2. 1$1001 2$2002 3$3003 4$5004 6$2,0006 7$4,0007 8$8,0008 9$16,0009 11$50,00011 12$100,00012 13$250,00013 14$500,00014 5$1,0005 10$25,00010 15$1 Million15

3. Written A. Which of the following is NOT specifically identified as an Actuarial Communication in ASOP 41? Sign Language B. Oral C. Electronic D.

4. Capital A. According to ASOP 30 - Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, Cost of Capital can be expressed as a percentage of the following, EXCEPT: Assets B. Premium C. An Inappropriate Base D.

5. Capability A. According to Precept 1 of the Code of Conduct an actuary shall act honestly, with integrity and _[what]___? Consistency B. Competence C. Eagerness D.

6. The Actuary’s ability to act fairly is unimpaired A. According to Precept 7 of the Code of Professional Conduct, an Actuary shall not knowingly perform Actuarial Services involving an actual or apparent conflict of interest unless: There has been disclosure of the conflict to all affected principals B. All relevant Principals have expressly agreed to the performance of the Actuarial Services by the Actuary C. All three of the conditions in A, B, and C are met D.

7. Definitions of terms A. ASOP 1 explains the organization of the ASOPs. Which of these items would be found in Section 2? Scope B. Analysis of issues C. Recommended Practices D.

8. Relying on data supplied by others A. ASOP 23, Data Quality, is intended to give guidance in all of the following areas EXCEPT… Signing an Actuarial Opinion B. Reviewing Data C. Using Data D.

9. Commissions A. According to ASOP 30- Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, “Underwriting Expenses” include the following, EXCEPT: Other acquisition expenses B. Policyholder dividends C. Brokerage expenses D.

10. 41 A. Which ASOP’s primary purpose is to provide guidance with respect to Actuarial Communications? 20 B. 43 C. 1 D.

11. All Applicable Laws A. According to Precept 3 of the Code of Professional Conduct, an Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy which of the following? Applicable Financial Accounting Standards B. Applicable Standards of Practice C. Professional Judgment D.

12. Determine the appropriate use of model results. A. Determine that appropriate validation has occurred. Be an expert on the use of the model. Evaluate whether model is appropriate for project objective. D. According to ASOP 38, when selecting or using a catastrophe model, the actuary should do each of the following EXCEPT: B. C.

13. have a cause and effect relationship A. Which of the following is FALSE: When designing a risk classification system, the actuary should select risk characteristics that: are practical B. are capable of being objectively determined C. are related to expected outcomes D.

14. At the filling effective date A. According to ASOP 29: Expense Provisions in Property/Casualty Insurance Ratemaking, expense provisions should reflect the conditions present for which the following: When the policies are expected to be in effect B. During the experience period C. For the current period D.

15. Must Discuss A. Fill in the Blank: Precept 13 of the CAS Code of Professional Conduct says, an actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary ________ the situation with the other Actuary and attempt to resolve the apparent violation. Shall Discuss B. Might Consider Discussing C. Should Consider Discussing D.

16. Should Consider Disclosing A. Fill in the Blank: According to Precept 13 of the CAS Code of Professional Conduct if an actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary doesn’t resolve the violation with the other actuary, the Actuary___________ such violation to the appropriate counseling and discipline body of the profession, except where the disclosure would be contrary by Law or would divulge Confidential information. Shall Disclose B. May Consider Disclosing C. Is Encouraged To Disclose D.

17. Material limitations of the data A. When selecting data for analysis, which of the following considerations is NOT mentioned in ASOP 23, Data Quality? Whether the data are sufficiently current B. Cost of obtaining alternative data C. Auditability of the data D.

18. End of Game Instructions & answer slides follow

19. Written A. Sign Language B. Oral C. Electronic D. Which of the following is NOT specifically identified as an Actuarial Communication in ASOP 41?

20. Capital A. Assets B. Premium C. An Inappropriate Base D. According to ASOP 30 - Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, Cost of Capital can be expressed as a percentage of the following, EXCEPT:

21. Capability A. Consistency B. Competence C. Eagerness D. According to Precept 1 of the Code of Conduct an actuary shall act honestly, with integrity and _[what]___?

22. The Actuary’s ability to act fairly is unimpaired A. There has been disclosure of the conflict to all affected principals B. All relevant Principals have expressly agreed to the performance of the Actuarial Services by the Actuary C. All three of the conditions in A, B, and C are met D. According to Precept 7 of the Code of Professional Conduct, an Actuary shall not knowingly perform Actuarial Services involving an actual or apparent conflict of interest unless:

23. Definitions of terms A. ASOP 1 explains the organization of the ASOPs. Which of these items would be found in Section 2? Scope B. Analysis of issues C. Recommended Practices D.

24. Relying on data supplied by others A. ASOP 23, Data Quality, is intended to give guidance in all of the following areas EXCEPT… Signing an Actuarial Opinion B. Reviewing Data C. Using Data D.

25. Commissions A. Other acquisition expenses B. Policyholder dividends C. Brokerage expenses D. According to ASOP 30- Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, “Underwriting Expenses” include the following, EXCEPT :

26. 41 A. Which ASOP’s purpose is to provide guidance with respect to Actuarial Communications? 20 B. 43 C. 1 D.

27. All Applicable Laws A. Applicable Financial Accounting Standards B. Applicable Standards of Practice C. Professional Judgment D. According to Precept 3 of the Code of Professional Conduct, an Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy which of the following?

28. Determine the appropriate use of model results. A. Evaluate whether model is appropriate for project objective. D. According to ASOP 38, when selecting or using a catastrophe model, the actuary should do each of the following EXCEPT: Be an expert on the use of the model. Determine that appropriate validation has occurred. B. C.

29. have a cause and effect relationship A. are practical B. are capable of being objectively determined C. are related to expected outcomes D. Which of the following is FALSE: When designing a risk classification system, the actuary should select risk characteristics that:

30. At the filling effective date A. When the policies are expected to be in effect B. During the experience period C. For the current period D. According to ASOP 29: Expense Provisions in Property/Casualty Insurance Ratemaking, expense provisions should reflect the conditions present for which the following:

31. Must Discuss A. Shall Discuss B. Might Consider Discussing C. Should Consider Discussing D. Fill in the Blank: Precept 13 of the CAS Code of Professional Conduct says, an actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary ________ the situation with the other Actuary and attempt to resolve the apparent violation.

32. Should Consider Disclosing A. Shall Disclose B. May Consider Disclosing C. Is Encouraged To Disclose D. Fill in the Blank: According to Precept 13 of the CAS Code of Professional Conduct if an actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary doesn’t resolve the violation with the other actuary, the Actuary___________ such violation to the appropriate counseling and discipline body of the profession, except where the disclosure would be contrary by Law or would divulge Confidential information.

33. Material limitations of the data A. When selecting data for analysis, which of the following considerations is NOT mentioned in ASOP 23, Data Quality? Whether the data are sufficiently current B. Cost of obtaining alternative data C. Auditability of the data D.

34. 50-50 Lifeline Slides

35. Written A. Sign Language B. C.D. Which of the following is NOT specifically identified as an Actuarial Communication in ASOP 41?

36. A.B. Premium C. An Inappropriate Base D. According to ASOP 30 - Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, Cost of Capital can be expressed as a percentage of the following, EXCEPT:

37. A.B. Competence C. Eagerness D. According to Precept 1 of the Code of Conduct an actuary shall act honestly, with integrity and _[what]___?

38. The Actuary’s ability to act fairly is unimpaired A.B. C. All three of the conditions in A, B, and C are met D. According to Precept 7 of the Code of Professional Conduct, an Actuary shall not knowingly perform Actuarial Services involving an actual or apparent conflict of interest unless:

39. Definitions of terms A. ASOP 1 explains the organization of the ASOPs. Which of these items would be found in Section 2? B. C. Recommended Practices D.

40. A. Signing an Actuarial Opinion B. Reviewing Data C.D. ASOP 23, Data Quality, is intended to give guidance in all of the following areas EXCEPT…

41. Commissions A.B. Policyholder dividends C.D. According to ASOP 30- Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, “Underwriting Expenses” include the following, EXCEPT :

42. 41 A. Which ASOP’s purpose is to provide guidance with respect to Actuarial Communications? B. 43 C.D.

43. A.B. Applicable Standards of Practice C. Professional Judgment D. According to Precept 3 of the Code of Professional Conduct, an Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy which of the following?

44. A. Determine that appropriate validation has occurred. B. Be an expert on the use of the model. C.D. According to ASOP 38, when selecting or using a catastrophe model, the actuary should do each of the following EXCEPT:

45. have a cause and effect relationship A. are practical B. C.D. Which of the following is FALSE: When designing a risk classification system, the actuary should select risk characteristics that:

46. A. When the policies are expected to be in effect B. C. For the current period D. According to ASOP 29: Expense Provisions in Property/Casualty Insurance Ratemaking, expense provisions should reflect the conditions present for which the following:

47. Must Discuss A.B. C. Should Consider Discussing D. Fill in the Blank: Precept 13 of the CAS Code of Professional Conduct says, an actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary ________ the situation with the other Actuary and attempt to resolve the apparent violation.

48. Should Consider Disclosing A. Shall Disclose B. C.D. Fill in the Blank: According to Precept 13 of the CAS Code of Professional Conduct if an actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary doesn’t resolve the violation with the other actuary, the Actuary___________ such violation to the appropriate counseling and discipline body of the profession, except where the disclosure would be contrary by Law or would divulge Confidential information.

49. A.B. Cost of obtaining alternative data C. Auditability of the data D. When selecting data for analysis, which of the following considerations is NOT mentioned in ASOP 23, Data Quality?

50. $100

51. $200

52. $300

53. $500

54. $1,000

55. $2,000

56. $4,000

57. $8,000

58. $16,000

59. $25,000

60. $50,000

61. $100,000

62. $250,000

63. $500,000

64. $1 Million

65. 30 29 28 27 26 25 2423222120191817161514131211109876 5 4 3 2 1 0

66. 66 Professional Guidance ASOP 41 Actuarial Communications –All types of Actuarial work – not just P&C Written, Electronic, or Oral Communications Provides guidance for the appropriate form and content that should be included - depending on circumstances and audience Discusses timelines and reliance on others

67. 67 Professional Guidance Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking 3.8 Use of Different Bases –The cost of capital can be expressed as a percentage of capital, a percentage of assets, a percentage of premium, or other appropriate base. –The actuary may choose any such appropriate base. –Actuaries may use different bases, which can be converted from one to another. –Regardless of which base is used to reflect the cost of capital, the actuary should clearly identify the base used and should document the relevant assumptions.

68. Professional Guidance Precept 1 of the Code of Conduct: 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. –Annotation 1-1 -- An Actuary shall perform Actuarial Services with skill and care. 68

69. 69 Professional Guidance Code of Conduct Precept 7 –An Actuary shall not knowingly perform Actuarial Services involving an actual or potential conflict of interest. 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.

70. 70 Professional Guidance ASOP 1: INTRODUCTORY ACTUARIAL STANDARD OF PRACTICE –This Introductory ASOP sets forth principles that have been broadly applicable to the work of the ASB since its inception, and carries the same weight and authority as other ASOPs. Section 1. Overview Section 2. Definitions, Discussions, and Related Guidance –Each ASOP includes a list of definitions of certain terms used within it. –Those terms are defined only for use in that particular ASOP, and the definitions can and do differ among ASOPs. –Definitions and discussions included in this Introductory ASOP are intended to apply to ALL other ASOPs if the term is used in such ASOPs, unless the ASOP includes a specific definition of the term. Section 3. Purpose and Format of Actuarial Standards of Practice Section 4. Compliance with ASOPs

71. 71 Professional Guidance: ASOP#23: Data Quality ► Guidance for the following –Selecting data that underlie the work product –Relying on data supplied by others –Reviewing data –Using data –Making appropriate disclosures regarding data quality ► All practice areas – not just P&C ► Does not require data audit

72. Professional Guidance ASOP 30 Treatment of Profit and Contingency –2.13 Underwriting expenses - All expenses except losses, loss adjustment expenses, investment expenses, policyholder dividends, and income taxes. –2.14 Underwriting profit - Premiums less losses, loss adjustment expenses, underwriting expenses, and policyholder dividends. –2.15 Underwriting profit provision - The provision for underwriting profit in the actuarially developed rate, typically expressed as a percentage of the rate. –2.10 Operating profit - The sum of underwriting profit, miscellaneous (non-investment) income from insurance operations, and investment income from insurance operations. Associated income taxes are recognized when the analysis is on a post-tax basis.

73. 73 Professional Guidance ASOP 41 – Actuarial Communication –This standard applies to actuaries issuing actuarial communications within any practice area. –This standard provides guidance for preparing actuarial communications, including those that may be required by the Qualification Standards or by other ASOPs to the extent it is not inconsistent with such other guidance. –The actuary should comply with the guidance in this standard to the extent not prohibited by applicable law, regulation, or standard. –If the actuary departs from the guidance in this standard in order to comply with applicable law or for any other reason, the actuary should refer to section 4 of this ASOP regarding deviation.

74. Professional Guidance An Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy applicable standards of practice” Precept 3 of the Code of Conduct: “An Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy applicable standards of practice”

75. 75 Professional Guidance ASOP 38 – Use of Catastrophe Models In performing actuarial services, an actuary may find it appropriate to select and use catastrophe models. When selecting or using such a model, the actuary should: –determine the appropriate level of reliance on experts; –have a basic understanding of the catastrophe model; –evaluate whether the catastrophe model is appropriate for the project’s objective; –determine that appropriate validation has occurred; and –determine the appropriate use of the catastrophe model and its results.

76. Professional Guidance ASOP 12: Risk Classification –2.6 PracticalRealistic in approach, given the purpose, nature, and scope of the assignment and any constraints, including cost and time considerations. 76

77. Professional Guidance ASOP 12: Risk Classification Considerations –3.2.1 Relationship of Risk Characteristics and Expected Outcomes –3.2.2 Causality While the actuary should select risk characteristics that are related to expected outcomes, it is not necessary for the actuary to establish a cause and effect relationship between the risk characteristic and expected outcome in order to use a specific risk characteristic. 77

78. Professional Guidance ASOP 12: Risk Classification Considerations –3.2.3 Objectivity The actuary should select risk characteristics that are capable of being objectively determined. A risk characteristic is objectively determinable if it is based on readily verifiable observable facts that cannot be easily manipulated. –3.2.4 Practicality The actuary’s selection of a risk characteristic should reflect the tradeoffs between practical and other relevant considerations. 78

79. 79 Professional Guidance ASOP 29: Expense Provisions in Property/Casualty Insurance Ratemaking –Section 3.2: Expense provisions should reflect the conditions expected during the time these policies or coverages are expected to be in effect and should include all expenses expected to be incurred in connection with the transfer of risk.

80. Professional Guidance PRECEPT 13. An Actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary should consider discussing with the other Actuary. If not attempted or not successful, the Actuary shall disclose such violation to the ABCD (unless contrary to Law or would divulge Confidential Information.) –ANNOTATION 13-1. A violation of the Code is deemed to be material if it is important or affects the outcome of a situation. 80

81. 81 Professional Guidance: ASOP#23: Data Quality Select the data with due consideration of the following: 1. appropriateness for the intended purpose of the analysis, including whether the data are sufficiently current; 2. reasonableness and comprehensiveness of the necessary data elements, with particular attention to internal and external consistency; 3. any known, material limitations of the data; 4. the cost and feasibility of obtaining alternative data, including the ability to obtain the information in a reasonable time frame; 5. the benefit to be gained from an alternative data set or data source as balanced against its availability and the time and cost to collect and compile it; and 6. sampling methods, if used to collect the data.

82. “Who Wants To Be A Millionaire” Powerpoint (Advanced) Template Designed and Created by Jeff White jcteacher@yahoo.com Copyright © 2000 Version 2.1 - Last updated 20 June, 2001 The graphics and sounds used in this template are recorded from the television show “Who Wants To Be A Millionaire,” and were obtained from both the ABC “WWTBAM” website and theABC “WWTBAM” website ITV “WWTBAM” website.ITV “WWTBAM” website ABCABC is the American Broadcasting Corporation; ITV is the Channel 3 (UK) broadcasting company.ITV Visit http://www.geocities.com/jcteacher/tech/ for updated versions!http://www.geocities.com/jcteacher/tech/