AmericanAcademy

Or Actuaries

eAMERICAN ACADEMY of ACTUARIES

1100 Seventeenth Street NWSeventh Floor

Washington, DC 20036Telephone 202 223 8196Facsimile 202 872 1948www.actuary .org

Table of ContentsBoard of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Academy Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Academy Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Actuarial Board for Counseling and Discipline . . . . . . . . . . . . . . . . . . . . . 32Actuarial Standards Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Past Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Jarvis Farley Service Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Robert J. Myers Public Service Award . . . . . . . . . . . . . . . . . . . . . . . . . 40History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41Strategic Plan 1998-2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Statement of Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62Code of Professional Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Professional Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Committee Appointment Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70Guidelines for Making Public Statements . . . . . . . . . . . . . . . . . . . . . . . . 71Guidelines for the Development of Practice Notes . . . . . . . . . . . . . . . . . . .77Use of Academy Titles and Designations . . . . . . . . . . . . . . . . . . . . . . . . .79Working Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87Application for Admission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .09Prescribed Examinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90Actuarial Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91Actuarial Clubs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Board and Committee Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100Meetings Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

AcademyBoard of Directors

Richard 5 RobertsonPrz:+nfrut111(11

Robert A Ankcr

T'I,r III i'+ldell1,

(,,Vilify) 11I 111

Kenrxth A Stclnerf we Pr °+rJL'llt, Prll'loll

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Jai A LM,nm elclull

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6 ANTI R I L\ N A CAP IN" 1 I I \( III A IT I E S

Peter L 1'erkim Carol R. Sears, Michael L Ttutthman

31 H IU 1999 ?(III( I

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l rats tndt.atr th scat that dirccturs' terms e~ptre

-dime, E. Tutput?11111

William C. Weller

?I1t1I

19 ) 1) ) I ARRt)0K 7

Richard C LawsonLAecuru•c Ducctoi

_l oanne B AndersonDircctol of hIJI' icr

and .iduliui rruriorr

Ken Krchhicl

Dirccrol Of C(ViIFAIMI(d(hUr'

Lauren M. Bloom( t•iioral Couu cl

Mary E CadetLe

Din-k)?

titalldardL Pr(,,g ram

John H TroutDuctbol of Public Polup

8 ANiFRICA \ ACA1LMY 0 E ACTUARIES

Academy StiffRichard C 1 awson (337)

Exeattme Duectar

Dwight K Bartlett 111 (877)Sersror Health Fellow,

Ron Gebhardtsbauer (868)Senior Pcn±ion 1~'e11nu,

Joanne B Anderson (858)Duccror of Firra,io attd .ldtntinr tiahott

Lauren M Bloom (R61)Genentl Corntsel

Mary E Cadrrre (854)Dne rot (if lue Srandaids Pn'V,un

Tina Y_C Chang (879)S ) stern -Issruant

Carer Clark (853)6,I taiia[/Adtrnnutraurr .l scstant, StmrdLrrds

Kathleen M Clark-Bland (856)Staff .-icrncnrant

Kasha Dunias (883)idmun . natu c . icsutarrr, Priblrr Pahr),

Doreen M Esain (859)Evccutme Ao,istant

Thomas C Griffin (860)staff--lrrornc)•

Lee Jernst.idt (883)Assistant Editor, Contingencies

Alisori Ko(t (866)N11c), . Inal} r

Anne M Kutchek (855)Standards Editor

Ken Krehbiel (867)1)nrdoi of Comnmutnrtrons

Eleni Manthos (878)1lretm,'c Coordinator

Danuen M MiAirdrew•s (88i 1)Poll'), Acnu!y t

Alberta OSUCl1uk M u (857)Auourtnrrti arid ldmrrr,tiatrr•c .`lcsrst, Fi t

Lisa Palladino (8(84)%fociCnri /Produdron Edtt( c

Earl Proctor (884)ldrnrnr aanre .li .utnit, Public P" hr),

David F. Riveia (86-))Policy .lnal)•ct

Alicia Ross (830)RrapnoruL t

Renee Saunders (S71)11l°huiastrr and .1larcater of Publicationsand Craplar l7ecrjni

Jeffrey P Speicher (87i 1)1Girn(~er of .llydia Rrlations

Steven F Sullis an (874)Editor, Contnigencies

LiShawn Taylor (88I).ldnumctnitmc .ls .cuaiit, Cannrrurrrcahcrr:

John H Trout (863)Drcrdor of Prrhlir Policy

Gieg Vass (865)Pohrc) Analyst

Tom Wilder (875).l>outaru Durclor of Hca ltlt Policy

Rata Ho$inan Winkel (8h?)Olrfcc Maim {cec

Academy Web site: www.actuary.orgStaff e-mail addresses : Mast name] Ca actuary . org

Membership AdministrationSusan C Steinbach, .llcnrberslnp MactaV

475 North Martingale Road, Suite $01) . Schaumbuig, IL 08173

Telephone 847 7i 16 3513 Facsimile 847 71 6 359`)

Telephone extensions appear in parentheses next to staff member ' s name .

1 `)9•i YEARBOOK 9

Academy CommitteesAcadeniy curniruttecs and task forces are appointed annually, the periodrunning from the c l(-),,(- of one annual meeting to the opening of the next .

Executive CommitteeBetsveen meetmys of the Board of] )rectors, this romnuttee oversees the opera-tinns of the Academy and particularh its Councils This committee has the ;antepowers as the Bo .ud except for those listed m Article IV of the bvlasss_ TheL\ecutlve Committee des chops Acadcmv policy subject to Board approval andmakes recommendations to the Board rz ;;,rrding buy{get, policy ,rid othQrrmpurtalit issues

Richard S RobertsonPle'Idetit

Stephen l&. KernPo .ident-Elect

James F RcrskyrlSerictai p- ric°miru•i

Aliut M. KaufmanJii iucdia tu Patl Pctakni

Robert A AnkerI'ii' Petiderrl, Casualtl,

Lawrence A lohansenI'we Pic~idurr, Tniaut l Repornni

] )antel J Mc Car theI 'wk . Prcoidc rat, Pin/rs inrralitin

James J Murphy17,e President, Hralrli

Kenneth A SteinerI we Ptc'sidc'irt, Perurnrr

Robert E WilroxI i e Prr,rdort, Li/r

SratJ'Liauon Richard C Lass son

Review CommitteeThis com mittcc reviews Academy statements for consistency with theAcademy mission and established policy and reports to the 13u .ud of 1)nectorsas needed, but at ]east annually

Edssin C. Hustead, Charrla•ronnLnida L Bell Joan F Henlian

Stall iaison John H Trout

1a A M I R I L A N A C 1 P E AS Y 0 E A (_ I U A R[ E S

President's Advisory CommitteeThis coiiuiiittee oyeisees Academy managenienr and prepares re~omnienda-tious for the E\eiLihye Conunittee on policy r .,ues

Ricliaid S Kobertson, Chaii ; i 'n

Allan M Kaufman Stephen R l:ern

StrafeLauen Richard C Lawson

Nominating CommitteeThis conimittee nonunates a slate of candidates for the Board of I )irectors forpresentation it the annual meeting and nominates a late of candidates forAcademy ofticcrs for presentation to the Board of Directors

Larry Ziniplenian, C,Iuutpci,oii

Allan M Kaufinan, I ice Chaupcaoaai

A Norman Crowder Ill -John P_ ParksAlice H Cannon Richard S Robertson

Stephen K. Kein Michael L Toothnian

StaffLiaucitr Richard C Lawson

Litigation Review CommitteeThis coniiitittce provides broad-based oversight of briefs the Acadeniy submitsas aimcin cur tae to ensure that the subject matter is appropriate for Academti•comment, that statements contained therein do not contradict Acadeniy, posi-tions and that the briefs have been piepared in accordance with Acadcniyguidelines It authorises submission of the briefs to the appropriate courts

Richard S Robertson, Ch,ntlica oftRobert A Anker James J Murphy

Lawrence A Johansen Kenneth A SteinerDaniel J MCCarthy Robert E Wilcox

Stall L,ioi'rr . Lauren M Bloom

Task Force on State and Local StrategiesThis task force is responsible for implementing a pilot program in selectedstates to increase the influence of the Academy and the actuarial profession onthe development of significant public policy i n selected states The task forceidentities darabase needs, ground tales fur the relationship between theAcademy, and the state or local entity, resources tecluired and linkages to thepractice councils The task force reports plans and progress to the LiecutiscCommittee, manages the process of interactin" ssith state and local publicpolicy audiences and proposes expansion ind redirection of resourcec basedon experience with the pilot programs Initially these developing strategiesswill he implemented ssith expanded volunteer involvement and existing staff

]sg17 Z EARIic) c)K 11

Janie, F Rciskytl, .Sturrary-'I ',surer

Budget and Finance CommitteeThis somnnttee prepares financial projecrion, and the annual budget . and ret-onuneuds the dues structure to the Board of Ihrectois . It ako develops andmaintains the investment policy for Academy funds . such policy to be imple-mented by the Secretary-'I reasurei .

James I- Reiskvth Chanpcrsarr

Lawrence A. Johansen James R . Swenson

Pettr L Perkins

State Liaison Joanne B Anderson

Communications Review CommitteeThis Acadcnir Committee, which reports to the Set ret .uy/Treasurcr ischarged with reviessing all Academy cunuiiunications It provides broadoversight of all Academy external curnrnruucations and publications intendedfor Academy members and other audiences The cunnnittee assesses thetinieli ess and effectii, eness of Academy coiriniuincations It reviewsAcademy-only couumimcanons etIorts and communications programs Con-ductedjoint1v with ocher or, mizations representing actuaries . Its tutus is oncomniunicahon toolsk audiences and the soles of staff and volunteers, ratherthan on technical content of communications .

Patrick j Grannan . Chanpcr,orr

Michael M Briunstcin Julia T PhilipsLeon R Gottlieb Thonias F WildsmithEdwin C Hustead

Staff Lrarcirrr Ken Krehbiel . Jcfrev P . Speicher

Committee on PublicationsThis committee provides policy direction and guidance for Acadeiin pubhc .inons

Julia T Philips, Chauperaorr

Editorial Advisory Board for ContingenciesThis board provides polic y guidance. technical review and oversight to staffeditors in the production of Coutru,t isles, the magazine of the actuarial profes-sion

Julia T Philips, ChaiipctsenRobert A Anker Fredenck W KilboumcDwight K Bartlett III Richard S RobertsonJames C Hi( knian Bruce D Schobel

Department LdrtcisArthur W Anderson Yvcs G GuerardThonias L Bakos W . Keith SloanAlan Goldberg

Staft Liaison Ken Krehbiel, Steven F Sullivan

12 AMr ItICAts ACADE5I' 0 f ACTUAItI is

The Actuarial UpdateAdam Renee, burr,

'Is,o,iatc 6ditnoWilliam Carroll Patnck j Grannan

Ron Gehhardtsbauer

Enrolled Actuaries ReportLifitor~

Voice Amoioso Adnen R LaBoutbarde

John W Attendg Lawrence J Slier

Ron Gehhardtsbauer Janies E . Tuipin

James A Kcnney

Staff Liaison Lisa Palladino, Jeffrey I' Speicher

Committee on MembershipThis comnuttce is responsible for ongoing relations ssitli existing and prospectiveAcademy members It periodically reviews Acadenry mcmhcrship and dues policiesand recommends changes to the Board of Directors and Executive C'omnuttee Infulfilling its charges, the conmuttee is to ensure that member affiliations and new-member recruitment activities aie included as a vital part of the Academy coiumuni-c ations plan

Peter i Perkins, Clraiipr'o,nr

Patrick j Grannan Joseph Pctrelh

Sam Guttcrman Roger Schultz

Allan M Kaufinan Larry Ziinpleurau

Mary Frances Miller

Stall Liaison Ken Krehbiel, Susan C Steinbach

Committee on TechnologyI his committee is charged v, ith identifying and assessing the feasibility of providing, viaelectronic means, existing and new information and/or services to Aeideniy member-ship and others in support of the Academy's mission The committee works to ensurteffective use of the Aeadenis Web site, electronic snail and member database It alsoensures proper coordination with other organizations representing actuaries Ratherthan set policies for editorial content, the coriumttce provides means to ensure that sys-tems function properly on various platforms Finally, it provides guidance and oversighton information systems needs within the Academr_

Peter A_ Berry, ( :Jrarrpc•rs,7ii

George N Berry John P Parks

Scat] Liaison Tina Y C Chang, Renee Saunders

1°ii YEARlOOK 13

Personnel and Compensation CommitteeThis Comrnrrtee of the Board of lln-ectors provides broad-based policy oversight of theAcademy's personnel function, including both direct and indirect compensation ThisCommittee develop ., monitors and maintains the Acadrmv's policies turttenring com-pensation and personnel ssith input from the President's Actsisory Committee and exec-utive staff The Personnel and Compensation Coiumittce has the responsibility to ensurethat the Ac .idenis's personnel polities and programs comply ssith ill applicable laves andregulations The Personnel and Couipcnsation Committee reports to the Board at leastannually

James F . Reisky'tl, Clrairpcin ii

Allan M Kaufinan Robert E WilcoxJames E, Turpni

tread Lrarairu Rich i d C . Lass soii

Task Force on Strategy for Marketing the ProfessionThe Task Force on Strategs fur Marketing the Profession is charged with developing along terns strategic approach for marketing the profession to future users of actuarialservices to strategically position and strengthen the actuarial profession well into thttirture_ The task force considers the niissrnns of the other organizations representingactuaries and their ictivities in order to snake optimal use of existing of orts. Throughthe Academy, it coordinates its work with any related iitarketuig, membership andcoitarnuuicatiuns initiatives of the other organizations representing actuaries .

.Staff / aar ,oii Ken Krehbiel , Jeffrey P Speicher

Task Force on Developing Non-Dues RevenueThis task force is chirged with exploring and suggesting non-dues revenue streams forthe Academy It reviews existing non-dries rev enue services and recommended pricingof these existing services The task force also considers and ieconiniends specific aArvn-ties to support the Academe's strategic mission, strengthen its affinity and identity withmembers and generate operating revenue uidependent ofinenmher dues

James F 1Zeiskyrl. C,harrperserrStaff Lrarson Joanne B Anderson

14 AAA FR(CAN ACADEMY 0 F ACTUARIt1

Lm mice A lohan,en, i'i,c I'rrodrrrtWilliam t' Weller, T-rii Chunlurwii

David (, HartmanFrank S IrishLeonard KolonisMiihacl C McCartcr

Bruce iMooreDonna C NovakDennis M . PolisnerJanies F Reiskytl

E dsi and L Bobbinsi )onald L Sannin};Shirley ShaoSusan T Szkodajanc TaylorPatricia A Teufel

Tames F VerlautzRobert E . Wilco\

Staff Lr 7r$on Alisrni Kocz

Task Force on Banking and Financial ServicesThis task fiiice s as formed to analyze and respond to legislative and regulato-ry initiatives and investigate issues of interest to the actuarial profession in thebanking and financial senues area '1 lie task force is also empowered to actas a liaison to public polio) iitakers, the legal . Business and financial commu-nities' Insurance industry rcprescutanves ; and other organizations ss it}i an

interest in banking and financial issues

Donald E Sanning, ("11,11 yei Soil

Michael _i Akers Frederick (1 KistMark E Fichrink Steven 1) LashRobert G Franca James /_ Murphy

titan Lais on Alison Kocz

Joint Task Force on Risk-Based CapitalThis task force is responsible for coordinating the activities of the Academy

regarding health life, and property and casualty risk-based capital formulas

and liquidity All three Academy risk-based capital task forces are represented

on this task force, which provides reports to the NAIC Risk-Based Capital

Task ForceDonna C Novak , Chaupei~on

Ralph S Blan (_ liard III Cande J. OlsenRobert A Brown Willi am C WellerBurton I) Jay Michael L Zurcher

Robert S Kaplan

.StaffI iaw 'o Alrson Kocz

199') YEARBOOK 15

Task Force on International Insurance AccountingThis task force participates ui the International Actuarial Atiwciation's mterac-tlons . kith the International Accounting Standards Committee ssrth respect toinsurance matters

Bruce Moore,

Edward J Bunach Richard S RobertsonDaniel J Kunesh Patricia TeufelCynthia S Miller

Stafj Liaunii L.uireri M Bloom

Task Force on International Pension AccountingThis task force participates in the International Actuarial Association's interac-tions with the International Accounting Standards Committee with respect topension matters .

Dennis M Polisner, CJhaiija•r oii

Judith E Latta Lawrence j SherWindy Fliz.iheth McFee

Staff Liaison : Lauren M Bloom

Valuation Task ForceThis task force is responsible fair developing a new approach to actuarial valua-tion of resources and obligations of insurance entities This work ie nn responseto requests from the National Association of Instnauce Coninussioners

Robert E Wilcox, CharrpeooiiCraig R Raymond, rite Chairperson

Arnold A. Dicke Wayne V . RobertsJudith A. Discenza Walter S RuglandNorman E Hill Donald E SinningBurton I) Jay Shirley ShaoFrederick 0. Kist Michael L 'I oothmanLconaid koloms William C . WellerBarbara J. Lautzenheiser Robert A Anker (c , of/itro)David W_ Libhey T awrence A. Johansen (~tt ofjic-ro)Fd..-aid L Bobbins James J Murphy (ex off (w)

Staff Liaison Alison Kocz. Lauren M, Bloom

16 AMERICAN ACADEMY OF ACTUARIES

1Lobert A Ankcr, i icc PiCodfRt

Michael L I nnthnian , I'rc (alwo )cisotr

Phillip N Bcn-ZviRalph S. Blanchard IIIAlice H . CannonRobert A GiauihoRichard I FeinFrederick 0 Kist

Sm Larcan

Michael A . L.iMomcaSteven G LehmannRichard J Roth JrPatncia A . TeufclMavis A• W alteisThomas V. Warthen III

Greg Vass

Committee on Property and Liability Financial ReportingThis committee monitors activities reg.irding finaiicial reporting related toproperty and liability risks, reviews proposals made by various organizationsa$ectirig the actuarial aspects of financial reporting and auditing issues relatedto property and liability risks, and evaluates property and Iiihility insuranceand self-insurance accounting issues

Patncia A Teufel, C_'lnnrpu±orr

Andrea M. Ssvecncv, I'rcr Chartper,oit

Betty H BarrowJoseph A HerhersChrrsty 1 . HuwaidGary R JosephsouGerald S KirschnerMichael l) LarsenElise C_ LiehersDaniel K LyonsJay B Morrow

Donna S MumDavid S PowellSheldon RosenbergRichard U SchugLtucla A ShepherdLisa A SlotzniLkTherese M Vaughn

James C VottaRobert H_ Wainscott

Staf{Lmrsorr• Greg Vass

Committee on Property and Liability IssuesThis contnuttt:e monitors legislative and regulatory activities in the propertyand liability area . excluding financial reporting It prepares statements onproperty and liahility issues fin suhriussion to the public and pnv.ite sectors

Frederick C) Kist, Ch iuprtnnri

Raja BhagavarulaRichard I FcinWayne H_ FisherJames 1), HuileyMichael J Miller

titaf Liaison

Evelsn Muldertine M. i,)nufer

James Surr•igoWalter C Wright III

Greg V .iss

I LDq) 1 FAR BOOK 17

Committee on Property and Casualty Risk-Based CapitalThis c minittLC works primarily with the N,monal Association of Insiirancc(,onnnissumers Ar the icyuest of the NAIL, the conuuittct analyzes issuesul concern to the NAiC"s 1(isk-lla,ed Capital Working ; Group and I askForce and provides reconiniendatious on «av°s to clarity and improve therisk-based capital formulas

Ralph S Blanchard III, ChanpuseiiRobert P 13ustic I )aniel K LyonsPatricia burst Michael G McCarterZanies 1, ( ;olzJames L) HurlerRobert S Kaplan(;ciald S KirschucrGrctioiy L Leonard

Statt Liaison,

Matthew C MosherPiakash Naiayan1)onald K RaineyF Daniel Thomas

Greg Vass

Joint Program Committee for the Casualty Loss Reserve SeminarThis committee develops the program for the Casualty Loss Reserve Sem in .rr,cosponsored b\ the Academy, the Casualty Actuarial Society and theCuriferentc of Consulting Actu rocs

Thomas V W.irthcn [I [, ChanpirIenJohn R. Kryczka, I S, , t haijpci~air

Guy A Avagliano Alexander KrutnvJeff R Carbon Marc-Andre LetibvieElizabeth B Depaolo John J. Less anduss skiDavid A fokey Matthew C MosherLeon R, (attlieh Chcster 1 . SzczepanskiAaron Halpert

Staff Lr ,wwui Greg V iss

Task Force on Insurance SecuritizationThis task force works primarily with the National Association of InsuranceCommissioners At the request of the NAIL, the task force analyzes issues ofconcern to the NAIC's Insurance Secuntizanon Working Group and providesrcconimendations on existing indices and the use and correlation of indices

Frederick () Kist, Charrperuoir

James M 13artie Glenn MyersStephen E Ccrinch Stephen W PhilhrickWilliam F Dose Judy Pool1)ivid A Lalonde Chris M SuchaiDamcl K Lyons Kirby A Wisian

Staff Liai,nri- GrrL, Vass

18 AM 11ICr1 \ A C A D I M) 0 i A C T U A lt i s

fame, 1 Murphy, i'ice McmdcritDonna C : . Nos-ak, I JO ( :Garihinorr

Alfred A Binghani lrWilh.un F 13luhntCtul D BykerkJanet MAlan l) FordRichard S . FosterP Anthony HaniniondJoan E Herman)ennis Hulet

Burton 1)- JasRUL.nld E . (Guy) King1)arrellI) Knapp

,State Liarcori

1 crm .ird KolonisPeter L PerkmsJulia T_ PhilipsAlice I .oscnhlattGeoffres C . Sandltrfolio 1 SchubertMichael J ThompsonGeotge WagonerWilliam C WellerRohcrt E Wiko\Thomas F Wildsnuth

Tone Wilder

Senior Health Fellow1)w ight K . Bartlett III

The Academy establislied the senior health fellow program m 1'1'111 totree then the public policy tale of health actuaries III coordination with theHealth Practice Council, the senior health bellow provides independent actu-arial e'perrise to health policy maker, at both federal and state levels . He

deselops and maintains close ssoikting relationships with member and staff ofcougresstottal connuittee,, etectitive branch ntlielals and state insurance iegli-lators The senior health felloss also act, a, the Acadeniy's chief spokespersonon health poL v' issues to the news media and other erteioal audiences

Committee on Federal Health RelationshipsThis committee furthers the actuarial profesvon's involvement iii puhmr issuesrelated to the design cost um l tui .uicing of the nation's health came The runi-mmttee nuimton federal legnslatise and regulatory activities III the health arenaand prepares congressional testimony, position papers and other public state-ments on kty health issues In addition, the committee meets formalh andmtormalls ss ith senior federal health policy makers and their staffs

Geoffrey C Sandier, Clramrper ;niiJohn j Sehubert, I ice CIi ompet~ou

Alfred A Biughani Jr, l) .nvid A . Shed JrStephen 1) Brink Jill StockaictAlan I)_ Ford I larry SutronDonato Gasparro Michael J ThompsonDonna C . Novak Thomas F WtldsnuthMichael Ringuette

Staff Lrarsnri Tom Wilder

1 °i)" Yt \R 10 (iK 19

Committee on State Health RelationshipsThis coriiiriittee lurthers the i(tuanal protrssion's n Ivenient in polo \' issue,related to state iegul.uion of health insurance and other health actuarial issue, atthe stare level The cuninuttec ssorks prunanly through interstate associationssuch as the National Association of Insurance C :umnusvoners but also pros idesassistance directly to states when app]oprnatc• The ennunittee eoordinates close-ly ss ith the Federal Health Coi nnittee to ensure appropriate Academy involve-ment iii health-related IssucS at All levels of government

Donna C . Novak, Chnnpcr_,onWilliam C Wcller, I Ice (:hair elsorr

Mike AbroeLinda C BallKaren BenderC Nick BieterVincent Bodnar

William J Bugg IrBob CuniniingAlan D Ford

Tim GustafsonPaul JaiiucBurton L) Jay

Dasid L Ken1)arrell D Knapp

Staff Lan iii

Stephen E LippaiRobert G_ MeilanderBarley L Munsonlames J MuiphyAhvy'n PowellJ. Franklin RoseGeoffrey C SandlerFric StallardJohn StarkThomas J StoiberGordon TtapnellThomas F WildsnirthRobert K W Yet-

Tom Wilder

Task Force on Health Organizations Risk-Based CapitalThis task tierce works prim arily with the National Association of insuranceConnui,sioncrs (NAIC) At the request of the NAIC, nit task force analyzesIssues of Concern to the NAIC:'s Risk-Based Capital Working Group amidTask Force and provides reconimendatinns on ss ay°s to clarify and improve

the ask-based capital formulas .

Bun ton 1) . Jas , CluiirlirrsenI inda C BallMark F BartorclliC Nick BreterVincent BodnarAlan D FordDavid KerrDarrell D KnappLeonard KolomsRobert G Mcilander

staff Lini,urt

Scott R MunseDonna C NovakJulia T PhillipsJ Franklin RoseJohn StarkThomas J StoiberHarry L SuttonWilliam C WelleiRobert E Wilcox

Tone Wilder

20 AMLItICi,N ACADEMY 0 I ACIII ARIIS

Task Force on Long-term CareThis task h» cc addiesses acm,rnal Issue, affecting loner tenii-care plan, It moni-tors and continents on developments in this area at both the federal and stare lev-els .old works ss Ith regulator, and poll( v makers to assist in developing publicpolicies in conuecuun ssitll tong-term-(are insurance policies In hultillmg itscharge, the task force inaintains liaison ssith the National Association ofInsurance Comnussionels and other appropriate entities .

Eric Stallard, C/soipelwnVuirnit L Boduar Bartley I Munsoii

Tim C ustafson Al} svn V Poss ellI oretta jacobs Bruce StahlPaul lanus Gordon TrapoellWalter Liptak Robeit KM Yee

Stag Liar. ore . Tons Wilder

Medicare Steering CommitteeThis committee provides an oversight role for task forces and work groupsestablished to address Medicare reform initiatives on behalf of the HealthPractice Council

Thomas l- . Wildsmrth, Clr(uip(°rsorrAlan D. Ford Julia T. PhilipsDemos Hulet Geoffrey C SandlerRoland E (Guv) King Michael T ThompsonJames - Murphy George WagontrDonna C Nosak

StatfLraisaii Tom Wilder

Task Force on Expanding Choice for Medicare BeneficiariesThis task uric ssi11 e\alnrne the nupheations of Medicare reform proposals asthe-, relate to Medicare , its beneficiaries and the prlvdte sector The tasktierce will pay particular attention to Medicare Risk. HNMO, point of-serviceand Medicare Supplement plans . In evaluating the cost iniplicatiorns of theproposals , the task force will use the models developed by the Medicare CostSayings Task Force. The task biro( sill also he a resource to other Medicareefforts tinder the Health Practice Council

Mich iel J Thonipson , Chnrr~iers ire

P Anthony HanmiondTimothy F HarrisBrian l MuoieSusan C MurisatoDonna C Novak])oil E Peunes

St.ijt Li a ic,oi

Kevin ReaseDavid Sky.Jill StockardSheree SssanionMike SydlaskeTony Wittmann

Ton, Wilder

1 0 "'a Y E A R B O1, 21

Task Force on Medicare Cost SavingsThis cask force trill prone tit el ) e\atiuue the iiiipact OF various options fuiproviding savings to the Medicare prograni These options will include p .o-nent nicehanisms , t tnditig acid piograni hcnefit packages This w ork will bedocumented in a niouugraph on short- and Lint' term options f6i financin g

the Medicate pio_rram into the 1st centurylleniiis Huh t , Caraiipo en

David F Kerr John I Sehuhert

Walter T Liptak Mike Sy dlaske

Donna C Novak Thomas F W ildsmith

Sraf Liannn Tout Wilder

Project Management CommitteeThe Committee helps coordinate the work of the Hcaith Practice Council,State Health Rel .itiouships ( .onunittee and Fedtiat Health RelationshipsCo nnittee and works to develop nest Health Practice Council piolectsThe committee also oversees task forces and work groups titsolved \tith man-

aged care reform, association health plans, genetic testing and Medicare riskadjustment me hamstrn

Alan 1) Ford, Cliaitpri+niiAlfred A 13uigham Jr , I 'ire C./i iopc omi

I )onna C Novak Wilhani C . \K/ellerGeot%i-cv C Sandler Thomas F WildsinithJohn J . Schubu-t

.Seer) Li~iio ii Tom Wilder

Task Force on Genetic Testing in Health InsuranceThis task force nwnih,rs legislative and regulators activities involving the tt,c ofgenetic testing by life in,urers . It is responsible for prep .iriug materials to educateinsurers, legislators regulators acid organizations, both governmental and pnvate,

on actual ial aspects of this issueThomas F Wildsnuth, Ci aa,pei

Cecil 1) 13%kerk Richard A, KippI )avid J Chricti,unson Philip J LehpamerGene Held Donna C Not,ikJoan E Herniau David E . Scai left

. trfl'Liai,an• Tons Wilder

22 AM LP [CAN ACADLMti OF AC I UAI'.I [ S

Robert L Wilcox . I ur Iii ,dryerBarbara 1 Lan tzonhcisor, I' r Clrarrpu,orr

13th Biotin Stephen PicstouDonna R. Claire Cr.up R R.nvuoiidArnold A I )icke Edv~ .rrd L RohhrnsLam N l- Walter S Rugland5tc\c Gritlith Shirlty ShaoJoan F. Htnnan Htnnv W Stel;clEsthei H . Milnes James N . Van ElsenLess Nadlan Andrew P W-aicCandy J L)lsen Roger K Wrard-lianrr

Staff Liaison I)amien M McAndress N

Committee on Federal Life Insurance IssuesThis committee monitors federal legislative acid regulation activities in the lifeinsurance area It prepares statements on life insurance issues for dissenuna-tion to the membership or for subnussion to appropriate organizations bothgovernmental and private

Arnold Dicke, CliaiipeuoriWilli.un Carroll James F Reiskytl1)avrd J Chi isnanson Barbara Sny derAlasrair G I onglcv-Conk

Stiff Liaimori I)amien M McAi dreo

Committee on State Life Insurance IssuesThis cominittec u-ionitors state ltgislatrve and regulators acti\ittes in the lifeuisurante area, excluding fin .uicial reporting It piepaics statements on lifeinsur.inre issues for disseriuiiatior1 to the nienibership or for sutsnnssioii to.appropriate urg .nuzatinns, both osenunental and pro.aate Issues on Lertain spe-ci.ilty suhtccrs arc referred to the appropriate committee foi action

Stephen Preston, CJnirrprisorrWilliam Carroll Robert MaullDonna R Claire

Frank P DinoBarbara J LautzenheiscrLeo Lobos Jr

Alastair G Longlet-Cook

John W MorrisMichael W PiesslevJeffres, S SchlinsogSharp` Shah

Roger K Wiard-Bauer

Sniff Li a i, oii Dansien M MrAndresss

100`1 } E,1RbcsOR 23

Committee on Life Insurance Financial ReportingThis,onvnittec Inonltors .utistic, re-ardinghn .u<ral reportrns related to lifeand health ui,urance, reviews proposals made bs various public- and private-,cctor org,inizations at'cting ace meting and auditing issues tclated to life )ndhealth insurance and g .ner.ills is responsible For analvus and recommendationson Iltc and health Insurance accounting issues .

Edward L Robbins, CliarrlicrsoiI)aniel J . Kunesh

Bruce l) BcngnonDonna 1Z ClaireAndress 1Z CreightonScott H- DeLong IIIJ Peter 1)uranMichael EmersonVeeta EwanHarold E ForbesJames M Gars in IIIVincent J Granien

I «I CLaxlirrsutrfairies P GrcatonKenneth A. KlingerMichael J O'ConnorAllan W Ryan1).ivrd K S •indbcrDonald E SaunrutHenry W SiegelLloyd M Spencer IrJonathan L WoolevJohn 'I • Zellner

Sniff I iarsiiti Damien M McAndrews

Task Force on Life Risk-Based CapitalThis task force works pruuarily svitli the National Association of InsuranceConunissioners (NAIC) At the request of the NAiC, the task force analy?esissue, of concern to the NAIC's Risk-Based Capital Working Group andTask Force and piovides ietommendatnins on ways to chic fv and improve therisk-based capital formul•is-

Candc J Open . Clrau7iersoii

Gerald A Ander,nn Jan L 1'ollnossRobert A l3rossii Junes F ReiskytlError Cianiei Mark C: Ross•levJoseph L Dun) Stephen A-] SedlakDeborah A Gero James A TolliverNorman E. Hill Brur,c WalLrchDouglas M Hodes Bill WiltonDennis P Lauzon Michael L ZurcherTimothy I . Patria

S!,0- Liition DanneirI\I MLAndresss

24 AME RICAN ACRD LMY ll1 AC I UARI I S

Kenncrh A_ Steincr, I i,r PinidrnrLawiencc J

Vince AoiorosoEdward E . BurrowsHeidi R DexterRon GehhardtsbauerLawrence A. JohansenRichard JossStephen K. KernEthan F. Kr .s

Sher, I we Clianpci:on

John P ParksAnna M Rappap,n-tDonald J . St galBruce I)_ SchohclMichael J . TierneyJames E TurpinJames F Verlaut7

Staff Liaiain- David F Rivera

Senior Pension FellowRon Gebhaidtsbauei

The Acadeiiiti established its Senior Pension Fellow piogtani in li)i)5 to buildthe ciedibilits of pension actuaries on Capitol Hill and to promote constructivedebate on national retirement income policy Through regular interaction withfederal regulators and legislator, and Academy soluiiteers, the Senior PensionFellow influences Washington legislatois, and by extension other governmentsand regulators, to rely an the Academy as the objective resource for the knowl-edge and skills of the actuarial profession

The Senior Pension Fellow works with the Pension Practice Council andserves as the profession's pnniari policy liaison nn pension issues lie estab-hshes and develops close relationships with the congressional fix writing andpension staff and regulator ; within the executive branch

Pension CommitteeThis committee addresses actuarial issues attecmig public and prisate pensionplans, excluding financial reporting The committee monitois federal tax, PBGCand other ERISA-related developments . It consults with Congress and relevantre_ttlatorv agencies on the effect of re<gulation on employer pensions and retire-ment secants and comments on pending legislation and regulations .

Donald J . Segal, CIi itrpcrson

James L I unpin, I ice Clianperson

Chester D AndrzejewskiRichard J BarneyFrcderi k B BassNed A HutineisterEdward E BurrowsLawrence I)eutschDavid C DilcherJames G DunceAllen GorrelickDennis J GrafDas id R . Kass

StaffLiaison David

Ethan E KraAdrien R LaBonihardeJudith E LattaNadine H OrloffLas;renceJ SherAniv S TimnionsJames F . VerlautzLane B. WestLawrence F WilsonC.irolyn E. Zimmerman

F Rivera

I')") l E ARBOOi 25

Committee on Pension AccountingThis comnnttec monitors activities and iev iew• propo sals ret a rding tin .uictalicportini related to pension plans The couiuiittec n i cnciall) respon s ible tnranalvsi, and recominiendations on pension arcuuntiiig issue,

James F Verlautz , (_h irrpcr•orr

Paul W BarkerDavid G DilcherBenjamin 1 . GottliebLassrence A .Johansen

Martin J . PaullJohn T . StokesburvJoseph P Strazemski

Henry N Winslow

St,rt/ Liai~Jrr David F. [),IN cra

Committee on Social InsuranceThis committee provides and promotes actuarial rcticsss and analyses of U S .social ur, urance s)stems . The committee prepares comments on pending legis-lation regardin federal ,cxial insurance proms auis and government reports onthese pro grains

Bruce 1) Schobel, Charrpcroon

Joseph A ApplchaumEdssaid E . l3urrustsStephen C GnssC David GtisnfoiiEric J KhchcrAdiicn R LaBonibarde

Staff Lr a rsnir

Juhe PopeRichard G SchrcitnrcicllcrRonald L. SolomonLric Stall .irdCon E UccelloJohn A Wandishin

David F Ro•era

Joint Program Committee for the Enrolled Actuaries MeetingThis committee des claps a progi ami fur the Enrolled Actu .u-ics Meeting,cosponsored by the Academy, the Cnnfercn~e of Consulting Actuaries andthe Society of Actuaries

Vickic N Wilhams, (diaupc•rwrrWilliam 13 Fornia, f ice Clrarrpcicorr

Betty Berm Lasyrene(l SherCurtis M Cartol .no Roniue Thiernian_Juan C. Gucciardi Peter D VcrneNeil A Parmeiter Amy C . VienerRobert H Schramii Richard A WattsAlthea A. Sihnartz Denipsey 1) WhiteDonald J . Segal

Staf(Laiiorr . David F Rivera

26 A h1 E R I C A N A CAD [ ,i) 0 F A C I U A It I I,

1)amel J McCaiths, I tcc PuaduriAllan W Rs an, l u, Craript•norr

David IM Flag:, Godfi'ev 1'errnttDavid G Hartman Jeffrey 1' Petertil

Curtts E Huntin_ton Kenneth W Porter

Harold G Ingrahani Ji Roger A. SchulrzNancy H Kich.tk Michael TiernevCharles L McClznahan Jack M . Tui nyuist

lames B Milholland

Staf3Lraisorr Lauren M Bloom , Mare E Cadette

Committee on International IssuesThis conitnittee is respoiimble for al] liaison activities with the internationalactuarial t onunumts involving international professional issues, Including

uionttoruig international developrnents with resrecr to odes of conduct .

qualification standards aid standards of practice ; b) reviewing qualification ofinternational ipplicalits fit membership iii the Academy, and recommendingactions on the applications-. cl responding to inquiries and, if appropriate, f tr-ss arding the m e,ponse to an Academy committee or to one of the othei U S -based actuarial organizations, d) recommending Academy appoumtnirnts of U Sactuarial representatives to all international boards and coiiimittees ; ( ) respond-

ing to .issigmiteuts from the Academy leadership and inquiries from otherAcademy committees, f) convuunicating to ntemher, of the Academy and otherU S -based actuarial organizations, g) interacting with the untcrnatiis I'll relations

committees of other actuarial organizations in Canada, Mexico and the UnitedStates and It) presenting new initiatives to the Academy leadership

Curtis E Huntnrgton . Chanlueraon

Vince Amoroso 1)avid G_ H .trtin.ui

Robert A. Anker Allan M Kautinan

Robert L Collett hennis M rohsnerSam Guttcrm.ui Larrs Zimpleman

Sta(t Liai'ori Lauren M Bloom

Joint Committee on the Code of Professional ConductThis committee monitors the Code of Processional Conduct of the U S-

b.tscd orgaiiiz .itions representing, actuanes acid recommends rrcccssan ainend-

nieitts to the Code to all of the U .S -based organizations

Jack M Turrtquist , Climrpcunm

Morris W Chambers Luis Huerta

William J. Falk Kenneth A Kent

Michael Fusco Howard M. Phillips

Sam Gutteraman

Stag Lnnson. Lateen M Bloom

I<rn'> YLARhOOE. 27

Committee on Professional ResponsibilityI his committee promotes knowledge of standards of conduct . i.ualiticattuu .uitlpracuLc %%ithin the proFewon, and suggests v .r}s urd nre.lns for enforccinent,compliance and nioniturln of the cticitr mess of those ,t .md,rds_

Allan W Iii an, ChaupmsuaaThomas L. liakus Carl ShalirCara M Blank Bruce A. StahlRussell S Fishcr Wallace W WilsonDavid S Powell

StafLrauorr Lauren M Bloom

Committee on QualificationsThis Conimittee 1]rvestigates Issues arising with respect to the minimum

requrrunents necessary to qualrte members to perform publicly required actu-artal Functions, rc_onunends to the Board of Directors minlnuini qu .thficatiunstandards, including eontrriutng education requirements, liar such menibers,and counsels mcmhcr-s on questions relating to individual qualiticitrons italso develops guidelines for the adnmustration of the Academy qualificationStandards, including cuntinunig education requirements

Charles I McClenahan . Clmupct+nraWilliam J Bulg Jr. Mary Frances MillerJohn B 1}inius Adaui l ReeseJudy Faucett Kathleen A ltrleylames L Lewis Jr Carl Shalit

Stafl .1,11-oai' Miry E Cadette

Task Force on Professionalism Course MaterialsThis task force %%x, established to develop program materials on professionalismand proinute the presentation of protessioinalism sessions

James B Milholland , CJratmpr'txrraI inden N Cole Mary Frances MillerThomas K Cusps Donald E Saniirng

Staft'Li,aauasa Lauren M Bloom

28 A PO E IZ I C A N A C A D E M l () F A L T i i A 1, 1 1 s

Committee on Actuarial Public ServiceThis coninuttec underscore, the importance of ictuarres in public-sectorcniplovnrerit and encorir ages support for sue h employ ment

Nancy Krchak, Charq)vlm 1

John K. Booth R Michael LambC David Gustafson Michael W Morgan

Stephen G Kelli,onStaff Liaison. Thomas C Griffin

NAIC/Academy/ABCD /ASB Joint CommitteeThis committee serves as a forum fot discussing professionalism and otherissues of impoitam.e to actuaries that involve the activities of the NationalAssociation of Insurance Commissioners (NAIL) Conuriittec membershipincludes each of the state commissioners who are actuaries, the chairs and vicechairs of the NAIC Life & Health hod Casualty Actuarial Task Forccs, chainor th,ir designated representatives from the Actuarial Standards Board and theActuarial Board for Counschns and Discipline, and the Arnencaii Academy ofActuaries president, e-,ccutrse director, rice president for the Council onProfcssronalism, arid chairpersuti of the Cornnmttcr on Qualifications

John C'rawford, Chaimprrs,mDominic A I)'Annunzio, I'i c Charij o'u

Robert A AiikerDavid G I Iartm nLawrence A JohansenNancy H KichakClips KralilurgDaniel J . McC arthyCharles L McClenahanhomes j Murphy

Mark 1)_ PeavyGlenn PomeroyKenneth W PorterElizabeth RandallRichaid S RobertsonMci-win StessartJack M TurnquistRobert E Wilcox

Staff Liaa,nii Richard C Lawson, Lauren M Bloonr, Mary F, Cadcrtc

1Q`7`7 ' EARE50OK 29

Council of PresidentsThe ( ouncil of Pi csidents provides a business and social forum Lo proi notecoordination, cooperation and trust among the leadership (it the orgainzatumsrepiesentiiii actuaries in Canada, Mexico and the United States .

Hussard j Bolnick, SOA Peter F Morse, CIAWilliam J Falk, CCA Richard S Robertson, AcadeniRafael Posse Fregoso, LONAC Sofia Rmnano Ruiz, AMAArturo Casares Gonzalez, AMAC Carol Ruth Sears, ASPAStcyen C Lelmiann . CAS

Council of Presidents-ElectThe Council of Presidents-Elect of the United States and Canadian organizationsand a comparable itpresentarive from Mexico complements the mission of theCouncil of Presidtnts and focuses on the development of ss orking relationshipsand mutual trust.

Larry Znnpleman, hinittatoiA Norman Crowder III, SOA Stephen R Kern, AcademyAlice H (,annon, CAS john P. Paiks, ASIAllnacio Guiza I)e Con. CONAC Michael L Toothman, CCALuis Huerta, AMA AMAC Stuart F. Wason, CIA

Stati'Liai im Richard C Lass son, Lauren M Bloom

30 ANA F It ] CAN A C A D t 0.t) ()F A C T U A R I t s

Education and Examination Management Committeeof the Society of Actuaries

I )an1cl J Mccartliv

Education Policy Committeeof the Casualty Actuarial Society

Marv Fianees Miller

Actuarial FoundationLarry Znnpleman Irt ot}ian T ustee)

I )u1') Y EARRU CI K 31

Actuarial Roars]for Counselingand Discipline

The Actuarial Board for Counseling and Discipline (ABC])) was established etfct nvc Jan- I ,

1992, as an independent entits managed with Acadeniv staff supportUpon delegation of appropriate authority from a participating actuarial organization and

acceptance of that delegation by the ABC!), the ABC 1) is authorized : (1) to consider all corn-planrts or information suggesting possible violations of the applicable Code(s) of ProfessionalConduct and all questions that may arise as to the conduct of a member of a parti~ipatiiigactuarial organization in the member's relationship to the organization or it, members, or inthe member's professional practice, nr affecting the intere,ts of the actu trial profession : (?) to

counsel actuaries concerning their professional activities related to the applicable Code(s) ofProfessional Conduct in situations where the ABCD deems counseling appropriate (3) to rec-ommend a public (Ins ipluiary action with respect to an actuary to sins participating organiza-tion of which that actuary is a member, (4) to respond to requests for ttuidance regarding pro-fessionalism front members of the participating organizations, and (i) to mediate issuesLetss-een members of participating actuarial organizations, nr between such members and thepublic, for the purpose of informally resolving issues concerning the professional conduct ofsuch members.

Actuarial Boardfor Counseling and Discipline

Kenneth W. Porter . Chaiipusivi

Henry K Knowlton, T'ice Chaopei .arii

Robert W Sturuis, 1'Y e Chairpei.arir

John M Bertho ])avid P Flvnn

William J . Bugg Jr. Ruth F. Fresy

Sue Ann Collins Howard M PhillipsStaff Liai.mt, Thomas C Griffin

32 AM Lli ICsN A(_A1)L tl ciI A L T U A R I is

Actuaria lStandards Board

The Actuarial Standards Board (ASB1 was established on July 1, 11)tH, as an independent enti-tv managed with Academy start support The AS13 has the authority to prescribe its ownoperating, procedures ; to establish committees, subcommittees and task threes it may deemnecessary in carrying out its assigned tunstions, .uad to appoint individuals to positions on suchconninttees, subsonnnittees and task forces The operating, cnniiiiittees report to the AS13 andfunction under its direction . The ASH also has the authoritt to approve exposure of proposedstandards and hold public hearings oii them, and to adopt recommended standards of practice .

The ASB is charged with the following . (1) to dnect and manage the des elopment ofactuarial standards ofpracticc by its operating committees in all areas ofaetuarial practice, (2)to expose, promulgate of adopt, and publish actuarial standards of practicc, within its sole dis-cretion and pursuant to such procedures as it deems appropriate, in all areas of actuarial prac-tice, and (3) to provide continuous review of existing standards of practice and determinewhether they ire in need of amendment, ilteration, expansion, or elinunation

Actuarial Standards BoardDavid G. Hartnian . Clrarrpeisoir

Frank S . lush, i'sc Chwurpi•uori

James R Swenson, I'iu Cliaiipaoori

phillip N Ben-Zvi Roland E (Clue) King

Heidi R. Dextei William C Koeiug

Ken W. Hartwell Alan J. StonewallStrift'Lim .oim . Mary E. Cadette. Anne M. Kotchek

I n'in i E AK tiOOK 33

Casualty Committee of the ASBIii accordance with p1nceduies prescrihed bs the ASL3, this connnittee develops

actuarial standards of practice in the property/casualts insurance area

Michael A . LaNlunica, Clraripe ; . ,,in

Christopher S Carlson Robert S MiccolisAnne Kelly Karen F . ferryRonald T Kozlosyski William J . VonSeggeinRobert J Luidquist Patrick B Woods

Task Force on Complex ModelsKaren F Terry, Cjniiij,eoeii

Kay A Clears Godfres PerrntrAlice H Ganirn i Kurt A ReichlePaul E. Kiirsou I)aniel M, ScheibenieifRonald T Kozlowski A- Eric Thorla(lus

David A. Lalonde loan M WcissJeffrey F McCarls

Subcommittee on RatemakingFatriA B. Woods, CIniaij'euonr

Mark S Allaben R . Michael LambCharles H Boucck Mart B. PearlFrederick F Cripe Jonathan W hrtcRobert W Goscrow Paul E Wulterkens

Subcommittee on ReservingRobert S Miccohs, Charij coon

Martin Adler Ray-mind S . NicholsBrian Z Brown Teirence M O'BrienF.dw and W Ford Mark J SobelBertram A Horowitz P .itricia A TcufelElise C Liebers John P Tierney

Man' Prances Miller Steven M . Visner

General Committee of the ASBRobert W Stein, Chnrrper_,ori

Donald F Bchan Bruce D MooreRobert V. l)eutsch Patricia L Scalull

Health Committee of the ASBIn accordance with procedures prescribed by the ASB, this committee develops

actuarial standards of practice in the health insurance area

David F. Ogden, C(tar/j.icuouJanet M- Carstens John M Fncsen

Robert M I )uncan lr Robert J IngramPaul R, Flrischackei Mary J. MurlevAlan 1) Ford

34 A hl rRIi AN AC'AF) rM1 or ACTl1ARILS

Life Committee of the ASBIn accordance with procedures prescribed by the ASB, this coninuttce devel-ops actuarial standards of practice in the life insurance area

Lcw H Nathan, Chanperoir

John W BrumbachFrank J BuckMarc A CagenMark FreedmanJane L Har inck

Stephen G Hildenbrand

Walter N MillerGodfrey PerrottThomas A. PhillipsRoger K Wiard-Bauer

Task Force on Allocation ofPolicyholder Equity

Godfrey Perrort, Chaarpersos

Kenneth M Beck Dale S. I IagstromCharles Carroll William C . l<oenigSue Ann Comic

Task Force on Closed BlocksGodfrey Perrott, Chanpcrnoii

Kenneth M Beck Dale S HagsrroinCharles Carroll William C KoenigGary Corbett

Pension Committee of the ASBIn accordance with procedures prescribed by the ASB, this connauttee devel-ops actuarial standards of practice in the pension area

Richard Joss, ChairpersonRichard Q Wendt, Licc Chanpetseu

Lawrence Deutseh William ReinicriBruce C Gaffney Lawrence j . SlierLawrence A Golden Diane M StormSusan E Lee James E. TurpinLindsay J. Malkiewich Joan M WeissLric I Palley

Long-term Care Task ForceIn accordance with procedures prescribed by the ASB, this task force developsactuarial standards of practice in the aiea of long- term care .

Bartley L Munson, ClianpsasooLoid .i Rodis Abraham Dennis M O'BrienDonald M. Charsky Andrew M PerkinsGary L Corliss Robert K W YeeJeffrey S Drake

1 `)99 YEARBOOK 35

Past Officers1965-66 1966-67

Heirs F Rood President Thomas E. MurrinThomas E. Murnn President-Elect John H MillerFrank J_ Gadienr Vice Presidents Frank -j GadientLaurcncc H. Longlcy-Cook Laurcncc H Lonplev-CookJohn H Miller H Ra} niond StrongH. Raymond Strong Andrew C. W ebsterGeorge M 13ryce Secretary Norton F. M .istersonRobert E Bruce Treasurer Robert E Bruce

1967-68 1968-69John H Miller President W endell MilkmanWendell Millnnan President-Elect Walter L. RuglandEdward I) l3rown Jr Vice Presidents Edward 1) Brown Ji .William J Leslie Jr Wilh im J Leslie JrFrank j Gadient Paul T RotterAllen L Mayeison Harold W SchlossN ortoii L Mastersen Secretary Norton E MastersonRobert F Bruce Treasurer Robert F Bruce

1969-70 1970-71Walter L Rug;land President I-I . Raymond StrongH R ivmond Strong President-Elect Rohert J M' ersPau] T. Rotter Vice Presidents Donald F. CampbellHarold W Schloss John K. 1)verDonald F Campbell Harold E CurryRobert J Myers Morton D MillerNorton E Masterson Secretary William A HalvorcunRobert E . Bruce Treasurer Robert E. Bruce

1971-72 1972-73Robert J Myers President Morton D MillerMorton D Miller President-Elect Lrnest J MoorheadHarold E Curry Vice Presidents Robert E_ BruceErnest J Moorhcad Julius VogelRobert E . Bruce Reuben I JacobsonJulius Vogel I )aniel J McNamaraWilliam A Halvorcon Secretary William A_ HalvorconDale R Gustafson Treasurer Dale R Gustafson

1973-74 1974-75Ernest J Moorhead President Daniel J_ McNamaraDaniel J . McNaniara President-Elect Thomas P Bowles Jr.William A . Hahorson Vice Presidents Richard L JoheReuben I Jacobson Robert(' WintersThoma, P Bow]c, Jr Edwin F BoyntonRichard L JoheWalter 5 . RuglandDale R Gustafson

SecretaryTreasurer

Kenneth H RossWalter S RuglandDale R Gustafson

36 A M L It 11. A N A C A D E M Y U L A,_ I U A 11 1 E S

1975-76 1976-77Thonra, P liow le, Jr President Robert ( . Winters

Robert C' Winter, President-Elect Edwin F I3o~ ntornEdwin F Bo\nLurr Vice Presidents Dale R GustafsonKenneth H Ross M Stanley I lughey)ale R C;trstahorr Ronald L. BurnhuetteiM Stank} Hughes Louis GartinX7altcr S Rug land Secretary Ralph C EdwardsJames C) Webb Treasurer James C) Webb

1977-78 1978-79Edwin F Bo~ntorr President Dale R GustafsonI)ale R_ Gustafson President-Elect Ronald L BornhuetterRonald L Bonrhuetter Vice Presidents I'testun C llassettLouis Gartin Charles C Hew itt JrPreston C Bassets Herbert L DePrengerCh irks C lIewittJr Walter L GraceDwight K Bartlett III Secretary Dwight K Bartlett IIIJames O. Webb Treasurer Kevin l\1 Rtian

1979-80 1980-81Ronald L Bcrnhuetter President Walter L . GraceWalter L Gr.ite President-Elect Wrllt .un A H ilvorsonMiry H Adams Vice Presidents Richard S RobertsonI lerbert L Dt Pren .er P Adner William,Richard S . Robertson A Norman Crow•der IIIP Adgcr Wilhants B.utlev L MunsonCharles Barry I I Watson Secretary CharIes Bain H. WatsonKes in M ]1.5, .ur Treasurer Kevin M Ryan

1981-82 1982-83William A- Hilvor,on President P Adget WilliantsP Adger Willianis President-Elect A Norman Crowdei IIIA Norman Crossdcr Ill Vice Presidents I)asrd R CarpenterBarley E Munson William A FergusonDavid R . Carpenter John A FibrgerWr1li.urr A . Fer-usoii Walter S RuglandCarl R Ohman Secretary Carl R OhrnanW Jame, Mac(;mnrtic Treasurer W Junes MacGrnnrtre

1983-84 1984-85A Norman Crowdcr III President 141 Staples, HughesR1 Stanley Hughes President-Elect Bartley L iMunsooJohn A Iibigci Vice Presidents D.nrd G . HarlutanWalter S . Rugland David M ReadeDavid G Harrman I lar„ld J Brosynlee)avid M Reade Carl R 01111t .urCarl R Ohman Secretary Robert H. DohsonBurton D Jay Treasurer Burton 1) Jay

1985-86 1986-87Bartles L Munson President Preston C Basset(Preston C . Bassett President-Elect John A FrhrerHarold j Brosynlec Vice Presidents Edw•atd I I FriendEdward II Friend W James MacGrnnrtreW 1arues 1V1acGimtrtre Burton D Jay('it] R Ohman Mavis A WaltersRobert I I 1 )obson Secretary Robert H. DubsonBurton 1) day Treasurer Daniel J McCardly

19 °° \EAPBOOK 37

1987-88 1988-89-john A Fibiger President %' James MacGuanitreW James Mac G iinllne President-Elect Harold J BrownleePhillip N_ Ben-Zvi Vice Presidents Phillip N . Ben-ZviBurton I) Jay Harper L GairettJi .Joseph J Stahl 11 John II I IardingMavis A Walters Joseph J Stahl IIVirgrl D Wagner Secretary Virgil D . WagnerDaniel J McCarthy Treasurer Dauiel J McCarthy

1989-90 1990-91Harold J Brownlee President Mavis A WaltersMavis A Walters President-Elect Harry L) GarberIlarry D Carber Vice Presidents Robert H DobsonHarper L Garrett Jr Charles E FarrJohn H Harding Daniel J McCarthyDaniel j McCarthy Michael A WaltersVirgilI) Wagner Secretary Richard H SnaderThomas D Levy Treasurer Thomas D, Levy

1991-92 1992-93Harry D Garber President John H HardingJohn H. Harding President-Elect David C HartmanRobert H Dobson Vice Presidents Howard J BolnickR Stephen Radcliffe Stephen P_ I oweRichard H Snader Walter N MillerMichael A . Walters Richard H SnadeiLarry Zimpleman Larry ZinplemanIhoma, D Levy Secretary-Treasurer James R Swenson

1993-94 1994-95David G Hartman President Charles A BryanCharles A Bryan President-Elect Jack M TurnquistHoward_/_ Bolnick Vice Presidents John M . BertkoHoward Fluhr Howard FluhrPaul F Kolkuran David P FlvnnStephen P Lowe Paul F KolkmanJack M Turnquist Charles Barry H . WatsonJarnes R. Swenson Secretary-Treasurer James R Sswenson

1995-96 1996-97Jack M Turnquist President Larry ZiuiplenranLarry Zimpleman President-Elect Allan M KauhiranVince Amoroso Vice Presidents Vince AmorosoJohn M Bertko William F. BluhrnArnold A Dicke Arnold A 1)ickeDavid P Flynn Ken W Hart wellCharles Bari I I Watson Barbara 1 . Snader

Michael L Tooti nianStephen R. Kern Secretary -Treasurer Stephen R Kern

1997-98Allan M_ Kaufiuan PresidentRichard S . Robertson President-ElectWilliam F k3luhm Vice PresidentsKen W HartwellLawrence A JohansenKenneth A SternerMichael L ToathmanRobert E WilcoxStephen R Kern Secretary-Treasurer

38 AMERICAN ACADEMY CIF ACTUARIES

Jarvis FarleyService Award

t i] 1991, the Academy established aperpetual award to honor the nieino-rti• of one of its lone ime, indefatiga-

ble volunteers Jarvis Farley saas a chartermember of the Academy and an inval-uable resource for Acadenis staff and theentire actuarial profession His untiring;volunteer work for the Acadeniv epito-mized the caliber of service to he hon-ored by this award He began serving onAcadcniy committees rn 1072 and con-tinued until his death in 1991

The Academy, Executive Conitnittee

each year selects a Jarvis Fancy Service

Assard rcripiciit The re~ipicnts are

announced and honored at the

Ac .ideniy's annual meeting Far 11 hon-

oree ieceives in engraved pewter Paul

Revere bowl, custom designed by KirkStieff. A larger, permanent bowl,engraved with the name of each recipi-ent, is displayed at the Academy .

Jarvis Farley Service AwardRecipients

199_' Mary Hardiman Adams

1993 Jerome A Scheibl

1994 Douglas C 13nrton

199D Harry L Sutton Jr

1996 Charles Batty H Watson1997 James C. Hickman19( )8 Edward E_ Burrows

I'C'I" YEARbOI 0k 39

Robert J . MyersPublic Service Aw, ard

n 1994, the Academy , through its

Committee on Actuarial Public

Service, established the Robert J .

Myers Public Seivice Award to iecog-

ni .e the extraordinary lifelong public

servo e of Robert J Myers who was

chief actuary for the Social Security

Administration from 1947 to 1971)

The exceptional career of Myers wasrecognized with the public announce-ment of the award at the Academy'sannual meeting in Washington . 1) .C ., onSept ' 4. 1994. Myers was instrumentali n the design and funding of the SocialSecurity system and worked for theSocial Security Administration for some35 years . Although political pressureoften conflicted with his professionalresponsibilities, Mvers never veered froma path of professional integrity. He con-tinues to command respect within andoutside the profession , and he remains aninspiration to all practicing actuaries .

Recipients of the Robert J MyersPublic Service Award are selectedthrough the Committee on ActuarialPublic Service on the basis of their con-tributions to the common good through

service to the government or otherorganizations in the public sphere .While honoring individual recipients,the award also calls attention to the sig-nificant benefits the general publicreceives from the actuarial profession .

A specially designed medal was pre-sented to Myers at the award 's inaugura-tion . The permanent medal is mountedon a custom- designed pedestal and dis-played at the Academy office inWashington Recipients receiveengraved medals . and their names areengraved on the base of the permanentmedal at the Academy

Robert J . MyersPublic Service Award

Recipients1995 John 0. Montgomery199( Roland E (Guy) King1097 James B . Gardnu•r1 V9ti Ihvight K Bartlett III

40 AM E RICAN 1(-ADFM) OF AC L U A R I E,

History

0

n October 25, 1965, theAmerican Academy of Actuarieswas organized as an unincorp-

orated association to serve the actuarial

profession in the United States The cor-

responding national body iii Canada, the

Canadian Institute of Actuaries, had been

incorporated earlier that sank year For

many years, the actuarial profession in

North America had consisted of four bod-

ies: the Casualty Actuarial Society, the

Conference of Actuaries in Public

Practice, the Fraternal Actuarial

Association and the Society of Actuaries .

In 1964, the nicinhers of those four orga-

inzations, recognizing, the need for a single

body to represent actuaires of all special-

ties, approved forniation of an all-inclusive

organization of qualified U .S actuaries .

On April 29, 1966, the Acadeni'1 wasreorganized as a corporation under theIllinois Geneial Not For Profit Corpor-ation Act Henry F Rood, whose presi-dential address to the Society ofActuaries in 1958 had voiced the firstformal proposal for such a national body,was elected president .

In September 1980 . the FraternalActuarial Association, one of the fourfounding organizations, closed its doors .Its dissolution indicated that the needs offraternal actuaries had been increasinglymet by other actuarial organizations andthat the National Fraternal Congress hadincreasingly been providing a forum forfraternal actuaries .

In 19911, the Academy Board ofDirectors established four practice coun-cils to represent the major areas of actu-arial practice- casualty, health, life andpensions In 1992 . the Council onProfessionalism was created to overseethe Academy's responsibility to set and

maintain professional standards .The Financial Reporting Council was

formed in 1996 to coordinate all finan-cial reporting activities across practicelines, The Council also acts as a liaisonto other committees within the profes-sion, to the accounting profession and tostate and federal regulatory bodies, anddevelops and maintains cooperative rela-tions between actuaries end certifiedpublic accountants-

Each council has hioad authority toset its ossn agenda, specific policy initia-ti\,es are carried out by Academy com-mittees that report to the councils .

The five councils are headed by vicepresidents, who together with the presi-dent, president-elect, immediate past pres-ident and secretary-treasurer, constitutethe Acadeni~'s E'ecutise Committee .

In 1998, the Academy Board ofDirectors approved a strategic plan for1998-2111}3 and a new mission state-ment As the organization representingthe entire United States actuarial profes-sion, the American Academy ofActuaries serves the public and the actu-arial profession both nationally andinternationally through :

a establishing, maintaining andenforcing high professional standards ofactuarial qualification, practice and con-duct,

b assisting in the formulation ofpublic policy by providing independentand objective information, analysis andeducation, and

c in cooperation with other organi-zations representing actuaries

-representing and advancing theactuarial procession, and

-increasing the public's recognition

of the actuarial profession's value .

1 `))' iEARBUOt 41

Membership RequirementsAcademy menibersliip is intended toserve as the hallmark of i qualified actu-ary in the United States .

All U S residents who were fellows (orthe equivalent) of the four e'ostmg bodieson October 25, 1965, were automaticallyenrolled as Academy members, subject totheir indicated assent by paving the duesThere were 1,427 charter members of theAmerican Academy of Actuaries.

The Academy immediately set aboutinakinp its existence known to otheractuaries not eligible as charter membersIt was required that ant' such actuarydemonstrate adequate knon ledge andskills. Many were admitted by thisroute, some after passing special proc-tored examinations. A requirement ofseven years of responsible actuanal experi-ence (five years for fellows by exanuna-tion of the existing bodies) was imposed

After January 1, 1970, educationalrequirements were gradually increaseduntil 1976 In January 1976, an aniend-ment to the bylaws created a new non-voting class of membership designatedaffiliate of the American Academy ofActuaries This class consisted of non-nienibers of the Academy who becameenrolled actuaries under the EmployeeRetirement Income Security Act of1974 (ERiSA), subject to acceptance oftheir application, by the Academy .Subsequently, in January 1979, thebylaws were further amended to ehnii-nate the distinction between affiliates andmembers of the American Academy ofActuaries, as well as to set the experiencerequired at three years of responsiblev. ork Subsequently, the Academyboard set the basic educational require-ment at that of the associateship level inthe Casualty Actuarial Society or theSociety of Actuaries or that required forstatus as an enrolled actuary underERISA

Nonresidents of the United States c .nibe admitted to membership if they meetthe Academy's educational and evperi-ence standards, can demonstrate taniiliar-itv with U .S . actuarial practices and havea need to perform actuanal duties in theUnited States

Professional ConductIn December 1965, the Guides toProfessional Conduct were first issued .Over time. these were revised and sup-plemented by Interpretative Opinions .Together, the Guides and Opinionsformed a core of ethical guidance formembers in all phase, of their profession-al lives In September 1991, the Boardof Directors approved a new set of ethi-cal precepts as recommended by theCouncil of Presidents Task Force on theCode of Professional Conduct Theintent of the task force ryas to seek adop-tion of a common code of ethical tenetsby all organizations representing actuariesin North America The Academy wasthe first body to adopt the Code, whichbecame etlective January 1, 199?

The Code of Professional Conductincludes Precepts and Annotations thatrequire a high standard of' ethics andresponsible performance expected ofprofessionals Specifically, the Preceptsrequire actuaries to abide by standards ofpractice, as pronnilgated by the ActuarialStandards Board, and by qualificationstandards, adopted by the AniericanAc adeiny of Actuaries The Code hasbeen adopted in substantially similarform by all the professional sot cties rep-resenting, ticttianes ni the United Statesand Canada, ioiitinti the profession inthis area for the first tune

Counseling and DisciplineSlice its inception, the Academy hasrec ognizcd the need for a disciplinaryprocedure to enforce standards of con-

42 AM t RICAN A CAD EM) OF ACTUARIES

duct and the need to provide the publicand fellow actuaries with an avenue toexpress grievances regarding the profes-sional activities of Academy members .For many years, the responsibility forhandling complaints, investigatingcharges and proposing disciplinary mea-sures rested with the Committee onDiscipline Largely because duplicationsof effort by the disciplinary committeesof the various actuarial organizationsfrustrated effective discipline, and also asa result of the adoption of a conmioiiCode of Professional Conduit by allorganizations representing actuaries, inI'-)9 J the members of the Academyvoted to amend the bylaws arid createthe Actuarial Board for Counseling andDiscipline (ABCD)

The ABCI) is a separate entity sup-ported by the Academy staff It investi-gates apparent violations of the Code ofConduct by members of any organiza-tion representing actuaries that delegatesinvestigative authority to the ABCD .The Academy and other organizationshave delegated such authority Forthose activities that in the opinion of theABCD do not merit public discipline, orin response to actuaries' requests forguidance, actuaries will be counseledprivately and provided guidance in com-plying with the requirements of theCode of Professional Conduct, qualifica-tion standards and standards of practice

Standards of PracticeThe Academy commenced issuing stan-dards of practice, initially called reconi-inendations, in 1973 . These recommen-dations were supplemented by interpreta-tions. A major step forward in the devel-oprnent and management of standards ofpractice was taken in 1985 with the cre-ation of the Interim Actuarial StandardsBoard (IASB) . The IASB served as theprototype for a permanent Actuarial

Standards Board (ASB), which was creat-ed in June 198 by a bylaw amendmentvote .

The ASB is a separate emit) support-ed by Academy staff. It has sole respon-sibility to initiate the development ofand to adopt new standards . Standardsof practice include statements on thetechniques, applications, procedures andmethods that have been generallyaccepted by the profession . The Code ofProfessional Conduct requires actuaries tobe knowledgeable about and abide bythese pronouncements

Legal RecognitionIn December 1966, the NationalAssociation of Insurance Commissioners(NAIL) adopted a resolution supportingrecognized standards of actuarial compe-tence and conduct and urging each com-missioner to support the efforts of theAcademy to gain official recognitionAll states now have regulations that rec-ognize Academy membership as qualifi-cation for signing insurance companyanuuaI st,tternents, some have corre-sponding recognition for public employ-ee retirement systems . The first state toact was Indiana . which provided for cer-tification of actuaries by a state board ina 1966 law The general pattern fol-lowed in other states has been issuance ofadministrative orders or regulations

In 1975, the responsibility expected

of actuaries was spelled out by a new

requirement that the actuary who signs a

life insurance company annual statement

must express an opinion on the actuarial

elements, including an opinion on the

adequacy of reserves . The Academy

responded with recommendations to theprofession on how this responsibility

should be metIn 1990, d similar requiiennent was

added to the property and liabilityinsurance company annual statement,

I v° .i \[ARBOOK 43

except that the requireinent was at the

disc retion of the domnciliars insurancecouiniissioner Again the Academy

iespunded with appropriate reconi-

niendations to the profession

In 19911, at the urging of theAcademy, the NAIC eliminated the dis-cretion of individual states . As a result,virtually all annual statements fromproperty/casualty companies in theUnited States must be accompanied by aloss reserve opinion from a "qualifiedactuary," defined as a nieniber of theAmeiicau Academy of Actuariesapproved by the Casual t` PraetieCCouncil, or as a nieniber of the CasualtyActuarial Society . or otherwise approvedby the domiciliaiy commissioner .

In 1983, a statement of actuarialopinion similar to those cited above wasadded to the annual statement blanks forboth health service corporations andhealth maintenance organizations . it wassupported by recomniendations .

In the pension field, the 1974 ERISAlegislation established extensive and spe-cific standards for actuarial reports, fordisclosure and fiduciary relationships andfor the qualifications of actuaries in pen-sion work

Expressions of Professional OpinionThe first major influence of the Academybeyond the boundaries of the professionwas in its response, begnuung in 1972, tothe audit guide for stock life insurancecompanies b` the American Institute ofCertified Public Accountants This co-operative endeavor has led to regular andclose association between the actuarialand accounting professions .

The Academy has also becomeincreasingly active in dealing with vari-ous government entities on a variety ofpublic issues . In 1982, the Board ofDirectors adopted Guidelines for MakingPublic Statements in connection with this

activity. The guidelines were updated inIi)93 .

Joint Activities of ActuarialOrganizations

The North American actuarial bodiescooperate in many ways, largely throughjoint sponsorship of actuarial exam ina-tions and the work of joint committeesIn December 1972, the Academy wasinstrumental in launching an informalbody, the Council of Presidents, to fos-ter even greater understanding and com-nion purpose In 1976, the actuarialorganizations jointly formed theActuarial Education and Research Fundto foster the growth of basic actuarialresearch throughout the profession andto arrange for necessary financing ofsuch research

AdministrationAt the outset, the Academy sharedadnunistrative facilities with the SocietsOf Actuaries in Chicago (since moved toS(hauniburg . Ill ) A major step toiucrcase the value and influence of theAcademy -,vas taken in January 1976when the Academy became headquar-tered iu Washington, D .C TheW,ishuigton office is responsible for allstaff tutu tions other than those related tothe menibership database, which remainIll Sch .iririiburg

MeetingsHistorically, the Academy has held itsannual meetings in the fall of the year, inconjunction with the .urnual meeting ofone of its founding org,ini7ations InOctober 1999 the Academy vdl hold itsannual meeting in San Francisco in con-junction with the Society of ActuariesAnnual Meeting and Exhibit . In thespring, the Academy will sponsor a pub-lic policy briefing in Washington, featur-

44 AMEltIt-AN ACADiMS CI' AC I IIARIES

ing a prominent Washington legislator asluncheon speak r

Since 1976, the Academy and theConference of Consultmg Actuancshave cosponsored the Enrolled ActuariesMeeting . In 1989, the Society ofActuaries -,vas added as a cosponsorThese meetings are a primary means ofcontinuing education for pension actuar-ies across the nation The annualCasualty Loss Reserve Seminar, spon-sored jointly by the Academy, theCasualty Actuarial Society and theConference of Consulting Actu,incsbegan in 1981 . The seminars are of par-ticular interest to property/casualty actu-aries and loss reserve specialists

PublicationsThe Academy continues to expand thenumber and scope of its publications .Each year, it publishes this yearbook,which includes lists of committees, theBoard of Directors and Academy stag,in addition to such information asbylaws and application for admission tothe organization .

Each month the Academy publishesthe Actuarial Updare and several enclo-

cures, including the 'ASB Boxscore"(started in 1987), a status report on vari-ous standards projects and ActuarialStandards Board news In addition, theEnrolled _-lhtiomies Rcjnont, a newsletterfocusing on the concerns of pensionactuaries, is published four times duringthe year

The Academy's publications includethe bimonthly magazine Cotrrrtr~eio sand a combined professionalism annualreport for the ASB, the Actuarial Boardfor Counseling and Discipline andCommittee on Qualifications . TheAcademy also produces public policymonographs and issue briefs based onthe work of Academy committees orwork groups formed to address specifickey issues .The Academy Web site (svww

actuary,org) was opened to the public i n1997 Virtually all the Academy's com-pleted published work is available fromthe Web Site- Actuan•l Standards ofPractice are accessible via the ASB sec-tion of the site- The Actuarial Board forCounseling and I )isnphne's separate site(www.abcdboard org) is also in,untainedwith Academy statl support

I y ~~ Y I A R 5 O OK 45

Strategic Plan 1 998-700;3n 1994, the Academy adopted astrategic plan to serve as a foundationfor directing the organization's activ-

ities . To reflect changing circumstances,

a task force was appointed in 1998 to

develop a new plan, elements of which

are stated below The ncv,, plan builds

on the old, recognizing advances in

technology, globalization, corporate

mergers and changing political priorities-

The task force elicited contributions to

the plan from throughout the piofession,

from the staffs of the Academy and the

other North American organizations

representing actuaries, and from selected

public policy-makers

The 1994 plan included a statementof the Academy's strategic mission .While the essential mission of theAcadenry has not changed, the task forcerewrote the mission to better articulatethe purpose and essential activities of theorganization The mission of theAcademy sets forth its fundamental pur-poses. It also describes the essentialongoing activities required to carry outthose purposes .

MissionAs the organization representing theentire United States actuarial profes-sion, the American Academy ofActuaries serves the public and theactuarial profession both nationallyand internationally through :

a. establishing, maintaining andenforcing high professional standardsof actuarial qualification, practiceand conduct,

b . assisting in the formulation ofpublic policy by providing indepen-dent and objective information, anal-ysis and education, and

c . in cooperation with other orga-nizations representing actuaries

-representing and advancing theactuarial profession, and

-increasing the public's recogni-tion of the actuarial profession'svalue .

Other organizations representingactuaries are primarily responsible foreducation and research and represent theprofession before related audiences .Service to the profession is shared by theAcademy and other organizations repre-senting actuaries The Acadeniy is theorganization that speaks for the entireU S profession Iii addition to present-ing the pcrspccnve of the profession, itserves as an advocate for the professionwhen such advocacy is appropriate

The Academ y' s strategic mission wasdeveloped is part of the Strategic Plan for1998-3(1(13 , which was approved by theBoard of 1)irectors on Sept 30, 1998

Strategic DirectionsFight strategic directions were identifiedthat represent high-priority matters forthe Academy to address if it is to achieveits potential over the next five nears .Each strategic direction is supported byseveral strategies that the StrategicPlanning Task Force recommended tofurther the specific strategic direction .

1 Liciease the influence of the Academyand actuano oil the cccateen cf public policy

3. Increase tccoc nitian of the actnainalpie isseon and W/Iat it does b}y public poltcy-cookers, usc'ts and ptospectii'e users of actuari-al se'rv'ices .

46 A5lt I:LCAN A CAD L MY 0 t ACT II,ARI I s

3 bit rcase adrn,aty /oc the at lrc,uial

pi~rjc,siou

4 Sflcc .klhcu and improut, 1hc' rlis-riplurary acid ,tatrdaids pp nrr•ss,

i Bruld au>au•uees acrd upporl for

the Code of Piofcssroual Cncidurt, for

sta)ldald' acid for the drscrplulary pio-

cec auiaii members, nein' urcdra, rc ~ a-

lators and policy-urakcrs

6. Eapaad tiic.Academy-'s

/iud1?Clal

1C'SLIM CCS .

7 . Ii/lplni'c the e'tfecfll'euC'Ss of the

.3Caden iy "% COt liliUlliCatiOll ProAlss WithiiC'lld>C'1~,its

tI Imp ove the ortaul_atrntial cft'c-to'etiess of the Academy'

logo ' EAIL6UOk 47

BylawsA, ,t1cI i1RATI) N ORGANIZED UNDER THE

ILLINI IS (ENEI AL NUT F( Ilk PROFIT w9 l'oRATIUN A( T

i kRA' TEI APIUL 2 ) , I'+4 . AN[) LAST AMENDED IN I'1'aa1

ARTICLE IMembership

SECTION 1 Members Individuals hav-ing nicinbership in the Academy shall becalled "members ."

Members shall he entitled to attend

meetings of the Academy, vote, hold

office, serve as elected Directors, make

nominations, serve on committees, and

generally exertise the nghts of full niem--

bership They are authonied to desitmatc

thcinsclves as "iiaembers" of the Anierican

AL adeniy of Actuaries and to append to

their mines the initials M A A A

SECTION 2 . Rcpuirciucuts for .4dnussiouto Wenhesship . An} person may apply formembership and shall become a memberby meeting the requirements containedin this section .

A . .9pplitariou Each candidate foradmission must submit a written applica-tion that shall include a resume of thecandidate's education, back,,round, andexperience, the names of two referenceswho are members, and such additionalinformation as the Executive Committeemay request

B Education . Each candidate shallhave passed, or have received credit for,the examinations prescribed from time totime by the Board of Directors, here-inafter called the "Board ."

C . Ev-ficnciice Each candidate must, atthe date of application, have had at leastthree years of experience in responsibleactuarial work 'Responsible actuarialwork" is defined as work that hasrequired knowledge and skill in solving

piactical actuarial pioblenis in any of thefollowing fields: life and health insuranceinvolving individual policies, group insur-ance, social insurance, pensions, or prop-erty and liability insurance .

D References. Evidence of characterand professional integrity of the candidateshall have been deduced by referencesfrom two members who have known thecandidate for at least eighteen months orfrom other sources If the application isrejected on the basis of evidence of lackof character or professional integrity, thecandidate may appeal to the Board Theprocedures for the conduct of suchappeal shall be as prescribed by theBoard

E Nonresidents, A candidate who isnot a resident of the United States mustmeet such other requirements as are pre-scribed by the Board

F .9ppoval Each application shall beacted upon by the Executive Committee .A candidate's application is approved ifaccepted by a majority of the wholeExecutive Committee . If refused, theapplicant may request review by theBoard, pursuant to such procedures asmay be adopted by the Board

ARTICLE 11Meetings of the Members

There shall he an annual meeting of themembers each fall at such time and placeas the Board shall designate

Special meetings may be called by theBoard Upon request of not less thanfive percent of the members, the

48 AMFRIC AN ACADFM1 01 ACTIIARI I S

President shall call .i 1teetnig of themembers At all niectm ;;s fifty membersshall constitute a quururei Notice of .rmcetmg, specifying; the place . date, endhour of the meeting, shall be given notless thaei hyenty nor more thin fortydays before each meeting .

ARTICLE IIIBoard of Directors

SECTION I Composition The Board

shall consist of twenty-nine Directors,

comprising the nine Officers, the two

utnnedeate Past Presidents, arid eighteen

elected I ) rcc tons .

SECTION 2 . Election and Term of O ice.A. Special Directors, The Board shall

designate a number of seats on theBoard, not to exceed eight, to be filledby a class of special Directors consistingof representatives of other U .S . actuarialorganizations whose presence on theBoard is deemed helpful to theAcademy. Special Directors shall heelected by majority vote of the wholeBoard and shall serve for a period of twoyears . If a vacancy occurs among thespecial Directors, the vacancy may befilled for the remainder of the unexpiredterns by majority vote of the wholeBoard- The term of office of a specialDirector shall begin at the close of theannual meeting of the Academy in thecalendar year of the election and shallcontinue until the close of the annualmeeting at the end of the terns forwhich the special Director was elected

B Regular Directors Elected Directorswho arc not special Directors shall beregular Directors Each year the mem-bers shall elect a number of regularDirectors to bring the total number ofelected Directors to eighteen . Candidatesreceiving the greatest number of votesshall be elected Such regular Directors

shall serve for a period of three years- Aretinng regular Director, other than onewho was elected to fill .i sacancy, yyhoseteini as a regular Director expires shallnot be eligible for re-election as a regularDirector at that time A Past Presidentwhose ex otticio membership on theBoard as Past President expires shall nothe eligible for election as a regularDirector at that time If a vacancy occursamong the regular Directors, including avacancy created by the election of a reg-ular Director to an office or to the posi-tion of special I )erector, the vacancy maybe filled foe the reniaindei of the unex-pired tern by majonty vote of the wholeBoard The term of office of a regularDirector shall begin at the close of theannual meeting of the Academy in thecalendar year of the election and shallcontinue until the close of the annualmeeting at the end of the tern for whichthe regular Director was elected .

SECTION 3 Mret ig There shall he inannual meeting of the Board within sixtydays prior to the annual meeting of theAcademy. Special meetings of the Boardshall he called v<henever the President orat least five members of the Board sorequest

Meetings of the Board may be heldeither within or outside the state ofIllinois Notice of the meetings of theBoard shall he given not less than tendays not more than thirty days before themeeting, except i n the event of a meet-ing of the Board following the annualmeeting of the Academy, in which eventnewly elected Directors shall be givennotice of such meeting of the Board aspromptly as possible Such notice tonewly elected Directors may be givenpersonally, by telephone, by cn .ril, or byfacsimile transmission .

Any action required to be taken at ameeting of the Board may be takenwithout a meeting if a consent in wnt-

t91i9 i LARROc)k 49

ing, setting forth the action so taken,shall he signed by all of the members ofthe Board

SECTION 4 Qrroirriir At meetings ofthe Board, a majority of the members ofthe Board shall constitute a quorum

SECTION 5 Duties and Powers TheBoaid shall have, in addition to thepowers and authority expressly conferredupon it by these Bylaws . the right,power, and authority to exercise a]] suchpowers and to do all such acts and thingsas may be appropriate to carry out thepurposes of the Academy . Without prej -udice to the general powers so con-ferred, the Board shall have the follow-ing specific powers :

(a) To act in accordance with theprovisions of the Articles ofIncorporation of the Acadeniv andthe laws of the state of Illinois

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

(c) To invest and administer thefunds oFthe Academy

(d) To arrange an annual audit of

the accounts of the Secretarv-

Treasurer

(e) To prescribe examinations andother requirements for adnussion, asprovided in Article I, Section 2, ofthe B) laws .

(f) To elect the Officers of theAcademy .

(g) To authorize such committeesas it may deem necessary for the con-duct of the affairs of the Academy .

ARTICLE IVExecutive Committee

During any interim between meetings ofthe Board, the business of the Academyshall be conducted by an ExecutiveCommittee comprising the Officers and

the immediate Past President TheExecutive Committee shall 11A% e suchpowers as may be provided by theseBylaws or as may be delegated to it bythe Board , except the specific powersenumerated ( h), (d) . (e ), ( f), and (g) inSection 5 of Article Ill-

ARTICLE VOfficers

SECTION I . Otfrceis The Officers ofthe Academy, all of whom shall bemembers. shall consist of a President, aPresident-Elect, six Vice Presidents, anda Secretary-Treasurer

SECTION 2 Election acid Teno of Qt/iceAt each annual meeting of the Board,the Directors present, by a vote of amajority of the whole Board shall elect,separately and in the order named, aPresident-Elect, three or more VicePresidents, and a Secretary-Treasurer

At the annual meeting of the Board, ifeither (a) the President-Elect has succeed-ed the President and has scred in thatcapacity for six months or more b~ rea-son of the office of President becomingvacant or (h) the office of the President-Elect is vacant, except in the case wherethe President-Elect has succeeded to theoffice of the President and has served inthat capacity for less than six months, theDirectors, by a vote of a niajonty of thewhole Board, shall prior to the electionof the President-Elect, elect a Presidentto serve from the close of the first subse-quent annual meeting of the Academyuntil the close of the second subsequentannual meeting of the A~adciin

Except as hereinafter provided, thePresident-Elect, having been so elected at.m annual meeting of the Board, shallconiinence the term is President-Elect itthe close of the first subsequent annualmeeting of the Academy and shill auto-

50 A 10 1 RIC AN A C: A D I M I 0 f A C T I I A IT I t s

marically succeed the President at the

close of the second subsequent inmial

meeting of the Academy, and shall serve

as the President until the close of the

third subsequent annual meeting of the

Academy In the event the otfii e of

President becomes vacant, the President-

Elect shall automatically succ eed to fill the

vacancy for the unexpired term A

President-Elect vvho so succeeds the

President and serves in that capacity for

less than six months prior to the close of

the first subsequent annual meeting of the

Academy following succession to the

Presidency shall further serve as President

until the close of the second subsequent

annual meeting of the Academy

The term of Vice President shall betwo years . The term of each VicePresident elected at each annual meetingof the Board shall he from the close of thefirst subsequent annual meeting of theAcademy until the close of the third sub-sequent annual meeting of the Academy.In the event of a vacancy in the office ofVice President, the Board may elect areplacement for the remainder of thevacancy of that office . Said replacementmay thereafter be eligible for re-electionas a Vice President at the meeting atwhich the term expires A retiring VicePresident is not otherwise eligible for re-election as a Vice President at the meet-oig at which the tern expires

Except as provided above, a retiringPresident shall thereafter be permanentlyineligible for election for another term asPresident or President-Fleet

A retiring Vice President shall not beeligible for re-election as a VicePresident at the meeting at which theterm expires

Each Officer shall hold oilier for theterns elected and until a successor shallhave been elected .

In the event of vacancy in the office ofboth the President and President-Elect,

the Board shall by majority vote of thewhole Board elect a member to fill thevacancy for the unexpired term of thePresident

In the event a vacancy occurs aniongthe Vice Presidents, or in the of}ice ofSecretary-Treasurer, the Board shall bynialority vote of the whole Board elect amember to fill the vacancy for the unex-pired term

ARTICLE VIDuties of Officers

SECTION 1 . President The Presidentshall preside at the meetings of the Boardand of the Academy . shall appoint com-mittees authorized by the Board . and maysign contracts or other instruments thatthe Board has authorized to he executed .

SECTION 2 . Piesident-Elret ThePresident-Elect shall have such duties asmay he assigned by the President or bythe Board- In the absence of thePresident, or in the event of thePresident's inability or refusal to act, thePresident-Elect shall perfiorrn the dutiesof the President's office

SECTION 3 lice President. Each of theVice Presidents shall have such duties asmay be assigned by the President or bythe Board .

SECTION 4 . Sccietaiiy-Tic'aisurei . TheSecretary-Treasurer shall record and fileminutes of all meetings of the Board,give all notices, be custodian of the cor-porate records of the Academy, and ingeneral shall perform all customary dutiesincident to the office of Secretary-Treasurer F the President is absent orunavailable, the Secretary-Treasurer maysign, with any other person authorizedby the Board, contracts or other instru-ments that the Board has authorized to

1`i'i'i 'itARROOK 51

be executed .The Secretary-Treasurer shall also

keep a register of the members, have

charge of the preparation and publica-

tion of any yearbook that may be puh-lished, have general supervision of any

arrangements for holding cxantmanons,

have charge and custody of all funds and

securities, collect dues, pay hills, prepare

finanCnrl statements, and in general per-

form all customary duties incident to the

office of Secretary-Treasurer The

Secretary--Treasurer shall gnu a bond for

the faithful discharge of all such duties,

the cost of which shall he paid by the

Academy-

ARTICLE VIIFinances and Contracts

SECTION 1 Dues Except as here-inafter provided, each member shall paysuch dues for each calendar year as maybe estabhshed by the Board Such duesshall he payable as of January 1 of thecalendar year At the time when dues arepayable, any member who has becometotally disabled or who, ha\trig attainedan age to he selected by the Board, andhaving retired front active work or \\ hohas attained age 7h, so notifies theSecretary-Treasurer in v ritiog shall begranted e,~emptuan from the payment ofclues by the Executive Comnnttee- ]nadehtion, any member \\ho (a) is expect-ed to earn no simntficant Income For ther alendar year front actuarial activities,and (b) is \\ithin .i class of n ienibers eli-gible for dues \1-atver as determined bythe Board shall he granted exemptionfrom the payment of dues by theExecutive Committee

It shall be the duty of the Secretarv-Tieasurer to cause to be notified by mailany member whose dues may- be sixmonths in arre.us and to accompany such

notice by a copy of this Section If duesrelearn unpaid, such person shall, on the

date that falls three months after the date

of marling such notice, cease to Lie amember of the Academy for all purposes

other than with respect to any penalty or

other action determined under disci-

plmarv procedures as provided in Article

IX, relating to n Deduct pnor to sun h date-

Reinstatemcnt as .1 menibcr shall be sub-

Ject to such conditions as the Board mayprescribe

SECTION 2 Ptrhlhcatio/r_ . The Boardshall determine the extent of distributionof publications of the Academy and thefees or prices to be charged any classes ofrecipients

SECTION 3 . Contracts . The Board maxauthorize any Officer or agent to enterInto any contract or execute and deliverany tnstnunent to the name or on behalfof the Academy .

SECTION 4 Chicks All checks, drafts,or other orders for a payiatent ofmoney, notes , or other c\-tdences ofindebtedness shall be signed by suchOfficer or agent of the Academy as shallfront tune to trite he determned bythe Board

SECTION 5. Deposits All funds of theAcademy not otherwise employed orinvested shall he deposited to the creditof the Academy in such banks, trustcompanies, or other depositories as theBoard stay select

ARTICLE VIIIResignation of Members

Any member nt,ly It ally tulle file a res-gnation in writing with the Secretar-\°-Treasurer, and, unless it is rejected bythe Executive Committee, it shall

52 A M F P ]CAN A l A rl r .\1 1 Ci f A i T tl .\ R I FS

become ettet trs e n of the date it %%x,filed. The Executive Connnittec mayrelect a resignation only it a complaintor charge is pending against the memberor if a complaint or charge is tiled withinsixty days after the date that the nicm-her's attempted resignation is filed Amember whose resignation is rejected bythe Executive Committee tray appeal inwriting to the Board The Board inav.affirm or set aside an F\ccutivcCommittee decision to reject a meoi-ber's resignation by a majority vote ofthe nienibers of the whole Board .

Notwithstanding the foregoing, theHoard niay in its discretion permit the res-ignation of a member against whom .rcomplaint or charge is pending. TheBoard, on written application of anynieniber who has resigned, may reinstatesuch nieniber subfect to such conditions asit may prescribe

ARTICLE IXPublic Discipline

SECTION 1 Con ijilarots ionI Retch r(sA Coiiiplaiaits concerning alleged

violations of the Academy's Code ofProfessional Conduct . and all questionsthat may arise as to the conduct of amember, in the member's relationshipto the Academy or its numbers, or inthe member's professional prat tice, oraffecting the interests of the actuarialprofession . constitute matters for seriousconsideration

B. Such complaints and questions shallhe referred to the n,itini al organizationresponsible for professiomyide counselingand discipline i n the nation where theaction occurred- the Actuarial Board forCounseling and Discipline (ABC1)) inthe United States and the CanadianInstitute of Actuaries (CIA) in Canada

SFC'TION 2 Cosnidciiitioli of Pnh(!cDrsddplriiary .4ctrtm

A The President shall appoint a six-person Disciplinary Committee fromamong the members of the Board toconsider and act on a reconiniendationfrom the ABCD or the CIA for publicdiscipline of an Academy member .

B. Public disciplinary action includes.i public repriiriand, suspension ofAcademy- membership, or expulsionfrom the Academy

C The member .who is the subject ofa public disciplinary reconiniendationfrom the ABCD of the ( C IA shall havethe right to appear personally and bycounsel (at the member's expense) beforethe Disciplinary Committee to explainwhy that recommendation should not befollowed .

I) . The member involved shall benotified not less than forty-five days inadvance as to the time, date, and place"here the Disciplinary Committee willconsider the matter . The notificationmay be made by certified mail or in suchother nianner as the DisciplinaryCommittee inav direct The time limitniay he waived by iuutual agreement ofthe parties

E An action of the DisciplinaryConuiuttee to publicly reprmand, suspend,or expel a meinber requires an alfinu,itivevote of two-thirds of the whole nieniber-ship of the Disciplinary Conuuittee .

r . An action by the DisciplinaryCommittee to publicly reprimand, sus-pend the membership of, or expel anieniber is effective forty-tive days afterthe date of the action, if the nieniberdoes not appeal the action to the Board,and, in the event of such an appeal, theaction is effective on the date when theappeal is decided by the Board

SECTION 3 _4ppeah to the Board- Anieniber against whom an order of public

1 5n,i YEARBOOK 53

reprimand, suspension, or expulsion hasbeen rendered Shall, upon apphia(ion tothe Board within fort)-tive days after theaction of the Disciplniarv Committee, beentitled to appeal to the Board at its nextrcl ularly scheduled nicetuig, under thefollowing conditions :

A All rights and privileges of nteni-bership shall be retained during the pen-deiicv of the appeal

B . The notice of appeal shall be inwynting and shall stipulate that the appeal-ing member consents to the mailing tothe members of the Board of a transcriptand all applicable evidence in a formapproved by the Disciplinary Committee .

C The member may appear personal-ly and by counsel (at the member'sexpense) before the Board when it meetsto hear the appeal

D The decision of the DisciplinaryCommittee may be affirmed, reduced. orset aside by a majority of the members ofthe whole Board Members of theBoard who serve on the DisciplinaryConnnitree uiay participate and vote indeliberations of the Board .

SECTION 4 Rciir±tatrnient An individ-ual who has been expelled or suspendedfrom the Academy ma) be reinstatedonly through an action of the Board ofDirectors

SECTION 5 Coiitrdeiitr a lity of Proiccd-irrSs Except as otherwise provided inthese Bylaws or by waiver of the personunder investigation - all proceedings, underthis Article shall be confidential and keptsecret

SECTION 6. N'olijii mionsA The Board of Directors shall notifv

Academy members in all Instances umwhich a member is subject to public dis-cipline At the same trine notification isgiven to the nienibers, the Board ofI )irectors shall also give notice of thepublic discipline to all other actuarial

oreaiiizatioiis lof which the indiv idual is amember and to other organizations,including governmental entities, that, inthe opinion of the Board, should alsoreceive notice of the action . r he Boardof Directors may also give notice of pub-lic discipline to such newspapers or jour-nals as it inay select.

B If the Lass, arises from a writtenconipLniit, notice of the disposition ofthe case shall he furnished to the com-plainant .

C. In the case of an action by theDisciplinary Committee to publicly repn-mand, suspcud, or expel i uicniber, thenotification should take place forty-fivedays after the Committee's action, and, ifthe member is appealing the decision tothe Board of Directors, the notificationshould state that the decision is beingappealed Once the Board of Directorshas acted on this appeal, there should be anotification of that action

D In the event of subsequent rein-statement of an expelled or suspendedmember, the Hoard of I )irectors shall givenotice of such action to all members andalso to entities previously advised by theBoard of the expulsion or suspension

ARTICLE XActuarial Board

for Counseling and DisciplineSECTION 1 . Establr+li,ni tit aitd

Purposes .A . There shall be established within

the Academy an entity to be known asthe Actuarial Board for Counseling andDiscipline (ABCD) . Upon delegation ofappropriate authority front a participat-ing actuarial organization and acceptanceof that delegation by the ABCD, theABCD will be authorized-

I To consider all complaints con-cerning alleged violations or infor-mation suggesting possible violations

54 A At E a I L A N H C A D E ht 1 0 F 4 C T U A I : 1 E S

of the applicable Code(s) ofProfessional Conduct and all ques-irons that may arise as to the conductof a member of a participating actuar-ial organization iii the member's rela-tionship to the organization or itsmembers, In the member 's profes-sional practice, or affecting the inter-ests of the actuarial profession

2 To counsel actuaries concern-ing their professional activities relatedto the applicable Code(s) ofProfessional Conduct in situationswhere the ABCD deems counselingappropriate

3 To recommend a public disci-plinary action with respect to an actu-arv to any participating organizationof which that actuary is a member

4. To mediate issues betweenmembers of participating actuarialorganizations, or between such menl-hers and the public, for the purposeof informally resolving issues con-cerning the professional conduct ofsuch members

5 To respond to requests for

guidance regarding profession ahsiii

from Members of the partit ipating

organizations

B The ABCD is authorised to est .lb-

lish Rules of Procedure and operating

guidelines not inconsistent V 11th the

requirements of this Article . Such Rules

of Procedure shall provide that the sub-

J cat of an iiiyuiry will he given the h01-

1 Notice of the inquiry along

with the factual basis for the Inquiry

,Ind an opportunity- to comment on

the matter hefoie the ABCD deter-

iiiines whether all Investigation

should be Initiated

2 Notice of the ABCD's decisionto refer inquiry to Investigators, theirnames, and an opportunity to objectfor Cause In stiritmg to any of them .

3 The opportunity to conlnienton an In\ estigative Report beforethe ABCD uses the Report to voteon disposirion of the inquiry

4 Reasonable notice of I hearingto be conducted regarding the actu-ary's work and/or conduct, nitlud-ing the issues for inquiry and thedate, time, and place of the hearing

5 . Within a reasonable period oftime prior to a hearing, the rl,rmcs ofany witnesses whose testimony theABCD expects to consider indcopies of case-spec stir dueunientsnot previously provided to the sub-ject of the ingniri that the Ai3CDcxpeo.ts to consider

(r Notice and a reasonable oppor-

tunity to respond to additional Iele-

vast, material case-specific docu-

ments and witnesses that the ABCD

first learns of during a hearing if the

ABCI) intends to consider such

The notice shill include a copy of

such documents and the names and

last known addresses of witnesses .

7 The right to assistance of coun-sel during a healing, including theright to seek and ieceive ads ice fromcounsel and to have counsel articu-late appropriate legal objections

8 Prompt notification of theresults of an ABCD hearing afterthey have been determined and for-mulated .

The ABCD shall expose, forcomment, proposed revisions of itsRules of Procedure to the professionor to membership organizations forpublication to their members .

SECTION 2 1Iembels and _4ppotrtr-lilt lips

A The ABCD shall consist of nine

persons appointed front the membership

of the participatin g organizations.

Appointments will usually he made for

[1) 91) 1 hAN nook 55

three-,ear tennis. but appointments forshorter terms may be made to assure thatthe terms of one-third of the membersss-ill e\pire each year A member mayserve no more than two consecutiveterms

B. Members of the ABCD shall bebroadly representative of all areas of actu-arial practice They shall he appointedby, and serve at the pleasure of, aSelection Committee composed of thePresidents and Presidents-Elect of theparticipating organizations. ThePresident of the Academy shall serve asChairperson of the Selection Committee .

C If a vacancy arises among themembers of the ABCD, the SelectionCommittee shall designate a replacementto till out the remainder of the term .The replacement will complete thatterns, and may be reappointed for oneadditional consecutive three-year termWhen a hill-tens or replacement nieni-her has attended a hearing as an A13CDmember, such member may servebeyond his or her term of appointmentsolely for the purpose of participating inthe ABCD's disposition of that matter

D Where three or more members of

the ABCD have an actual or apparent

~onflut of interest with regard to a par-

ticular matter, with the result that a quo-

nina of the ABCI) cannot practicably he

cons cued to romider the matter, the

Selection Committee may, in response

to a request from the ABCD, appoint

enough special members to the ABCD

to forum a quonun to consider that mat-

ter The special members shall consider

only the matter(s) for which appointed .

and the term of each such special mem-

ber shall end at the conclusion of the

ABCI)'s consideration of such matter(s)

SECTION 3 O(f i ersThe Officers of the ABCI) shall rou-

sist of the Chairperson and tsso Vice

Chairpersons, svho shall he appointedannually from among the members ofthe ABCI) by the Selection Committee

SECTION 4 . .\h ti,Cs ami d Conduct o)Ijnsirico .

The ABCI) shall meet at least onceeach year Meetings may be called bythe Chairperson or at the request of atleast three niemihers Sts inenibcrs ofthe ABCD shall constitute a quorumMeetings may be conducted in personor via telephone . In the event that nei-ther the Chairperson nor a ViLeChairperson is able to participate at aduly- called meeting where a quorum ispresent, the members inay , by a majorityof those participating , select aChairperson Pro Tern for that meeting

SECTION 5 . Proredmes .A. For any matter described in

Section 1 .A.1 that comes to the atten-tion of the ABCD, the Chairperson andthe two Vice Chairpersons may bymajority vote agree to. (1) dismiss thematter, (3) authorize a mediator toattempt to resolve the matter, or(3)authorize a review of the matter .

13 An actuary whose activities are thesubject of AB ( I) inquiry is referred toas a "subject actuary "

C To review a matter, theChairperson shall appoint a primaryInvestigator and may appoint additionalInvestigators ABCD members shall notbe Investigators

I. The Investigator(s) shall inves-tigate activities which may involveviolations of the applicable Code(s)of Professional Conduct . TheInvestigator(s) shall then prepare anInvestigative Report for the ABCDwhich contains the results of theinvestigation

2 The Investigator(s) shall followapplicable Rules of Procedure and

56 A M E r 1 C A N A C A ih I M f u r A C T u A R i r 1,

operating guidelines established bythe ABCD, which shall nut heinconsistent with the provisions ofthis Article .D . The Chairperson may designate

individuals with special expertise in vari-ous specialty areas to serve as Advisors tothe ABCD . Investigator(s) and theABCD may consult confidentially withsuch Advisors who have information orexperience relevant to a matter underconsideration

E Following receipt of theInvestigative Report, the ABCD shalldetermine by majority vote whether to(1) dismiss the matter, (2) counsel theactuary, or (3) schedule, in accordancewith the Rules of Procedure describedin Section 1 B of this Article, a fact find-ing hearing before the ABCD .

F In any hearing before the ABCD :I The subject actuary shall have

the right to appear personally, toexamine the evidence to be consid-ered by the ABCD, to question wit-nesus appearing at the hearing, andto present witnesses and evidence

2 The subject actuary may be

accuuipaiued by counsel, at no

expense to the ABCD. The coun-

sels role in such instance shill be

defined by the Rules of Procedure

adopted by the AHCI), subject to

the requirements of Section 1 13 7 of

this Article The role of counsel for

the ABCD shall be similarly defined .

3 The ABCD shall decide allquestions of evidence at the hearing

4. A written transcript shall bemade of the proceedings and a copymade available to the subject actuary .G. Following the conclusion of the

hearing and based on the evidence(including testimony) . only those ABCDmembers participating in the hearingshall, by affirmative vote of five or moremembers, determine to 0) dismiss the

matter, (2) counsel the actuary : or ~3)

reconiniend discipline to the subject

actuars's nicinbcrship organiZation(s),

including the form of such discipline

private reprimand (if pcriui(ted by the

membership organization's bylaws or

rules), public reprimand, suspension . or

ecpulsion If the ABCD believes it

would be beneficial, it may also counsel

an actuary for whom discipline is recom-

mended

If the ABCD recommends discipline,the ABCD shall prepare a written reportaddressed to each participating organiza-tion of which the subject actuary is amember. The report shall identify theprecepts of the applicable Code(s) ofProfessional Conduct that the ABCDbelieves to have been violated, state thenature of the violations, and make a rec-ommendation as to the form of disci-pline The report shall be accompaniedby a transcript of the hearing and copiesof all documents considered at the hear-in,, A copy of the report and accompa-nying material shall be provided to thesubject actuary

SECTION ( Cerii nrliiuip .The ABCD shall counsel a subject

actuary when the ABCD determines

counseling to be more appropriate than

dismissal of a matter The ABCD may

also counsel a subject actuary for whom

it recommends discipline Counseling

shall not be considered a disciplinary

action

SECTION 7 SniffThe ABCD will utilize the staff of

the Academy for necessary legal, logisti-

cal, and technical support and niay retain

outside counsel for assistance, as needed

SEC LION l binaii(ccA. The finances of the ABCD will be

accounted for separately within the

19n9 2 EARBUOK 57

Academy system of accounts . TheABCD will submit a budget request tothe Secretar}-Treasurer, Iistin4g allplanned income sources and potentialexpenses, m such form and in such detailas is mutually determined by theSecretary-Treasurer and the ABCD .The Board of the Academy will consid-er this request when adopting its annualbudget and will make provision withinsuch budget for the operating expensesof the ABCD

B The ABCD will have discretionwith regard to the expenditure of allfunds allocated to it, subject only to suchaccounting and audit requirements asclay be mutually determined by theSecretary-Treasurer and the ABCD

SECTION 1) CoiitiderrtralityExcept as otherwise provided in these

Bylaws, all proceedings under this

Article shall be kept confidential by the

ABCD, its staff investigators . and advi-

sors This requircrircnt as to confiden-

tiality shall not preclude the ABCD

from

A Aclvisiug coniplainants and subject

actuaries about the progress and

out- once of matters under consideration,

B. Reviewing previously closed files,is they may relate . in ins manner, to theconsideration of a new matter hetore it

C Accepting a bona tide waiver ofconfidentiality from a subject .actuaryand disclosing infoi oration pursuant tothat w .over that would otherwise bekept confidential under this section, sub-Ject to such terms and conditions as theABCD deems necessary to protect theconfidentialitti tights of othei parties andthe integrity of the ABCD process

SECTION llh Coruuuiiiir itian

The ABCD shall issue an annualreport that will Include a description ofits activities for the prior fiscal year,

including commentary on the types ofcases pending, resolved, and dismissedThe ABCD inay also disseminate educa-tional materials to assist actuaries inunderstanding the application of theCode(s) of Professional Conduct i n vari-ous situations which may arise- Thesereports and educational materials shallnot reveal any confidential informationThe ABCD shall also report quarterly tothe President of each participating orga-nization concerning inquiries, issues, andcounseling activities related to membersof that organization

ARTICLE XIActuarial Standards Board

SECTION 1 . Estalilislwiiiit anal Pinposrs .There shall be established within theAcademy an entity to be known as theActuarial Standards Board (ASB), whosepurposes shall be to .

A . (i) E'spose, (n) promulgate or

.adopt, and (iii) publish actuarial

Standards of Practice, within its sole dis-

cretion .rid pursuant to such procedures

.is it deems appropriate, in all areas of

actuarial practice, subject to the specific

requiienients of this article

B Provide continuous rcvicn of

existing Standards of Practice aid deter-

mine whether they are in need of

anlendnicit, alteration, e\pansiol . or

elinunation

C Direct and manage the des elop-ment of actuarial Standards of Practiceby its operating cui uniittees in all areasof actuarial practice .

SECTION 2 . ,LG•iiiherc surd .AIpporrmiicuts

A The ASB shall consist of nine

members, each of whom shall beappointed for three-veal teims No indi-vidual niav seive more than two consec-utive terms on the AS13 Terms of nieni-

5H A M I RICA N A C A n t ns 1 l 1 F A C r 11 4 K I L 5

bership shall he staggered, so that one-third of the members are appointedannually

13 Members of the ASB shall bebroadly representative of all areas ofactuarial practice . They shall be appoint-ed by and serve at the pleasure of aSelection Committee composed of thePresidents and the Presidents-Elect ofthe organizations that participate in theABCD, or their successor organizationsThe President of the Academy shallserve as Chairperson of the SelectionCommittee The Selection Committeeshall annually appoint the Chairperson ofthe ASB An individual appointedChairperson may not serve more thintwo consecutive terns as ChairpersonIf a vacancy arises among the membersof the ASB, the Selection Coinnutreeshall designate a replatenient Thereplacement will complete that term,and may he reappointed for one addi-tional consecutive three-year term

SECTION 3 . 1leerwgs . The ASB shallmeet at least four times annuallyAdditional meetings of the ASB shall becalled whenever the Chairperson or atleast four members of the ASB sorequest At meetuigs of the ASB, two-thirds of the members of the ASB shallconstitute a quorum At least six affirma-nyc votes arc required for the ASB toexpose, promulgate, or adopt ictuarralStandards of PractiLe

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

Chairperson and tN,~o Vice Chairpersons .The Vice Chairpersons shall be appoint-ed annually from among the members ofthe ASB by the Chairperson with theconsent of the ASB

I One Vice Chairperson shall bethe presiding officer in the absence ofthe Chairperson and shall have such

other duties is rims he assigiied b\ the

Chairperson .

?_ The other Vice Chairpersonshall monitor the disposition and beresponsible for the authorization ofexpenditure of all funds associatedwith the ASB

B The Chairperson of the ASBshall preside at meetings of the ASBand shall designate operating commit-tee Chairpersons .with the consent ofthe ASB Members of the operatingcommittees shall be appointed by eachoperating commmittee Chairperson withthe consent of the AS13

SECTION 5 Conariittiis The ASH shallestablish operating c oinnnttees to pre-pare and draft Standards of Practice lotconsideration by the ASB '1 he numberand membership of such committeesshall be determined by the ASB TheASB inav establish additional commit-tees, subcommittees. or task forces as itdeems appropriate to carry out adiimnis-trattve or advisory functions in supportof Its Operations

SECTION (,, FumanceA. Financial activities pertaining to

the ASB will be accounted for separatelyssitinun the Academy system of accountsThe ASB will submit a budget request tothe Secretary-Treasurer, listing allplanned income sources and potentialexpenses, in such form and in such detailas are mutually determined by theSecretary-Treasurer and the ASH TheAcademy Board will consider this requestwhen adopting the Academy annualbudget and will make provision withinsuch budget for ASB operating expenses

B. The ASB will have discretion withregard to the expenditure of all fundsallocated to it, subject only to suchactonntin and .iudit requirements as are

I"'i`i ytARis 0 cit 59

imitually drtcrnnned by the Secretary-

1 ieasurer and the ASlI

SECTION 7 Staff The ASB will utilizethe staff of the A~adcmy for all support,within the budgetary constraints of theASB, and the Academy will make avail-able to the ASB such staff support as mayhe requested Costs for such staff support .including overhead expenses ascertainedpursuant to a formula mutually deter-mined by the Secretary-Treasurer and theAS13 . will be included in the ASB budget .

SECTION 8. Coiiuiiuincatwiis with theActuarial Ptof•sstoti The ASB shall issue anannual report that will include a descrip-tion of its activities for the prior fiscalyear. including commentary on its stan-dards activities , administrative matters,and finances The ASB shall cooperatewith duly constituted actuarial authoritiescharged with enforcing standards of pro-fessional practice , and respond to inquiriesregarding actions of the ASB , includingthe interpretation of standards promulgat-ed or adopted by the ASB

ARTICLE XIINotice

The requirement that notice he given tonienibers or other persons shall be satis-fied when a letter has been deposited ina United States Postal Service mailboxaddressed to the last known address ofsuch person

ARTICLE XIIIIndemnification

Each person who at any time shall serveor shall hive served as an Officer,member of the Board, committee mem-ber, or member of any disciplinary boardof the Academy (and any such person'sheirs, executors, administrators, and per-

sonal representativ es) shall be indennii-liied by rise Academy against all costs andexpenses (including hilt not hinted tolegal fees, amounts of judgments paid,and amounts paid in settlement ) reason-ably nicurrcd in connection with thedefense of any claim . action , suit, orproceeding , vv hether civil, criminal,administrative , or other, in which oneor more of them may be involved byvirtue of such person being or havingbeen an Officer, member of the Board,connuttce nieniher, or member of anydisciplinary hoard of the Academy, or inconnection with anv appeal therein ;provided, however, that in the event ofa settleuicut the indcmnitication hereinprovided shall apply only when theBoard approves such settlement, andprovided further that Such indemnityshall not he oper.rtive with respect toany- matter as to which such person shallhave been finallyy adjudged liable in suchclaim , action, suit, or proceeding onaccount of w illfbl misconduct

The rights accruing to any personunder this Article shall be without preju-dice to any rights or benefits given bythe Board inconsistent therewith m spe-cial cases and shall nor exclude any otherrights or benefits to which the individualmad he 1 .isstiilly entitled

ARTICLE XIVUse of Financial Resources :

DissolutionThe funds of the Academyy shall he devot-ed exclusively to the purposes stated inparagraph 5 of the Articles ofIncorporation No part of the net earningsof the Academy shall ever inure in wholeor in part to the benefit of any member ofindividual. If the Academy is dissolved, allof its remaining assets shall be transferredto one or more organizations organizedand operated exclusively for purposes sun-ilar to those of the Academy .

60 5'O FIt[CAN ACkDFtitt OF ,vCT11ARIFS

ARTICLE XVAmendments

Adnnnisiratne, editorial, and technicalamendments to the tiylass•s that do notmyolve questions of policy or affect thesubstantive tights of the Academy's meni-hers may be made by a vote of two-thirdsof the Directors present at a duly con-vened meeting of the Board Other-,vise,amendments to the Bylaws may be pro-posed either by a vote of two-thirds ofthe Directors present at a duly convenedmeeting of the Board or by written

request of not less than three percent ofthe members. The Board shall specit~- areasonable period of time vithin whichthe proposed amendment shall be tran,-mitted by the Secretary-Treasurer to themembers by mail, and the time for votesto be mailed by the members to theSecretary-Treasurer Such proposedamendment shall be accompanied by anappropriate discussion of the issues, and itshall become effective ten days followingthe end of the voting period upon theaffirmative vote of two-thirds of themembers voting

1 ')•)9 ) EAR ROOK 61

Statement of PolicyADOI'TEI) BY THE EXECUTIVE ( C )MMITTEEOF THE AMERICAN AC-AI)EMY OF ACTUARIES

AUGUST 115, 1'103

T he American Academy ofActuaries ("the Academy-) is anequal opportunity employer . It

alto offers services, membership bene-fits, and opportunities to its present andprospective members (referred to here-inafter collectively ae "members") on aiiondlscriminatory basis It Is theAcadenit-'s policy to refrain fromunlawful discrimination against employ-ees and members on the basis of race .color, national origin, ancestry, personalappearance, age, gender, pregnancy .marital status, sexual orientation, familyresponsibilities, religious affiliation .matriculation, polincal affiliation, physi-cal, mental, or emotional disability,source of income, place of residence, orunfavorable discharge from military ser-

vice, as those terms are defined byapplicable state and federal law Thesecharacteristics aie referred to hereinafteras "protected chalacteustics "'

Further, It is the Academy's policy toprovide its employees and membels witha working environment that is free fromunlawful discrimination based upon anyof the protected characteristics describedabove . No Academy employee ormember should be subjected to such dis-crlmtnatton while working for, orengaging In activities conducted by . theAcademy,

It ii also a violation of this policy foran Academy employee or member toseek to retaliate against any individual forcomplaining of a violation of theAcademy's anti-discrmnutanon policy .'

Tin list ofprottthd tharactcrnrn~ r u'ntpik~I tram ,ipphcZLk I)i,tn,t ~ if l'oltunht.t IIItunn, ti td ted.t II I

Tit,nt,ntttrt t' not tnnnd-1 to ptttIuJL tilt l, -I-rush t%etc],t of m utdt ;1du,1\ 4'gal nghtc

62 AMERICAN ACADEM) OF AC I UARI EE

Code ofProfessional Conduct

PreambleThe Precepts of this Code of ProfessionalConduct identify the professional andethical standards with ,vhich an actuarymust comply. The Annotations provideadditional explanatory-, educational, andadvisory material to members of the actu-arial profession on how the Precepts areto be interpreted and applied All attu-ary must he familiar with, and keep cur-rent with revisions to, the Code ofProfessional Conduct and its Pre opts antiAnnotations

Professional IntegrityPRECEPT 1 . An actuary shall act hon-estly and iii a manner to uphold the rep-utation of the actuarial profession and tofulfill the profession's responsibility tothe public .

ANNOTATION 1-3, An actuar)shall not use a relationship ss ith a thirdparty to attempt to obtain illegal orMaterially improper treatment from suchthird party on behalf of a principal (i e ,present or prospective client or eruplov-er)

PRECEPT '_ An actuary shall performprofessional services with integrity, skill,and care

ANNOTATION ?-1 . "Professionalservices" refers to the rendering ofadvice, recommendations, or opinionsbased upon actuarial considerations,and also includes other services pro-vided to a principal (i e., present orprospective client or employer) by oneacting as an actuary .

Qualification Standards.-i .\NOTA TIO.'\* I- 1 An actuaryfulfills the profession's responsibility tothe public through compliance withthis Code, and by offering actuarialadvice, recommendations, and opin-ions that are the product of the actu-ary's exercise of professional .judgment-

,-I,\'\'OT.-1TIO,\- 1-2 An actuarywho pleads guilty to or is found gtiiltsof auy niisdenieanoi related to finan-cial matters or any- felony shall be pre-sumed to have contravened Precept 1of this Code , and shall be subject tothe profession ' s counseling and disci-pline procedures

PRECEPT 3 Au actuary shall performprofessional services only when the actu-ary is qualified to do so and meets applica-ble qualification standards .

ANNOTATION 3-1 . It is the pro-fessional responsibility of the actuaryto observe applicable qualificationstandards in the jurisdiction in whichthe actuary renders professional ser-vices, and to keep current regardingchanges in these standards Forexample, for practice in the UnitedStates, the Qualification Standardspromulgated by the AmericanAcademy of Actuaries apply ; for prac-

Arm I] 1~d b% tilt: It., I'd nl rhr:cn,r, nl th_ Anieti-n Au adcnn of A, hi oils iii jaini,uN I Q')~

t"'on tIAikP,0 01., 63

ice in Canada, the eligibility condi-tions promulgated by the CanadianInstitute of Actuaries as set out in theCanadian Institute of Actuanes' bylawsapply

standards of PracticePRECEPT 4 An actuary shall ensurethat processional services performed byor under the direction of the actuarynicer applicable standards of practice

ANNOTATION 4-i . It is the pro-

fessional responsibility of the actuaryto observe applicable standards of

practice in the jurisdiction in which

the actuary renders professional ser-

vices, and to keep current regarding

ch,uiges in these standards For

example, for practice iii the United

States_ the Standards of Practice pro-

inulgited by the Actuarial Standards

Board apply, for practice in Canada,

the Standards of Practice pronnilgat-

ed by the Canadian Institute of

Actuaries apply

ANNO1141IO,x' 4-2 Where thereis a question regarding the applicabili-ty of a standard of practice, the pro-fessional Judgnient of the actuary,taking into account the applicableaccepted principles of actuarial prac-tice, shall prevail

DisclosurePRECEPT 5. An actuary shall, in com-municati ng professional findings, indi-cate clearly that the actuary is responsiblefor the findings

ANNOTATION 5-1 . An actuarywho makes an actuarial communica-tion should indicate clearly the extentto which the actuary or other source(s)are available to provide supplementaryinformation and explanation .

I KNOT rl L'1OX 5-? An actuarywho makes an actuarial communica-tion assumes responsibility for itexcept to the extent the actuary dis-claims responsibility by statingreliance on other sources . Relianceon other sources moans making useof those sources without assumingresponsibility therefor . A connnuni-cation making use of such relianceshould define the extent of reliance .An actuary may rely upon othersources for information except wherelimited or prohibited by applicablestandards of practice .

ANNOTATION 5-3 . Any writtencommunication of professional find-ings must be signed with the name ofthe actuary who is responsible for it .The name of an organization withwhich the actuary is affiliated may beincorporated into the signature, butthe actuary's responsibilities and thoseof the organization are not affectedby the form of the signature

PRECEPT 6 An actuary shall, in com-municating professional findings, identi-fy the principal(s) (i e , the client1si oremployerls}) for is horn such findings aremade and shall describe the capacity inwhich the actuary serves

PRECEPT 7. An actuary shall make

full and timely disclosure to a principal

(I e ., present or prospective client or

employer) of the sources of a]] direct and

indirect compensation that the actuary

or the actuary's firm may receive in rela-tion to an assignment for which theactuary- provides professional services forthat principal .ANNOTATION 7-1 An actuarywho is not financially and organiza-tionally independent concerning anymatter related to the subject of anactuarial communication should dis-

64 A NA I It I C A N ( A 1) 1 M) 0 1 A C i LI A It 1 t S

close to the printipal in,, pertinentrelationship that is not apparent

.4l\'N()T.ITIUN 7-2 "Indirectcompensation" is any material con-sideration received from any sourcein relation to an assignment forwhich the actuary provides profes-sional services , other than directremuneration for those services .

.i.\ \'OT-ITIO -7V 7-3 . Actuariesemployed by firms that operate inmultiple sites arc subject to therequrreriierit of disclosure of sourcesof compensation that the actuary'sfirm may receive in relation to pro-fessional services wwith respect to aspecific assignment for that principal,regardless of the location in whichsuch compensation is received

Conflict of InterestPRECEPT 8 An actuary ;hall not per-form piofessional services involving ailactual or potential conflict of interestunless

(a) the actuary 's ability to act fairlyis unimpaired, and

(b) there has been disclosure of theconflict to a ll known direct userswhose interests would he affected bythe conflict, and

(c) all sun Ii known direct usershave expressly agreed to the perfor-mance of the scrwiccs by the actuary

.4 NN U TA 7'iON i'- 1 A "directUser" of ail actuary's serbic es is a

principal ( i .e ., present or Prospectiveclient or employer) hawing theopportunity to select the actuary andable to communicate directly withthe actuary about qualificationswork, and recommendations-

ANNOTATION 8-2 If the aitnaryis aware of any significant conflict

between the interests of the dirc~tuser and the interests of another 11,11-tyrelatise to the actuary's work, theactuary should advise the direct userof the conflict . The actuary shouldalso include appropriate qualificationsor disclosures in any related actuarialcommunication

Control of Work ProductPRECEP 1 9 An actuary shall not per-form piofession .il u•rvices when the actu-arv has season to believe that they maybe used to mislead or to violate or evadethe law .

.-1 'A-OT.1'l iON 9-1 Material pre-pared by an actuary oiay he used byanother party in a wary that Tim v influ-ence the actions of a third party Theactuary should recognize the risks ofmisquotation, misinterpretation, orother misuse of such imaterial andshould take reasonable steps to ensurethat the material is clear and present-ed fairly and that the actuary is identi-fied as responsible for the nciten .il asrequired by Precept 5 of this Code

ConfidentialityPRECEPT Iii. An actuary shill notdisclose to another party any confiden-tial information obtained through pro-tessional services performed for a princi-pal (i e , client or employer) unlessauthorized to do so by the principal ofrequired to do so by law .

ANNOTATION 10-I.-Confidentialinformation" refers to informationnot in the public doniain of whichthe actuary becomes aware in con-junction with the rendering of pro-fessional services to a principal . Itmay include information of a propri-etary nature, information that is

iS'i'i l F A RBoos. 65

legally restricted from circulation, orrnfor matlorl that the actuary has rca-ton to bche\e the principal ,vouldnot wish to he divulged

Courtesy and CooperationPRECEPT 11 An actuary shall per-

form professional services with courtesy

and shall cooperate with others in the

principal's (i e- client's or entplover's)

Interest

1'\XOT4TIO .N 11- I Differencesof opinion among actuaries may arise',particularly in choices of assumptionsaund methods Discussions of suchdifferences , whether directly betweenactuaries or ui observations made to aprmcipal by one actuary on the workof another , should he conductedobjectively and with courtesy

.`l,ti'.\OT.-ITION 11-2 An actuaryin the course of an engagement oremployment nlay encounter a situa-tion such that the best interest of theprincipal would he served by theactuary's setting out an alternativeopinion to one expressed by anotheractuary together with an explanationof the factors that lend support to thealternative opinion . Nothing in thisCode should be construed as pr--venting the actuary- from expressingsuch an alternative opinion to theprincipal .

AN,NloTATIOi'- 11-3 A principalhas an indisputable right to choose aprofessional advisor An actuar\ mayprovide service to any principal whorequests it , even though such princi-pal is being or has been served byanother actuary ill the ,,one matter

If an actuary' is invited to advise aprincipal for whom the actuaryknows or has reasonable t rounds to

believe that another actuary is already

acting In a protessrorral capacrtr with

respect to the same matter or has

recenth• so acted, it may be prudent

to consult with the other ac teary

both to prepare adcqu .rtcly for the

assignment and to make an tnfolmed

judgment whether there ire stances nvolving a potential violation

of this Code that might affect accep-tance of the assignment

The prospective new of additionalactuary should request the principal'sconsent to such consultation Whenthe principal has given consent, theoriginal actuary may require reason-able compensation for the workrequired to assemble and transmit therelevant Information such as perti-nent data, work papers, and docu-nicnts . I he actuary need not pro-vide any items of a proprietarynature, such as computer programs

AdvertisingPRECEPT 12 An actuary shall ootengage in any advertising or businesssolicitation activities with respect to pro-fessional services that the actuary knowsor should know are file or mrsleadmg

4 ' 'O l'.-l 1'1W\7 12-1 . "Adverti-snlg" encompasses all communicationsby whatever medium, including oralconimunrcations, that may directly orindirectly influence any person ororganization to decide s hether thereis a need for actuarial services or toselect a specific person or firm to per-form actuarial services

Titles and DesignationsPRECEPT 13 An actuary shall makeuse of membership titles and designa-

66 \ s1 l R[ C A V A (- A I) I hl) () F A C T iI A R[ E S

lions of an actuarial organization only uaa manner that conforms to the practicesauthorized by that organization

ANNOTATION 13-1 "Title" meansany title conferred by an actuarialorganization related to a specific posi-tion within that organization ."Designation " means a specific refer-ence to membership status within anactuarial organization

Collateral ObligationsPRECEPT 14 . An actuary with knowl-edge of an apparent , unresolved materialviolation of this Code shall disclose suchviolation to the appropriate counselingand discipline body of the profession,except where the disclosure woulddivulge confidential information or becontrary to law .

ANNOTATION 14-1 A materialviolation of this Code is one that isimportant , has influence or effect, oraffects the merits of a situation, asopposed to one that is trivial , does notaffect an outcome , or is one merely ofform

ANNOTATION 14-2, Except \shen

an actuary is prohibited by law or

while the actuary is acting in an

adversarial environment involving

another actuary or actuaries , when the

actuary becomes aware of an apparent

material violation of this Code, the

actuary is required to undertake

promptly the following course ofaction :

( .t) If appropriate , discuss the situa-tion with the other actuary or actuar-ies and , if necessary , agree upon acourse of action to ensure that theapparent violation is resolved ;

(b) If (a) is riot appropriate or is notsuccessful, bring the apparent violationto the attention of the appropriateinvestigatory body For c'sample, forviolations of this Code irisiriu out ofpractice in the United States, the actu-ary should refer the matter to theActuarial Board for Counseling andDiscipline; for violations of this Codearising out of practice in Canada, theactuary should follow proceduresestablished by the Canadian Institute ofActuaries.

PRECEPT 15 An actuary or the actu-ary's representative shall respond promptlyin writing to any letter received from aperson duly authorized by the appropriatecounseling and disciplinary body of theprofession to obtain information or assis-tance regarding possible violations of thisCode .

PRECEPT 16 . An actuary shall abide

by this Code of Professional Conduct

whenever providing professional ser-

vices

ANNOTATION 16-1 Laws andregulations may impose obligationsupon the actuary Where therequirements of law or regulationconflict with this Code, the require-ments of law or regulation shall takeprecedence

ANNOTATION 16-2 . For profes-sional services rendered in Canada,the rules of the Canadian Institute ofActuaries apply

ANNOTATION 16-3, For profes-sional services rendered in Mexico,the rules of the Colegio National deActuarios apply

]`>°'> YEAR1;0UK 67

Profe s sional StandardsThis table displays the arra\ of professional standards and activities Unless otherwiseoted, applicable ni .Itcrt,tls arc included n) the actuarial standards handbooks

Code General Specific Continuingof Professional Qualification Qualification EducationConduct Standards Standards

Requirements

l )et elopui" Contllilttcc Joint Csaunuttce ( .ottunttrce ati,III (ndc It OuahticauonsI'rofcsaon d Conduct

Publi,hcd Gutd,utce CI-id" of I'iohsaon.d QualtticanonConduct booklor Stjnda,s

but-Met

Gutdnitc tat lndn ideal Those qt ohtitda .tuar) to i it e Pre,rribcd

Statciueuts"I A,Ltttrlil

l)punant

C' iii tier oil Commerce on

Quahticattcns Quahficattons

Qualification Qua]tticawntStands ds Stan(b rd,honklet bnoklct

Those qijalrfiid Retention (ifto }n c Ptcu I bod the ac tual% sStateturnts qu thhc ttn,tnof k, tuaital to pitsSOic is n of PreunbodA.tu.it it Opuunn Sratctuents of

ActuarialC)puuati

Pt n ht c Are .ts Cat Bred All foot major All tour ut.tJ ti NAIC Annual All I'tesuibodptactrce aras iliac ncc .urns Statreuttnt Statenients• I Ife • Lift (protons hti of Aim trial• Health • Health • I th t AcSH Opimnn• Pension • Penvtii • File h ( tcualty• C' .tsualtt • Casualty • Hcsp , tiled , K

I )ell[ Stn , etc

Standards Compliance Counselingof Practice Guidelines and Discipline

1 it .tiopntp Gtttnnuttcc Actuarial Actuarial A, urinal kio.udSuud .uds Bt-,aid Standmit ifoatd for Counuluti and I)tsciphne

I'uhltshed Guidau n Standatds of Compliance Atadems Bylaw asPta.uct Guidrluic publtthcd in II)c)`) lctuhotkho Gets hooklct, (Prncedutal pwdtltnt-s

hair here separately 1''ned)

Guid.mcr for Range of I)at-to-da% ( ntnphancc R1th Ethns,procedures f,tr tsnik C)ualifiiatron Si.tudatdsdo to-&, ouhide and A .witiilStatdatdsRink at. wary s requirenieuts nfPta .naowti orrthods

Pi acth e Atras CO-red Piacttcc Practice All fuw ntap-r pracn<r ,alasarea describod area dc,ciibcd • LifeIII the'stan .Ltrd no the Guideline • Health

• Ptitston• ( rtcalts

* l'rescribLd aalLit]c is t 3ctuinil pill Ill u ; optnuats CA U fri hs Ins o regul nine, opuuon, called for ht t st,ndud

ul ptatnc . ni a uauph a ce guidetmr 3, proinuhut 1 I,s dii At men tl Standards Board, n ictuanal nttmuuu .anom maletui purl-s- of u,ph uu e .udi a ttdud, pioonde.tted ht the Fin meal Atoninrmi, `t .mdaii, 13011L] 01 Ille ""IArc xintmg Standards Bond

6S A M f F I C A N A i A Ia 1 M t 0 1 A C T U A It [ L S

PROFESSIONALISMThere arc three types of professional standards the Code of l'rofeoannal Conduct,w hi( h provides ethical guidance : the Qualification Standards, which provide guid-

ance to actuaries regarding the necessary education and elperience to do work : andActu.n-i,il Standards of Practice to guide actuaries in hors- to do work The Actuarial

Board for Counseling and Discipline pros ides advice and guidance to actuaries andinvestigates actuares if basic qualification, ;, practice standards, or ethical requirementshave not been iii et

Actuarial Standards and Guidance

Professionaland EthicalRequirements

Qualifications(Education

and Experienceto Do Work)

How toDo Work

Advice/Guidance/Investigation

Sptulit ( :uulauce Ci .de of Professional (,ena,tl tad ,pre ifi, Artuatial C oun cIiiit'ondnrt yua1iIi ttioiu st mdards and iin estuCattlin

,tandatds for of I'ra,tirr ,ai qu,diiuah0tus,Ptt,rnhrd 5tatemrun iituai cal ,tandard,of Artttarial Opinion aid ethic,

Pt(,,idcr ALadentt A,adetn Artuanal A,tuanalBo,udB"mduIlhreruin ( onuittrue Standard. Pui Coun,eluiq

on Qoalitiratirnn 13oard and Dn .ipline

19"11 1 E A IL B Ci er IS 69

Committee AppointinentGuidelines

PreambleIn accordance with the Bylaws of theAmerican Academy of Actuaries, thepresident appoints committees autho-rized by the Board of Directors . To aidthe president in making such appoint-ments, the board adopted the followingguidelines with this preamble at its meet-ing on Oct 31, 198() These guidelinesreflect the hoard's intention to involve asmany members as possible iii committeeactivities without sacrificing continuity .However, the effectiveness of committeework is paramount, and as a conse-quence, strict adherence to the guide-lines is not expected, particularly withrespect to committees that interface reg-ularly with other professions and/or gov-ernment .

Committees for which specific

appointment rules are established by the

board (e g., Nominating Committee,

Actuarial Standards Board) are exempt

from the guidelines Appointnients to

joint committees and liaison appoint-

nients are subject to the guidelines

applicable to standing cornni ttees,

although certain of the liaison appoint-ments must be board members pursuantto Academy policy and agreements withother organizations .

Guidelines(I) All members of the Academy are

eligible to serve on commnittees .(2) An officer of the Academy should

riot serve on any committee except in ancx officio capacity .

( .3) A person should be chairperson ofa standing committee for no more thanthree years and should retire from thecommittee after serving as chairperson

(4)A person should remain on astanding committee for no more thanthree years unless such person becomeschairperson by the end of that period

(5) In general, a person should notserve concurrently on more than onestanding committee .

(6) In general, a person appointed to atask force or a special committee isexpected to serve until the task torte orspecial committee is discharged .

70 ANirR[CAN ACADEMY OF A ..IUAR€Es

Guidelines for MakingPublic Statements

A. What Constitutes a Public StatementA public statement is a formal, written

statement on behalf of some Ac,duringentity (board, conrinnittee, task force, etc )to an external group This does notinclude a statement representing theviews of .ui individual uieniber Publicstatements include :

I Statements to GovernmentalEntities-such as testimony or otherFormal comments submitted to regula-tor-, legislative, and investigative bod-ies at both the federal and state levels

2 Statements to Professional andOthei Groups defined as organiza-tions that etiectively have some runt-

powers, even if they are notla toivprimarily regulator bodies, c .vg , the

Financial Accounting Standards_

Board, the American Institute of

Certified Public Accountants . theNational Association of Insurance

Commissioners, or the American BarAssociation

3 Statements to External Public-ations-including articles and otheiexpository material to newspapers andperiodicals, except where such state-ments would fall raider the e'.ceptiorifor media connrrunications below .

Media communications, includingletters to the editor or other editorial.and expository comments to newspa-pers and periodicals, are considered tobe a special form of public communi-cation that generally is not subject tothe procedural requirements of theseguidelines. This special status is inrecognition of the fact that mediadeadlines prevent the utilization of the

review procedures applicable to formalpublic statements When letters orother rirecha opportunities (si( h isradio or television interviews) areanticipated, the spokesperson shouldc onsitlt the Acadeuiy's dirce for ofcommunications for special guidance .It is generally appropriate in such cir-cumstances for the individual to notethat the views expressed are not neccs-sarily those of the Academy Althoughthe procedural requirements of theseguidelines re not applicable to mediac oiniii unit atlorn meeting the abovedefinitions, the spokesperson is never-theless expected to be guided by thesection below entitled "The Scope ofPublic Statements ."

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

the insights of actuarial science should bethe pnni u-y focus in the profession's pub-lic pronouncements It is important tonote, however, that the profession's tech-mcal expertise encompasses a broaderspectrum than is reflected by the con-cerns of whit nornially would be c onsid-ered pure actuarial science . There arenumerous instances when the actuary'sknowledge is a valuable addition to thei nturmation surrounding a given issue . Itwould be a disservice to all parties for thepiofession to make public statements onlyin the narrow- areas where the actuary'sknowledge is unique

Each situation must be evaluated onits own merits to determine whether apublic statement by the Acadeniy isappropriate. The tone and nature of astatement must reflect the dignity andstandards of the prolusion St,itcincnts

1 11 1) 0 1 F A R R IS 0 k 71

should contain a clear, concise, and bal-

anced presentation Of the significantfacts, including relevant benefit •md

costs . A statement need not, hon•e\cr,

limit itself solely to statements of fact .It is also appropriate for statements to

draw inferences trout statements of fact,so loll- as these Inferences arc valid To]unit a public statement to a mere recita-tiom of facts would deny the public thebenefit of the full rank of the profes-sion's capabilities

A public statement generally should not

take positions on the social and politicalimplications of issues . It may be appropri-

ate, however, to point out social andpolitical implications insofar as these impli-

cations may be objectivel) determined In

certain circumstances, it may not be possi-ble to divoi ce social or political nnplica-

tions from actuarial considerationsThere may be some issues that have

actuarial unplications that are better dealtwith by trade associations, companies, orindividuals Public statements that appearto be self strvi ng will be less effective, butthe Academy should not hesitate to speakout on natters that involve legitmi,rtcprofessional interests . In fact, theAcademy has a responsibilits to do so

C. Development and Delivery of Public StatementsAcademy officers, committees, and

staff should generally follow the guide-lines presented below in the develop-ment and delivery of public statements .At tunics, these procedures may need tobe modified i n order to ensure the time-liness and effectiveness of statements

I Identification of issues-Manypeople contribute to this activity : staff,officers, practice councils, committees,and individual Academy members,When an issue is identified by Acadcmiystaff, staff will contact the appropriatecommittee or task force chairpersondirectly and copy the appropriateAcademy vice president (hereinafterreferred to as supervisory officer), unless

there is a jurisdictional question to beresolved (see 121 below) Earlyy idennfica-tion is critical to the Ac .ideniy •s develop-ment of well-prepared , tiniely statements .

?. Authority to Proceed If staff

or supervisory officers identify an issuethat may u•irr .mt a public .tatenicnt '

they will assign it to the committee or

task force best able to develop the state-nicnt- If an issue is significant for more

than one practice a rea, the staff andappropriate supervisory officers will dis-

cuss the matter with the appropriate

committee chairpersons, determinewhich committee or task force receives

the assignment, and assure that propercoordination is established and main

taincd through the use of joint taskforces . committee liaisons, dual practice

council revie\\-s, or other appropriatemeans Supervisory officers , at their dis-

cretion , may seek the advice of their

practice council i n resolving j urisdic-tioiial issues and achiesing appropriate

coordination .It a committee or task force identifies a

matter that may warrant a public state-

ment , the chairperson will promptlyadvise the supervisoryy officer and appro-

priate staff liaison . Unless otherwiseinstructed by the supervisory officer, the

commttce/task force chalrpcrson iua%proceed in the development of a state-

ment. Committees and task forces havethe iithority to develop statements so

long as they are consistent with ss established

principles of the profession andso long is the appropri ate peer review andapproval procedures are followed.

3 Notice of Public StatementPreparation-Members will be keptapprised of niaj or issues of concern toAcademy committees and task forcesthrough articles and announcements i n the4itirarral L'141,iti , and input from memberswill be solicited by suggesting= that theycontact the relevant chairperson . Becauseof the large number of public statements,

72 AMERICAN ACA1)EMI OE AC I UARI ES

not all statements under development canbe announced in the .Iirrrarial Lip(iaicReports simmuriring committee mid taskforce activities during the previous twelvemonths will appear in a supplement to theAtI11, nal f'j,d.m' soon after the end of theAcademy year A complete listing of com-mittee and task force statements for theprevious calendar year also will appear in anannual supplement

4 Development of Statements-Committees and task forces will preparepublic statements and any supportingbackground material in accordance v. iththe following guidelines

(a) Public statements generallyrepresent the opinion of a conlnnt-ree or task force Generally, a pub-lic statement ..ill be developed bymembers of a standing Academyvcommittee . a presidentially appoint-ed task force, or a working groupestablished by one of the Acadein\'stour practice councils It is alwaysappropriate. however, to involveother Academy members consid-ered by the connuittee, task force,or working group to have pertinentexpertise or experience . From tineto time, it may also be appropriateto solicit the input of don-actuaries .When and how such input is solicit-ed is at the discretion of the com-mittee chair with the concurrenceof the supervisory officer

(b) On major issues that are likelyto be hig*hls controversial withinthe profession, the chairperson andthe supervisory officer should seekbroader input from Academy mem-bers and leaders of the profession .Option,, for obtaining such inputinclude requests for comments pub-lished in the .-Icrirartal Update, discus-sions with Academy leadership andthe leadership of other actuarialorganizations, discussions withappropriate committees of other

actuarial organizations, solicitationsand special sessions at widelyattended actuaral rlic•etings, specialseminars oil the issue, and discus-sions with other Acadeluy commit-Lees, task forces, and workinggroups . If tine allows, the Academyexposure draft procedures alsoshould be considered . The supervi-sory officer will deternune the mostappropriate means of obtainingmember input in consultation withthe area's practice council, theAcademy president, tile committeechairperson, and the executivedirector Academy staff and thesupeivisoiv offices are initiallyresponsible for determining if anissue is highly controversial

(c) The Academy staff is avail-

able to assist in the preparation of

public statements In someinstances, it maa not be practical to

involve the staff dinectly in state-ment preparation, although com-

mittee ( hairpersons arc strungl)

encouraged to do so . The involve-inent of Academy staff can be help-ful iii assuring the consistencv of

the statement with previous public

statelllents and policy decisions

(d) In sonic circumstances, the

Academy stag may develop a pub-lic statenient on its own initiativeStaff-developed statements musthave the approval of the appropri-ate chairperson and supervisoryofficer and should be circulated toall committee, task force, or work-ing group members even if thetime for comment is limited Onlyunder extraordinary circumstancesmay the chair and supervisory offi-cer release a statement before cir-culation to the hull committee, taskforce, or sw-orking groupStatements developed by staffshould reflect previous public

19) 1rAkniiok 73

statements and policy decisions

(e) The ch.uiperson should seek aconsensus of the committee, taskforce, or working group membersIf there is substantial lack of consen-sus, the chairperson may elect toincorporate the niajonty and nnnor-itv perspectives into the statement,to refer the issue to the supervisoryofficer, or not to issue a public state-nient in some cases, time con-straints may prevent the entire com-mittee, task force, or working groupfrom participating in the preparationof a particular statement, and thetask of drafting the statement may beleft to the chairperson or the chair-person's desirucc(s) . III such cases,the drafters should seek maximum]input from available committee, taskForce, or working group nu°nibers .

(f)No statement should he pre-sented without appropriate peerrcvics The level of peer reviewshould depend upon the level ofrisk and exposure of the statementBefore release, statements shouldgenerally be reviewed by thesupervisory officer, or designeethereof, and Academy staff Forstatements that are the work ofindividuals or small subgroups andthat have not had the benefit ofthe full group's deliberation, peerrcvic.v should include the com-nuttee/task foice/woikmg groupchair and two senior reviewers inaddition to the supervisory officer(or designee) and staff. The seniorreview persons. to he selected bythe chairperson with approval ofthe supervisory officer . should heknowledgeable and experienced inthe subject at hand and should beknown to reflect broadly heldvies of the profession In extraor-dinary circumstances, the super-i-sorv officer and staff may agree to

release a statement before comple-tion of peer review(g)Staff, In consultation with the

super isnr~ officer, arc to determineif a statement requires ieview by thegeneral counsel and will arrangewith counsel for such revu's

(h) The decision to issue the finalstatement generally rests with thesupervisory officer, sJ ho may dele-gate this responsibility to the cnni-mittee. task force, or working

chairperson or othergroupdesignee . For issues of majorimportance or those deemed highlycontroversial, the es ecutivc direc-tor and president also should beconsulted before the statement isreleased to its intended audience

(i) When deemed appropriateby the supervisory officer, a recotn-niendation should be made to thepresident that a proposed statementbe submitted to the Board ofI)u ectors for review beforeissuance The board ni.iy modifyor disapprove a public statement ifit believes such action is in the bestinterest of the Academy .

5. Presentation of Statements-Theconiniittee or group issuing i statementmust he stated . The group will ordinarilybe a practice council working group, taskforce, committee, or the Board ofI)irectors Blanket sponsorship by theAcadeniv is not to be implied

When the audience is familiar with the

Academy and its committee structure, astatement such as the foiIowuig will usual-

ly be sufficient' "This statement was pre-pared by the American Academy' of

Actuaries' XYZ Committee -In instances when further explanation

is appropriate, the committee . task force,or working group should considerintludrrig additional language such as the

following: "The committee is made upof representatives from the entire range of

74 A SI E R I C A N A C ~ ll i ti Y 0 1 A (-I i i A It I t s

(naive of actuarial practice uea) Thecommittee includes actuaries who workas consultants, are employed by insurancecompanies, are actuaries for government(specify type of government programs, ifappropriate) and the National Associationof Insurance Commissioners, and areemployed by nonprofit (specify type, ifappropriate) organizations The expertiseof other senior (practice area) actuariesknowledgeable of (issue) was drawnupon to prepare this statement '

As a general rule, Academy state-ments do not identity the individualmembers of the group that developedthen In some cases, however, identi-fying members of the group may add tothe credibility of the statement or servesome other purpose such as meeting therequirements of the intended audienceThe decision to identify individualauthors should be made in consultationwith the supervisory officer andAcademy staff. Unless there is goodreason not to do so, non-actuaries whoparticipated in the formulation of thestatement should be identified and theirnon-Acadeniy-member status and roleidentified in footnotes or otherwise

Anv statenient that insolves issues ofsignificance to multiple practice areasshould Clearly identify the prartire area towhich the statement i, intended to apply .

All public statements should be datedand submitted in written form . with anoral presentation as appropriateStatements should be submitted onAcademy letterhead . Even when state-nents ire responses to highly technicalmethodological inquiries . the general issuebeing tddressed should be clearly specifiedin an initial sentence or two . Exceptwhen the Academy is well-known to theaudience, a formal statenient about theAcademy (sample below) should beincluded in the public statement If an oralstatement is to be presented at a formalhearing, the group's chairperson andsupervisory officer will select the person

or persons to make the presentation .

(, . I)i :trihution of Statements-After the statement has been formallysubmitted, the final statement will beavailable for broader distributionMembers can request a cop)' of thestatement by writing or calling theAr,idcinv's Washington office

D. Sample Description of the AcademyThe American Academe of Actuaries

is a national organization formed in 1')65to bring together. in a single entity . actu-aries of ,ill spcciahzations within theUnited States . A major purpose of theAcademy is to act as a public nilnrniatinnorganization for the profession Academycommittees regularly prep .ire testunonyfor Congress. provide information tocongressional statfand senior federal poli-cy makers, comment on proposed federaland state regulations, and work closelywith the National Association ofInsurance Commissioners and state offi-cials on issues related to insurance andother forms of risk financing . TheAcademy establishes rualititation stan-dards for the actuarial profession in theUnited States and houses t- ,NO indepen-dent hoards . The Actuarial StandardsBoard prnnulg.ites standards of pint tirefor the profession, and the ActuarialBoard for Counseling and Disciplinehelps to ensure high standards of profes-sional conduct are met,

E . International StatementsFrom time to twit, the Academy

may wish to make public statement, inthe international context, or to loin inpublic statements made by an interna-tional actuarial org nization_ Such state-ments may be reviewed and approvedby the appropriate Academy committeeor task force in accordance with the pre-ceding sections of these guidelines,except that such statements will general-ly he issued on behalf of the Academy asa whole Final approval to issue or joinin an international public statement is

1999 YEAR ROOF` 75

genera]]} ,ranted by the president withadvice of the vice president(s) far the rel-evant practice area(s) When deemedappropriate by the president, the pro-

posed ,tatcmcnt will be ,ubtnittcd to theBoard of Directors. which way modifor disapprove the ,t ltcincnt

76 AP t LRICAN ACAPLh11 OF ALFIJSRIIS

Guidelinesfor the Developmentof Practice Notes

T he purpose of Practice Notes is toprovide information to actuariesan current actuarial practices in

areas that are intended to supplement theis .ulable actuarial literature, especiallywhere the areas of practice addressed aresubject to emerging technology orrecently adopted external requirements .Practice Notes are not interpretations ofstandards, nor do they convey generallyaccepted actuarial practices in the samesense that standards of practice doActuaries are not in any way bound tofollow Practice Notes Notes concern-ing general questions relating to protes-sionalisni may also be issued .

Practice Notes are written by groupsof actuaries having practical experienceand expertise in a particular area of prac-tice . There may be informal exposure ofdraft Practice Notes by the originatinggroup to meetings of other interestedactuaries, but there is no formal processfor recording or responding to any coni-ments that might he generated. ThePractice Notes developed arc reviewedand edited by Academy staff and, ifapproved by the appropriate practicecouncil chairperson, arc published anddistributed by the Acadenty In contrast,actuarial standards of practice and com-pliance guidelines are proniulg .tted by theActuarial Standards Board, which adheresto procedures that are intended to pro-vide due process and exposure to profes-sional review

The following guidelines arc intendedto assist Academy officers, eomniittees,and staff in developing and maintainingthe timeliness and eftec tiveiless ofPractice Notes These guidelines aredesigned to promote c onsistenc' ofquality and style and to ensure that thepractices identified are in conformitywith the standards of practice and exist-ing regulatory requirements Nothing inthese guidelines rs intended to inhibitother actuarial organizations from] pub-lishing materials that piovide informa-tion on current actuarial practices toassist practicing actuaries

1 Piaitire Coiuici] Oreisiidrt-PracticeNotes ire primarily the responsibility ofthe practice councils of the Academy,with support from Academy staff, offi-cers, and committees ; Committees or taskforces of other actuarial organizations ;and individual actuaries .

2 imtiatrnir of Request-While thepractice councils are charged with moni-toring the need for new Practice Notesand the revision of existing PracticeNotes, any actuary or entity may requestthat the development or revision ofPractice Notes be considered for a spe-cific area of practice Such requests maybe directed to the appropriate practicecouncil for evaluation of need, approxal,and implementation .

3 Authority to Proceed-If a practicecouncil determines that a new or revisedPractice Note is needed in a particular

n~ 1 I ARROO K 77

area of practice, the practicc councilchairpcn{>n ("PC chair") will requestthat an appropriate committee or taskforce within the piofessu>11 de%clop thePractice Note .

4 Det elopuieur Piocedurr> PracticeNotes will generally be developed by acommittee or task force and will heidentified as a product of that group Itmay he appropriate, however, to involveother actuaries believed by the conunit-tee or task force to have pertinentexpertise or e'perience. From time totrine it may also he appropriate to solicitthe input of non-actuaries When andhose such additional input is solicited isat the discretion of the committee chairssith concurrence of the PC chair .Practice Notes should describe theknosn range of practices in use to thefullest extent possible

5 Required Disclosures-Each Practice

Note should begin with a paragraph

stating that the Practice Note is not a

pronlulgatlon of the Actuarial Standards

Board or of any other authoritative body

of the American Academy of Actuaries,

identifying the group that developed thePractice Note, and explaining that infor-

illation con tuned in the Practice Note is

not binding on ally actuary and is not a

definitive st .ttelncnt as to what consti-

tutes generally ,accepted practice in the

area under discussion. Blanket ,pomsor-

ship by the Academy should not he stat-

ed or implied

h Coir inset -The chairpesson shouldseek a general consensus of the committeemembers If there is substantial lack ofconsensus, the chairperson nlav elect notto issue a Practice Note, to refer the issueto the PC chair, or to incorporate thealternate perspectives into the PracticeNote

7 . Rct'iem Procedures-No PracticeNote should be released without appro-priate peer review At a minimum,Practice Notes should be reviewed bythe committee or task force chairperson,the PC chair and/or his or herdesignee(s), and Academy staff. AllPractice Notes must receive legal andeditorial review by the Academy staff toassure legality and consistency with pre-vulus notes and standards of practice .

8 Friial Appreml The ultimate deci-sion to issue a Practice Note rests withthe PC ; chair For issues of nialor signifi-cance, the PC chair may consult withthe Academy executive director, as wellas the piesidelit, prior to the release ofthe note

9 Ptodiirtion arid Distu muoii-

Pioduction and distribution of final

Practice Notes will be handled by the

Academy staff. Distribution may varydepending on the audience for the notes

ll) . Animal Reivimiv The PC chairwill initiate a reviess of the currentPractice Notes annually for relesancc,purpose, and completeness

78 A %A L li I C A N A C A D E S1 5 O F A C T U A R I r i

Use o f Academy Title sand Designations

F rctcpt 1 3 of the Code of ProfessionalConduct of the American Acadenivof Actuaries provides that "lain

am- "hall make use of membership titles anddesignations of an actuarial organizationonly in a manner that contonits to the prac-tices authorized by that organization ."Annotation 13-1 of the Code defines ''tide"as "any' trtlc conferred by in actuarial cnga-nization related to a specs is position withinthat organization, ." and "designation" as "aspecitie reference to inenibeiship statuswithin an actuarial organization " TheAcademy's Board of Director,, has ,iutho-rved ooh the following practices for use ofmembership titles and designations

I . Membership DesignationsA member of the Academy may sign orotherssise identity himself or herself orallyor in writing by using any of the followingdesignations :

A. Member of the American Academy ofActuaries

B Member, American Academy ofActuaries

C Mcniber. A.A A-

1). M.A A.A

An individual who is not a nieniber ofthe Academy, or who has ceased to be amember of the Academy through resigna-tion, suspension, expulsion . or for any otherreason , may not use any Acadeniv designa-tion unless and until that individual becomesor resumes being an Academy nieniber .

II . TitlesA Except as provided in Sections II (B)

and (C) below, a member may include inwritten communications only references to

titles held within the Acadeniv whenengaged in Academy business or speakingon the Academy's behalf. A member ma\never speak or act on behalf of theAcademy without authorization to do sofrom the Board of Directors . ExecutiveCommittee, or other appropriate authority

B Academy members who have beenduly elected or appointed to the follosstngroles may Identify themselves as followswhen engaged in Academy business orspeaking, on behalf of the Academy

1 [Officer-specify office], AmericanAcademy of Actuaries

2 Member of the Board of Directors,American Academy of Actuaries

3. [Chairperson/Vice Chairperson!Membcrj, 1(topic) I racti~e Council/Council on Professionalism], AmericanAcademy of Actuaries

4 ]Chairperson/Vice Chairperson/Member], [Committee/Task Force/WorkGroup] on [tnpicl, American Academy of

Actuaries5 ]Staff member-specify title],

American Acadeniv of ActuariesC A member who holds or has held

one or more of the titles identified inSection 11(B) above may refer to Academyoffices or titles held in the following set-trnggs, but only if it is clear that the mem-ber is not purporting to speak or act onthe Academy's behalf:

1 Biographical material, stic Ii asresumes or material included in a book orarticle written by or about the member,

2 Testinioriy in a court of lays orbefore a legislative or regulatory body,

3 Au amtomiceinent or publication ofa nieniber's change of employment orpromotion

i i^i'r•\h[C 0k 79

\X' o eking AgreementPREAMBLE TO WORKING AGREEMENT

T his Working Agreement bets forththe cooperative goals of theAmerican Acadeinv of Actuaries,

the American So( icty of PensionActuaries (ASPA), the AsociacionMexicana Lie Actuarins (AMA), theAsociacion Mexicaria de ActuariesConsultores (AMAC), the CanadianInstitute of Actuaries (CIA), the CasualtyActuarial Society (CAS), the ('nlegioNacional de Actuaries (CONAC), theConference of Consulting Actuaries(CCA) and the Society of Actuai ies(SOA), collectively referred to as theParticipating Organizations This agree-ment i, intended to facilitate theParticipating Organizations' efforts toincrease the quality and vanety of educa-tional and professional opportunitiesavailable to their members, and to eluni-nate the uimecessaiy duplication of effort

and activity between the organizations,thereby making more efficient use of theParticipating Organizations' resources .This agreement is not intended to restrictin any way the independent businessdecisions of the ParticipatingOrganizations Nothing in thi, agree-ment should be construed as limiting theParticip .itiiig Organizations' nght to takewhatever measures they deem necessary,appropri.ite, or desirable to attract,recruit and serve their individual mem-hers .

Hy our signatures below, we represent

that our organiz,ition, by resolution of its

governing board, agrees to the above

goals Our organisation agrees to coop-

erate under the term,, of the Working

Agieenient and has adopted this agree-

ment as a policy guide fair its volunteers

and professional staff inenibcrs

The Council of Presidents(1) The President and the

President-Elect of each United Statesand Canadian domiciled ParticipatingOrganization and the Designers of theMexican domiciled ParticipatingOrganizations shall form the Council ofPresidents (COP) . Mexican representa-tion shall he conducted throughDesignees selected by AMA, AMACand CONAC from among thePresident, Past President and President-Elect of each organization .

Each President or Designee isresponsible for implementing theWorking Agreement during his or herterns of office Each President or

Designee shall assure that the goalsand terms of this WorkingAgreement are appropriately com-municated to members of the Boardand to officers and staff of his or herorganization Each President shallfurther support the President-Electof that organization in the develop-ment of the evolution of theWorking Agreement

The following mission statementarticulates the COP's purpose andobjectives :

The COP provides a business andsocial forum to promote coordina-tion, Looperation and trust amongthe leadership of the organizationsrepresenting actuaries in Canada,

80 AM Elk IcAN ALALDIMS 01 ACTUARIES

Me\ico and the United States In thisspirit, the COP ,hall

• Exchange/share information onsignificant current activities ;

• Discuss profession-wide issues (notnecessarily involving all member organi-zations) and, wherever possible, developan action plan for addressing those issues,such as :

Seek to develop a coordinatedvision of the future direction of the actu-arial profession in North America :

Consider international issues from aNorth American perspective and, ifappropn.te, establish joint positions andstrategies for pursuing those positions ;and

Serve as a forum to encourage theresolution of conflicts between two ormore of the nieinber organizations, and

• Identify and promote forums, activ-ities, contacts or events that can broadenorganizational communications amongother leaders and members of theprofession

The Council of Presidents-Elect(2) The inenibers of the COP serv-

ing their respective organizations in the

capacity of Presidents-Elect each year

shall form the Council of Presidents-Elect (COPE). Fhe COPE reviews the

Working Agreement and other areas of

mutual interest, and ieconnnends appro-

priate amendments to their respectivegoverning boards . In addition to keep-

ing this Working Agreement current and

optimizing the relationships among the

Participating Organizations in the future

the very existence of the COPE pro-

motes and reinforces the purpose of theWorking Agreement .

The COPE shall be chaired by anactuary appointed each year by theincoming Presidents (the prior year's

COPE). Tlu, chairperson ,hall act as af.rcihtator nid should he someone with a

knowledge of current and eniergingissues

The following mission statementarticulates the COPE's purpose andobjectives

The COPE complements the missionof the COP and focuses on the develop-ment of working relationships and mutu-al trust . hi support of,nid in the spirit ofthis goal, the members of the COPEshall .

Exchange/share information onsignificant future directions and activities,

• Discuss in depth and maintain theorganizational sensitivities list,

• Review the Working Agreementand, if appropriate , recommend revisionsto the COP; and

• Work together to address key issuesof their chute or as delegated to themby the COP and, if appropriate, developaction plans

Communications Among theParticipating Organizations

(3) Each Participating Organizationshall share items of mutual interest dis-tributed to the organization's board mem-hers with the President, President-Elect,Designees and professional staff of theother organizations as soon as feasible afterthe items are available . This includes theorganization's yearbook, newsletter, cal-endar of planned events and bo .ird nnn-utes, in addition to other important docu-ments or significant studies that would beof value to the wider audience 'I his doesnot apply to any item that an organizationconsiders to be confidential.

(4) Each Participating Organizationshall endeavor to inform each of the

10'i'i YCARI,00k 81

other Participating, Organizations on a

timely basis of .uiv of its actions that are

expected to have a significant effect on

one or more of the other Participating

Organizations or their members

(5) Each Participating Organizationshall invite the President, President-Elect, or Desitiuce of the other organiza-tions to all general membership meet-ings, with the registration tee waived

(fi) Each Participating Organizationshall invite the ranking professional staffperson (or leis or her designate) of eachof the other organizations to all generalinenibership meetings, with the registra-tion fee waived

Public Interface(7) Each Participating Organization

shill endeavor to encourage the actuarialprofession to speak v ith one voice ineach country on actuarial issues ni thepublic policy arena .

• The Participating Orgamzatinos reC-ogmize . the Academy, jointly %%ith ASPAin the pension area, in the United States,the CIA in Canada and CONAC inMexico as the organizations having pri-mary responsibility for public interfaceregarding public policy representation andits coordination when dealing with legis-lator, regulators, c ourts, publicpolicy-makers, the business press and thegeneral public The Asadciny and ASPAshall seek mutually supportive rolesregarding relevant issues in the publicpolicy pension area iii the United States .They agree to coordinate on issues affect-ing actuaries in both organizations and toseek opportunities to cooperate

• CON Ac: will seek mutually- sup-portive roles with AMA in the insurancearea and with AMAC in the pensionarea in Mexico .

• The Participating Organizations

recognize the CAS and the SOA in the

United States, the CIA in Canada andCONAC in Mexico as the organizations

having primary responsibility For public

interface in facilitating the education of

the general public concerning the actu-

arial profession

• The Participating Organizationsshould coordinate efforts and cooperatein the development of materials used toeducate the general public on actuarialmatters including public policy issues

(R) Each Participating Organizationshall promote and enhance aniong itsmembers the public interface frmctionsas valuable and necessary activities towhich all actuaries should contribute,using the national public policy interfacebodies .

Liaison WithNon-Actuarial Organizations

(r)) The Participating Organizationsrecognize' the Academy, jointly withASPA in the pension area, in the UnitedStates; the CIA in Canada ; and CONACin Mexico as the organizations havingthe primary responsibility to designaterepresentatives of the profession to eachnon-actuarial organization whose prima-rv emphasis is Oil public policy . Theyalso recognize that the CAS and SOA inthe United States, the CIA in Canadaand CONAC in Mexico have the pri-mary responsibility to designate repre-sentatives of the profession to non-actu-arial organizations whose primaryemphasis is on education and researchIn those situations where one of theother organizations desires to designaterepresentatives, it should coordinate withthe organization designated in thisAgreement,is appropriate .

82 A M L I1 1 ~_ A N A C A D I O S () F A c l tI A R 1 E S

Actuarial Research(111) 1 he SOA and CAS, as learned

bodies, have a responsihilits for cundutt-ing scientific research on behalf of and inadvancement of the actuarial profcssinn .The Academy, CIA and CONAC, asnational bodies, have a responsihility foridentifying and securing needed researchrelative to public policy issues unique totheir respective nations . Each of theParticipating Organizations has a respon-sibility- to provide input to the actuarialresearch process and may conductresearch in order to ensure that the par-ticular needs of its members and publicsare met

in addition to the ParticipatingOrganizations, there are a number ofactuarial research facilitators that providesignificant and valuable resources forconducting and funding actuarialresearch to meet needs in NorthAmerica These include the ActuarialFoundation, the Actuarial Education andResearch Fund, the CAS Trust, theASPA Pension Education and ResearchFoundation and universities . TheParticipating Organizations recognize theimportance of establishing a forum forthe communication of research needsand activities among their organizationsand these facilitators and to help them toset their agendas, to use limited resourceseffectisely and to ensure that researchaddressing the needs of the NorthAmerican actuarial profession is conduct-ed and coinniumcated in a timely andeffective manner.

Actuarial Principles(11) ]'here should be no conflict or

inconsistency ,among the basic actuarialprinciples developed h` the ParticipatingOrganizations To facilitate that out-come, the distribution of (listUssiondrafts of basic actuarial pruiciplcs dcvcl-

raped by an organization should provideadequate opportunity for comments bythe ictuarics in the other organizations .Under normal circumstances, at theorganization level, the CAS and SOAshall have the responsibility to managethe dc'. clopmcnt of actuarial principles

Professional Conduct,Counseling and Discipline

(12) In each nation of practice, theParticipating Organizations shall endeav-or to maintain a common code, rules, orset of guides to professional conduct,including reference to appropriate quala-fication standards and standards of prac-tice and a consistent set of counselingand disciplinan• practices .

Actuarial Standards of Practice(13) Each Participating Organization

recognizes the Actuarial Standards Board(ASB) in the United States, the CIA inCanada and CONAC in Mexico asbeing responsible for promulgating actu-arial standards of practice for actuariespracticing within their respective nation .

Qualification Standards(14) The Acadeniy, the CIA and

CONAC have the responsibility formaiiitaunng standards for qualification topractice as an actuary that are uniformfor actuaries practicing within eachnation Each Participating Organizationshall take the steps necessary to encour-age its membership to understand andabide by the qualification standards

Practice Notes(IS) 'I lie Participating Organizations

recognize the Acadeniy in the UnitedStates, the CIA in Canada and CONACin Mexico as being responsible for pro-nnilgating practice notes to assist iueni-

1'1'ii )r,\RRcoti5. 83

bars to liillill their responsibilities underapplic .ible standards of practice . TheAcadeinv, the CIA and CONAC mayall upon the other organizations for

assistance iii prepai in.., practice notes .

Student Interface andActuarial Recruiting

(16) The CIA, CAS, CCA and SOAshould coordinate efforts and cooperatein the development of materials used topromote the actuarial profession amongstudents Where appropriate, thesematerials should also refer to the profes-sion's public policy interface roles playedby the Academy, AMA, AMAC . ASPA,CIA and CONAC

Basic Education and Examination(17) The CAS and SOA have the

priniary responsibility for the manage-ment of the basic education and exanu-nation process provided for the educa-tion of actuaries in the United States andCanada However, AMA, AMAC,ASPA, CIA and CONAC have aresponsibility for meeting the uniqueeducation needs of their members jointcomtiiunications anti ~ooperarion amongthese organizations should he encour-aged for the purpose of niininiizingunnecessary duplication . The Participa-ting Organizations, in particular the CASand SOA, should work to coordinatetheir education anti e\aniin .ition efforts .

Continuing Education(18) For actuaries practicing in each

nation, continuing education criteriashould he compatible While eachParticip .ting Organization determines itsOs-TI continuing education requirements,each is encouraged to accept for creditattendance at meetings and seminars cov-ering appropriate and relevant material

sponsored by any of the other orgainza-

tlolls .

International Interface and Liaison(19) In dealings with the interna-

tional actuarial organizations such as the

International Actuarial Association

(IAA) and with non-actuarial bodies that

set standards affecting the work of actu-

aries internationally, such as the

International Accounting Standards

Committee (IASC), the responsibilities

of the Participating Organizations shall

be essentially the same as they would berelative to North America As national

organizations, the Acadciiiy, CIA and

CONAC have the priniary responsihili-

ty for representing the actuarial profes-

sions of the United States, Canada and

Mexico respectively, in commenting on

relevant IASC proposed accounting

standards and on requirements for IAA

membership as they relate to profession-

alism ASiA, the CAS, the CIA,

CONAC and the SOA have the prima-

ry responsibility for commenting on

basic cdut,itional or examination

requirements for IAA membership The

Participating Organizations agree to

coordin,ite their IAA and other interna-

tional activities as appropriate

Meetings , Seminars , Symposia, etc .(20) A Participating Organization

sponsoring a specialty meeting, seminar,or other membership activity on a par-ticular topic shall consider inviting as acosponsor other organizations withinterest in that topic Cosponsorshipdoes not imply sharing a financial inter-est as does joint sponsorship .Opportunities for cosponsored or jointlysponsored activities and meetings onissues of common interest should besought .

84 AMF R 1CAN A CA nFMi or ACTUARIES

Database(21) Each Particip,rting Org,mr/ation

agrees to discuss, de .-elnp and unplenient

as appropriate the use of a coninron

database of members for the purpose of

fostering more efficient communication

anion- the actuaries in North Americ.i,

e .g., with respect to meetings and other

continuing education announcements-

Members of all of the Participating

Organizations should be listed in the

Directory of Actuarial Memberships

Membership Communications(22) In order to promote better

communication among the actuaries inNorth America, the ParticipatingOrganizations agree to participate in adiscussion on the feasibility of develop-ing and implementing communicationdevices including, but not limited to-

- North American computer mailboxand;'or Web site, linked Web sites and

a standard for preparing and dis-tributmg abstracts for all research beingconducted by the actuarial profession .

Meetings of the Leadership(23) The COP should meet at least

three trines a year, once in each respec-tive country Arrangements for themeeting (including location, agenda andchairing the niceting) shall be theresponsibility of the frost country

Committees(2l) To minimize future overlap, no

new committee, task force, or other enti-ty should be established without consid-eration being given to coordinating theeffort with other relevant organizations .The Participating Organizations shallnotify one another n hen they create anyness and significant committee, task

force, or work group in order to facilitatecoordination among the organizations

(25) Each Participating Organizationagrees to discuss, coordinate and imple-ment, where feasible, a program to elim-inate any overlap in the functions per-formed b\, various committees andmembers and to explore ways to cooper-,rte in the appointment of representativesso that, where feasible and appropriate,one person can represent more than oneorganization

(26) The Practice Councils of theAcademy shall include members repre-senting the other ParticipatingOrganizations, as appropriate .

Staff Communication,Coordination and support

(27) The staffs of the nine organiza-tions shall do all in their power andauthority to support the goals and facili-tate the implementation of the WorkingAgreement . The staffs shall rri,nntrin aStaff Working Agreement and revicss itsprovisions annu,rlk, in a point meetingThe,,, shall

• see that all appropriate materialsand unitatium are distributed as calledfor by this Working Agreement,

• coordinate topic and date planningand, as appropriate, cooperate in Bevel-opment of programs and/or support andcommunication materials, including theimplementation of any cosponsorshiparrangements with respect to membermeetings, continuing education seminarsand other similar activities and events ;

• coordinate date and location plan-ning, with particular concern towardmini mzing leadership travel:

• work together to create a commonmembership/student database and seek

1')1i1r i i .\11SOO . 85

ways to T11,1\1111Ve the cooperative and

rii disldual uses of that database, paltlctl-

larl` 1 11 support of the Wo]king

AgrceT I i cn t,

• support feasibility studies and anyresulting implementation activitiesdesigned to impiove overall membercommunications, including but not hm-

lted to, publications, computer mailboxes, linked Web sites and commonresearch abstracts ; and

prepare an annual report for theCOP identifying the effectiveness of theprior year's activities relative to the StainWorking Agreement and suggestingareas for improvement .

86 ,1 Al E R 1 CAN ACA [) 1 .%4) c) f A C T U A It I E ti

MembershipAcademy Membership

Meutbctship a, „t N,)% 1 1')1) 13 121lnuca,es

Admmiom 481Iteuxtareunents

1)e Ith4 S3Withdl teal, I8')

Membership as of Nov. 1, 1998 13,385

Academy Membership by Employment(AS of November I 191)5)

Membership

Emplos tuent 1996 ]997 11)05

Insurlnie and relatedorganizations 5 :173 0112 (233

('o sulrutg prnrttee 4,1,22 4654 4713

Go% et nnnent 211) 224 211)

4cidenu1 msntutnom 43 42 41)( )then 486 485 ~12 31Zeturd ,~r lint l.rnonsn 1,2113 I 2n 1 1 331

UnatEhated _'ti(, 3117 324

T l 12 832 13 121 13 385ota , , ,

Memberships Held by Academy Membersin the American Society of Pension Actuaries(ASPA), Casualty Actuarial Society (CAS),Conference of Consulting Actuaries (CCA)

and Society of Actuaries (SOA)(A% of N,n cutbct 1, 191)1)')

ASPA ('A,, ('CA SOA TotalIn all tour l 1 7 l

ASI'ACASS ('('A I 1 I

ASI'A, CAS&S)A 1 1 - 1 1

ASPA & CCA 29 21) 29

ASPA, CC ASOA 3(, 3r, 3( . 3n

ASPA & SOA 142 - --- 142 142CAS, CCA& SOA - U1 1)) In

CAS &CCA 31 51 5ICAS & SOA 1113 193 1113C(,A ,, SOA 715 715 715fit one onl) 3 4 2,244 1311 5,7Sc, 11,498In none - - - - 71)4Total 565 2,412 997 9,762 13,385

Academy Members Who Are Enrolled Actuaries(A% of Nov1 ) lhet 1, 11)'15)

ASPA ( AS ('('A SOA TotalIn all tent 2 2 2ASPA, CAS

C'CA I 1 I IASPA, (AS

SOA I I - 1 1ASPA&CCA 29 )') 29A)PA, CCA

SOA 34 34 34 34ASPA LS SOA 135 135 135CAS, ('C A

SOA - I 1 1 1(-AS &SOA 5 5 3CCA & SEA 341) 441) 441)In one only 341 1 4r, I .1,51) 2,1)77In ]]one 414Subtotal 3,145Non-Aoadrmy.Enrolled Armanes 1)411

TotalEnrolled Actuaries 4,(}88

I')''4 t LARE;O 0K 87

Application for AdmissionThe requirements for admission to the

Academy arc set forth in Article I of the

bylaws An individual who meets the

experience and educational requirementsand w ishes to apply may request an appli-

cation form from either the Washingtonoffice or the Schaunnhurg office

The application form is designed todevelop sufficient information concerningboth the applicant's actuarial educationand his experience in responsible actuarialwork to enable the Executive Committeeto determine whether the establishedrequirements for admission are satisfiedThe applicant should be sure to givecomplete information with respect toeach section of the application If msuth-cient space is provided foi this purpose, asupplemental statement should beappended to the application Applicationsshould be handwritten legibly, preferablytypewritten. Applicants should take careto submit references who meet therequirements set forth in the generalinstrtictions of the application tnnii Theyshould also encourage their references toreturn the reference forms promptly

In order to aid applicants, certainguidelines have been established in theareas of experience and residency . In thearea of experience, the following guide-lilies apply

1 At least one of the three years ofresponsible actuarial experience must fallwithin the five years preceding the dateof application .

2 '1 eaching experience will counttoward the three-year requirement onlyto the extent that the teaching is at theparts 4 and d level Higher-level coursesmay also be considered depending ontheir actuarial content .

3. Summer, part-time and otherintermittent experience may he consid-

ered for the three years, but it is espe-cially iniportant to demonstrate that thisis "responsible actuarial work "

4 . At least cm o of the three yearsmust have come on a full-time, uninter-rupted basis .

5 While experience obtained outsidethe United States may he considered forthe three years, it should he similar to thetype of "responsible actuarial work" aperson would obtain in the United States .

In the area of residency, the followingguidelines/requirements must be inet

l Residents of the United States forless than three years will be subject tothe same requirements to which nonres-idents are subject

2 Nonresidents must state their needfor membership

3 Nonresidents must state theirf inniliarity with U S laws and piacticesin their actuarial specialty area .

The above guidelines/requirementsare subject to interpretation, and apph-c.uits are encouraged to review theiranswers in light of these guidelines inorder to expedite their application

A nonrefundable ipplicdtiori fee of$75 must accompany the application .This is a charge for processing the appli-cation and will not be applied towardthe payment of dues for those candidatesaccepted Application fees paid by candi-dates who are not accepted will not berefunded

Applications and all inquiries shouldbe addressed to :

Membership ManagerAmerican Academy of Actuaries

475 N. Martingale Road, Suite 800Schaumburg, IL 00 173847 7t)6 3513 Telephone847 7116 3599 Facsimile

88 AM[RICAN ACADEMY OF ACTUARIES

DuesDues as approved by the Board ofDirectors are $380 per year for riiem-bers, payable on January 1 . Admissionin the first third of the year wi11 requirefull payment of dues for that year,admission in the second third of the yearwill require payment of nvo-thirds ofthe annual amount, and admission in thelast third of the year will require pay-ment of one-third of the annual amount

Article VII, Section I of the bylaws of

the Academy provides that, subject to

certain provisions with respect to disabil-

ity and retirement, each member shall

pay such dues for each calendar year asmay be established by the Board of

Directors of the Academy_ Under this

authority, the Board of Directors has

determined that dues may be waived for

members who (a) are full-time students,

involved in full-tinic dependent care, or

serving iii the military or the Peace

Corps, and (b) anticipate no material

irtuarial income during the torthconnig

calendar year Dues in.in' also be w .iived

for members who have been uoeni-

ployed for at least one year prior to

January 1, 1999, and who have made no

more than $111,1100 from actuarial activi-

ties or $25,001W overall in 1998, do notcurrently anticipate earning any ,igniti-

cant income from actuarial activities in

calendar year 1999, and are ictive1 seek-

ing work as an actuary or planning; rcen-

try into the actuarial profession in the

foresee,ible future . The inininiuui retire-

ment age has been set by the board is 55

The nia.mium hint On earned income

in order to qualify for dues waiver on

account of ietirenient or other categories

shown above between ages 55 and 70 is

$10,000 per year

Members on dues waiver automatical-ly receive the yearbook and the directory,notices of annual meetings and votingmaterials for proposed bylaws aniend-nients . There is an annual charge of $75to receive other Academy mailings .

Fornis for permanent and temporarydues waiver requests can be obtainedfrom .

Membership ManagerAmerican Academy of Actuaries

475 N Martingale Road, Suite 81-11,Schaumburg.IL 60173847 706 3513 Telephone847 706 3599 Facsimile

1O'a YLARESOOK 89

Prescribed ExaminationsThe Ac]demv Board of Directors, in

accordance ,vith Article I, Section 2B of

the bylaws, prescribes e\ .munataons as

follows

A candidate who has attained by

e\armnataolt the irndlc Ated status listed

below shall be deemed to h .cv e met the

education requirements for admission to

nlcnibership .

I Associateship iii the CasualtyActuarial Society and the Society ofActuaries

2 Fellowship iii the Canadian

Institute of Actuaries, the Conference of

Consulting Actuaries, the Faculty of

Actuaries in Scotland, and the Imtrtute

of Actuaries

3. Enrolled Actuary status underSubtitle C of Title III of the EmployeeRetirement Income Security Act of1974

In those cases where f.unnharity withactuarial practices and pruICIples in theUnited States cannot be assumed, theExecutive Committee is empowered tocall for evidence of such fanulianty .

90 AME RI LAN ACADEPSY l1F ACTUARIES

Actuarial OroanizationshAmerican Society Casualty Actuarial Society

of Pension Actuaries Prescdetct Steven G Lehmann

Presidott Carol R SearsPresident-EIrct Alice H Gannon

Past Ptcsideni Mavis A. WaitersPresid( fit-Elect John P Parks

11C Prt•sidc'iNsPast Pce,nie'ru Karen A_ Jordan

Abbe S Bensnnon (Continuing Ed )I im lwi idccitc Craig P Hoftniau

David R Chemnrck (Frog & Comm )Scott D Miller

Gary Dean (Administration)George j Taylor

Robert S Mmccolts (Research & 1)e'. )Secretary Gvven S. C)'Connell

Kes rn B Tlionipsou (Adnmmssmons)Tceascuu Cynthia A Gros7kmesvle7 Assistantiut,ir), David I I IIavsFa o(jir ro Sarah E Slnitlneau\

4350 North Fairfax Dave . Suite S3O

Arlington , VA 222(13(703) 516-,)3un

Facsimile (710) 516-930 ;1

1 ItIt) North Glebe Road, Suite 61111Arlington, VA ?2?III

(7113) 376-3100Facsumulc (7(13) ?76-311tH

Evecrume Dcc'cror• James H Tmnsle}

Esernrcr'e Ducrror Brian H Gratt'

Canadian Institute of ActuariesPn•scderit Peter 1 MorsePicsrdeNt-Elect Stuart F WasonRut Product Harry H PanlerT tic Pn'srdents Yves Charbonneau

William F Chnren•J Helnmut EngelsPatrick F FlanaganNorm mad GendronDaniel L A1cCaw

Colegio National de ActuariosPrc.rdcnt Rafael Posse Fregoso. id1'r±c r Act Ignacio Gurza de Con.ticccctricy- Treasiurr Marilupe Ugarte

Avenida Patnotismo 711Torre A, 4 Piso

Col. San Juan MmsccoacMzsmco I) F , 11373( 1011 -535-595-761)11

Excoft r'r' Director Manlupe Ugarte

Conference of Consulting ActuariesPccscdenr William J_ Falk

Constitution Square Pcesidefir-Elr•cr M chacl L_ Toothman

#30-360 Albeit Street Rut President Mark V . Mactas

Ottawa, ON Canada KIR 7X7 15a' P,c siderit, Fay e Albert

(613) 236- 8106 Michaelj . TierneyFacsimile (613) 233-4553 George B Wagoner

tierieiacy Robert_J Rietz

Eve urwc Dncm i • Rick Neugebauer Tpeasrtn•t Kenneth A Rent

1 1 I11 West Lake Cook Road, Suite 235Buffalo Grove. IL WOW)

(547) 419-90911Facsimile (5.47) 419-9091

Evccurme Director' Rita K I)eGraaf

155`) YEARIIOOI. 91

Society of ActuariesCondor( HO%%drd J Bolni~k

Pic'idi in-Flat A . Nor man Cross der IIIAm Picmdorl llasid ibl Holland1,1m Picidenn William F Bluhm

Robert I Bross n

A Norman Crowder II I

Esther H Milne,J allies J Muiph)

Sri retar y /Trcaa urei17w Presidurl Douua R. Claire

475 North Martingale Road . Suite K(H)Schaunibuig , IL ((1173

(847) 706-3500Fa~snnile (847) 71)6-3599

Laecrrni°c Umwctor John E.O'Connoi ji .

Actuarial Educationand Research Fund

Chaupetsoir Mary Haidinan AdamsSeoctory Stuart KlugnianTie oiiroo Allan j Stones allDi,ecroii LeRoy A Boisoe Jr

Doug( is C BortonAllan BrenderRafael Posse FregosoOlivia Sanrhez GaraaHarold j Ingrahain jrHenri' K_ KnowltonRobert S MiccolisBrendan O'FarrellRobert W Wilson

Bu -w neo lhruai'ci Judith F_ Yorelkrhr ;arr U iirrCooiclniare, Cecil I Nesbitt

475 North Martnigale Road, Suite 800Schauniburg, IL 60 173-2226

(847) 7116-3600Facuinile (tt47) 706-3599

E.-muctii e Dncctoi Curtis E Huntington

Actuarial Foundation(hall tpuson Cecil 1) . it kerkI It( Chnmpirsou Walter S . B.uglandSecretary/ lrtar tiltI Moms W Chambers'1'ici_otcis Mary H Adanis

Roland C BakerEdward W BalesEdward W 1 reelSari GutternianJames C. HickmanCurtis E HuntingtonAllan M KautinanGeorge 1) LundbergAnna M RappaportRodne), ik KohdaCharles F KohniRobert 1) ShapiroMarc M Tss itnies•Robert C_ WintersLarry 1) Ziinplenian

475 North Martin gale Road . Suite 1V II ISchauniburg , IL 6(1173

(`g47) 706_3570Facsimile (847) 7116-3501)

Eseiicni'e L) ecroi • john F O'Connor Jr

92 AMERICAN ACADEMY OF iCTOAR[ES

International Actuarial AssociationPrestdertt Jean Berthon ( Franc r)

(to Dc, 31, 1999)Prr•rdrrrt-F.le,7 Cithenue Prime ( Australia)(rte Drr 31, 1999)Sccrc•raty General Yves Gucrard

Committee Chairpersons_3eckditvrien Morris W Chambers

Advrcc and Asstsratra' Robert L CollectAudit Allan M KaufmanEducation Cecil D BvkerkL4SC Employee

I3cttrFt~ Paul N ThorntonL4 SC Lt_,tirance Sam Guttermari\vttIrrtancitr, Walter S Rug-land

Pi hlic Srareiuenrs Jtinzo Tanaka

Services tohrdividnn! .1lertthets Martin BalleerSocial Scutrity Reg Munrohrcrrrnruc Rctnncmton Peter Ktrys

Gnccrtnt'e Drrccmr Nicole Scguin, CAEIAA Secreranat36U Albert St , Suite X211Ottawa. ONCanada K I R 7X7(613) 23 6-11886Facsimile (ri13) 236-1386

nicole segi,in'a-actuancs our

I '.S Cinmal Robert L CollettDek°Catcs SO.-1 Repscsesitatwe

Vince AmorosoCCA Represerrtattve

Robert A AnkerCAS Rlrrrscrttahw c

Cures E Huntingtnn

1SPA Represerrr~rrt cAllan M KaufmanAcademy Repiescritat, 'c

l ' .ti Cnne,pond rrn Robert L CollettSO -I Rvpir,rntattr'c

Rica DeGraaf

CCA Rg 'n'scniarmclames H •LuiskyCAS Represc• rttatrt c

Curtly E HuntingtonASP,4 Rcpies ei tans rlead nrry Rcl+ircetuania

CIACorttuil Defecate Peter F MorseCaoecpondcrrt Morris W Chanibei,

London Life Insurance Co)5-i Duffcnn AveLondon, OntarioCanada N6A 4K](519) 432-5281Facsimile (SPa) 432-57Th

March 17 - 22, 2u02Cancun, Mexico

AFIR SectionCIiarrl>crsotr James A Tillcv, USAI'ite Clrcurhersorr Arnaud Clenient-

Grandcourt, FRI •rcasrtrer Bob Altiog ).,(in Geusau,

NLSectctar} Ccn'nil Alt Guldbcrg, SWReporter andI•1.{ D ]ryatr Yves Guerard, CNIAA Dclekratc Icao Havashi JPOther 3lerrrlrcrs Mike Barker, AU

William Chincry, CNRobert Clarkson, UKMassinio De Felice, ITGunther Segerer, CMDavid Wilkie, UK

'Vest ColloquiumAug 24 - 27, 1999

Tokyo, Japan

1 1)) \FAR600K 93

ASTIN SectionCll 7/un ni Edward J Lcvav, ]S,, UKI irr ( :h,nrprron Jcan I ccnian•c•, 13E7 Je i.nilir Jran LetnaireC>- 1 rea,ulei Fredd-v Corker, BLtii'creramy Charles Levi, FRDclriate, to L-I .-1 Jean Lemau e

W, James MacGimuiitie,USA

Edinm Patil Entbrechts, SZChris I )a\ kin, UK

Cd-Gdrtar Reno Schnieper, SZAndrew Cairns, UK

Otlru .lhnrhrl Bjorn Ague, SWThuin.n Mack, GMErinanno Pitaccn, ITBouke Pocrhunia, NLJukka Rantala, F1James N Stanard, USAGregory C Taylor, AU

[ ' S (:orrtact James N, Stanard

Rcnaissancc Reinsurance

I rdR-12 Fact BroadwayPO Box FIM2527Hamilton HMGXBermuda(441) 2Q5-4513Facsimile (441) 292-9453

1-lan01drl' Ch,iirrttan Ham Buhlinann, SZ

Niat C"N'quiulnAug. 22 - 25, 1999

Tokyo Japan

International Associationof Consulting Actuaries

Cltatlp"I,iN Ronald M WalkerWilliam lvi Mercer Cos. LLC:1166 Ave. of the AmencasNew York, NY 1(11336(212) 345-73%Facsimile (212) 345-49--4

I I", CInnmp'noti Ruud H SpienkelsWilliam M . Mercer Ten PasPostbus 7,532`)1(1711 AH AmsterdamThe Netherlands(31-211) 541 071111Facsimile (31-211) 541-1)7L)()

.ti( ,irr,o),-Ttea,umm Dudle} Funnell1421 Stiada I)'ArgentoVenice, FL 34292(941) 455-1')22Facsimile (941) 486-11`)1

C ` S Comn ttce1lcnrhrl, jay M gaffe

Martha M. MoellerConrad M Sieg el

Carladimi Cormiiitter.lhirrhei Michael L) Mills

William M Mercer Ltd .Cane Bentall CentreSuite 71)115135 Burrard St -Vancouver, BCV7X 1 N14 Canada(('11+) 6)i3-6761

Facsimile ((d)4) 68i-4639

94 AMERICA N ACADEI.i1 OF ACTUARILS

Actuarial ClubsCorrespondence to the local clubs should be directed to the secretary at the addresslisted on these pages if a secretary is not listed, the address shown is that of the presi-dent Addresses for club presidents may be found in the Ditectory of Actuarial.17 tii!u 1n s . Clubs are alphabetical by their city or state

Actuarial Club of AlbertaRobert Kerr, Ptrndrirt1' Charles Allegro, N,,ortaty-Tica,rirct

(c/o Toss ers Perrin150 Sixth Ave S`17, Suite 3700

Calgary- . AB, Canada '1 ?1' 3Y7)

Actuaries Club of Indiana, Kentuckyand Ohio (Tri-State)

Eric Daw es, Seuetai y-Ticasiirer(c/o William M Mercer, Inc135 Pennsylvania St ., Suite 1 .5011Indianapolis, IN 462I)4-2491)

Boston Actuaries ClubGail S Stone, tircretaty

(c/o Tufts Health Plan333 W) nian StWaltham, MA 0234)

Actuaries Club of Des MoinesSarah Rov, Pio dentMichael Stieck, I icc Picridutt1),i \e Tuoniala, Sectetai y- I'icasitie/

(c/o The Principal Financial Croup711 High StDes Moines, IA 51i3')2-O631I)

Actuaries Club of Erie, PennsylvaniaRobert H Dreyer, Scnctatp- Ti casitrei

(c/n Erie Family Life Insurance ( o .

1(11) Erie Insur ance Place, 1'O Box 1699Fne, 1'A 16531 7189)

Actuaries Club of HartfordDavid Addison , PrtstdentLinda Lankowski . I'iu• PiesidcrttMeredith Rat .ij czak TinisusesGreg Sullivan , ,Se-seraiy

( c/ n H artf hrd Life132E, 200 1 lopmeadow StSimshurv. CT 0(,17(})

Actuarial Club of IndianapolisMike Khalil, Pre,uluitI)asid Brentlinger, I 'in, PresidentMan- Anderson, /ccrcttr ) -Trnuiisvi

(c/o Anthem Blue Cross and Blue 'Shield404(1 Vincennes CircleIndianapolis, IN 4(268)

Actuarial Club of JacksonStan I )ickem, Scuctaiy-7icasuie,

(c/o Southern Finn BureauP() Box 78, Jackson, MS 392)15)

Actuaries Club of PhiladelphiaJerry Ficke, Prr,identRichard Wendt, I'ice PicsidcntDiana Goodman, TicaoinciStephen Steinberg, Sectetaiy

(c/o Penn Mutual Life Insurance(11(5 1)reslier Road, Horsham, PA 19144)

Actuaries Club of the SouthwestFrank Broll, Pre sidentBob I-lannery, Vice PitudcntBob Hollidas . Scuctai y-7 neasuici

(c/o 2227 Turtle Creek, Dallas, TX 75219)

Actuaries Club of TorontoFrederick J Thonipson, President

(c/o Thompson Acm trial, LtdBox 13KS. RR2Singhampton, ON, Canada NOC 1Mi 1)

1 n?'i 1IAR60 0 k 95

Actuarial Club of Washington, D.C .Ro\vland Cans, Presrdent( olin England Tice PriitdcutJoseph Marsden , Pica, nmciJarilsn Paul, Sccrkt,ar)'

(c/o Watson Wsatt Worldssrde1717 H St NWWashington , DC 311(X16)

Actuaries Club of WinnipegMonique Maynard, Charrlu'rsunSandee Bachalo, Secretary'-Tecaswcr

(c . ,'o Investors Group444 Portage Ave .Winnipeg, MB, Canada R3C 3136)

Actuarial Society of Greater New YorkScott McAlpinc , PtcnnlcntArnold Dicke, Prest cart-ElectPhilip Lehp .uner, Treaprret

George E . Silos, Secsetar),(c/o New York Life Insurance Conip .ni~

) 1 Madison Ase , Room 61)9New York, NY 1(11)111-1603)

Baltimore Actuaries ClubTeresa N1 Ruder, Prrnnlrrrt

Williani London, I is Pre _snlcnt

Kirk 13 Lnniner, Sicrctca r}'- Tnnasnl e7

(c/o Coventry Resources L P13(12 Concotusr Dnse . Suite 2)12Linthicum, Ml) 21(1911)

Casualty Actuaries of the Bay AreaMark Priven, PtesrdentTurhan Murguz, Sme(ar )y- I rcasurca

(c/o American Reinsurance1 0 1 Calihuma St . . Suite 44111}San Fran( uo, CA 94111)

Casualty Actuaries ofGreater New York (CAGNY)

Steven M Visner, PresidentKenneth P Quintilian, Presrdent-ElectErnest I Wilson, 1 in' PresidentDeborah Rosenbeig, Eduiatiorr CliainrnrrrJames E . Buck, See aerarp-Treasurer

(c/o Insurance Services Ot'ice, Inc7 World Trade CenterNew York, NY 1011.114-1199)

Adirondack Actuaries ClubTimothy Summers, President

Arlene F. Woodruf, [ice PresidentStewart Zauiloug, Tiea_,rm't

Robert Priest, Serretarl'(cr'o State of New, York Insurance DeptEmpire State Plaza, Agency Building One

Albany. NY 12257)

Arizona Actuarial ClubMatthew J Hassett, Prc rdentJames H . Gordon, Seacrmy-Truants ;

(c/o GPW & Associates Inc .37(10 North Third St ., Suite 20(0Phoenix, AZ g51}04)

Atlanta Actuarial ClubWarren T (Tom) Lofus, Precrdcnr

(c/o Life Insurance Company of Georgia

Life of Georgia Corporate CenterPO Box 1(150116, Atlanta, GA 3(134X-5006)

Casualty Actuariesof the Mid-Atlantic Region

Timothy Wisecarver, PreaidcntGar' Shook, Vice PresidentSusan Miller, Edrication CliaiaVincent Yezzi, Colle, ;,e RclatuwsMar' Jo Kannon, Secrc•rarp-Tracurcr

(c/o PMA Reinsurance1735 Market StPhiladelphia, PA 1'103)

Casualty Actuariesof New England (CANE)

Steve Stayton, PresidentRichard Fein, Pier PresidentKristen Albright . I'ice President, EdncatunrVictoria Carter, Vice Prsurdenr, ProgtarnsStacy Mina, Vice Piecrdcrrt, Adrums rrataoa

(cio Tillhnghas(-Toners Pernii500 Bovlston StBoston, MA (12116-3734)

96 AMERICAN ACA 1)EMY 0 f ACTUARIES

Casualty Actuaries of the Northwest(cordon F 1)is , Prc~idc•nrDavid Van Unevering, I'ice Prcar,t'erttJames Cant . I' 'acuto-Secretary

(c/o SAFECO Insurance CompanySAFECO Plaza T-14Seattle, WA 98185-(1Oi 11)

Casualty Actuariesof the Southeast (CASE)

Robert Blanco, Pre>identMichelle Bradley, I nrdetit-ElectDonald E Manic, I ice Piesident of Prc,i earnsBarry A Franklin, I ice• Prenrderu of Collgc

RelationsRichard 11 Moocher, I in' President of

dnu itratrorr(c/o National Council on Compensationin,urancc, Inc7;11 Park of Convnerce I )nv(-Boca Raton, FL 3347)

Central Illinois Actuarial ClubI isa Brub iker , PtcodcntSheila Melzer , President-ElectSusan Reitz , N'ortlcern V WC Ptc'rdcrir

Kurt C7zier, SJntlrern I -ice Pio0cia

Kristi Dossett, Scuctay-Treasiircr

(c . ,'o Fianklin Life Insurance CoOne Franklin SquareSpringfield, IL 62713)

Chicago Actuarial AssociationDale i offin . Presi,letnJeff Allen, Prrscdenr-Eli'crDonna Novak, Vice Prcndcnt of Proc,prrrn>Deane Osgood, i ice Presrdnrt o/ Pnltlic Pt lahoneKelvin Schill, TrarcirrrSarah Hainid Secretary

(c/o Fort Dearborn Life Insurance C -i30(1 Fast Randolph St_Chicago, IL 6(16(11)

The Chinese Actuarial ClubShirley Hwei-Chung Shao . Prcinlent

(c/o Piudential Insurance Co213 Washington St , Seventh Floor

Newark, N( ((71(12)

Cincinnati Actuarial ClubTinodiv Cardinal . Acmici rMarcia Ward, i'rrc PicsnlentHarold V L}ons, Sicrchnl•-Trt',cu i

(c/o Western-Southern Life

4011 Broads,-ay, C incuiiiati . OH 43202)

Columbus Actuarial ClubSteven P I )ezse, PresulentDavid E . So%%ers, Sccrctiry-Tu•aircr

(c /o Nationwide Insurance

One Nationwide Plaza, I-10-TIColumbus, OH 43216)

International Associationof Black Actuaries (IABA)

Jrfl'reyJohnsnn PresidentSharon Robuin,n, I icc P,eiideniCarol Mulhngs, TrrasccrrrCarolyn E Christopher, Sc'i' tar}'

(c/o IABA1 115 lnnian Ave , #+23•iEdison, NJ (1(82(1)

Kansas City Actuarial Clubi Michael Crooks, Presnfent

Lon A Truelove, I l, Pu~idvrrKirk A Bushy, Secretary - Ttr,urnc•r

(c/o Blue Cross Blue Shield of K C33(11 MainKansas Cm, NIO 64106-2442)

Korean Actuarial SocietyBede Lee, Precedent

(c/o PricesaterhouseCoopers

2111(1 North Central RoadFort Lee, NJ 07(124)

Little Rock Actuarial ClubJodv Carreiro, PresidentRob Bluhm, Vice Prr-adoirGray Townsend, Ticasrnei-Secrc•taty

(c/o Aegon USA/NOL DivisionPO Bo"i 2911(1

Little Rock, AK 7221)3-20(10)

]'ill YFAR[O0K 97

London Actuarial Clubtietli Fit7nLiuriee , C :1iauliri'0u

( c/o London Life Insurance Co .255 Dufenn AN c

London, ON, Canada, NtcA 4K I )

Los Angeles Actuarial ClubDavid Ruiz , PrrsadcnrAta Azarshahi , 1 ice Piesidcv[tRobin 13171111 Fichtelberg, TecanncrCathy Bierschbach , Serrr•tary

(c/o Aurora National Life2525 Colviado Ave .Santa Moni(7 a, CA 911-}114)

Michigan Actuarial SocietyAnu R Sundraiii, Pit ;eh wOliver Martin, I we Pic,idcrir

Stephen Kcller, I'd inciJudy Ficldrnrrc Secrrt,nJ•

(c o AAA Michigan1 Auto Club DriveDearborn, MI 4812th)

Middle Atlantic Actuarial ClubPeter Hendee, Pre>ui,lrnr

Brett Mo\very, I la, Punderrri ,1vid McKusick, Srrretaiy-Tira'ierci

(c/o Actuarial Research Corp5513 Twin Knolls Road, Suite 213Columbia, MD 21045)

Midwestern Actuarial ForumJohn G_ Aquino, Presalcr r

Brian Z. Brown, Iicr P1s'~adcutRonald J Sw.cmtrom, Education O(Jicci

Brian D Poole, Sect ew)),-Trcaonrei(c/o Arthur Andersen111 Monument Circle, Suite 43(11 )Indianapolis, IN 462(14-5143)

Le Club des Actuaires de MontrealDanielle Lamarche, PacwdentDanielle Monn, i ire PieuidewClaude Lockheed, Serrera)y

(c/o Groupe-cunseil AON Inc1801 McGill College Ave , Suite 100

Montreal, Quebec, H3A 3F4 Canada)

Nashville Actuarial ClubSans Tallrs, Secictaty

(c/o American General Life cS AccidentInsurance Co .4505 Anieriran (,eiieral CenterNash~,illc TN 3725(1)

Nebraska Actuaries ClubRichard Cruise, 11temirntEd Mullen, Sccarniiy-7rcacwei

(c/o Physicians Mutual3611 1 Dodge St , Oinaha, NE 65131)

Oklahoma Actuaries ClubMichael A Shuinate, PtcsidotrA Joy- McIonald, Scoctaa y- 1 icascucr

(c/o Anreiicarr Fidelity Assusanee Co2(1(11) Classen Center, P0 Box 25523Oklahom.i City, OK 71125)

Pacific Rim Actuaries Club of TorontoAugust Chow, PicardcaitFrank Lru . 7'reasnrrrJason Ou, Srctc[ar),

(Munich Reinsurance CoisipanyBay Street, 26th Floor120 Adelaide St WToronto, ON, Canada M51 12Y2)

Portland Actuarial ClubRobert \1ever Th'sidcrrrLorne llauenhauer, 15ce Pw° ideiu

Eric Wcek,, Scoetarl•-1100cc tr(c/o Willimi M Mercer, Inc111 S W Fifth Are , Suite 28, 11)Portland, OR 97319)

Le Club des Actuaires do QuebecCanulle LSvesque, PiesuieiitPierre Courcy, lice Pvci4cpaJacques !)cniers, Tei ulcrMichel Naud, Sccreran),

(c o Industrial-Alliance Life hrsurance Co111£(1 ) St Louis RoadPO Box 19i 17, Station I enninusQuebeL, Quebec, Canada G1K 7M3)

98 AhtEkICA\ Au At_ititit Y c/t ALIU1%KIFs

St. Louis Actuaries ClubRichard Ncl,,oi , Ptc •tduaEric Fctnstcui , free Pu,identDavui Shell, Sc(ttait)' - Ticut for

(c/o RCA(o(,i) Mason Ridge Center I )riveSt Lotus , MO (,3141)

Salt Lake Actuarial ClubLorraine Mat,ne, PresiduttJoan P C1gden, Seocutty

(c- u Juan C)gden Actuaries515 South 71)I) Fact, Suite ?13-1Salt Lake Cir., UT 84 l))2)

San Francisco Actuarial Club

Southwest Actuarial Forum (SWAF)Gregory S Wilson, PtettrdetuDebra L Werla tid, file P7c+tdetrtGeotlrc}• Todd Wcrncr, C :,rll' c' Krlattoin (tintWendy Cerurani Edrriarrou C)t(iu iDavid W Lacrtirld, Sc°iierar}' Ti o urcr

(c/o L W . Blanch Insurance Services4301 Centerviess llneeSan Antonio, TX 78228)

Twin Cities Actuarial ClubLisa Kern, Pesid ttSteve Rounirske, 17c c• PtctideritCorinne 1semrngcr, 'Cuenrty-T,C~itrtri'i

(c/u Lutheran Biotherhuod

Gary F Cline Pi u ideutKelly Lanibett, I'ut Ptesidc•nt

(i25 Fourth Avc SNinineapolis, MN 35-413)

T ' (illiam Van 0),s, Scc•tctary-Trc,wmt(c/o Three Embarcadet) CenterSuite 15i)I), San Francisco . CA 94111-401 ;)

Vancouver Actuaries ClubGordon Latter, Ptitrdc•trt

'daCin

Seattle Actuarial Clubrilyn Duii,tan, P;nitic•rttdt Chen, 17cc Ptuidiot

Grei McCoi ut ick . Ptngrcirtt Ca'tdw,unrBrenda George, Si tit it ' Tiult tot

(c/o AC)N ConsultingFirth Floor 91)0 Hover St

Diane I)avis, Treasutet

Linda Colton . .Sccrctcrty(c/u Watsun Wyyatt Worldwide

71)1 Fifth Atenue, Suite 210 )Seattle, WA 9810-4)

Southeastern Actuaries ConferenceAnn B Frizzell, Ptc'srdctrtBetty Aunt. Neal, Ira Pic mderttRobert B Crompton, .llrttil+et,hrit (-'hmrtsmtRobert H Dobson, Scottmy-7 rcatrrrct

(c-o Milluuaii & Robertson, Int.501 t North W estshorr Blvd Suite 811)

T,unpa, FL 330)Q-3,525)

Southern CaliforniaCasualty Actuaries Club

Joanne M . Ottune, PtesideniMitheic Beina], 1 is Pit,tdrtrt

Jonathan I) Adkissoit Scoctaty-Trouiiic•t(c/o Farmers insurance Group4700 Wilshire L31vdLos Angeles, CA 91111111)

Vancouver, 13C, Canada V(,L2M-)

Vermont Enrolled Actuaries Club)avevne C Totter Ptc:utdctrt

Sharlene T 13rauu, Suvicr ty - Ttcaartiii(c/o Acruari ,il Pension Analist, IncI ti South Gorcham Lane

Middlel)ury, VT 15753)

Waterloo Actuaries ClubScott McKellar, Prc~tdeut

((-,'o Fquitablr I ife lns C o of CanadaOne Westniount Road NWaterloo, ON . Canada N12J 4C7)

Wisconsin Actuaries ClubKesin M I)olskt, PteuiulctitRobert W C)mdal, L(urniu ( :oadtuatoiDavid A I Iuttleston, Sccrt•taty- I tratiori

(c/o Huttlestou Associates, hi(7442 Mineral Point Road, Suite 21H1

Madison, W 1 -)3717-21129)

1't`}`i ) EARBUOk 99

Board and CommitteeMeetings

The Board of Directors has adopted the

following policy with respect to atten-

dance at and participation in Academy

nicetru s

I The Academy's meetings ire opento its members, and to guests Invited byy,the committee or task force chair, withthe exceptions of the NominatingCommittee, the Budget and FinanceCommittee and the Committee onDiscipline, whose meetings are closed .However, portions of the ExecutiveCommittee and Board of Directorsmeetings may be closed for executivesessions, as well as portions of committeeand task force meetings \yhen necessaryto consider confidential informationwhere such consideration is essential toaccomplish tasks assigned to the commit-tees or task forces by the Board ofDirectors, the Executive Conu-nittee. orthe appropriate Vice President .Committee or task force meetings maybe closed to members only for the pur-

pose of considering confidential infor-mation with the prior consent of theappropriate Vice President or thePiesident, and subject to any terms, con-ditions or restrictions that the VicePresident or President may impose Thedecision to pernnt a committee or taskforce to close its meetings shall bereported to the Board of Directors at itsnext regularly scheduled meeting .

2. Conference calls are generallyopen only to members of the committeeor task force conducting the callHowever, the chairperson of the com-mittee or task force may invite guests toparticipate in conference calls on a case-by-case basis .

3 Academy staff attends meetingsand conference calls as appropriate

4 Members attending Academymeetings are free to observe the conductof those meetings; they may parncipatein discussions only with the consent ofthe chairperson

100 NIL RICAN ACAL) EM' OF %CTIIAI :IFS

Meetings Calendar

1999

Annual MeetingOctober 18 - 20 1999

Enrolled Actuaries MeetingMarch 14 - 17

San Francisco MarriottSan Francisco

2000

Mamott Wardman Park Hotel

Washington, D C

March 26 - 29

1991-)

Washington LuncheonMav 27

Marnott Wardman Park HotelWashington, D C

Washington, D C 2(1!11 March 18-21M W d P k H l

Casualty Loss Reserve Seminararriott ar niar otear

Washington, F) C

1999 September 13 - 14 2012 March 10 - 13

999

Marriott's Canielback InnScottsdale, Ariz

Actuarial Standards BoardApril 26 - 27

Marriott Wardman Park HotelWashington, D C

Washington, D C

June 28 - 30Seattle, Wash

Sept 27 - 29Washington, D_C

Dcc 13- 15

Washington, D_ (-;

lyu~} 1 LAItIi OUK 101

PublicationsPublications can be obtained from the Washington, 1) .C., office . Prices are in U.S .dollars and include postage in the United States and Canada . Remittance must accom-pany your order

Corrtiin*cucies, the migazine of the actuaual professionbimonthly, controlled circulation

Nonmember price- $24 .0 (/year, six issues

The -1 i ari if Updatemonthly, controlled- circulation newsletter

Enielled .4] iianr, Rr jinrtquarterly, control] ed-circulaton newsletter

1999 .'liiienmi .-Iradeniy r/ .-wale, Yeauhork$25(1(1

1999 Dliecrtny ofActiiarial .l[errnc~ishrhs$11111 0(1

.4cadeiii ), .-licit (a news ser\ ice by category Health Insurance Issues,Life Insurance Issues, and Property and Liability' Insurance Issues)

$30 III each

.lradcmp 9frit on Pension and Eniploycc Benefits$ 5( ] I Ill

Diicitoiy n_f Eiriolh'i!,Icni a iic~$7501)

.fir triritiaf Pi if'ssimmli.~ iu 4 luiinxf Ripensno charge

]ctiniu' il 1 i aid_I ii Coiinsi'fin and Di,ciphni .3x InUeilii , lionno charge

9nr enc~irr . L"ideriry oj,4 rri,eiies]etii 1 1,11back issues from 1977 to 1987 available at $35(1(1 each

102 AMIP [CAN ACAfF\45 OF ACTUARIES

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