TABLE OF CONTENTS

Academy Leadership & StaffBoard of Directors 3Headquarters & Staff 7Academy Committees 8

Actuarial Board for Counseling & Discipline 15

Actuarial Standards Board & Committees 16

Past Officers 18

Origins & BylawsHistory 19Statement of Purpose 22laws of the -American Academy of Actuaries 23By

MembershipMembership Statistics 33Application for Admission 34Dues 35Prescribed Examinations 35Other Actuarial Organizations 36Actuarial Clubs 38

Professional Standards 42

GuidelinesCommittee Appointment Guidelines 42Guidelines for Making Public Statements 44

CalendarsBoard & Committee Meetings 48Meetings Calendar 48

Publications 49

AMERICAN ACADEMY OF ACTUARIES1992 YEARBOOK

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

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

-John Ruskin

369 23 5 4"!= 282758257U J895PUBLISHED BI" THE AMERICAN ACADEMY OF ACTUARIES

Ja,\ZTARF 1992

ACADEMY LEADERSHIP & STAFF

Board of Directors

Robert II DobsonI' ice President

19(i1

6 r UL .A -c b+

Larn• D . Zimpleman1 ile President

1993Zr`~ V eeos,c,,i QPf

Fi' -'j"

Harry D. GarberPresident1992

V Cha! '-q u C +4,b1e L

R. Stephen Radcliffe1 "tie Preudcnt

199 ;Sf,V1 Ch . f10Anrer, u., kd

Thomas 1) . Levy.ti'er retanv- Tre,isurer

19Q25r Vf a C jk*6,21,01 4,

John H. HardingPresident-Elect

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Richard H . SnaderI Ice President

1993V.to, tC.,-emitU,S,F b b

Harold J . Brow nlccPast President

1992

Michael A. WaitersI ice President

19Q2

~yh st-7--//, a

tilavis A WaltersPast President

1993pK ~--e . VpIns. sere, Of

\ L9I3oward J, Bolnick

1992

f re's

C ttii- L,

Ruth F Frc's1992

S U .W hP~b4 t h ~Grt ;

Robert A Miller III199'

Ctin 5, 4e.

1',-g4(Gb+.

John J . Byrne1994

81 c~ £Lc LT

Robert \V . Go~srou1904

1PLAEP(o F l Y6s

Walter N . Miller1994

LIP-, PC,+

Ri- hert E Guarncra1993

~~~S 4 f1C`S ~rtc .

I hunras G. Ncl`on1902

Cons ,q -t

'r , J N-t a &cfi-L(lt4 rfsf~r

Stephen P . Lo,,; ,21992

I`r ll,- ~Jh~~

Jeffrey P Petertil19')3

hennLth W1 . Purtcr199-}

Ck.4~ d-t . h N(jC

-The 0, f«* c-

llar4 S . Behold190

l-vr. Air

James R Swienson1Q93

~l c I(s o f MD

] rar, mdicatc the i ear that duectoiti terms cyire

Walter S. Rugland1993

C6ns . Act .M,ll r-Rabt .

Donald R . SondcrpeldIQ9'

Michael I . ' Foothman1992

~f rt& f & Ie!'Sc4

5

James J MurphyExecutive face President

Lauren 1'1. BloomGeneral Counsel

Christine E . NickersunDirector,

Standards Pr-ogruenand Director o f Operatwns

Gary D. HendricksDiret tar

of Govermuent Informationwad Chief Economist

Erich Parkerl )rrec for

of Public Relations

6

Headquarters & Staff

Joanne B . AndersonFinani ial Officer

Lauren A1. BloomGeneral Comirel

Devara K. BodogSccr etar y/Staudnrd,+

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

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

Tames J. Murphy, NI .A.A.A., F.e cctrtire 1 'ice President

David A BryantAssistant Directorof Goiiernmertt Infor7mation

Jeanne E. Casey q oPublie Relations Specialist

Kathleen M . Clark-BlandFinancial Ass is taut

71tfl ?e-

Renee CoxPublications Alanager/Graphic Designer

Mary S DorseySecretary/Guz,ernment In f o matiot

Anna E FierstAssistant Editor, Contingencies

Elizabeth Banks I Iartsfieldlbleetings Assistant

Oz-

Gar-y D HendricksDirector of Goz•ennmrent Informationand ChiefEconomist

Alan Al KennedyStandards Editor

Gwendolyn E. HughesMeetings .'Manager

Ken KrchbielAssistant Director of Pi hlic Relations

Rita L. M rrrimak WlAILEtecattre_-Issistant ((

Christine E . NickersonDirector, Standa rds Programand Director of Operas tons

Frich ParkerDirector of Public Relations

Andrea A . PinkneySecretaiy/Public Relations jj < ct . i)

Editor, Contingencies /" i ?

Chi isnne M, So l - „19LGovernment Information Specialist

embership Administration

475 North Martingale Road, Suite 800Schaumburg , IL 60173

Telephone ( 708) 706-3513Facsimile (708) 706-3599

Susan C . Schneider , VIernbership Manager-

7

Academy Committees

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

Committees of the Board

Executive CommitteeBetween meetings of the Board of Directors, thiscommittee has the same powers as the hoard,with certain exceptions listed in Article IA` of thebylaws. Ordinarily, it acts only in matters ofurgency of lesser importance and makes recom-mendations to the Board of Directors in Impor-tant matters.

fIarryD Garber John H llardingPI ecident Aesident-Eli et

Thomas D Lei-t• Robert II . DobsonSecretmy-77 casm V0 lice Preiident

R Stephen Radchffe Richard IL SnadcrFicr Pt csidrn t Vet Proe/est

Michael A Walrerc Larry D . ZimplemanI tic Pr ardent I 'lie Pre'Idext

Mavis rl Waltercimmediate P st Presidoit

SwffLiatntr JamesJ Murphy,Lauren M Blonin

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

Robert A Miller III, CharrperssnHoward hluhi Kenneth W Porter

St.ffLiaison Gary D . HendriLks

Presidential Committees

Executive CouncilThis council oversees Academy management andprepares recommendations for the ExecutiveCommittee on policy issues .

Harry D Garber, Chm per conJohn H Harding Mavis A WaltersJames J. Murphy

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

I Iaro€d J Brownlee Chair perms1\ las is A Waltei s, 174 c Chau prram

Robert I I Dobson Harry D. GarberJohn H . Harding RobertF GuarneraDavid P Flynn Walter S . Rugland

StrfJ'I rarson • Junes J . Murphy

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

John I I 1 larding, ChurpenwrRobert H Dobson Robert F GuarneraDasid P hhynn Walter S . Riigland

Staff Luoswi James J Murphy

Litigation Review CommitteeThis committee provides broad-based oversightreview of briefs to be submitted on behalf of theAcademy as amicus cuiiae to assure that the sub-ject matter is appropriate for Academy comment,that statements contained therein do not contra-dict any existing Academy positions, that the briefhas been prepared in accord w ith Academy guide-lines, and to authorize submission of the brief tothe appropriate court .

John H Harding, ChanperconRobert H Dobson Michael A WaltersR Stephen Radcliffe Lairv D ZimplemanRichard H Snader

StaffLiaecon : Lauren M Bloom

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

Dwight K Bartlett III, ChairpersonEdwin C Hustead, Vice Chairperson

Phillip N Ben-Zvi Leonard H McVityA Norman Crowder III A Haeworth RobertsonBenjamin I Gottlieb Anthony T Spano

Staff Liaison. James J . Murphy

Task Force on Solvency IssuesThis task force assures that the actuarial profes-sion is actively, effectively, and publicly address-ing the issues of solvency of U .S . financial institu-tions, particularly life, health, and property/casu-alty insurers.

John H Harding, C'haerprrwnDaphne D Bartlett Walter N MillerRonald L Bornhuetter James J . MurphyJohn J Byrne R Stephen RadcliffeRobert H Dobson Walter S . RuglandCharles F harr James R SwensonDavid G. Hartman John G TurnerDavid M. Holland Michael A WaltersPaul F. Kolkman Walter C Wright IIIHenry K Knowlton

StaffLiaison Gary D . Hendricks,Frich Parker

organizations, both governmental and private .Issues on certain specialty subjects, such asfinancial reporting and risk classification, aregenerally referred to the appropriate committeefor action .

Robert V. Deutsch, ChairpersonManuel Almagro, Jr., t ice ChairpersonJeffrey II Mayer, I ise ChairpersonPatrick B . Woods, Lice Chairperson

Robert J . Arvanitis Robert T. MuleskiCarole J Banfield Frank Neuhauser, JrWilliam N Bartlett Dale F. OgdenDonald ' h Bashline Charles Al PotokRoss A Currie Pamela Scaland RealeJohn Dawson Lee R SteeneckMichael C Dolan R James YoungGregory S . Girard

Staff Liaison Gary D. Hendncks,David A Bryant

Committee on Propertyand Liability Financial Reporting

This committee monitors activities regardingfinancial reporting related to property and liabili-ty risks, reviews proposals made by various or-ganizations affecting the actuarial aspects offinancial reporting and auditing issues related toproperty and liability risks, and generally isresponsible for analysis of and recommendationson property and liability insurance and self-insur-ance accounting issues .

David G. Hatvnan, ChairpersonCasualty Practice Council Walter C 'Wnght III, bite Chairperson

Manuel Almagtu, Jr. Paul G O'Connell

Ahchael A . Walters, Vice President Paul Braithwaite Joseph L Petrelli

John J Byrne John J Kollar Robert A . Giambo Mark W ScullyRobert V . Deutsch Stephen P Lowe Leon R. Gottlieb Harvey A. Sherman

RichardJ Fallquist Michael J Miller Patrick j Grannan Susan T SzkodaDavid P . Flynn Robert A Miller III Elise C . Liehers John P Tierney

Robert W Gossrow John H . Muetterties Terrence At O'Brien James W YewDavid G. Hartman Michael L Tuothman Staff Liaison JamesJ . Murphy,Russell T John Gary D Hendricks

Staff Liaison Gary D . Hendricks

Committee on Propertyand Liability Issues

This committee monitors legislative and regula-tory activities in the property and liability area .The committee may prepare statements on prop-erty and liability issues for dissemination to themembership or for submission to appropriate

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

9

dissemination to the membership and for submis-sion to appropriate organizations

John J . Kollar, ChairpersonRonald I. Becker James B KellerCecil D . Bykerk Michael F. ManningDavid j Chrisuanson Irwm J . StrickerJohn F Fritz Karen TerryJohn A Harmedy Richard G WollJoan E Herman Everett D. WongJay D Hirsch

Staff Liaison . Gary D Hendricks,Erich Parker

Joint Program Committeefor the Casualty Loss Reserve Seminar

This committee develops the program for theCasualty Loss Reserve Seminar .

Russell T John, CbairperonRoger M . Hayne, F ice Chairperson

William N. Bartlett Andrew E KudcraPaul Braithwaite Susan M MillerDavid Engles Karen L. NesterSpencer ,M Gluck Jane C. TaylorGayle E. Haskell Warren B TuckerTodd J Hess Susan K. Woerner

Staff Liaison Christine E Nickerson,Gwendolyn E . Hughes

Health Pr actice Council

Robert H . Dobson, I ice PresidentI Iarold L Barney Bartlev L. MunsonJohn M. Bertko Thomas G NelsonIIowardJ Bolnick W.H.OdellWilliam J. Bugg, Jr Jeffrey P PetertilPhyllis A Doran Kenneth A . PorterPaul R Fleischacker James J . WatersTed A. Lyle

Staff Liaison. Gary D Hendncks

Committee on HealthThis committee furthers the actuarial profession'sinvolvement as a responsible voice to individualsand organizations involved in policy issues relat-ing to design, cost, and financing of the nation'shealth care . The committee performs its role inpart by monitoring federal and state legislativeand regulatory activities .

It is also alert to developments from othersources and stays informed of the issues faced byour nation in its quest for appropriate, soundhealth care and its financing. The committee may

prepare statements on key health issues for dis-semination to the membership or for submissionto appropriate organizations, both governmentaland private . Issues on other specialty subjects,such as financial reporting, risk classification, andhealth and welfare plans, are generally referred tothe appropriate committee for action

Bartley L Munson, ChairpersonHarry L . Sutton, Jr., Vice Chairperson

John M. Bertko Roland E KingAlfred A Bingham, Jr Nancy F. NelsonGene A. Blobautn Richard M . NiemiecStephen D. Brink Dennis M. O'BrienWilliam J. Bugg, Jr Mark D PeavyCecil D Bykerk Bruce S PyensonSam Guttennan William C WellerTimothy M. Harrington Norman J Zwitter

Staff Liaison. Gary D . Hendricks,David A. Bryant

Committee on Health and Welfare PlansThis committee addresses actuarial issues affect-ing health and welfare plans . The committeeresearches the actuarial aspects of such issues, andprepares statements of position on pending orpotential legislation, regulation, and policy Suchstatements may be directed to the membership,the Board of Directors, or for submission to ap-propriate governmental or private organizations

The committee seeks to anticipate emergingissues of concern to the public and the profession .Employers and other benefit plan sponsorsincreasingly require the assistance of knowledge-able actuaries in responding to the rapidly chang-ing areas of health care practice, delivery, andfinancing. The role of the actuary is changing,and the committee attempts to promote an aware-ness of the opportunities, advantages, and limita-tions of actuarial involvement.

In coordinating its activities, the committeemaintains liaison with the Committee on Health,the Actuarial Standards Board, and other actuarialbodies .

John M Bertko, ChairpersonLawrence J Busch Jeffrey P PetertilSteven J Ferruggia Neela RanadeDonatu Gasparro Adam J . ReeseWalter T Liptak Alice RosenblattMichael R, McLean Gerald R. SheaMartin A Miller Carl D SmithMark D Peavy Harvey Sobcl

Staff Liaison Gary D Hendricks,David A Bryant

10

Committee on Continuing CareRetirement Communities

This committee defines and develops the actuari-al role in connection with continuing care retire-ment communities. The committee may preparestatements for dissemination to the membershipor for submission to governmental entities or theaccounting profession . The committee will estab-lish liaison with and develop a communicationsoutreach program to the CCRC community

Harold L. Barney, ChairpersonDonald M, Charsky W. David PhillipsRobert B. Gumming Alwpn V PowellNiels H Fischer Ralph J SavreAudrey L. Halvorson Bruce L . [WorkmanDavid L . Hewitt

Staff Liaison Gary D Hendricks,David A. Bryant

Committee on State Health IssuesThis committee furthers the actuarial profession'sinvolvement in policy issues relating to the regu-lation of health insurance at the state level .Operating primarily through its liaison with theNational Association of Insurance Commission-ers, the committee works closely with theCommittee on Health to assure appropriate cov-erage of health - related issues

tit illiam J Bugg, Jr ., ChairpersonWilliam F Bluhm, 1 ice Chairperson

Robert IV. Beal Bryan F MillerDorothea D Cardamone Peter L PerkinsRobert J Huber David B TrindleLeonard Koloms

Staff liaison Gary D IIendncks

Life Practice Council

issues for dissemination to the membership or forsubmission to appropriate organizations, bothgovernmental and private . Issues on certain spe-cialty subjects, such as financial reporting and riskclassification , are generally referred to the appro-priate committee for action .

Philip K Polkinghorn, C'hairpeiseimDebra A. Brogan Craig R RaymondWilliam Carroll Dennis L StanleyDonna R. Claire Ronald L. StopherLouis J Lombardi Joseph H . TanJames E. Pozzi P Andrew Ware

SeiJ]Liaison. JamcsJ .IVMurphy,Gary D, Hendricks

Committee on Life Insurance Financial ReportingThis committee monitors activities regardingfinancial reporting related to life and healthinsurance, reviews proposals made by variouspublic and private sector organizations affectingaccounting and auditing issues related to life andhealth insurance, and generally is responsible foranalysis and recommendations on life and healthinsurance accounting issues .

Arnold A Dicke, ChairpersonStephen L White, Secretary

Robert M. Beuerlem S Michael McLaughlmJay D. Biehl Lew H. NathanWilliam T. Bryan Frank W PodrebaracScott H. DeLong III David Y . RogersJoseph L. Dunn Eric R. SchuermgThomas W. Fmeis Jerome F. SeamanJoan A. Hentschel Barbara L SnyderJames E IIohmann Anthony T. SpanoAllan Hale Johnson Dennis L StanleyDouglas C Kolsrud

Staff Ltauon James J Murphy.Gary D. Hendricks

R Stephen Radcliffe Kite President Pension Practice Council,ChrisuanJ DesRochers WalterN MillerA ld A D k h ll

Larry D . Zimpleman, hire Presidentrno . ic e P i ip K Polkinghorn Mary H. Adams Jeff FurnishLarry?VI Gorski Walter S, Rugland Twila Bastian Stephen G KellisonPaul F Kolkman Donald R, Sondergeld Michael E Callahan Howard M PhillipsReed P Miller Herbert S Wolf Darrel J . Croot Susan M SmithStaff Liaison JamesJ Murphy Howard Fluhr John B.'Fhompson

Staff Liaiseii David A. Bryant

Committee on Life InsuranceThis committee monitors legislative and regula- Pension Committeetory activities in the life insurance area . The com- This committee addresses actuarial issues affect-mittee may prepare statements on life insurance ing pension plans other than issues related to

11

accounting matters, actuarial standards of prac-tice, and risk classification .

The committee - ( 1) Researches issues and pre-pares and presents position statements on pend-ing legislation and regulations, (2) Coordinatesthe research and project activities to he under-taken by the actuarial profession ; and (3)Recommends policy to the Board of Directors .

In carrying out its coordination function, thecommittee maintains liaison with the Committeeon Pensions of the Conference of ConsultingActuaries and the Committee on Pensions andthe Pension Section of the Society of Actuaries .

Samuel M Kikla, ChanperionMary H. Adams William N Kuendig 11Frederick B . Bass Samuel J Lyons, ItLois M . BroussardEdward E BurrowsGabriel C . CillieDarrel J CrootDavid P . FriedlanderJeff FurnishRonald GebhardtsbauerSteven j HaasDuane F . HanfAllan 'IV JohnsonDavid R . Kass

Franklin D. PendletonGregg P RichterRichard G SchieitmuellerJeff Lon SchwartzmannDonald J . SegalRobert David StemhornMichael E SwieckiMichael SzeJames E l'urpinWallaceW Wilson

Staff Liaison Gary l) I Iendricks,David A. Bryant

Committee on Pension AccountingThis committee monitors activities regardingfinancial reporting related to pension plans,reviews proposals made by various public and pri-vate sector organizations affecting accounting andauditing issues related to pension plans, and gen-erally is responsible for analysis and recommenda-tions on pension accounting issues .

Darrel J Croat, ChairpersonPaul W. Barker Norman S . LoskMark G Beilke Robert D. StemhomSteven Bland Joseph P StrazemskiBenjamin I . Goetheh Stanley H . TannebaennJames IM Jackson IIenry N, WinslowLawrence A Johansen

Staff Lraiion . Gary D Hendricks

Committee on Social InsuranceThis committee provides and promotes actuarialreviews and analyses of social insurance systems ofthe United States Its significant findings will bereported to the Board of Directors and may heused to provide information for the Academymembership or for public expression of profes-sional opinion . The committee's activities will hecoordinated with those of corresponding commit-tees of other North American actuarial bodies .

Stephen C . Kellison. ChairpersonHarry C Ballantyne James H ManningJames A Beirnc Gregory J SavordDonato Gasparro KennethA SternerBenjamin I. Gottlieb John C. WilkinPeter G Hendee James R SwensonEdwin C . Hustead

Staff Liaison David A Brvant

Task Force on Pension Plan TerminationsThis task force gathers appropriate pension plantermination data and oversees the disseminationof those data to appropriate government agencies .

Howard M Phillips, ChairpersonLarry D Keys Charles P Moore

Stifj`Liatson Gary D, Hendricks

Joint Program Committeefor the Enrolled Actuaries Meeting

This committee develops a program for theEnrolled Actuaries Meeting, cosponsored by theAcademy, the Conference of ConsultingActuaries, and the Society of Actuaries .

Twila Bastian, ChairperonDouglas C Holden, [ice Cbairperson

Betty Berni Neil A. ParmenterBarbara K. Blatt Eugene SchlossHoward Fluhr Lawrence J. SherAlbert J . Kleinherg, Jr Peter D VerneDaniel G . Lalmc, Jr. Richard A WattsEric P Larson Vickie N. WilliamsJeffrey A Levy

Staff'Liauern, Christine E Nickerson,Gwendolyn E Hughes

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Committees on ProfessionalismRichard I-I Snader, f ice President

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

"' James MacGnmitic, ChawpersouRobert B. Crompton David L ScarlettRobert II Drevei David Sk-nrnickKenneth IV. Harnrell Ii5Hiam David SmithFrank i, Kate John VV C StarkL' dward J Peters Jerome M. SteinDonald E Sanning Wallace IN, . Wilson

Strf7aamn JamesJ Murphy,Christine E Nickerson

Committee on QualificationsThis committee identifies and recommends to theBoard of Directors minimum qualification stan-dards for members who perform publiclyrequired actuarial functions . It also investigatesquestions relating to qualification problems andcounsels members on questions relating to indi-vidual qualifications .

John K Booth, ChairpersonTimothy J Alford Charles L McClenahanJoseph J. Leube Mark-J. SohelRobert B Likins Charles Barn H WatsonDaniel J McCarthy Walter C . Woodward

Staff l .wacsn Lauren M Bloom

Joint Committee on the Codeof Professional Conduct

This committee comprises six members, onefrom each of the participating organizations Thecommittee is appointed by and reports to theCouncil of Presidents . The chairperson is desig-nated by the COP

The responsibilities of this committee includethe formulation of the Code of ProfessionalConduct, including exposure to the members ofthe participating organizations ; assistance to theparticipating organizations in consideration andadoption of the Code, as is or in modified form ;once step one is complete, ongoing maintenanceof the Code of Professional Conduct, deterinina-

tion of whether a set of Interpretations to theCode is required, and, if so, development of theInterpretations , including exposure to the mem-bers of the participating organizations .

Jerome A Scheibl, AAA, CharrpermuMan 1-1 Adams, CCA Peter F Morse, CIAAlan N Ferguson , SOA Richard D. Pearce, ASPADavid P. Flynn, CAS

S6tjj Liaison . Lauren V Bloom

Committees Under the Supervisionof the Secretary-Tr easurer

Thomas D Levy, Secretary- Tieastirer

Budget and Finance CommitteeThis committee prepares financial projectionsand the annual budget, and recommends the duesstructure to the Board of Directors . In addition,the committee develops and maintains the invest-ment policy for Academy funds, such policy to heimplemented by the Secretary-Treasurer.

Thomas I) Levy, (henperionJohn I I I larding Kenneth III PorterThomas G. Nelson James R Swenson

Audit SubcommitteeThomas C . Nelson, Chairperson

Kenneth II". Porter James R Swenson

Staff Lrmson . Christine F Nickerson,Joanne B Anderson

Committees Under the Supervisionof the Executive Vice President

James J Mutphv, Erecutive dire President

Committee on Relations with AccountantsThis committee and the parallel AICPA Relationswith Actuaries Committee provide 3 constantlyavailable facility for communication between theactuarial and accounting professions . These conynaittces meet jointly at regular intervals to discusspolicy matters involving the two professions

Task forces will operate under the aegis ofeach profession's committee . as needed, to workon particular questions . However, this committeeinitiates dialogue at an early stage of any situation

13

involving both professions and provides a meansfor anyone in either profession to seek an answerto a question involving the expertise of the otherprofession .

David G Hartman, ChairpersonDarrel J Croot Jeffrey P. PetertilArnold A Dicke Jack M TurnquistStephen G Kellison Diane WallaceLeroy B Parks, Jr Walter C Wnght III

StaffLiaison. Christine E . Nickerson

Committee on International IssuesThis committee responds to requests from out-side the United States regarding standards ofpractice and qualifications to sign public state-ments in the United States, to share informationwith the international issues committees of theother United States actuarial organizations, todraft a background paper discussing proceduresby which non-United States actuaries might beaccredited to practice in the United States, and toinitiate discussions with non-United States actu-arial organizations about having common stan-dards for accreditation .

Margaret «'. Tiller, ChairpersonCurtis E I luntington, I ice Chairperson

Allan D Affleck Bruce D :MoreCharles Greeley James N StanardCharles A Hachemcister James A TilleyHeidi E Hitter J Philip TurnerHarold G. Ingraham, Jr Charles Barry H WatsonW James MacGinnitie

Staff Liaison- Lauren M . Bloom

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

Roland E King, Chairperson

The Actuarial UpdateFvelyn Toni Mulder, Editor

Associate EditorsGary D Lake Charles Barry H WatsonStephen A. Meskin

The Enrolled Araarier ReportRichard C . Schreitinueller . Editor

Assoeiatr EditorsJohn W Atteridg Adrien R LaBombardeJames A. Kenney Donald J . Sega]

Staff Liaison . Erich Parker

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

Ruland E King, ChairpersonDaphne D Bartlett Dale NelsonCures E. Huntington Craig A OlneyFrederick W Kilbourne Richard S RobertsonEvelyn Tom Mulder

Department EditorsArthur IN' Anderson W Keith SloanThomas L. Bakos Stephen N. SteimgJoseph E. Dean Charles Barry H Watson

Staff Liaison Ench Parker,Janice T. Radak

Advisory Group for Forecast 2000This advisory group, comprising representativesfrom all Forecast 2000 sponsoring organizations,advises public relations professional staff on thecourse of the program, reviews results , and makesrecommendations to the Council of Presidents onthe program's future direction and funding .

James J Murphy, ChairpersonRobert H Chamberlain Evelyn Toni MulderRobert E Guamera Anthony T. SpanoFrederick W. Kilbourne

Staff f Liaison Ench Parker

Joint CommitteesCouncil of Presidents

This is an informal body whose purposes are tocoordinate activities of the actuarial organizationson this continent and to exchange views on cur-rent and long-term professional questions .

Morris W Chambers, CIA John H Harding, AAARobert H . Dobson, CCA W Paul McCrossan, CIADavid P Flynn, CAS Mary S . Riebold, CCARuth F Frew, ASPA Walter S Rugland, SOAHarryD Gaiber,AAA Donald RSond ekl,SOARobert E Guarnera, ASPA MidraelL Toothman, CAS

Council of Presidents Task Forceon the Working Agreement

Charles A. Bryan, FacilitatorMorris W Chambers Robert E GuarneraRobert H Dobson John H . HardingDavid P. Flynn Walter S Rugland

Stuff Liaison . James J Murphy

14

Task Force for Implementationof the Professional Recommendations

This task force comprises six members, one fromeach of the six participating organizations . Thetask force is appointed by and reports to theCouncil of Presidents (COP) . The chairperson isdesignated by the COP.

The task force oversees, coordinates, and,where necessary and appropriate, assists theimplementation of its recommendations . Thescope of this task includes the completion of theCode of Professional Conduct and its adoption bythe participating organizations, the establishmentof the Actuarial Board for Counseling andDiscipline (ABCD) by the Academy, and theestablishment of similar procedures by the CIA topermit investigation and recommendations withrespect to alleged violations of the Code, bymembers of one or more of the other participat-ing organizations, the revision of the bylaws/con-stitutions of the SOA, CAS, and CCA and theprocedures of ASPA to permit referral of allegedviolations of the Code of Conduct to the ABCDor CIA for investigation, recommendation and, ifappropriate, counseling, and the consideration bythe AAA, the ASB and the CIA of whether toinclude in the qualification standards and/or thestandards of practice the basic material, concepts,etc . on subjects currently included in the Guides

to Professional Conduct but omitted from theCode of Professional Conduct .

Harper L. Garrett, Jr ., AAA, Um personM. David Brown, CIA Stephczi W. Philbrick, CASDavid L. Hewitt, CCA Carl Shaht, ASPABattle}' L Munson, SOA

St4J Liauun: LaurenM Bloom

Liaison Appointments

Liaison Memberon the Education Policy Committee

of the Society of ActuariesPeter Hepokoski

Liaison Memberon the Education Policy Committee

of the Casualty Actuarial SocietyGustave A Krause

Liaison Memberon the Public Relations Committee

of the Society of ActuariesAnthony'! Spano

Liaison Memberon the Credit Insurance Experience Committee

of the Society of ActuariesWilliam G Meyer, Jr.

ACTUARIAL BOARD FOR COUNSELING & DISCIPLINEThe Actuarial Board for Counseling and Discipline (ABCD) was established as an independent entitywithin the Academy on January 1, 1992 Upon delegation of appropriate authority from a participatingactuarial organization and acceptance of that delegation by the ABCD, the ABCD will be authorized :(1) To consider all complaints and/or questions concerning alleged violations of the applicable code ofprofessional conduct and all questions that may anse as to the conduct of a member of a participatingactuarial organization, in the member's relationship to the organization or its members, or in the mem-ber's professional practice, or affecting the interests of the actuarial profession ; (2) To counsel individu-als accused of violations of the applicable code of professional conduct, regarding their actions, (3) Torecommend a public disciplinary action against an individual to any participating organization of whichthat individual is a member; and (4) To serve as ombudsman between members of participating actuarialorganizations, or between members of participating actuarial organizations, or between such membersand the public, for the purpose of informally resolving complaints concerning the professional conduct ofsuch members.

A Norman Crowder III, ChairpersonDwight K . Bartlett TTT Curtis D . HamiltonAlan N Ferguson David L. HewittJohn A. Fihiger Joseph J. LeubeWalter j Fitzgibbon, Jr Jerome A. Scheihl

Staff Liaise,, Lauren M Bloom

15

ACTUARIAL STANDARDS BOARD& COMMITTEES

'['he Actuarial Standards Board (ASB) was established as an independent entity within the Academy onJuly 1, 1988 . The ASB has the authority to prescribe its own operating procedures, to establish com-mittees, subcommittees , and task forces it may deem necessary in carrying out its assigned functions,and to appoint individuals to positions on such committees, subcommittees , and task forces . The fore-going authority may in turn be redclegated by the ASB to its operating committees The operatingcommittees report to the ASB and function under its direction . The ASB also has the authority (whichmay not he redelegated) to authorize exposure of proposed standards and to adopt recommended stan-dards of practice

The ASB is charged : (1) To direct and manage the development of standards of practice in all areasof actuarial practice ; (2) To identify the need for actuarial standards of practice in all areas of actuarialpractice; (3) To review standards of practice and determine whether they are in need of amendment,alteration, expansion, or elimination , (4) To cooperate with the Actuarial Board for Counseling andDiscipline as requested by the Chairperson of that committee ; (5) To determine whether different cate-gories of standards of practice would he more appropriate ; (6) To develop a uniform format for expo-sure drafts and standards of practice, (7) To take steps to enhance the current exposure process regard-ing standards of practice, and to implement or cause to be implemented ways in which actuaries andother interested parties will more actively participate in the exposure process, (8) To determine appro-priate way(s) to publish standards of practice ; (9) To promote the value of and adherence to standardsof practice ; (10) To develop its own rules of procedure for organizations which are not in conflict withthe requirement in its plan of operation, and (11) To take all steps necessary to accomplish the otherspecific tasks in its plan of operation .

Actuarial Standards BoardJack M. Turnquist, Chaitpeisun

James C Hickman, I ice ChairpersonP Adger W'L'ilhams, F ice Chairpersmi

Edward h Burrows Frederick W KilhourneGary Corhett Richard S. RobertsonWillaid A Hartman Harry L . Sutton, Jr

SraffLiaismt Christine E . Nickerson,Alan M Kennedy

Casualty Committee of the ASB Subconunittee on RatemakingIn accordance with proce dures prescribed by the LeRoy A Boisun, Jr ., Chairpcra mActuarial Standards Board , this committee devel-ops actuarial standards of practice in the property Subcommittee on Reservingand casualty insurance are a . James A. Faber, Chairpirswi

Michael j Mille erronr Cbair, p Subcommittee on ValuationMartin Adler E. LeRuy HeerRichard M Beverage Bertram A. Horowitz Douglas J . Collins, ChanpersunLeRoy A . Boison, Jr. Eldun J. KlaassenDouglas J. Collins R Michael Lamb Subcommittee on Rate of ReturnFrederick Cripc Stuart N . Lerwick Mark Whitman, ChaiipeiaonJames A Faber Robert j LindguistDaniel J . Flahcrty Jerry A. Miccolis Subcommittee on Risk Margins

GluckSpencer M Robert A Miller IIi. Spencer M . Gluck . ClianpersoaiRobert W . Gossrow David S PowellDavid J Grad RansomGary Ky . Subcommittee on ReinsuranceGary Grant Paul E WulteikensJames A Halt III David J . Grady, Chairperson

16

Health Committee of the ASBIn accordance with procedures prescribed by theActuarial Standards Board, this committee devcl-ups actuarial standards of practice in the healthfield .

Ted A Lyle. Chaaipr,sonRobert tit. Duncan, Jr David F OgdenIIerbert A Fritch John A PriceLain M. Corski Robert J SchulerRobert J, Ingrain Richard j SheplerSpenc.cr Koppel Men j SorhoWilliani I I Odell Joe P . Stemfeld

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

Paul F Kolkman, ChaieperconDonald F. Behan James B . MilhollandTimothy F Harris Richard S . MillerRobert 'V,Maull Edward S. Sums

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

Mary H. Adams , ChaiiperaorSteven I Aim Silvio InguiLad Bachan Kenneth W . PorterRobert S . Bvrne, Jr Harry S Purnell IIIAnthony C Deutsch Richard G . RoederC David Guctafson Kenneth A Steiner

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

Robert "' Haver, CharpeisunAlan S Breirman Kenneth \V PorterHarry A Don William A ReunectSteven J . Fcrruggia George J Roc(asJoseph P Macaulay Donald P, SanningStephen A. Meskin Bernard j VillaJoseph J Poplaski

Specialty Committee of the ASBIn accordance with procedures prescribed by theActuarial Standards Board, this committee devel-ops actuarial standards of practice in areas notaddressed by the committees above .

Stephen G Kellison, CkaopersonHarold L. Barney Robert J. MvcrsSteven A, Harrold Alwyn V PowellPhilip D. Miller

Data Quality Task Force

Philip I) ?Miller, ChaapruwiLall Bachan James R MilhollandRichard S Biondi Viretnia R PrevostoLarry AI Gorski Donald P Sannmg

Task Force on Long -term CareIn accordance with procedures prescribed bythe Actuarial Standards Board, this taskforce develops actuarial standards of practicein the area of long-term care .

Bartlei L llunson, CbaupriaunDonald NI Charskv John P Kinney IIIAhiaham S Gootzeit Edward A MurphyRobert A Hall Dennis Al O'BrienJames 'I' Helton Gerald R Shea

Editorial Advisory Committee of the ASBThis committee assists the operating corn-inittees in reformatting existing standardsinto the approved pattern and advises theoperating committees on the format, style,structure, and consistency of proposed stan-dards. The committee also serves as coordi-nator for technical staff writers involved inASB activities .

Jerome A Scheibl , C'/oupetsonJanet L . Fagan David E ScarlettCharles E Farr IlenryVlT Siege[

17

PAST OFFICERS

11)05-66 11066-07Henry F Rood President Thomas E MurrmThomas E Marten President-Elect John II MillerFrankJ Gadirnt Inr Presidents FrankJ GadtentLaurence ll Longley-Cook Lauren . H Lnngley-ConkJohn H Miller H Raymond Strong11. Raymond Strong Andrew C WebsterGeorge M Bi yce Secretary Norton F Mast,,-Rob- E Bruce Treasurer Robert E Bruce

1979-80 1080-81Ronald 1 Rurnhlrctrer President Walter L GraceWalter L (traer Preadeor-E6rr Wdham A HalvnrsnnMary H Adams I no Preadenrr Richard S RobertsonNerbertL DePrenger P tadgcrW'illiamsRichard S Robertson A Norman Crowder IIIP Adger Wdhams Rrtley I, hLmsunCharles B H Watson Sarerary Charles B H WatseaKevin M, Rvan Teeantrer Kent M Ryan

1%7-68 1965-69John H Miller President Wende6 M illmranWendell Milhman Pesident -Eleet Walter L RoglzndEdward D Bronen, Jr Ptrr Prr tdenre Edward I Brown, JrWdlaamJ,Leshc,Jr WdlraanJ Les]te,JrFrankj Gadtent Paul I RoitcrAllen L Mayerson Harold W S, hl,,,Norton E 4lasterson Seretary Norton E Master,onRobert E Bruce Traasurer Robert F Bruce

1969-70 t97q-71Walter], Rugland Prendertr H Raymond StrongH Raymond Strong Pesident-Flat RubertJ MyersPaulT Rotten Vu, Prrudents Donald F CampbellT4-€d14 Schlos, Julio K DycrDonald F Campbell Harold E CurryRobert) biters Morton D MillerNorton E Masterson S6retary Wdharn A I laleorannRubersF Bruce Treasurer RuhertF Bruce

1471-72 1472-73RabertJ Mtiers Prendern MortonD hlrllerMorton D Stiller Pe,dent Fde,s FrnescJ AfuurheadHaroldE Curry IirePresdenrr Rnberth BruceErnestJ Moorhead Julius VogelRobert F. Bruce Reuben I JacobsonJuhus Vosel Daniel J McNamaeaWilliam A Halvorion Seretmr William A- HalvorsonDale R Gustafson I rearnrer DalR K Gustalson

1973-74 1974-75Frnest I Moorhead Prendenr Dan,,] J Mi Nam-DamelJ Md',amara Prrrtdenr-fkrr 1homasP Bowes,JrWilliam A-Ilalvorson Lire P,eodrnta Richard L JulieReuben I Janihson Robert C, WmtenThomas P Boules, Jr Edwin F Bnymir-Richard L John kcnneth H RossWalter S Rugland Secretary Walter S RuglandDaleR Gustafson ireasinn DaleR Gustafson

1975-76 Pl7o-77Thomas P. Bmvlcs, Jr Prrndrnt RobertC WintersRobritC Winters President - Ekrt Edwin I BoyntonEdwin F Bnymmn 1 ur Resident' Dale R GustafsonKcnncthH Ross 1.1 Stinky HugheyDale R Gustalson Ronald L BornhucttcrS1 St-let Hughes Louts GarfinWalter S Raglan] Serretny Rilph F FdwardsJamasO Webb Ireas'reer James l) Wehh

197>-;8 1079-79Edwin F Bnymt- Pesident Dale R tuistrfsnnDale R Gustafson Prendor-Lies Ronald L BornhuetterRonald L Bornhuetter 17cr Prestdena Preston C BassettLouis Garfin Charles C I Iewitt, JrPresmn C Rassrrc I lerhert I DcPrurgcrCharles ( Hcuitt, Jr Walter L GraceDwight K Bartlett III 5'errtiar Dwight K Bartlett IIIJames 0 11.0bb Treasurer Kevin All Ryan

I95i-82 1952-R3William A. Hal•orson Prr ardenr P Adger SlSlhamsP. Adger W ilhams Prrndenr-Pker A Norman Croadur IIIA Norrmu Crowder III Irre Prertdenir David R CarpenterBardev L 4lunson VI dharn A FergusunDavid R Carpenter John 'A FlhrgcrWilliam A Fergusnn Waiter S RuglandC-1 R Ohun,m Serruturv CA R OhmanW Tames 11fad,mnna Treasurer W- Juries AtacCuamtre

1983-54 1984-95A NornranCrowderlll Pendent M. Starlet IlugheySI Stsnley Hughry Prrmle,u-F,lert Bactle1L MunsnnJohn A Fibrger Liar Pr-dent, Dac-dG HarnnanWalter S Rugland Da .-cd M RcadcDavid G Harman IlaroldJ Brnwnlccband At Bride Carl R OhioanCarl R Ohenun Seerearrry Ruheet H Do]nnnButton D Jay Iriietrer Burton D Jar

19BS-5n 1989-87Bartlcy L ,Munson Prrudent Preston C BassetsPreston C Bassett President -Ekrt John A libigcrHarold) Bmwnlee the Preudenr Edw and H FriendF dward ]I Friend W James MacGtnnmeW James Mac€rnmue BurtonD JayCarl K Ohman MinisA Waher,Robert II Dobson Seneran Robert H DobsonBurton D las Trra_anrr Damcl J McCarthy

1987-88 tN8-00John A, Fihiger President W James MacGinrutseW` James iMlad,umme President-Elect Ilarnld J BrownleePhilip N B, .-Z,, I rte PrersBars Plnlbp N Ben-7"Burton D Jay Harper L Garrets, JrJoseph) Stahlll John H HardingAlans A W'altets Joseph) Stahl 11Virgil D W'agner Srnetdrp Vn~ril D 11'agnerDamelJ Ald,atrhv Tea.- DamelJ Mi Earthy

1989-90 1900-41HaroldJ Brnwnlee Prxudrnt blur ESA W'altcrsAlan$A Walters Percy/nit-Hee Harry D Girl-I larR' D Garber I ire Preurdsoti Robert H Di'bsonHarpcr L Garrett, Jr Charles F FarrJohn II Hardmy Dam01J McCarthyDross] J McCnrths ALchael A 'A aln rsVirgil D Wag= VT' tam RichardH Snador'1 homas D Leyn Trrarurrr Thomas D Levy

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ORIGINS & BYLAWS

Q n October 21, 1965, the AmericanAcademy of Actuaries was organized as anunincorporated association to serve the

actuarial profession in the United States Thecorresponding national body in Canada, theCanadian Institute of Actuaries, had been incor-porated earlier that same year . For many years,the actuarial profession in North America hadconsisted of four bodies : the Casualty ActuarialSociety, the Conference of Actuaries in PublicPractice, the Fraternal Actuarial Association, andthe Society of Actuaries In 1904, the membersof those four organizations, recognizing the needfor a single body to represent actuaries of all spe-cialties, approved formation of an all-inclusiveorganization of qualified United States actuaries .

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

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

A new statement of purpose for the Academywas adopted by the Board of Directors onDecember 9, 1981, following an exposure processwith the membership and extensive deliberationsby the board.

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

All U S . residents who were fellows (or theequivalent) of the four existing bodies onOctober 25, 1965, were automatically enrolled asAcademy members, subject to their indicated

History

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

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

After January 1, 1970, educational require-ments were gradually increased until 1976 . InJanuary 1976, an amendment to the bylaws cre-ated a new nonvoting class of membership desig-nated Affiliate of the American Academy ofActuaries. This class consisted of nonmembers ofthe Academy who became enrolled actuariesunder the Employee Retirement Income SecurityAct of 1974 (ERISA), subject to acceptance oftheir applications by the Academy . Subsequently,in January 1979, the bylaws were further amend-ed to eliminate the distinction between affiliatesand members of the American Academy ofActuaries, as well as to set the experience requiredat three years of responsible work . Subsequently,the Academy board set the basic educationalrequirement at that of the Associateship level inthe Casualty Actuarial Society or the Society ofActuaries or that required for status as anenrolled actuary under ERISA .

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

Professional ConductIn December 1965, the Guides to ProfessionalConduct were first issued . Over time, these wererevised and supplemented by InterpretativeOpinions . Together, the Guides and Opinions

11 formed a core of ethical guidance for members inall phases of their professional lives. InSeptember 1991, the Board of Directorsapproved a new set of ethical precepts as recom-mended by the Council of Presidents Task Force

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on the Code of Professional Conduct, The intentof the task force was to seek adoption of a com-mon code of ethical tenets by all organizationsrepresenting actuaries in North America . TheAcademy was the first body to adopt the code,which became effective January 1, 1992 .

The Code of Professional Conduct includesPrecepts and Annotations that require a highstandard of ethics and responsible performanceexpected of professionals . Specifically, the pre-cepts require actuaries to abide by Standards ofPractice, as promulgated by the ActuarialStandards Board, and by Qualification Standards,adopted by the American Academy of Actuaries .When the Code is adopted by all the professionalsocieties representing actuaries in North America,virtually all practicing actuaries in the UnitedStates and Canada will be subject to the same eth-ical and practice requirements, uniting the profes-sion in this area for the first time

Counseling & DisciplineSince its inception, the Academy has recognizedthe need for a disciplinary procedure to enforcestandards of conduct and the need to provide thepublic and fellow actuaries with an avenue toexpress grievances regarding the professionalactivities of Academy members . For many years,the responsibility for handling complaints, inves-tigating charges, and proposing disciplinary mea-sures rested with the Committee on DisciplineLargely because duplications of effort by the dis-ciplinarv committees of the various actuarialorganizations frustrated effective discipline, andalso as a result of the adoption by all actuarialorganizations of a common code of professionalconduct, in 1991 the members of the Academyvoted to amend the bylaws and create theActuarial Board for Counseling and DisciplineIABCDI .

The ABCD is a separate entity affiliated withthe Academy. It is designed to serve two princi-pal functions . First, it investigates alleged viola-tions of the Code of Conduct lodged againstmembers of any actuarial organization that dele-gates investigative authority to the ABCD . TheAcademy has already made this delegation, andother actuarial organizations arc expected to dele-gate such authority in 1992 . Second, for thoseactivities that in the opinion of the ABCD do notmerit public discipline, individuals will be counseled

privately and assisted in complying with the require-ments of the Code of Conduct, QualificationsStandards, and Standards of Practice .

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

The ASB is a separate entity affiliated with theAcademy. It has sole responsibility to initiate thedevelopment of and to adopt new standards .Standards of Practice include statements on thetechniques, applications, procedures, and meth-ods that have been generally accepted by the pro-fession . The Code of Professional Conduct requiresactuaries to be knowledgeable about and abide bythese pronouncements .

Legal RecognitionIn December 1966, the National Association ofInsurance Commissioners (NAIC) adopted a ies-olution supporting recognized standards of actu-arial competence and conduct and urging eachcommissioner to support the efforts of theAcademy to gain official recognition . All statesnow have regulations that recognize Academymembership as qualification for signing insurancecompany annual statements ; some have cot-re-sponding recognition for public employee retire-ment systems . The first state to act was Indiana,which provided for certification of actuaries by astate board in a 1968 law . The general patternfollowed in other states has been issuance ofadministrative orders or regulations

In 197i, the responsibility expected of actuar-ies was spelled out by a new requirement that theactuary who signs a life insurance company annu-al statement must express an opinion on the actu-arial elements, including an opinion on the ade-quacy of reserves. The Academy responded withRecommendations to the profession on how thisresponsibility should be met.

In 1980 . a similar requueiiient was added tothe property and liability insurance company

20

annual statement , except that the requirementwas at the discretion of the domiciliary insurancecommissioner. Again the Academy respondedwith appropriate Recommendations to the pro-fession

In 1990, at the urging of the Academy, theNAIC eliminated the discretion of individualstates . As a result, virtually all annual statementsfrom property/casualty companies in the UnitedStates must he accompanied by a loss reserveopinion from a "qualified actuary," defined as amember of the American Academy of Actuariesapproved by the Casualty Practice Council, or asa member of the Casualty Actuarial Society, orotherwise approved by the domiciliary commis-sioner .

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

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

Expressions of Professional OpinionThe first maior influence of the Academy beyondthe boundaries of the profession was in itsresponse, beginning in 1972 . to the audit guidefor stock life insurance companies by the AmericanInstitute of Certified Public Accountants, Thiscooperative endeavor has led to regular and closeassociation between the actuarial and accountingprofessions

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

Joint Activities of Actuarial Organizationshhe North American actuarial bodies cooperatein many ways, largely through joint sponsorshipof actuarial examinations and the work of jointcommittees In December 1972, the Academywas instrumental in launching an informal body,die Council of Presidents, to foster even greaterunderstanding and common purpose In 1976,

the actuarial organizations jointly formed theActuarial Education and Research Fund to fosterthe growth of basic actuarial research throughoutthe profession and to arrange for necessaryfinancing of such research .

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

MeetingsHistorically, the Academy held its annual meet-ings in the fall of the year, in conjunction withthe annual meeting of one of its founding organi-zations In 1990, the Academy began holding itsown, separate annual meeting, essentially an out-growth of the established Washington briefingand luncheon. Starting in 1976, the Academyand the Conference of Consulting Actuariesbegan cosponsoring the Enrolled ActuariesMeeting, in 1989, the Society of Actuaries wasadded as a cosponsor These meetings are a pri-mary means of continuing education for pensionactuaries across the nation . 1981 saw the intro-duction of a series of Casualty Loss ReserveSeminars , which were initially jointly sponsoredby the Academy and the Casualty ActuarialSociety. In 1990, the Conference of ConsultingActuaries was added as a cosponsoring organiza-tion The seminars are of particular interest toproperty/casualty actuaries and loss reserve spe-cialists . In addition to these meetings, each yearbrings other jointly sponsored meetings, semi-nars, and workshops on a variety of subjects.

PublicationsThe Academy continues to expand the numberand scope of its publications . Each year, the asso-ciation publishes this yearbook, which includescommittee listings, the Board of Directors, and

21

Academy staff, as well as such material as bylawsand application for admission to the organization .The journal, which began annual publication in1975, a record of the association's annual meetingand official public statements, ceased publicationwith the 1987 edition . That information is nowincluded in a special subject supplement to theAcademy's newsletter, The ttuarial Update.

Each month the Academy publishes TheActuarial Update (which became a bimonthly pub-lication in 1977, and began monthly productionin 1981) and several enclosures, including the"ASB Boxscore" (started in 1987), a status reporton various standards pro)ects and ActuarialStandards Board news. In addition, the Enrolled

Actuaries Report, a newsletter focusing on the con-cerns of pension actuaries , is published four timesduring the year .

In recent years the publications roster hasgrown to include a Fact Book on the organization,as well as the Actuarial Standards Board Fact Book,the Issues Digest, a communications primer, andthe Actuarial Standards Bourd .in7ural Report. Thesingle most significant addition to the array ofpublications occurred in June 1989, with the pre-miere of Contingencies, a four-color, bimonthlymagazine with advertising, aimed at both actuari-al and nonactuarial audiences . Contingencies, in itsfirst two years of publication, has garnered fiveprestigious magazine awards

Statement of Purpose*

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

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

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

i79O03 692354=0-5282758 257 i895136s26

f

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Bylaws of the American Academy of Actuaries

A CORPORATION ORGANIZED UNDER THEILLINOIS GENERAL NOT FOR PROFIT CORPORATION ACT(ADOPTED APRIL 29, 196 AND LAST AMENDED IN 1491)

Article IMembership

SECTION 1. Members Individuals having mem-bership in the Academy shall be called "mem-bers ."

Members shall be entitled to attend meetingsof the Academy, vote, hold office, serve as electedDirectors, make nominations, serve on commit-tees, and generally exercise the rights of fullmembership . They are authorized to designatethemselves as "members" of the AmericanAcademy of Actuaries and to append to theirnames the initials M .A.A .A.

SECTION 2 . Requirements for Admission toAlumbership . Any person may apply for member-ship and shall become a member by meeting therequirements contained in this section.A. Application . Each candidate for admission

must submit a written application which shallinclude a resume of the candidate's education,background, and experience, the names of tworeferences who are members, and such additionalinformation as the Executive Committee mayrequest

B. Education Each candidate shall have passed,or have received credit for, the examinations pre-scribed from time to time by the Board ofDirectors, hereinafter called the "Board."

C. Experience Each candidate must, at thedate of application, have had at least three yearsof experience in responsible actuarial work ."Responsible actuarial work" is defined as workthat has required knowledge and skill in solvingpractical actuarial problems in any of the follow-ing fields, life and health insurance involvingindividual policies, group insurance, socialinsurance, pensions, or property and liabilityinsurance .

D. References. Evidence of character and pro-fessional integrity of the candidate shall havebeen deduced by references from two memberswho have known the candidate for at least eigh-teen months or from other sources . If the applica-

tion is rejected on the basis of evidence of lack ofcharacter or professional integrity, the candidatemay appeal to the Board The procedures for theconduct of such appeal shall be as prescribed bythe Board.

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

F Approval. Each application shall be actedupon by the Executive Committee . A candidate'sapplication is approved if accepted by a majorityof the whole Executive Committee . If refused,the applicant may request review by the Board,pursuant to such procedures as may be adoptedby the Board .

Article IIMeetings of the Members

There shall be an annual meeting of the memberseach fall at such time and place as the Board shalldesignate .

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

Article IIIBoard of Directors

SEC'l'lON 1 . L'ompniition The Board shall con-sist of twenty-eight Directors, comprising theeight Officers, the two immediate Past Presidentsand eighteen elected Directors .

SECTION 2. Election and Term of Office. Eachyear the members shall elect six Directors toserve for a period of three years . Candidatesreceiving the greatest number of votes shall beelected . A retiring elected Director , other thanone who was elected to fill a vacancy, whose term

23

as an elected Director expires, shall not be eligi-ble for re-election as an elected Director at thattime . A Past President whose ex officio member-ship on the Board as Past President expires shallnot be eligible for election as an elected Directorat that time . If a vacancy occurs among the elect-ed Directors, including a vacancy created by theelection of an elected Director to an office, it maybe filled for the unexpired term by majority voteof the whole Board The term of office of anelected Director shall begin at the close of theannual meeting of the Academy in the calendaryear of the election and shall continue until theclose of the annual meeting at the end of the termfor which the Director was elected and until asuccessor shall have been elected.

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

Meetings of the Board may be held eitherwithin or outside the state of Illinois . Notice ofthe meetings of the Board shall be given not lessthan ten days nor more than tlurty days beforethe meeting, except in the event of a meeting ofthe Board following the annual meeting of theAcademy, in which event newly elected Directorsshall be given notice of such meeting of the Boardas promptly as possible . Such notice to newlyelected Directors may be given personally, bytelephone, by mail, or by facsimile transmission .

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

SECTION 4. Quorum At meetings of the Board,a majority of the members of the Board shall con-stitute a quorum .

SECTION 5. Duties and Powers The Board shallhave, in addition to the powers and authorityexpressly conferred upon it by these Bylaws, theright, power, and authority to exercise all suchpowers and to do all such acts and things as maybe appropriate to carry out the purposes of the

Academy. Without prejudice to the general pow-ers so conferred , the Board shall have the follow-ing specific powers :

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

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

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

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

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

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

may deem necessary for the conduct of theaffairs of the Academy

Article IVExecutive Committee

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

Article VOfficers

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

SECTION 2 . Election and Tom of Office At eachannual meeting of the Board , the Directors pre-sent, by a vote of a majority of the whole Board,shall elect, separately and in the order named, aPresident -Elect, two or more Vice Presidents,and a Secretary - Treasurer

At the annual meeting of the Board , if either(a) the President -Elect has succeeded thePresident and has served in that capacity for sixmonths or more by reason of the office ofPresident becoming vacant or (b) the office of the

24

President-Elect is vacant, except in the casewhere the President-Elect has succeeded to theoffice of the President and has served in thatcapacity for less than six months, the Directors,by a vote of a majority of the whole Board, shall,prior to the election of the President-Elect, electa President to serve from the close of the firstsubsequent annual meeting of the Academy untilthe close of the second subsequent annual meet-ing of the Academy.

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

The term of Vice President shall be two rearsAt the first annual meeting of the Board follow-ing adoption of this provision, three VicePresidents shall be elected At the second annualmeeting of the Board following adoption of thisprovision, two Vice Presidents shall he elected .The terms of each Vice President elected at eachannual meeting of the Board shall be from theclose of the first subsequent annual meeting ofthe Academy until the close of the third subse-quent annual meeting of the Academy In theevent of a vacancy in the office of Vice President,the Board may elect a replacement for theremainder of the vacancy of that office . Saidreplacement may thereafter be eligible for re-election as a Vice President at the meeting atwhich the term expires A retiring Vice Presidentis not otherwise eligible for re-election as a VicePresident at the meeting at which the termexpires .

Except as provided above, a retiring Presidentshall thereafter be permanently ineligible for

election for another term as President orPresident-Elect .

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

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

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

In the event a vacancy occurs among the VicePresidents, or in the office of Secretary-Treasurer, the Board shall by majority vote of thewhole Board elect a member to fill the vacancyfor the unexpired term .

Article VIDuties of Officers

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

SECTION 2 . President-Elect The President-Flect shall have such duties as may be assigned bythe President or by the Board . In the absence ofthe President, or in the event of the President'sinability or refusal to act, the President-Electshall perform the duties of the President's office .

SECTION 3 . Vice Presidents . Each of the VicePresidents shall have such duties as may beassigned by the President or by the Board

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

The Secretary-Treasurer shall also keep aregister of the members, have charge of theprepaianon and publication of any yearbook thatmay be published, have general supervision of any

25

arrangements for holding examinations, havecharge and custody of all funds and securities,collect dues, pay bills, prepare financial state-ments, and in general perform all customaryduties incident to the office of Secretary-Treasurer. The Secretary-Treasurer shall give abond for the faithful discharge of all such duties,the cost of which shall be paid by the Academy .

Article VIIFinances and Contracts

SECTION 1 . Dues Except as hereinafter provid-ed, each member shall pay such dues for each cal-endar year as may be established by the Board .Such dues shall be payable as of January 1 of thecalendar year. At the time when dues are payable,any member who has become totally disabled orwho, having attained an age to be selected by theBoard, and having retired from active work orwho has attained age 70, so notifies the Secretary-Treasurer in writing shall be granted exemptionfrom the payment of dues by the ExecutiveCommittee . In addition, any member who is (a)expected to earn no significant income for thecalendar year from actuarial activities, and (h) iswithin a class of members eligible for dues waiveras determined by the Board shall be grantedexemption from the payment of dues by theExecutive Committee .

It shall be the duty of the Secretary-Treasurerto cause to be notified by mail any member whosedues may be six months in arrears and to accom-pany such notice by a copy of this Section . If duesremain unpaid, such person shall, on the date thatfalls three months after the date of mailing suchnotice, cease to be a member of the Academy forall purposes other than with respect to any penal-tv or other action determined under disciplinaryprocedures as provided in Article IX, relating toconduct prior to such date . Reinstatement as amember shall be subject to such conditions as theBoard may prescribe

SECTION 2. Publications The Board shall deter-nime the extent of distribution of publications ofthe Academy and the fees or prices to be chargedany classes of recipients .

SECTION 3. Contr-arti The Board may autho-rize any Officer or agent to enter into any con-

tract or execute and deliver any instrument in thename or on behalf of the Academy .

SECTION 4 . Checks. All checks, drafts , or otherorders for a payment of money, notes , or otherevidences of indebtedness shall be signed by suchOfficer or agent of the Academy as shall fromtime to nine be determined by the Board .

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

Article VIIIResignation of Members

Any member who is not in default in payment ofdues and against whom no complaints or chargesare pending may at any tune file a resignation inwriting with the Secretary-Treasurer, and, ifaccepted by the Board, it shall become effective asof the date it was filed Notwithstanding the fore-going, the Board may in its discretion permit theresignation of a member against whom a com-plaint or charge is pending. The Board, on writ-ten application of any member who has resigned,may reinstate such member subject to such condi-tions as it may prescribe .

Article IXPublic Discipline

SECTION 1 . Complaints and Refers-als .A. Complaints concerning alleged violations

of the Academy's Code of Professional Conduct,and all questions that may arise as to the conductof a member, in the member's relationship to theAcademy or its members, or in the member's pro-fessional practice, or affecting the interests of theactuarial profession, constitute matters for seriousconsideration.

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

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SECTION 2 Consideration of Pnblu Duaplnizny ActionA. The President shall appoint a six-person

Disciplinary Committee from among the mem-bers of the Board to consider and act on a recom-mendation from the ABCD or the CIA for publicdiscipline of an Academy member .

B . Public disciplinary action includes a publicreprimand, suspension of Academy membership,or expulsion from the Academy .

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

D. The member involved shall be notified notless than forty-five days in advance as to the time,date, and place where the DisciplinaryCommittee will consider the matter, The notifi-cation may be made by certified mail or in suchother manner as the Disciplinary Committee maydirect. The time limit may be waived by mutualagreement of the parties

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

F. An action by the Disciplinary Committeeto publicly reprimand, suspend the membershipof, or to expel a member is effective forty-fivedays after the date of the action, if the memberdoes not appeal the action to the Board, and, inthe event of such an appeal, the action is effectiveon the date when the appeal is decided by theBoard .

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

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

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

in a form approved by the DisciplinaryCommittee,

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

D . The decision of the DisciplinaryCommittee may be affirmed , reduced, or set asideby a majority of the members of the whole BoardMembers of the Board who serve on theDisciplinary Committee may participate and votein deliberations of the Board

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

SECTION 5 . Confidentiality of Pr oceedings,Except as otherwise provided in these Bylaws orby waiver of the person under investigation, allproceedings under this Article shall he confiden-tial and kept secret .

SECTION 6 . lVottfiiations.A. The Board of Directors shall notify

Academy members in all instances in which amember is subject to public discipline . At thesame tune notification is given to the members,the Board of Directors shall also give notice ofthe public discipline to all other actuarial organi-zations of which the individual is a member andto other organizations, including governmentalentities, that, in the opinion of the Board, shouldalso receive notice of the action The Board ofDirectors may also give notice of public disciplineto such newspapers or journals as it may select

B. If the case arises from a written complaint,notice of the disposition of the case shall be fur-nished to the complainant.

C. In the case of an action by the DisciplinaryCommittee to publicly reprimand, suspend orexpel a member, the notification should takeplace forty-five days after the Committee'saction and, if the member is appealing the deci-sion to the Board of Directors, the notificationshould state that the decision is being appealed .Once the Board of Directors has acted on thisappeal, there should be a notification of thataction

D In the event of subsequent reinstatementof an expelled member, the Board of Directors

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shall give notice of such action to all membersand also to entities previously advised by theBoard of the expulsion .

Article XActuarial Board for Counseling and Discipline

SECTION 1 . Establishment and PurposesA. There shall be established within the

Academy an entity to be known as the ActuarialBoard for Counseling and Discipline (ABCD)Upon delegation of appropriate authority from aparticipating actuarial organization and accep-tance of that delegation by the ABCD, the ABCDwill be authorized :

1 . To consider all complaints and/orquestions concerning alleged violations of theapplicable Code of Professional Conduct andall questions that may arise as to the conductof a member of a participating actuarial orga-nization in the member's relationship to theorganization or its members, in the member'sprofessional practice, or affecting the inter-ests of the actuarial profession

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

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

4. To serve as ombudsman betweenmembers of participating actuarial organiza-tions, or between such members and the pub-lic, for the purpose of informally resolvingcomplaints concerning the professional con-duct of such membersB. The ABCD is authorized to issue such

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

SECTION 2. Members tind AppointmaeiitsA. The ABCD shall consist of nine persons

appointed from the membership of the participatingorganizations . Appointments will usually be madefor three-year terms, but appointments for shorterterms mat' be made to assure that one-third of themembers will be appointed each year . A membermay serve no more than three consecutive terms

B. Members of the ABCD shall be broadlyrepresentative of all areas of actuarial practiceThey shall be appointed by and serve at the plea-sure of a selection committee composed of thePresidents and Presidents-Elect of the participat-ing organizations . The President of the Academyshall serve as Chairperson of the SelectionCommittee . If a vacancy arises among the mem-bers of the ABCD, the Selection Committee shalldesignate a replacement to fill out the remainderof the term

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

the Chairperson and two Vice Chairpersons .B. The Chairperson shall be appointed annu-

ally fiom among the members of the ABCD bythe Selection Committee The Chairperson shallpreside at meetings of the ABCD and shall havethe other responsibilities described in Section 5 .C. The Vice Chairpersons shall he appointed

annually from among the members of the ABCDby the Selection Committee . A Vice Chairpersonshall he designated by the Chairperson as the pre-siding officer in the absence of the Chairperson .Vice Chairpersons shall have such other duties asmay be assigned by the Chairperson .

SECTION 4 . Meetings and Conduct of BusinessThe ABCD shall meet at least once each yearAdditional business shall be conducted wheneverrequested by the Chairperson or at least three mem-bers Business may be conducted during meet-ings or via mail or telephone . Two-thirds of themembers of the ABCD shall constitute a quorum .

SECTION 5 . Procedures for DisciphnarvReccimmendatians

A. For any matter that arises as the result ofthe receipt of a complaint or question or anABCD initiative, the Chairperson, with the con-currence of at least one Vice Chairperson, may

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

the matter, or3 Authorize a review of the matter.

B. To review a matter, the Chairperson shallappoint an investigative Officer who may appointup to two additional persons with the approval ofthe Chairperson . Such Investigative Officer andsuch additional persons, if any, shall constitute

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the Investigative Committee InvestigativeCommittees shall not include members of theABCD

1 . The Investigative Committee shallinvestigate alleged violations of the applicablecode of professional conduct . TheInvestigative Committee shall then recom-mend to the Chairperson either :

a. Dismissal of the allegation,h That the actuary be counseled, orc. That public disciplinary action be

i ecommended.2 The Investigative Committee shall

observe operating procedures and guidelinesthat are established by the ABCD that are notinconsistent with the requirements of thisArticle .C Following receipt of a report of the

Investigative Committee, the Chairperson, withthe concurrence of a majority of the ABCD, shalldetermine whether to :

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

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

vidual against whom charges have been madeshall have the right to appear personally and bycounsel (at the member's expense), to examinethe evidence presented, to examine adverse wit-nesses, and to present exculpatory witnesses andevidence . The Investigative Officer or designeeshall appear to present the findings of theInvestigative Committee Witnesses called in thecourse of hearings before the ABCD shall vouchfor the truth of their statements on their word ofhonor. A written transcript shall be made of theproceedings The ABCD shall decide all ques-tions of evidence at the hearing

F. If, in the couise of any hearing under thisSection, evidence shall be presented upon which

another charge or charges against the individualmight be made, it shall not be necessary for theABCD to prepare and serve such additionalcharge or charges on the individual . Instead, theABCD may, after reasonable notice to the indi-vidual anti opportunity for the individual torespond, proceed to the consideration of such addi-tional charge or charges as if they had been madeand served at the time of the service of the originalcharge or charges, and the ABCD may render suchdecision or recormmendation upon all such chargesas may be justified by the evidence in the case .

F. Throughout proceedings under thisSection, the Investigative Committee or theABCD may consult confidentially with membeisof the profession who have information or experi-ence relevant to the matter under consideration .However, nn information may he used unless thatinformation is placed into evidence and the indi-vidual against whom charges have been filed hasan opportunity to respond to such information .G. At the conclusion of the hearing, the

ABCD shall determine whether to .1 . Dismiss the matter,2 . Counsel the actuary, or3. Prepare a written report including a

recommendation for public reprimand, sus-pension, or expulsion of the individualaddressed to each participating organizationof which the individual is a member . Amajority of the whole ABCD must vote in theaffirmative if a recommendation is to be madefor public disciplinary action The reportshall state plainly the charge or chargesagainst the individual, and shall be accompa-nied ht a transcript of the proceedings, copiesof all evidence and a rationale for the recom-mendation. A copy of the report and theaccompanying materials shall he provided tothe individual against whom the charge orcharges have been made .

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

SECTION 7. Icruar•ial Urmbudsman TheABCD is authorized to act as an ombudsman

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regarding complaints between actuaries orbetween actuaries and others The ABCD isauthorized to promulgate such rules and regula-tions as are necessary to effectuate this Section .

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

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

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

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

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

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

Article IlActuarial Standards Board

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

A (i) Expose, (i) promulgate or adopt, and(ui) publish actuarial standards of practice, withinits sole discretion and pursuant to such proce-dures as it deems appropriate, in all areas of actu-arial practice, subject to the specific requirementsof this article .

B . Provide continuous review of existingstandards of practice and determine whether theyare i n need of amendment, alteration, expansion,or elimination .

C. Direct and manage the development ofactuarial standards of practice by its operatingconnnuttees in all areas of actuarial practice .

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

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

B . Members of the ASB shall be appointed bya selection committee composed of the Presidentsand the Presidents-Elect of the Academy, theCasualty Actuarial Society, the Conference ofConsulting Actuaries, the Society of Actuaries, ortheir successor organizations The President ofthe Academy shall serve as Chairperson of theSelection Committee. The Selection Committeeshall annually appoint the Chairperson of theASB. An individual appointed Chairperson maynot serve more than two consecutive terms asChairperson . If a vacancy arises among the mem-bers, the Selection Committee shall designate areplacement . The replacement will complete thatterm, and may he reappointed for one additionalconsecutive three-year term

SECTION 3 itileetings . The ASB shall meet atleast four nines annually Additional meetings ofthe ASB shall be called whenever the Chairpersonor at least four members of the ASB so requestAt meetings of the ASB, two-thirds of the meni-hers of the ASR shall constitute a quorum . Atleast six affirmative votes are required for the

30

ASB to expose, promulgate, or adopt actuarialstandards of practice

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

Chairperson and two Vice Chairpersons . TheVice Chairpersons shall be appointed annuallyfrom among the members of the ASB by theChairperson with the consent of the ASB

11) One Vice Chairperson shall be the pre-siding officer in the absence of theChairperson and shall have such other dutiesas may be assigned by the Chairperson .

(2) The other Vice Chairperson shallmonitor the disposition and be responsible forthe authorization of expenditure of ail fundsassociated with the ASBB. The Chairperson of the ASB shall preside

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

SECTION 5 . Committees. The ASB shall estab-lish operating committees to prepare and draftstandards of practice for consideration by theASB. The number and membership of such coin-nuttees shall be determined by the ASB . The ASBmay establish additional committees, subcommit-tees, or task forces as it deems appropriate tocarry out atlrnimstrativc or advisory functions insupport of its operations .

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

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

B . The ASB will have discretion with regardto the expenditure of all funds allocated to it, sub-ject only to such accounting and audit require-ments mutually determined by the Secretary-Treasurer and the ASB .

SECTION 7 . Staff. The ASB will utilize the staffof the Academy for all support, within the bud-getary constraints of the ASB, and the Academywill make available to the ASB such staff supportas may be requested . Costs for such staff support,including overhead expenses ascertained pursuantto a formula mutually determined by theSecretary-Treasurer and the ASB, will be includ-ed in the ASB budget .

SECTION 8 . Communications with the ActuarialProfession. The ASB shall issue an annual reportthat will include a description of its activities forthe prior fiscal year, including commentary on itsstandards activities, administrative matters, andfinances . The ASB shall cooperate with duly con-stituted actuarial authorities charged with enforc-ing standards of professional practice, andrespond to inquiries regarding actions of theASB, including the interpretation of standardspromulgated or adopted by the ASH .

Article XIINotice

The requirement that notice he given to meni-hers or other persons shall be satisfied when a let-ter has been deposited in a United States PostOffice mailbox addressed to the last knownaddress of such person .

Article XIIIIndenuufication

Each person who at any time shall serve or shallhave served as an Officer, member of the Board,committee member, or member of any disci-phnary board of the Academy (and any such per-son's heirs, executors, administrators, and person-al representatives) shall be indemnified by theAcademy against all costs and expenses (includingbut not limited to legal fees, amounts of judg-ments paid, and amounts paid in settlement) rea-sonably incurred in connection with the defenseof any claim, action, suit, or proceeding, whethercivil, criminal, administrative, or other, in whichone or more of them may be involved by virtue ofsuch person being or having been an' Officer,member of the Board, committee member, orin ernher of any disciplinary board of theAcademy, or in connection with any appeal there-

31

in, provided, however, that in the event of a set-tlement the indemnification herein provided shallapply only when the Board approves such settle-ment, and provided further that such indemnityshall not be operative with respect to any matteras to which such person shall have been finallyadjudged liable in such claim, action, suit, or pro-ceeding on account of willful misconduct .

The rights accruing to any person under thisArticle shall be without prejudice to any rights orbenefits given by the Board inconsistent there-with in special cases and shall not exclude anyother rights or benefits to which the individualmay be lawfully entitled

Article XIVUse of Financial Resources: Dissolution

The funds of the Academy shall be devoted exclu-sn cly to the purposes stated in paragraph 5 of theArticles of Incorporation . No part of the netearnings of the Academy shall ever inure in wholeor in part to the benefit of any member or indi-

vidual. If the Academy is dissolved, all of itsremaining assets shall be transferred to one ormore organizations organized and operatedexclusively for purposes similar to those of theAcademy

Article XVAmendments

Amendments to the Bylaws may be proposedeither by a vote of two-thirds of the Directorspresent at a duly convened meeting of the Boardor by written request of not less than three per-cent of the members . The Board shall specify areasonable period of time within which the pro-posed amendment shall be transmitted by theSecretary-Treasurer to the members by mail, andthe time for votes to be mailed by the members tothe Secretary-Treasurer. Such proposed amend-ment shall be accompanied by an appropriate dis-cussion of the issues and it shall become effectiveten days following the end of the voting periodupon the affirmative vote of two-thirds of themembers voting.

179 /%--'/"0302354-28 27582570 A9533606

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MEMBERSHIP

Membership Statistics

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

ri CCAl i Af Cf1lemher,hip .as of Nov 1, 1 090 10,12

ctua es ( ),t ngerence o onsuConand Society of Actuaries (SOA)

IncreasesAdnns,tons 574 1, s of No\ ember 1, 1991)

Remstatements 16Decrea,c .

CAS CCA SOA Total

Deaths 39 In all three 14 14 14 14\VithJrau ah 97

\lenthership a, of Nov 1, tu91 CAS S CCA 59 ,u - 59SOaCAS 70 %0 70& -

CC -1&SOA 731 731 73I

In one nnlt 1,320 174 7,141 8,635

In none - - - 1 .068

Academy- Membership by EmploymentlT t 1 461 97 8 7 96 10 ;77

I As of November 1)o a . , ,

%lember hip

Emplot went 1990 1991

Insurance and relatedorganvattons 4 183 4,713 4,959

Consulting pra uce 3,874 4,053 4,124C tneinment 143 159 168Academic insttttrtnm 42 4i 46Other 275 100 211Retired or not ,not n 899 953 1,069

Total 9,3'tb 10 .123 10,577

Academy Members Who Are Enrolled Actuaries(As of No%enmber 1, 1991)

CAS CCA S()A Total

In all three 8 8 8 8

CAS C CCA 2 2 - 2

C1S&SOA 10 10 III

CCA & SOA - 609 609 609

In one onh 3 112 2,183 2,298

In none 334

Subtotal

Non-Academe

3,761

Enrolled Actuaries

Total

- - - 274

Enrolled ~lctuartes 23 711 _',810 4,035

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Application for Admission

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

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

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

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

2 . Teaching experience will count toward thethree-year requirement only to the extent that theteaching is at the Parts 4 and 5 level . Higher levelcourses may also be considered depending ontheir actuarial content .

3 . Summer. part-time, and other intermittentexperience may be considered for the three years,

but it is especially important to demonstrate thatthis is "responsible actuarial work ."

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

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

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

1 . Residents of the United States for lessthan three years will be subject to the samerequirements to which nonresidents are subject

2. Nonresidents must state their need formembership

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

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

A nonrefundable application fee of $50 mustaccompany the application This is a charge forprocessing the application and will not be appliedtoward the payment of dues for those candidatesaccepted . Application fees paid by candidates whoare not accepted will not be refunded .

Applications and at] inquiries should beaddressed to .

Membership ManagerAmerican Academy of Actuaries475 N . Marungale Road , Suite 800Schaumburg , Illinois 60173(708)706-3513

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Dues

Dues as presently approved by the Board ofDirectors are $295 per year for members, payableon January 1 . Admission in the first third of theyear will require full payment of dues for thatyear, admission in the second third of the yearwill require payment of two-thirds of the annualamount, and admission in the last third of theyear will require payment of one-third of theannual amount .

Article VII, Section 1 of the Bylaws of theacademy prowdcs that, subject to certain provi-sions with respect to disability and retirement,each member shall pay such dues for each calen-dar year as may be established by the Board ofDirectors of the Academy. Under this authority,the Board of Directors has determined that duesmay be waived for members who (a) are full-timestudents, involved in full-time dependent care, orserving in the military of the Peace Corps, and(b) anticipate no material actuarial income during

the forthcoming calendar year. The minimumretirement age has been set by the Board as 55 .The maximum limit on earned income in orderto qualify for dues waiver on account of retire-ment or other categories shown above betweenages i 5 and 70 is $10,000 pet year .

Members on dues waiver automaticallyreceive the yearbook and the directory , noticesof annual meetings , and voting materials forproposed bylaws amendments . There is anannual charge of $40 to receive other Academymailings

Forms for permanent and temporary dueswaiver requests can be obtained from :

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

Prescribed Examinations

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

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

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

2 . Fellowship in the Canadian Institute of

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

3 Enrolled Actuary under Subtitle C of TitleIII of the Employee Retirement Income SecurityAct of 1974 .

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

35

Other Actuarial Organizations

American Society of Pension Actuaries Conference of Consulting Actuaries

President Ruth F Freu President Mary S. RieboldPresident -Elect Robert F. Guarnera President-Elect Robert H, DobsonImmediate Pact Prrcident G. Patrick Bvrnes Immediate Past Pr esident Ray ColeI i, rP,eudents Michael F Callahan I ice Presidents Richard J Fallquist

Paul S . Polapink Larry D KeysSecretary Karen A Jordan Thomas G NelsonTreasurer Stephen R Kein Robert J . Webb

Secretary Alfred O . Weller4350 N. Fairfax Drive Suite 820, Treasurer Fredeiick M GreenArlington, VA 22203

(703) 516-9300Facsimile (703) 5 16-9308

Exeiutite Diector Chestcr J . Salland

Canadian Institute o f Actuaries

President W. Paul McCrocsanPresident-Elect Morris"' ChambersImmediate Past President Robert L BrownFice Presdents H David Allen

Allan U. BrenderMarc FernetRobert T. SmithKurt K von SchillmgPaul M . C,Vinoleur

Constitution Square, Suite 1040360 Albert Street

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

Facsimile (613) 233-4552

F.reeutiz e Director Brian \Vooding

Casualty Actuarial Society

Precedent Michael L ToothmanPresident-Elect David P . FlynnImmediate Past President Charles A. Bryanf iee Presidents Irene K . Bass

Allan M KaufmanJohn M . PurpleAlbert) BeerSteven C . Lehmann

Issrstant Secetary Steven F Goldberg

1100 N Glee; Road, Suite 600Arlington, Virginia 22201

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

Executive Do caw James H Tinsley

475 North Martingale Road, Suite 800Schaumburg, Illinois 60173

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

Erecutme Director- Rita Chastain

Society of Actuaries

President Donald R . SondcrgeldPresident-Elect Walter S RuglandImmediate Past President Daphne D . BartlettI ice Presidents Michael J Cowell

David M . HollandW James AlacGinnitieMichael E. klatejaHarry H PanjerJames F Reiskytl

Seesetrry David M HollandTreasurer James F Reiskytl

475 North Martingale Road, Suite 800Schaumburg, Illinois 60173

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

Evecutme Director John E O'Connoi . Jr .

36

Actuarial Education and Research Fund

Chaupersoi CtuusE Hunungton, SOATreasurer Randall J Dutka, CIA5ei etmy Stephen G Kellison, AMDirectors Douglas C. Borton, CCA

John A Fibigei,SOAFenton R. Isaacsnn, CCAAllan M Kaullman, CASCraig A Miller, ASPABrendan O'Farrell, AAAHoward M. Phillips, .SSAOwen A . Reed, CIAJane C Taylor, CASCharles Barry H Watson,CCA

475 North Martingale Road, Suite 800Schaumhurg, IL 60173

(708) 706-3570Facsimile (708) 706-3599

Ererutire Director. Mark U . Doherty

International Actuarial Association

Canadian OfLer-r11e President Claude M . GenestSecretary -MatiouilCorespondent Nicholas Baucr

Fckler Partners, Ltd2020 University,Suite 1245Montreal, PQ,H3A 2A5 Canada(514) 848-9077

Council Jean-Louis BourbeauKenneth T ClarkNorman GendronYves Guerard

United States OfceisVice President John C AngleSec r etarv-NationalCorrespondent Ronald L. Bornhuetter

NAC Re CorporationOne Greenwich PlazaGreenwich, CT 06836(203) 622-5255

Council John A FibigerCharles GreeleykV. James MacGinniueCharles Barry H. Watson

Nest MeetingMay 31 -June 5, 1992 Montreal, Canada

ASTLN SectionUS Contact James N Stanaid

U S . Fidelity & Guaranty100 Light StreetP.O . Box 1138Baltimore , MD 21203(410) 547-3602

Nest Mei ti» g1993 24th ASTIN Colloquiuan,

Great Britain

AFIR SectionCanadian Alemher Michael Cohen

W. M. Mercer ltie275 Slatcr StreetSuite 1200Ottawa, OntarioKIP 5H9 Canada(613) 230-9348

(_TS llemher James A TilleyMorgan Stanley& Company1221 Avenueof the Americas

New York, NY 10020(_212)296-5780

International As sociationof Consulting Actuaries

chairperson Christopher J . WhiteVice Cbairpercen Robert D, MasdingSecretary-7Deasurcr Richard D. Moore

R&W House55 East StreetFpsom, SurreyK1171 BP Great Britain

U S CommitteeMemhrra Barnet N. Berm

W James MacGinnitieChairperson Lerov B. Parks, Jr .

The Wyatt Company1400 Ohio Savings PlazaCleveland, OH 44114(216) 6Q6-6250

Canadian Repsesenntatiz•c Frank LivseyHewitt Associates4110 Yonge StreetNorth York, OntarioM2P 2B7 Canada

Next MeetingMay 24-20, 1992 13th Biennial,

Vancouver, Canada

37

Actuarial Clubs

Correspondence to the local clubs should be directed to the secretary at the address listed on thesepages . If a secretary is not listed , the address shown is that of the president . Addresses for club presi-dents may be found in the Directory ofActaurtal ,hlenrher:+ hips,

Adirondack Actuaries ClubKaren L'nterremer, PresidentMorton Hess, [ire President of Public RelationsMaureen Sons, ['ice President

of lfeetnigAdministratuinEdward Brown, TreasurerLaurie Fede, Sec etary

(c/o Monarch Life Insurance Company,One Monarch Place, Springfield, CT 01133)

Arizona Actuarial ClubJames H Cordon, PresidentWilliam K Rohinson, Secretary-Treasurer

(c/o Millinian & Robertson, Inc,1717 W. Northern Avenue,Phoenix, AZ 55021)

Atlanta Actuarial ClubJohn D Branscomb, PresidentDomia P Cartee, [ice PresidentFrans Christ, Secretary-Treasurer

(c/u Actech Inc ., Eight Piedmont Center,Suite 310, 3525 Piedmont Road,Atlanta, C A 30305)

Baltimore Actuaries ClubRichard S Foster, PresidentFrancis J . Kriston, [ice PresidentLawrence E. Isaacs, Secetary-Treasurer

(c/o William M. Mercer, Inc .,300 E Lombard Street, Suite 1200,Baltimore, AID 21202)

Casualty Actuaries of the Bay AreaWendy Johnson, PresidentEric Drummond-Hay, Secretary-Treasurer

(c/o Fireman's Fund Insurance Company,777 San Marin Drive, Novato, CA 94998)

Actuaries Club of BostonKlaus O. Shiglev, PresidentEdward J Mullen, T ue PresidentMarshall H . Lykins, TreasurerAndrew P Johnson, Secretary

(c/o John Hancock MutualLife Insurance Company,John Hancock Place, P.O . Box 111,Boston, M-A 02117)

Central Illinois Actuarial ClubAlex Moral , PresidentRon Pridgeon , President-ElectAlison Dossett, Secretary - Treasrrer

(c/o State Farm Life Insurance Co .1 State Farm Plaza , Bloomington, ii . 6i 710

Chicago Actuarial AssociationWilliam Shomaker, PresidentJohn Schubert, President-ElectFlizaheth Alfaro, TreasurerDiana Montignev, Secretary

(do Allstate Life insurance Co .,3100 Sanders Road - K4B,Northhrook, IL 60062)

Cincinnati Actuarial ClubRonald J Dolan, PresidentCatherine L Cole, ['ire PresidentCarl B . Wright, Secretary-Treasurer

(do Union Central Life Insurance Co ,P,0. Box 179, Cincinnati, OH 45201)

Columbus Actuarial ClubGregory B . Dasis, PresidentRobert A Rolland, I'hc PreidentAnthony) Lloyd, Sec7etary-Treasurer

(c/o 11'illiani NI Mercer Meidmger Hansen Inc .,1 Columbus, 10 IV Broad Street, Suite 1100,Columbus, OH 43215)

Actuaries Club of Des MoinesMike McMahon, PresidentJoette Schleisman, Pare PresidentPaul ATenz, Secretary-Treasurer

((-/o The Principal Financial Group,711 High Street, Des Moines, LA 50392-0620)

Actuaries Club of HartfordPhihp Bieluch, PresidentNeil Kelsey, Vice PresidentDaryl Bolte, TreasurerMeg Gresham, Secretary

(c/o Massachusetts MutualLife Insurance Company, 1295 State Street,Springfield, MA 01111-0001)

38

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

Robert C_ Goggm, PresdentKenneth D 'hhienre, President-ElectPhilip C Gath, Secretary-Treasurer

(do Nationwide Life Insurance,One Nationwide Plaza, Columbus, OH 43216

Actuarial Club of IndianapolisJames A Miles, PresidentCynthia S Miller, )'i,e PresidentArthur L Wilmes, Secretary- Treancrer

(do Milkman & Robertson, Inc .,Capitol Center, South Tower201 North illmois Street, Suite 2000,Indianapolis , TN 46204-1904

Actuarial Club ofJacksonJohn Stenmark, PresidentKeith Gant, i ue PresidentDarla Harrison, Secretny-Treasurer

(c/o P O Box 16487, Jackson, MS 39236)

Kansas City Actuarial ClubMark A. Milton, PresidentJ . Michael Harrington, Vice PresidentRandy Makin, Secretary-Treasurer

(C/O Business Men's Assurance Company,P 0 Box 419076, Kansas City, MO 64141)

Little Rock Actuarial ClubEarl Magnuson, PresidentScott Warrior, Vice PresidentSamuel C . Vorderstrasse, Secretary-Treancrer

(do Blue Cross/Blue Shield of Arkansas.601 Gaines, Little Rock, AR 72201)

Los Angeles Actuarial ClubKurt Piper, PresidentPeterlloward, Vice PresidentPat Gallagher, TreasurerEileen Cota, Secretary

(c/o Transamerica Occidental, P .O . Box 2101,Los Angeles, CA 90051-0101)

Michigan Actuarial SocietyBrian B Murphy, PresidentMichael B Gower, ('ice PresidentBrian T Morris, TreasurerWilliam A Gee, See? etary

(c/o The Wyatt Company,'00 First National Building, Detroit MI 48226)

Casualty Actuaries of the Mid Atlantic RegionJ Parker Boone, PresidentBruce C Bassman , Vice PresidentRoger A. Atkinson, Secretary-Treastcrei

(Go U S Fidelity & Guaranty Company,100 Light Street, Baltimore , MD 21202)

Middle Atlantic Actuarial ClubC. Dale Games, PresidentStanton 1. Cole, I ice PresidentWillis B . Howard, Secretary-Treasuzer

(c/n Acacia Mutual Life,51 Louisiana Avenue, NW,Washintrmn, DC 20001)

Midwestern Actuarial ForumJoseph Marker, PresidentDavid Westerholm, I'ice Pt esidentJerry Rapp, F. duration OfficerKaren Gorvett, Secretary Treasurer

(c/o Allstate Insurance Co.,Allstate Reinsurance Division,51 West Higgins Road,South Barrmgton, IL 60010)

Nashville Actuarial ClubW. Keith Sloan, PresidentJ. Bradford Fisher, Secreraey-Treasurer

(c/o Bryan Pendleton Swata & McAllister,One Burton Hills Boulevard , Suite 275,Nashville, 'IN 37215)

Nebraska Actuaries ClubRobert Ozenbaugh, PresidentGary Raymond, .Secretary-Treasurer

(c/o Ameritas Life Insurance Corporation,5900 0 Street, Lincoln, NF . 68510)

Casualty Actuaries of New EnglandRoy K Morell, PresidentDavid F. Mohrman, President-ElectGary K Ranson, E ice President of PrggramsKevin F. Loncrgan . Vice President of EducationJeffrey P Kadison, l ice President ofAdntnustrarson

(c/o Price Waterhouse, One Financial Plaza,I Iartford, CT 06101)

Actuarial Society of Greater New YorkBruce D .,Moore, PresidentGerald A Anderson, TreasurerJacqueline M Keanng, Secretary

{c/o Milkman & Robertson, Inc,Two Pennsylvania Plaza, Suite 1552,New York, NY 10001)

39

Casualty Actuaries of Greater New YorkDavid Skurmck, PresidentJeffrey Mayer, President -ElectGlen Myers, Education ChairntaeFrank Taylor, Secretary

(do Crum & Forster Corporation .Corporate Actuarial Department,40 Fechnologv Drive, Warren, NJ 07060)

Casualty Actuaries of the NorthwestJohn K Moceika, PresidentJ Stewart Sawyer, lire PresidentCharles I Petit, Secretary-Treasurer

fdo Coopers & Lybrand,1800 First Interstate Center,Seattle, WA 98104)

Oklahoma Actuaries ClubRonald j Byrne, President41'acien L Shepherd, Vice PresidentLyle F. . Nelson, Secretary-Treasurer

(c/o American Fidelity Assurance Co .,2000 Classen Center, P O Box 25523,Oklahoma City, OK 7 312 5)

Actuarial Club of the Pacific StatesLawrence Mitchell, PresidentRobert C Benedict, Secretary-7 i easui cr

(do National American Life Insurance,5110 East Clinton Way. Fresno, CA 93727)

Actuaries Club of PhiladelphiaJohn L Ladley, PresidentThomas Beresford, Vice PresidentJudy Faucets, TreasurerHarold L . Barney, Secretary

(do A Foster I liggins & Company, hic ,Two Logan Square,Suite 2100, Philadelphia, PA 19103)

Portland Actuarial ClubCatherine Drown, PresidentCharles Doleeal, Vice PresidentGary Hirschkron, Secretary-Treasurer

(L/o MCG Northwest, Inc, P O Bo-, 3917,Portland, OR 97208)

St. Louis Actuaries ClubRodney Brown, C'haro personWayne Holdredge, Vice PresidentJeff Stevenson, Senetary-'l reasurer

(c/o Tillinghast/Towers Pernn,INTERCO Tower, 101 South Hanley,St . Louis, MO 63105-3411)

Salt Lake Actuarial ClubArthur L Garrison, PresidentMark Birdsall, Vice President

(c/o Arthur L Garrison,4505 S Wasatch Blvd ., Suite 310,Salt bake City, UT 84124)

San Francisco Actuarial ClubGeorge McCauslan, PresidentStephen Zonca, I ice PresidentBruce Cable, TreasurerPaul Petrolf, Secretary

(c/o The Wyatt Company,345 California Street,San Francisco, CA 94104)

Seattle Actuarial ClubJanet F Bleakney, PresidentWilliam T Bryan, IirePresidentJean B . Liebmann, TreasurerCraig Reynolds, Secretary

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

Southeastern Actuaries ClubKristie K, Sayre, PreidentCurtiss S . Sheldon, I ice PresidentDouglas C Doll, Secretary-Treasurer

((/o TillinghastlTowcrs Pcrrin,950 East Paces Ferry Road, Atlanta, GA 30326)

Casualty Actuaries of the SoutheastJ Edward Costner, PresidentBruce R . Spidell, President-ElectFrederick 0 Kist, 1 ice President-ProgramsMark Crawshaw, Vice President-EducationGregory T. Graves, lice Pr esident-College RelationsEdward D . Dew, The President-Admrnrrtranan

(c/o National Council onCompensation Insurance,750 Park of Commerce Drive,Boca Raton, FL 33487)

Southern California Casualty Actuaries ClubEdward J . Baum, PresidentSruart B . Suchoff, I ur PresidentSteven A. Glicksman, Secretary-Treasurer

(c/o ARM Tech, 25251 Paseo de Alicia .Laguna Hills . CA 92653)

40

South Florida Actuarial ClubSalford L. \ucharrh, PretideurChristine L \Ioore, 1 iie Pt t,ik rtJcftret (, Harper . Ti Lam er

(t~/n Xrtteuran Bankers Inumuue Croup,(11222 Quail Roost Dnct, Almnn, HL 331 ~"i

Southwt est Actuarial Forum (SWAF)Stu e Pultn, /S ccu/t r)tVice Ptccidcnt, IA( .L\'T\,ne, I lees side , Set rtrrr i-Treu+ure,

(clo'I ilhnghast/I'ott ci s Peo in .100 Lakeside Square, 1-') ; ; \ lerit Drne,Suite 1200 . Mll^ TX 7i2 ;1)

Actuaries Club of the SouthwestJames Ln utgstnn, Pr cvdeutRoe Rat , I ice Pi evdcntJames Poll], Set, etdrv-'1) tout cr

(c/t, _Uncncan \ationil Insurance Contpant,One Mooch P1,1/a,14th 11not, ( ;ahestnn, I'X S(()

Twin Cities Actuarial ClubLt nette 1 ru istail, P eq,kntD/ ugla .I- .uttIn, I Prt,rdtutJulia Philips, /iru)-Tred,m,i

(c/o \Vtstent Life hisutance . P () lio5 44''1,Sr Paul, S1\ SSI(4)

Vermont Enrolled Actuaries ClubDavid \ Due tam , P1 evdcnt\'ice President . I : l C .1 \ TJean \1 Se,ctarl -T1cit re,

(c/o 34 Runes elt 1Ii-hw.n,Cnlehester, 57 ((54{(,)

Actuarial Club of Washington, D,C,\Iarl. \\-hitt,, R c,r/, at( ;hatles Kiamet, J i,t P1c MintRon C ; chhardreh.3tier, Tica,uterJost,th Ltuch, .S,ttvia) T

(( /o T 4nchv,al 5F'srcni,, Inc,line 1'nuntaut bquatc .]t)I I hreedont Dust Rcstt,n, \ A _220')0(

West Michigan Actuarial Club\Villi.on'I' ilillard Pit,rdctrtRu.6 .5 13otchett, I i,t Pit .rde)?t\latlouc\\tlhants, Sttrettnr'-I,t.r,urer

(c/o Luteun)st Lift Insurance Uniupant,P.C) Ga . 2430, Grand R,ipids, ,\ll 401(11--4c1)

Wisconsin Actuaries ClubDennis ( arlson, Prev ntJames Al Rolsnson, Prn,vrr nrrr Coo, druntgr\lark Bcdke St, rennry -Tierrvner

(c/o William AI \Icr(er, hrc ,411 Past SI ],consm .\t clue .Suire /10(1 \Tikaukee WT 3 ;2121-4400)

579003692x54 = 8275e257ai8

41

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

Code General Specificof Professional Qualification QualificationConduct Standards Standards

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

Published Guidance Code of Professional Qualification QualificationConduct booklet Standards Standards

booklet booklet

Guidance for Individual Those qualified Those qualifiedactuary to give to give

Public Statements Public Statementsof .lcncarial of AcnianalOpinion* Opinion'

Practice Areas All foui nialoi All four nialar NAIC AnnualCovered practice areas: practice areas Statetnent

• Life • Life opinion for• Health • Health • Life & A&II• pension • Pension • Fire & Casualty• Casualty- • Casualty • IIosp ., Med . &

Dent. Scrv,, etc .

` Puhli statements of actuarial opinion arcm those statements called for Lv lau, hti regulation, or hy- a standard of praeiice,s promulgated h, the Accuarial Standdnls Board Common examples nu[udc rate filings, loss ritio denionstranonc,dunonstrarionc of compliance with nonhirteitu, c law , and Schedule B eeltific .cions fee defined hencIii pinion plans

GUIDELINES

Committee Appointment Guidelines

PreambleIn accordance with the Bylaus of the AmericanAcademy of actuaries, the President appointscommittees authorized by the Board of Directors .To aid the President in making such appoint-ments, the boaid adopted the following guide-lines with this preamble at its meeting onOctober 331, 1980 . These guidelines reflect thehoard's intention to involve is many members aspossible in committee activities without sacrific-

ing continuity. However, the effectiveness ofcommittee work is paramount and as a conse-quence strict adherence to the guidelines is notexpected, particularly with respect to committeesthat interface regularly with other professionsand/or government .

Committees for which specific appointmentrules are established by the hoard (e.g .Nominating Committee, Actuarial StandardsBoard) are exempt from the guidelines .

42

ContinuingEducationRequirements

Standardsof Practice

ComplianceGuidelines

Counseling& Discipline

Committee on Actuarial Actuarial Actuarial BoardQualifications Standards Standards for Counseling & Discipline

Board Board

Qualification Standards of Compliance Acadeniv Bylaws asStandards Practice Guideline published in 1902 f isuhookbooklet booklets booklets 1Prnccdural guidelines

will be issued separately)

Retention ut Range of Day-to-dav Compliance with bthics,the acniarV', procedures for stork Qualification Standaids,qualifications day-to-day outside and Actuaiial Standardsto give Public stork requirements of PracuceStatements of actuary's ownActuarial Opinion uietlio&

A11 Public Practice Practice A11 four major practice areasStatements area described area described • Lifeof Actuarial in the Standai d in the Guideline • HealthOpinion • Pension

• Casualty

Appointments to joint coinmittccs and liaisonappointments are subject to the guidelines appli-cable to standing committees, although certain ofthe liaison appointments must be board memberspursuant to Academy policy and agreements withother organizations .

Guidelines(1) All members of the Academy are eligible

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

serve on any committee except in an ex officiocapacity

(3) A person should be chairperson of a stand-ing committee for no more than three }Teals andshould retire from the committee after serving aschairperson .

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

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

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

43

Guidelines for Making Public Statements

A. fl'7hat C'onstnutes a Public StatementA public statement is a formal, written state-

ment on behalf of some Academy entity (hoard,officer, committee, etc ) to an external groupThis does not include a statement representingthe views of an individual member Public state-ments include,

Statements to Governmenial Entities-such as testimony or other formal comments,submitted to regulatory, legislative, and inves-tigative bodies at both the federal and statelevels .

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

i. Letters to External Publications-including letters to the editor or other editori-al and expository- comments to newspapersand periodicals, are considered to he specialforms of public communication, that are notsubject to the procedural requirements ofthese guidelines . This special status is inrecognition of the fact that media deadlinesprevent the utilization of the review proce-dures applicable to formal public statements .When letters or other media opportunities(such as radio or telex ision interviews) areanticipated, the spokesperson should umsultwith the Academy's director of public infor-mation for special guidance It is generallyappropriate in such circumstances for theindividual to note that the views expressed arenot necessarily those of the Academy . Whilethe procedural requirements of these guide-lines are not applicable to such opportunities,the spokesperson is nevertheless expected tobe guided bs the section below entitled "TheScope of Public Statements ."B The Scope of Public StaternentiClearly, a public statement of knowledge

unique to actuarial science should he the primaryfocus in the profession's public pronouncements

It is important to note though that our technicalexpertise encompasses a broader spectrum than isreflected by the concerns of what normally wouldhe considered as pure actuarial science. There arenumerous instances when the actuary's knowl-edge is an invaluable addition to the informationmix surrounding a given issue It would be a dis-service to all parties for the profession to makepublic statements oils in the narrow areas wherethe actuary's knowledge is unique .

Each situation must he evaluated on its ownmerits to determine whether a public statementby the Academy is appiopriate . The tone andnature of a statement must reflect the dignits andstandards of the profession . Statements shouldcontain a balanced presentation of the significantfacts, including relevant benefits and costs, in aclear, concise manner A statement need not,however, limit itself solely to statements of fact .

It is also quite proper that statements he writ-ten in such a manner that inferences are drawnfrom statements of fact, so long as these observa-tions remain valid and appropriate from the actu-arial standpoint . To limit a public statementpoi ely to factual matters would deny the publicthe benefit of the full range of the profession'scapabilities .

k public statement should reflect the profes-sion', expert knowledge A statement generallyshould not take positions on the social and politi-cal implications of issues; however, in certain cir-cmnstances it may not be possible to divorcesocial or political implications from actuarial con-siderations There nia' be some issues that haveactuarial implications that arc better dealt with bs,trade associations, msuiance companies, or indi-viduals Public statements that appear to be self-serving will be less effective, but the Academyshould not hesitate to speak out on matteis thatinvolve legitimate, professional self-interests Infact, the Academy has a responsibility to do so .

C. Development ai7d Delivery o f PubluiStetrrnriiti

Academy officers, committees, and staffshould generally follow the guidelines pre-sented below in the development and deliveryof public statements . At times, these proce-dures may need to be modified in order to

44

ensure timely and ettective preparation anddelnery of statements

1 Identification of Issues i`vlany peoplecontribute to this activity: staff, officers. com-mittees, and individuals The Academy's won-rioting activities should lid continued andexpanded using all available resources. Whenan issue is identified by Academy staff. staffwill contact the appropriate committee chair-person directly and copy the supervisory offi-cer, unless there is a "jurisdictional" questionto be resolved by an officer [see Statement (2)below] Early identification is critical to theAcademy's development of well-prepared andtimely statements

2 Authority to Proceed-Staff and/or asupervisory officer will often identify an issuethat may warrant a public statement . They willagree on which committee is best able todciclop the statement . If there are areas of"jurisdictional" overlap of policy concerns, thestaff and officers will decide on the committeeassignment. If a committee identifies a matterthat inay warrant a public statement, thechairperson will advise the officer and thestaff. Absent any direction from the staff or anofficer, the committee chairperson may pro-ceed in the preparation of a statement on hisor her own initiative . It should he understoodthat a committee is free to develop a statementso long as it is consistent with well-establishedprinciples of the profession .

? . Notice of Public StatementPreparation-Once an issue has been identi-fied and development of a statement initiated,notice to members will be accomplished liy anannouncement in '1'be ,-lituarial Update, whichalso will give notice of recent committeeactions on both new matters and on issuesunder continuing study . Input from memberswill he solicited by suggesting that they con-tact the rclc%ant chairperson

4. Development of Statements-1 hecommittee will prepare the public statementand any supporting background material inaccordance with the following guidelines

-On specific issues, the chairperson ~should consider inviting other Academy jmembers to participate in the preparationof the statement in order to provide theneeded expertise or to gain access todiverse points of view . If the chairperson

receives input from Academy membersnot serving on the committee, those indi-viduals ought to receive a reply, thoughnot necessarily an individual one .

-On major issues that are likely to becontroversial within the profession, thechairperson and the supervisory officershould seek broader input from members,if time allows If this be the case, it is envi-stoned that the Academy exposure draftprocedures will he followed These procc-dures may he abbreviated if the need for apublic statement is pressing . In fact, it isrecognized that the need for a riniely pub-lic statement will frequently foreclose theopportunity to gain broad input frommembers

-In sonic instances, it may not bepractical to involve the Academy staffdirectly in the statement preparation,although committee chairpersons arestrongly encouraged to do so . In otherlimited instances, Academy staff may hecalled upon to draft a statement Thedecision to do so will be made by mutualagreement of the parties. Staff-developedstatements must have the approval of thecommittee chairperson and supervisoryofficer and should be used only when avets' short response time does not allowthe committee to develop a statementSuch statements should reflect previouspublic statements or policy decisions .Staff-developed statements will be signedby the executive director .

-No decision to involve outsidecounsel will be made without the concur-rence of the president, upon the recom-mendation of the executive director .

-Before taking a position, the chair-person should seek a consensus of thecommittee members. If a consensus can-not be arrived at, the chairperson shouldConsider either preparing a statement thatincludes the views of any substantialminority or electing not to issue a publicstatement

-Statements are generally committeedocuments. However, time constraintsmay prevent the entire committee fromdeliberating in the preparation of a partic-ular statement, and the task for drafting

45

the statement may he left to the chairper-son (or designee) without benefit of con-sultation with other committee members .In such cases, the drafter should seek max-imum input from available committeemembers . When a draft statement hasbeen reviewed and approved by all mem-bers of the committee , the statement mayinclude the names of all members of thecommittee ; alternatively, the statementmay indicate that it has been submitted bythe chairperson "on behalf of the XYZCommittee of the American Academy ofActuaiies." If only a subset of the commit-tee participated in the statement's prepara-tion , their names alone may appear .Committees retain flexibility in indicatingauthorship of statements In order to satisfyrequirements of special circumstances ;nevertheless, readers of a statement shouldhe able to clearly ascertain the author(s) ofa statement

-The chairperson should advise thesupervisory officer of any substantial dis-agreement among committee membersand present the views of this group for fur-ther discussion.

-Drifts of the proposed statementshould he distributed for review to theexecutive director, the general counsel,and the appropriate supervisory officerbefore being presented 'This reviewshould include consideration of policy andlegal issues .

-The decision to issue the final state-ment generally rests with the committeechairperson However, the supervisoryofficer should seek a review and theapproval of the president if the issue is ofmajor importance or the statementinvolves substantial controversy-.

-When deemed appropriate by thepresident, a proposed statement may besubmitted to the Board of Directors forreview prior to issuance to the intendedpublic . In extraordinary circumstances, thehoard may modify or disapprove a publicstatement if it believes such statement willnot be in the best interests of theAcademy.5 Presentation of Statenicnt-The com-

mittee or group issuing a statement must

clearly be stated- the X Z Committee, theBoard of Directors. Blanket sponsorship bythe Academy is not to be implied A publicstatement should identify its source as sug-gested in the following example .

"This statement represents the consensusof views of the (name) Committee of theAmerican Academy of Actuaries on (subject)

Membership on the committee preparingthese comments has been drawn from a widerange of interests and perspectives so as togive a broad range of sicws on the inalters inthe (subject) . As with many other professionalorganizations, the structure of the Academyand the timing required in responding to vari-ous public issues place the responsibility ofpreparing comments on such issues on itscommittees, on the assumption that they arerepresentative generally of the Academy'smembership ."

All public statements should he submittedin written form, with an oral presentation asappropriate. These statenicnts should be sub-mitted on Academy letterhead . Except whenthe Academy is well-known to the audience, aformal statement about the Academy (sampleabove) should he included in the public state-ment. If an oral statement is to be presentedat a formal hearing, the committee chairper-son and supervisory officer will select theperson or persons to make the actual presen-tation .

6. Distribution of Statements-After thestatement has been formally submitted, thefinal statement will be available for broaderdistribution Notice of issuance of the state-ment will be published in The ActuarialUpdate. Members will he invited to request acopy of the statement by writing theAcademy's Washington office . At the end ofeach year, the text of all public statementspresented that year will be published in the,ou aal.D. Sample Deccrnptiol of the AcademyThe American Academy of Actuaries is a pro-

fessional association of actuaries that was formedin 1965 to bring together into one organizationall qualified actuaries in the United States and toseek accreditation and greater public recognitionfor the profession and more effective public ser-vice by the profession The Academy includesmembers of three founding organizations-the

46

Casualty Actuaiial Society, the Conference ofConsulting Actuaries, and the Society- of Actuaries .

The Academy serves the entire profession . Itsmain focus is the social, economic, and publicpolicy environment in which the actuarial profes-sion functions . Its primary activities include liai-son with federal and state governments, relationswith other professions, the dissemination of pub-lic information about the actuarial profession andissues that affect it, and the development of stan-dards of professional conduct and practice

Over 10,000 actuaries in all areas of special-ization belong to the Academy. These membersare employed by insurance companies, consultingactuarial firms, government, academic institu-tions, and a growing number of industries .

Actuarial science involves the evaluation of theprobabilities and financial impact that uncertainfuture events-hirth, marriage, sickness, accident,fire, liability, retirement, and death have oninsurance and benefit plans

Membership requirements can be summarizedunder two broad headings : education and cvpen-ence At present, the educational requirementscan be satisfied either by passing certain profes-sional examinations sponsored by the CasualtyActuarial Society or the Society of Actuaries, orby becoming an enrolled actuary under theFinployee Retirement Income Security Act of1974 (ERISA).

The experience requirement consists of threerears of responsible actuarial work

9V 0 30 2354 S282758257o 3885136s :

47

CALENDARS

Board & Committee Meetings

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

I All meetings of Academy committees (withexceptions noted in paragraph 2 belo s) are opento members of the Academy .

2 . Meetings of the Board of Directors . or the

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

3 Members attending Academy meetings arefree to observe the conduct of those meetings ;they may participate in discussion only with theconsent of the chairperson .

Meetings Calendar

1992Annual Meeting

September 30 1992Enrolled Actuaries MeetingMarch 18-20

Washington, D C .

Casualty Loss Reserve Seminar993

Sheraton Washington HotelWashington, D C,

March 8-101992 September 21-22 Sheraton Washington Hotel

1993

Denver Nlarriott City CenterDenver, Colorado

September 13-14

Washington, D C

Hilton at Walt Disney World \ illagcLake Buena Vista, Florida

48

PUBLICATIONS

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

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

The Actuarial Update-controlled circulation-

Enrolled Actuaries Report-controlled circulation-

1992 American Academy of Actuaries l earbook-$25.00-

1992 Directory ofActuarial Memberships-$100.00-

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

-$20.00 each-

Issues Digest-$1.75-

1990 Directory ofEnrolledActuarier-$25.00-

American Academy of Actuaries Fact Book-no charge-

Actuarial Standards Board Fact Book-no charge-

Actuarial Standards Board Annual Report-no charge-

Winning in the Public Eye : A Communications Primer for Actuaries-no charge-

Jounial-back issues available from 1977 to 1987, at $35 .00 each-

33 (Ity se.%.1 if; Jv

ry y "^ ' ~16 7 9 h ? $ h8 6 q V6~ Ay

f $ 9 4~a a1~~6q ~o q (A 00

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AMERICAN ACADEMY OF ACTUARIES1720 I Street, NW

7th FloorWashington, DC 20006

202/223-8196

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