you want a job with: No paid vacation? No pension plan? No health insurance benefits?No guaranteed income?Five bosses, each of whom wants something NOW?The potential to earn much more than you’re currently earning?Then self-employment might be the answer!
10 Advantages of Self-Employment Be your own bossWork at home/no commute timeCasual dressFlexible hoursGood hourly rateWork from any locationHome is where the laptop is
11 Disadvantages of Self-Employment You may not like your boss“Work at home/no commute time”Distractions at homeNo social interaction with peersNo ability to learn from co-workersTravel time to client location“Flexible hours”Often chosen by client – you’re “on call”May be 18 hours per day during a big project (no employees!)Good hourly rate – but no guaranteed hours
12 Disadvantages of Self-Employment No employee benefitsNo paid vacationNo paid sick timeNo pension planNo health insuranceFixed expenses but variable incomeNo employees to help with the work loadLiability risks
13 Characteristics of Successful Self-Employed Actuaries Self-MotivatedDefined Market NicheStrong Technical SkillsGood Communication SkillsStrong Sales SkillsBroad Range of Industry ContactsFinancially Prepared for Self-EmploymentFinancially Disciplined
14 Self-Motivated Personal Example My Solution: Atlanta Olympics in 1996 Office closed, worked at homeMy Solution:Separate OfficeDefined Office HoursDedicated Phone Line (Cell?)
15 Defined Market Niche What “product” will you sell? Hard to find work as a “generalist”“Specialists” find work assisting with special productsSpecial projects may have fundingUnderselling the competition doesn’t necessarily work
16 My Market Niche “Life Insurance Financial Reporting” That’s too generalExamples of specific “products” I sell:Assistance with development, review, and assessment of effectiveness of controls in USGAAP financial reporting processesImplementation of financial reporting valuation systemsBuilding and enhancing source of earnings analyses on universal life and annuity blocks of businessActuarial audit support work to assist audit firms, state insurance departments, internal audit departments
17 Strong Technical Skills Expertise in subject matterSpecializeGood computer skills are a mustThey don’t sell a project, but they’re necessary to complete the projectMicrosoft products: Excel, Access, Powerpoint, Visual Basic, WordActuarial software – hands-on skills
18 Communication Skills Necessary for sales presentations Required for verbal communications during a projectCritical when writing reports to document findingsStart today to fine-tune your skills: grammar and spelling matter!
19 Sales SkillsThe best sales skills won’t help if you don’t have a good product to sellThe best product won’t sell if you don’t have good sales skillsStep one is to get in the door (the door of the decision maker)Many resources on effective sales techniques – read books now and develop sales skillsEven if you are never self-employed, sales skills help you sell yourself and your ideas in any job
20 Industry Contacts Former Co-Workers Actuarial Meetings Actuarial Committees (SOA/CAS/AAA)Former ClientsCold Calls
21 Financial Preparation Expect Low Income First Few YearsSignificant Fluctuations in Cash FlowStart-Up CostsComputerSoftware (including Actuarial software)Office EquipmentOffice FurnitureLegal Fees to Establish Business (Costs of Incorporation)WebsiteMarketing LiteratureOffice Rental (Optional)
22 Financial Preparation Fixed CostsInsurance:Professional Liability & Business InsuranceMedical, Disability & Life InsurancePhoneInternetActuarial softwareActuarial Organization Membership FeesContinuing Education CostsOther costsTravel costs for sales callsTravel costs for on-site workPension funding
23 Business Expenses: Insurance Professional Liability Insurance$5,000+ per million coverage per yearLarge companies often require consultants to carry coverageBusiness Owners Insurance$1,000 - $2,000 per yearMedical InsuranceLikely to be individual coverageRequires underwritingRates vary with age/sex/heath/otherMay be $10,000+ per year
24 Business Expenses: Other Actuarial software license (optional)~ $20,000 per yearSociety of Actuaries Dues (~$1,000)Academy of Actuaries Dues (~$1,000)Continuing EducationMeeting fee (~ $1,000)Travel expenses (~ $1,000)Pension PlanVarious options availableSimplified Employee Pension (SEP) IRASolo 401KSubscriptions to literature (acctg, tax, law)
25 Test: Financially Prepared? Are you a good money manager?Do you balance your checkbook?Are you a detailed-oriented bookkeeper?Do you have a budget which shows in detail what you make and what you spend?Do you have other sources of funds with which to support yourself in the early years of your new business?Spouse’s incomeSavingsOther ways to generate income (tutoring math, work for actuarial or finance temp agencies, other)
26 Test: Financially Disciplined? You find that your checking account balance is up to $20,000. You are most likely to:A. Spend itB. Project the amount needed to cover future cash flow requirements (estimate taxes, etc.) and spend the rest.C. Save enough to cover future cash flow requirements and save the rest to cover future periods of lower cash in-flow.
27 Test: Financially Disciplined A. Likely to end up with IRS problemsB. On the right track, but need to keep in mind that there are periods of “feast” and “famine”.C. Likely to succeed in the financial aspects of running a small business.
28 Recommendations Segregate business funds from personal funds: Separate checking accountSeparate credit cardReconcile business accounts monthlyBill clients monthlyNever delay payment of estimate taxesDetermine how to pay yourself:A percentage of gross receipts?A fixed amount per week or month?
29 Monthly Cash Flow Even if income is fairly regular, outflows are not. Insert graph here showing monthly cash inflows and outflows for CAC
30 SBASmall Business Association provides counseling, mentoring and training, and loans
31 Ten Steps to Starting a Business (per SBA.gov) Write a business planGet business assistance and trainingChoose a business locationFinance your businessDetermine legal structureSole proprietorshipPartnershipLimited Liability Corporate (LLC)CorporationS Corp
32 Ten Steps to Starting a Business (per SBA.gov) Register a business name with state governmentGet a tax ID numberRegister for state and local taxesState Tax ID NumberWorkers’ compensationUnemployment and disability insuranceObtain business licenses and permitsFederal, state and local licenses and permitsUnderstand employer responsibilitiesLegal steps you need to take to hire employees
33 Other SBA ResourcesArticles on self-employed and independent contractorsArticles on minority-owned businessesArticles on woman-owned businessesArticles on veteran-owned businesses
34 Women and MinoritiesA number of larger companies have guidelines in place which require them to use minorities and women for 10% of their contract workTypically accomplished by requiring vendors to subcontract at least 10% of their work to woman-owned or minority owned businesses
35 Minority-Owned Business Sample contract from large bank:A “Minority-Owned Business” is a business that is at least 51 percent owned, and whose management and daily business operations are controlled, by one or more members of a socially and economically disadvantaged minority group — namely, U.S. citizens who are Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, or Asian-Indian Americans.
36 Woman-Owned Business Sample contract from large bank: A “Woman-Owned Business” is a business that is at least 51 percent owned by a woman (or women) who is a U.S citizen, controls the business by exercising the power to make policy decisions, and operates the business by being actively involved in its day-to-day management.
37 Woman/Minority Businesses To qualify as a Minority or Woman-Owned Business, the Business must be certified by an official certification agency acceptable to Company X. Vendor shall supply to Company X’s Vendor Diversity Group copies of official certification documentation.Vendor’s goal is to subcontract a minimum of 10% of the total dollar amount of this Agreement to Minority and Woman-Owned Businesses annually (the “Goal”). In order to balance Company X’s overall spending, the preferred allocation of the Goal is 7% to Minority Businesses and 3% to Woman-Owned Businesses.
38 Preparing to be a Self-Employed Actuary Pass actuarial examsDevelop technical expertiseIdentify market nicheMake industry contactsDevelop sales and marketing skillsWork for a consulting firmPay off personal debtsSave money
39 Getting Started as a Self-Employed Actuary Work for a consulting firm to learn the business:Client developmentBillingDispute resolutionBidding projectsDevelop base of contactsTHEN:Buy a business orStart a business (self or partnership?)
40 Buying an Actuarial Consulting Firm Pay based on expected future revenues from existing clientsHow to finance?Advantage is that there are existing clientsDisadvantage is that clients may choose a different firm at saleRequires careful transition
41 Starting an Actuarial Consulting Business Advantage is no cash outflow to purchase businessDisadvantage is that there are no clients initially
42 How to Set Billing Rate Convert former salary into hourly rate may be lower boundConsider rates charged by larger consulting firmsMay be upper boundConsider risks inherent in the projectMay accept lower rate on larger projectsRate may vary seasonally (supply/demand)Audit firm rates higher January - March
43 Billing Issues Fixed fee engagements can be big risk How to estimate hoursDouble your initial estimate?“The devil’s in the data”How to handle billing disputesSafer to bill periodically (monthly) rather than at project completion
44 Billing Files Maintain detailed records for personal records Time “clocked in” and “clocked out” in 15 minute intervalsTask performed in each intervalCumulative hours per monthSummarized statement sent to client
45 Unbillable Time Marketing Administrative Sales calls Website maintenanceBrochuresWriting articles, preparing presentations, brochures etcAdministrativeNegotiating contractsDrafting engagement lettersPreparation of proposals in response to government “RFP”Insurance applications and updatesComputer issuesMonthly billing and bookkeepingEstimate tax payments
46 More Unbillable Time Travel time Continuing education meetings Some actuaries adjust hours billed:Factor adjustment when performing work for which the actuary is overqualified (e.g., adjust from FSA rate to ASA rate)May not bill for “re-do” of workMay bill less after x hours per dayVery judgmental
47 Running a Small Business Consider need for clerical supportMay require tax or other accounting supportMay require technology supportMay require legal support
48 Technology Support Computer issues – You are the help deskNeed good back-up systemsNeed multiple computersNeed secure systemsPhone issues – cell phone as business phone, quality issues?Internet issues – have a backup planCan some of this be outsourced?
49 Tax/Accounting Support Consider engaging a tax accountant to assist with tax issuesLLC or partnership => likely to file multiple state tax returnsPartnership => special partnership tax formsSelf-Employment TaxQuarterly Tax EstimatesConsider engaging an accountant to assist with general bookkeeping (billing etc)
50 Legal Support Consider engaging an attorney to assist with: Establishment of business (incorporation etc)Drafting of engagement lettersReview of marketing materialsReview of contracts
51 Liability Risks Risk of Litigation Mispriced insurance productProducts priced with tax issues (IRC 7702)Perceived poor advice related to acquisitionViolations of confidentiality agreementsIssues related to assumptions in pension valuationsProfessional liability insurance amounts may not be adequate to cover a judgmentLiability insurance may not cover sub-contractors
52 Employees vs Sub-Contractors? Employees typically require guaranteed income and benefitsEmployees create administrative burdens (benefits, workers’ comp, unemployment insurance)Subcontractors are paid only for hours workedDifferent subcontract can be selected for each project based on expertise requiredHow to structure subcontractor agreement“Subcontractor” has separate contract with client?Subcontractor gets x% of amounts billed to client?Subcontractor not paid until you are paid?Liability issues associated with subcontractors
53 Case Study A Background: Yrs in industry prior to starting firm: ~15 Several insurance company jobsConsultant at accounting firmYrs in industry prior to starting firm: ~15Market niche:Financial reportingAudit supportEasing transition to consulting:Spouse incomePrior consulting experienceInitial contacts:ExtensiveYrs as independent consultant: 10+Current position:Self-employed actuary
54 Words of Wisdom from A“Poor planning on your part doesn’t constitute an emergency on mine.”Except that as a self-employed actuary, it does!!!A fail-proof “Get Rich Slow” scheme: “Spend less than you make.”My marketing strategy: “wait for the phone to ring”
58 Case Study B Background: Yrs in industry prior to starting firm: ~10 Trained in Systems/IT before entering actuarial professionSeveral insurance company jobsYrs in industry prior to starting firm: ~10Market niche:Systems conversionsExperience studiesEasing transition to consulting:Spouse incomeInitial contacts:LimitedYrs as independent consultant: 10+Current position:Self-employed actuary
59 Words of Wisdom from `BRepresent yourself exactly as you are (good and bad both)Stay out of office politics
60 Case Study C Background: Yrs in industry prior to starting firm: 20+ CFO of large insurance companyPartner in accounting firmYrs in industry prior to starting firm: 20+Market niche:Group health insuranceLitigation supportSpecialist in “Patient Protection and Affordable Care Act”Easing transition to consulting:Prior consulting experienceSavings & retirement plansInitial contacts:ExtensiveYrs as independent consultant: ~10Current position:Self-employed actuary
61 Words of Wisdom from C Financial (personal): Bookkeeping: Financial planners generally suggest an emergency fund of 6 to 12 months. Suggest at least double that for a self-employed actuary (or, a working spouse)Suggest minimal fixed costs (especially housing and debt) since income will almost certainly be very variableBookkeeping:Need QuickBooks are some other business softwareKeep accurate records and separate personal from business expensesBe prepared for payroll processing complications – even if you pay someone to process the forms.Incorporating/professional liability:Will probably want to form a companyBut cannot avoid professional liabilityChoose between LLC, S-Corp, or C-Corp (advantages and disadvantages of each)Probably want to purchase professional liability insuranceHiring one person is a game changer
62 Words of Wisdom from C Pricing your services Marketing Job performance Should try to find hourly rates that peers and large consulting firms are charging for type of consulting being consideredNew jobs almost always take substantially more hours than you estimate but most companies will not give you a blank check (i.e. hourly rate without estimated hours)“Annuity” type engagements (i.e. repetitive) are nice but rare for most actuarial consulting services. Also most price competitiveResponding to RFPs very time consuming and competitiveMarketingVery personal/individual as to what works, if anything (i.e. almost certain that word of mouth is best and requires having/getting a reputation)A website, no matter how amateurish, is probably a mustAttending professional meetings is generally helpful. Opportunity to speak, network, and just let others know you are alive.Referrals may be reciprocatedJob performanceClient satisfaction a must – go the extra mileReview Code of Professional Conduct and know what ASOP’s apply (see professional liability)Every new job has enough wrinkles to make you uncomfortable (but must balance against being “too uncomfortable”)
63 Case Study D Background: Yrs in industry prior to starting firm: ~10 Several insurance company jobsConsultant at accounting firmYrs in industry prior to starting firm: ~10Market niche:PricingFinancial reportingAudit supportEasing transition to consulting:Spouse incomeInitial contacts:ModerateYrs as independent consultant: ~5Current position:Larger consulting firm
64 Case Study E Background: Yrs in industry prior to starting firm: ~20 Valuation Actuary at large insurance companyYrs in industry prior to starting firm: ~20Market niche:Financial reporting for variable annuitiesEasing transition to consulting:Separation package from prior employerInitial contacts:LimitedYrs as independent consultant: < 5Current position:Insurance Company
65 Case Study F Background: Yrs in industry prior to starting firm: ~10 Several insurance company jobs including one start-up companyYrs in industry prior to starting firm: ~10Market niche:Financial reportingReinsuranceEasing transition to consulting:NoneInitial contacts:ModerateYrs as consultant: < 5Current position:Consulting firm
66 Case Study G: Background: Yrs in industry prior to starting firm: 9 AVP of Product Development for life insurance companyYrs in industry prior to starting firm: 9Market niche:Initially: New product development for small companiesNow: Mix of product development & financial reportingEasing transition to consulting:Revenue from insurance salesRevenue from pension TPAInitial contacts:LimitedYrs as consultant: 30+Current position:Owner of mid-sized consulting firm
67 Words of Wisdom from G Be fully committed to making it work Put a lot aside for a rainy dayLearn sales and prospecting skills“G” worked with a group of agents while starting his consulting firm, allowing him to develop his sales skills
68 Case Study H Background: Yrs in industry prior to starting firm: 10 Jobs at two life insurance companies: product development and financial reportingYrs in industry prior to starting firm: 10Market niche:Initially: small to medium size companies looking for good service at a low costActuarial temp servicesRegulatory servicesEasing transition to consulting:Hired by former employer as consultantInitial contacts:Fairly LimitedYrs as consultant: ~25Current position:Self-Employed ActuaryGrew consulting business to point that a larger firm bought them outOnce again a self-employed actuary
69 Words of Wisdom from H During period of prosperity, keep on marketing. Service is your best asset.There is no better marketing than word of mouth testimony from your existing clients.Do not do work if you are not comfortable – either with your expertise or ability to do the work the right way or with your client.
70 Other Comments from H“I should have never succeeded, but I was too young to know that.”“Even as the firm grew, there were periods of famine. There were several months where my partner and I did not take a salary to make sure that there was sufficient cash to pay all the employees.”
71 Case Study I: Background: Market niche: Pension consultant two yearsJoined existing insurance consulting firmBecame Partner, then Owner, of firmMarket niche:Actuarial services for small life ins companies (pricing, valuation)Migrated to third party administration workEasing transition to consulting:Joined firm as employeeInitial contacts:Firm’s existing clientsYrs as consultant: 30Current position:Owns consulting/TPA firm
72 Words of Wisdom from I “Words of wisdom are hard to come by.” “I have not done anything particularly brilliant, but have been presented with some decent opportunities and not screwed them up.”“It seems today you would have to start out with a larger consulting firm or company, learn the ropes and take your shot when you see the chance.”“Maintaining a consistent and broad base of clients is very difficult.”
73 What One “Big Four” Audit Partner Liked About a Large Firm Other actuaries and accountants to talk toQuality controlalways someone to check/challenge what you're doingRange of expertiseVariety of projectsAbility to have large clients, internationallyClients on the forefront of issuesalways interesting and challengingAbility to invest in development of service capabilities
74 What One “Big Four” Audit Partner Liked About a Large Firm Established infrastructure for:SpaceAdministrative supportGraphicsLiability insuranceHuman resourcesBenefitsTechnologyLegal
75 One Audit Partner’s View: Large vs Small Firm Benefits over small firm are:Ability to do big projects for big clients in multiple, international locationsIntegration with accounting and tax expertiseDisadvantage is:Cost (higher billing rates)
76 Character Traits of Successful Small Business OwnersDrivenGoal-OrientedConfidentPassionateBudget-MindedSelf-ReliantHumbleResilientFocusedOpen-Minded
77 Ten Traits Small Business Owners Need to Succeed http://ezinearticles Know Your PurposeHave a Desire To SucceedHave Faith that you can achieve what you wantHave a Clear PlanHave the KnowledgeBe Prepared to Co-operateHave the Will-Power to Go OnBe habitual in all you need to doMaintain the QualityBe 100% Persistent
78 Five Traits of a Successful Small Business http://www. investopedia Cater to a Niche MarketGet Cozy with CustomersBe FlexibleFocus on SkillsGet Lucky
79 Top Ten Reasons Small Businesses Fail http://boss. blogs. nytimes The math just doesn’t workNot enough demand at a price that will be profitableOwners who cannot get out of their own wayOut-of-control growthPoor accountingLack of a cash cushion
80 Top Ten Reasons Small Businesses Fail (Continued) Operational mediocrityOperational inefficienciesExpenses too highDysfunctional managementLack of a succession planA declining market
82 Resources Smaller Consulting Section of SOA 600 Members, mostly pensionHelps independent actuaries get resources from SOAProvides training in presentations, etc.Small Business Association – sba.orgSCORE (Service Core of Retired Executives) – score.org
83 ProfessionalismSelf-employed actuaries need to understand and follow professionalism guidance issued by various actuarial bodies
84 Professionalism Revised Qualifications Standards Continuing Education Requirement for Professionalism TopicsProfessionalism Topics Incorporated into Actuarial MeetingsWeb-Based Professionalism PresentationsLife & Health Qualification SeminarContingencies Articles on Professionalism
85 US Hierarchy of Professional Stds Code of Professional ConductActuarial Standards of Practice (ASOPs)Applicability GuidelinesFor various tasks routinely performed by actuaries, which ASOPs normally applyOrganized by Specialty (Casualty, Health, Life, Pension)Practice NotesDiscussion Papers
86 Code of Professional Conduct Effective January 1, 2001Applies to all Academy MembersIdentifies responsibilities actuaries have to:The publicTheir clients and employersThe actuarial professionPractice Only When QualifiedDivided into various “Precepts”Full text at
87 Precept 1: Professional Integrity “An actuary shall act honestly, with integrity and competence, and in a manner to fulfill the profession’s responsibility to the public and to uphold the reputation of the actuarial profession.”
88 Precept 2: Qualification Standards “An Actuary shall perform actuarial services only when the Actuary is qualified to do so on the basis of basic and continuing education and experience, and only when the actuary satisfies applicable qualification standards.”Refer to “Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States”, effective January 1, 2008Can result in expulsion, suspension, reprimand
89 Precept 3: Standards of Practice “An Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy applicable standards of practice.”Homework: Read all current and proposed ASOPs at “http://www.actuarialstandardsboard.org/asops.asp”
90 Actuarial Standards of Practice (ASOPs) Provides Framework for performing actuarial assignmentsOffers guidance on relevant issues; captures acceptable practices, documentation, and disclosurePlenty of room for actuarial judgment; not narrowly prescriptive
91 Actuarial Standards of Practice (ASOPs) Most recent is #45: “The Use of Health Status Based Rish Adjustment Methodologies”Widely Applicable:#23 Data Quality#41 Actuarial CommunicationsExposure DraftsDiscussion Drafts (precede exposure drafts)
92 Precept 4: Communication and Disclosure “An Actuary who issues an Actuarial Communication shall take appropriate steps to ensure that the Actuarial Communication is clear and appropriate to the circumstances and its intended audience, and satisfies applicable standards of practice.”
93 Precept 5: Communication and Disclosure “An Actuary who issues an Actuarial Communication shall, as appropriate, identify the Principal(s) for whom the Actuarial Communication is issued and describe the capacity in which the Actuary serves.”
94 Precept 6: Communication and Disclosure “An Actuary shall make appropriate and timely disclosure to a present or prospective Principal of the sources of all direct and indirect material compensation that the Actuary or the Actuary’s firm has received, or may receive, from another party in relation to an assignment for which the Actuary has provided, or will provide, Actuarial Services for that Principal. The disclosure of sources of material compensation that the Actuary’s firm has received, or may receive, is limited to those sources known to, or reasonably ascertainable by, the Actuary.”
95 Precept 7: Conflict of Interest “An Actuary shall not knowingly perform Actuarial Services involving an actual or potential conflict of interest unless:(a) the Actuary’s ability to act fairly is unimpaired;(b) there has been disclosure of the conflict to all present and known prospective Principals whose interests would be affected by the conflict; and(c) all such Principals have expressly agreed to the performance of the Actuarial Services by the Actuary.”
96 Precept 8: Control of Work Product “An Actuary who performs Actuarial Services shall take reasonable steps to ensure that such services are not used to mislead other parties.”
97 Precept 9: Confidentiality “An Actuary shall not disclose to another party any Confidential Information unless authorized to do so by the Principal or required to do so by Law.”
98 Precept 10: Courtesy and Cooperation “An Actuary shall perform Actuarial Services with courtesy and professional respect and shall cooperate with others in the Principal’s interest.”
99 Precept 11: Advertising“An Actuary shall not engage in any advertising or business solicitation activities with respect to Actuarial Services that the Actuary knows or should know are false or misleading.”
100 Precept 12: Titles and Designations “An Actuary shall make use of membership titles and designations of a Recognized Actuarial Organization only in a manner that conforms to the practices authorized by that organization.”
101 Precept 13: Violations of the Code of Professional Conduct “An Actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary should consider discussing the situation with the other Actuary and attempt to resolve the apparent violation. If such discussion is not attempted or is not successful, the Actuary shall disclose such violation to the appropriate counseling and discipline body of the profession, except where the disclosure would be contrary to Law or would divulge Confidential Information.”
102 Precept 14: Violations of the Code of Professional Conduct “An Actuary shall respond promptly, truthfully, and fully to any request for information by, and cooperate fully with, an appropriate counseling and disciplinary body of the profession in connection with any disciplinary, counseling, or other proceeding of such body relating to the Code. The Actuary’s responsibility to respond shall be subject to applicable restrictions on Confidential Information and those imposed by Law.”
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