YEARBOOK

AMERICAN ACADEMY OF ACTUARIES

1993 YEARBOOK

When we build, let it be such work as our tlescendatls will dank us for:and let us Mk, as we lay stone on stone,

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

-John Ruskin

TABLE OF CONTENTSAcademy Leadership & StaffBoard of Directors 5Headquarters & Staff 9Academy Committees 10

Actuarial Board for Counseling & Discipline 20

Actuarial Standards Board & Committees 21

Past Officers 23

OriginsHistory 24Statement of Purpose 27

Bylaws of the American Academy of Actuaries 28

Code of Professional Conduct 38

Professional Standards- 42

GuidelinesCommittee Appointment Guidelines 44Guidelines fur Making Public Statements 45

MembershipMembership Statistics 49Application for Admission i0Dues S 1Prescribed Examinations 52

Other Actuarial Organizations - 53Actuarial Clubs --56

CalendarBoard & CommitteeMeetings 60Meetings Calendar 60

Publications 61

ACADEMY LEADERSHIP 9 STAFFBOARD ofDOCTORS

Howard J . BolnickCite President

1994

Larry D ZimplenranI 'ice Pre.Iuferrt

1Q93

John H. HardingPresident1993

Stephen P, Lo-we1 ire Pl eredent

1994

James R. SwensonSecretary-

Treasurer-1993

David G. HartmanPresident-Elect

1993

Walter N . Millerlice President

1993

IIarrv D GarberPast President

1994

Richard H SnaderF ice President

1993

lk

11a% is A 'ValtersPast President

1993

5

Irene K. Bass1993

Robert It. Dohson1993

Robert tiV. Gossruw1994

Twila Bastian1995

Hoisard Fluhr1993

1Robert F. Guarnera

1993

John NI Bcrtl,u1995

David P . Flynn1993

Larry D . Keys1993

6

JohnJ Bvrne1994

Glen Al Gammill1945

Roland (Guy) King1495

Paul F Milk, 1n1994

Jeffre y P. Perernl1993

R Stephen Radcliffe1995

Paul S . Polapink1995

Walter S Rugland1993

Kenneth 1t'. Porter1994

Years indicate the year that directors' terms espirc

7

James J . MurphyExecutive F ice President

Lauren M . BloomGeneral Counsel

Christine E . NickersonDirector,

Standards Programand Director of Operations

Gary D. IIendricksDirector

of Government lrifor~arationand Chief Economist

Erich ParkerDirector

o f Public Relations

8

HEADQUARTERS & STAFF

17201 Street, NW, 7th FloorWashington, DC 20006

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

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

Joanne B. Anderson Alan M. KennedyFinancial Officer Standards Editor

Lauren M. BloomGeneral Counsel

Devara K. BodogSecretai y/Standards

David A BryantAssistant Director of Government Information

Christine M CassidyGovernment rl ffairs Liaison

Kathleen M. Clark-BlandFinancial Assistant

Renee CoxPublications Manager/Graphic Designer

Anna E . FierstAssistant Editor, Contingencies

Elizabeth Banks HartsfieldMeetings .4ssistant

Gary D. HendricksDirector of Government Informationand Chief Ecoronist

Gwendolyn E. HughesMeetings Manager

Ken KrehbielAcortant Director of Public Relations

Dana 11. MurphyEditor, Contingencies

Christine E . NickersonDirector, Standards Programand Director of Operations

Carla NyeRecep tirmrst/.4dmiinstrate v e .-Issistant

Erich ParkerDirector of Public Relations

Andrea A . PinkneySecretary/Public Relations

Jeffrey P SpeicherPublic Relations Specialist

Edward L . Williams, Jr .Go v erinnent Information Assistant

Rita Hoffman WinkelExec tttive Assistant

Membership Administration

475 North Martingale Road, Suite 800Schaumburg , IL 60173

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

Susan C. Steinhach, Membership Tanager

9

ACADEMY CO EMITTEES

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

Committees of the BoardExecutive Committee

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

John H. HardingPresident

James R SwensonSecretary-Treasurer

Howard J . BolnickG ice President

David G. HartmanPresident-Elect

Walter N . MillerVice President

Richard H Snaderf'ice President

Stephen P . LoweVile President

Harry D. GarberImmediate Past President

Larry D. ZnnplemanVice President

StaffLeaicon . James J . ?Murphy,Lauren Al Bloom

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

Howard Fluhr, ChairpersonGlen M. Gamrmll Kenneth W . Porter

Staff Liaison• Gary D Hendricks

Presidential Committees

President's Advisory CommitteeThis council oversees Academy management andprepares recommendations for the ExecutiveCommittee on policy issues

John H. Harding, ChairpersonHarry D Garber James J . AlurphyDavid G. Hartman

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

Mavis A Waiters , ChairpersonHarry D. Garber, dice Chairperson

Irene K Bass Larry D . KeysJohn H . Harding Paul S. PolapmkDavid G. Hartman R. Stephen Radcliffe

Staff Liaison : James J. Murphy

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

David G. Hartman, ChairpersonIrene K. Bass Paul S PolapmkLarry D Keys R. Stephen Radcliffe

Staff Liaison . James J. Murphy

10

Litigation Review Committee't'his committee provides broad-based oicrsightreview of briefs to be submitted on behalf of theAcademy as amicus curiae to assure that the sub-ject matter is appropriate for Academy comment,that statements contained therein do not contra-dict any existing Academy positions . that thebrief has been prepared in accord with Academyguidelines, and to authorize submission of thebrief to the appropriate court .

David G. Hartman, ChairpersonHoward J. Bolnick Richard H . SnaderStephen P Lowe Larry D ZimplemanWalter N . Miller

Staff Liaison : Lauren M Bloom

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

Edwin C Hustead, ChairpersonJames A. Beirne Michael IV. MorganBenjamin 1. Gottheb AnthonyT. SpanoJ. Robert Hunter James R. Swenson

StaffLiaison' Christine M . Cassidy,Gary D . Hendricks

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

John H . Harding, ChairpersonDaphne D. Bartlett Paul F . KolkmanHoward J. Bolnick Stephen P LoweRonald L . Bornhuetter Walter N . Millerjohn J. Byrne James J . MurphyRobert H. Dobson Terrence M O'BrienCharles E. Farr R. Stephen RadcliffeHarry D. Garher Walter S . RuglandDavid G. Hartman James R• SwensonDavid M. Holland John G . TurnerHenry K. Knowlton Michael A . Walters

Staff Liaison . Gary D . Hendricks,Erich Parker

11

Casualty Practice Council

Stephen P . Lowe, [ire PresidentManuel Almagro, Jr . Roger M. HayneIrene K. Bass Frederick W. KilbourneJohn J. Byrne John J. KollarDavid P. Flynn Michael J . MillerRobert W. Gossrow John H. MuetterticsPatrick J. Grannan P . Adger Williams

Staff f Liaison, David A . Bryant

Committee on Property and Liability IssuesThis committee monitors legislative and regula-tory activities in the property and liability area . Itprepares statements on property and liabilityissues for submission to the public and privatesectors Certain issues, such as financial report-ing and risk classification, are referred to theother committees for action .

Manuel Almagro, Jr., ChanpersonCarole J . Banfield Robert T. MuleskiWilliam N Bartlett Frank Ncuhauser, Jr .Ross A, Currie Dale F OgdenJohn Dawson Charles M. PotokMichael C. Dolan Pamela Sealand RealeGregory S. Girard Lee R SteeneckMichael A. LaMomca Patrick B Woods

Staff f Liaison • David A Bryant

Committee on Propertyand Liability Financial Reporting

This committee monitors activities regardingfinancial reporting related ro property and liabil-ity risks, reviews proposals made by various or-ganisations 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-insurance accounting issues.

Patrick J . Grannan, ChairpersonRalph S . Blanchard III Terrence M. O'BrienPaul Braithwaite Joseph L . PetrelliJanet L. Fagan Sheldon RosenbergRobert A. Giambo Harvey A. ShermanAlan F. Kaliski Susan T . SzkodaElise C. Liebers John P . TierneyJan A. Lommele

Staff Liaison- David A Bryant

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

John J . Kollar, ChairpersonRonald I Becker James B . KellerCecil D . Bykerk Edward C. ShoopDavid J. Christianson Irwin J . StrickerJohn A. Hartnedy Karen TerryJoan F Herman Richard G . WallJay D . IIirsch

Stnff'Liaison : Gary D . Hendricks

Joint Program Committeefor the Casualty Loss Reserve Seminar

This committee develops the program for theCasualty Loss Reserve Seminar

Roger .M . Hayne, ChairpersonWilliam N. BartlettPaul BraithwaiteBrian BrownDavid EnglesLouise FrancisGayle E. HaskellTodd 1 . Hess

Andrew E. KuderaStephen T. MorganKaren L NesterJane C. TaylorWarren B TuckerSusan K Woerner

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

12

Health Practice CouncilHoward J Bolnick, Vice President

Harold L Barney Daniel J McCarthyJohn M. Bertko Bartley L. MunsonWilliam F Bluhm W .H. OdellSam Gutterman Jeffrey P, PetertilRobert W. Haver Kenneth \V PorterGregory N. Hectic Harry L. Sutton, Jr .Roland (Guy) King James R . SwensonTed A. Lyle James J. Waters

Staff Liaison. Christine M. Cassidy

Committee on HealthThis committee furthers the actuarial profession'sinvolvement in policy issues relating to design,cost, and financing of the nation's health care . Itperforms its role in part by monitoring federaland state legislative and regulatory activities .

The committee stays informed of the issuesfaced by our nation in the quest for appropriate,sound health care and its financing . It preparespublic statements on key health issues Issues onother specialty subjects are generally referred tothe appropriate committee for action .

Bartley L. Mu nson, Chan personStephen D . Brink, Vice Chairperson

John M. Bertko Nancy F . NelsonAlfred A . Bingham, Jr Richard iM . NiemieeGene A. Blobaum Dennis M. O'BrienWilliam F. Bluhm Mark D . PeavyCecil D. Bykerk Bruce S . PyensonSam Gutterman Gerald R. SheaTimothy M. Harrington Harry L . Sutton, JrDavid F. Kerr William C . WellerRoland (Guy) King Norman J Twitter

Stt Liaison Christine M Cassidy

Committee on Health and Welfare PlansThis committee addresses actuarial issues affect-ing health and welfare plans . It researches theactuarial aspects of such issues and prepares posi-tion statements on pending or potential legisla-tion, regulation . and policy

The committee anticipates emerging issuesof concern to the public and the professionEmployers and other benefit plan sponsorsincreasingly require the assistance of knowledge-able actuaries in responding to the rapidlychanging areas of health care practice , delivery,and financing . The committee promotes an

awareness of the opportunities, advantages, andlimitations of actuarial involvement.

In coordinating its activities, the committeemaintains liaison with the Committee on Health,the Actuarial Standards Board, and other actuar-ial bodies .

John M. Bertko, ChairpersonWilliam F. Bluhm Neela RanadeLawrence J. Busch John J. SchubertDunato Gasparrn Gerald R . SheaWalter T. Liptak Carl D SmithMichael R. McLean Harvey SobelMartin A Miller Mark D. WernickeBartley L. Munson

Staff Liaison- Christine ill . Cassuly

Committee on Continuing CareRetirement Communities

This committee defines and develops the actuari-al role in connection with continuing care retire-ment communities The committee preparesstatements for dissemination to the membershipor for submission to governmental entities or theaccounting profession . The committee is the pro-fession's liaison with the CCRC .

Harold L . Barney, ChairpersonGary L. Brace David L. HewittRobert B. Cumming W. David PhillipsNiels H. Fischer Ralph J. SayreAudrey L . Halvorson Bruce L Workman

Staff Liaison : Christine M. Cassidy

Committee on State Health IssuesThis committee furthers the actuarial profes-sion's involvement in policy issues relating to theregulauon 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 tin Health to assure appropriate coyerage of health-related issues.

William F. Bluhm, ChairpersonPeter L Perkins, Vice Chanperson

Robert W. Beal Leonard KolomsJohn M. Bertko Karl MadreckiJanet AI Carstens Bryan F . MillerAlan D. Ford Bartley L. MunsonDave S. Helwig Julia T. Philips

Staff Liaosn David A . Bryant,Christine M Cassidy

13

Life Practice CouncilWalter N. Miller, Vice President

Gary Corbett R. Stephen RadcliffeChnsdan J. DesRochers Richard S . RobertsonArnold A. Dicke Walter S RuglandLarry M. Gorski Diane WallacePaul F. Kolkman P. Andrew WareMichael E. Mateja Herbert S WolfReed P . Miller

Staff Luaaooir David A . Bryant

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

P. Andrew Ware, ChairpersonWilliam Carroll Craig R . RaymondDonna R. Claire Jack SeigelMichael J Hambro Dennis L. StanleyLouis J. Lombardi Joseph H . TanJames E. Pozzi Mark A. Tullis

StaffLiaison• David A Bryant

Committee on life InsuranceFinancial Reporting

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

Arnold A. Dicke, ChairpersonStephen L . White, Secrctaiy

NAIC SubcommitteeAnthony T. Spano, Chairperson

Jay D . Biehl Douglas C . KolsrudDonna R. Claire Lew H NathanJoan Hentschel Stephen L White

Federal SubcommitteeDaphne D. Bartlett , Chairperson

Arnold A. Dicke Frank W. Podrebarac

ASB SubcommitteeAllan Hale Johnson, Chairperson

Robert M. Beuerlein Henry \V. SiegelDavid Chan Dennis L. Stanley

FASB/AICPA SubcommitteeBarbara L . Snyder, Chairperson

Scott H. DeLong 111 S Michael McLaughlinThomas W. Fineis Eric R. SchueringJames Hohmann

Staff Liaison . David A. Bryant

Task Force on ReinsuranceThis task force identifies appropriate issues atboth federal and state levels that the Academycould/should respond to, prioritizes them, anddevelops appropriate responses consistent withits resources and schedule . In addition, the taskforce would consider the broad role that theAcademy can play in this area and whether thatsuggests an ongoing committee be established tocarry on that work

Diane Wallace, ChairpersonKenneth J. Clark Joseph W. LevinStuart B Grodanz Paul A. SchusterMary ERowlandHennesyLee R. Steeneck

Staff Liaison . Gary D . Hendricks

14

Pension Practice CouncilLarry D . Zimpleman, i'in' President

Mary Hardiman Adams Willard A. HartmanTwila Bastian Douglas C. HoldenEdward F . Burrows Stephen G . KellisonMichael E. Callahan Samuel M KiklaHoward Fluhr Norman S. LoskJeff Furnish Paul S. PolapinkHarry D Garber Mary- S . RieboldRonald Gebhardtsbauer

Staff Liaison Christine \I Cassidy

Pension CommitteeThis committee addresses actuarial issues affect-ing pension plans other thin issues related toactuarial Standards of Practice, accounting mat-ters, and risk classification .

The committee : (1) Researches issues andprepares and presents position statements onpending legislation and regulations ; (2)Coordinates the research and pioject activitiesto be undertaken by the actuarial profession,and (3) Recommends policy to the Board ofDirectors .

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, CbairpcrsnnWilliam N. Kuendig II, Flee Chanperson

Committee on Pension AccountingThis committee monitors activities regardingfinancial reporting related to pension plans,reviews proposals made by various public andprivate sector organizations affecting accountingand auditing issues related to pension plans, andgenerally is responsible for analysis and recom-mendations on pension accounting issues.

Norman S Losk , Chairp ersonPaul W. Barker Lawrence A JohansenMark G. Beilke Robert D SteinhomSteven Bland Joseph P . StrazeniskiBenjamin I Gottlieb Stanley H TannebaumJames Al. Jackson Henry N Winslow

Staff Liaison Christine Al Cassidy

Committee on Social InsuranceThis committee provides and promotes actuarialreviews and analyses of U .S. social insurance sys-tems. Its activities are coordinated ssrth those ofcorresponding committees of other NorthAmerican actuarial bodies .

Stephen G Kellison, ChairpersonHarry C Ballantyme James H . ManningJames \ Beirne Gregory J . SavordDonato Gasparro Kenneth A SteinerBen/amm I Gottlieb James R . SwensonPeter C. Hendec John C WilkinEdwin C Hustead

Staff Liaicwi Christine M. Cassidy

Mary H. Adams Gregg P. RichterFrederick B. Bass A Frederick Rohlfs JrLois Al Broussard

,Richard G. Schreitmueller Joint Program Committee

Edward E . Burrows Jeff L Schwartzmann for the Enrolled Actuaries MeetingDavid P . Fiiedlander Donald J . Segal This committee develops a program for theRonald Gebhardtsbauer William J Sohn Enrolled Actuaries Meeting, cosponsored by theAllen Gorrelick Robert D . Stemhorn Academy, the Conference of ConsultingSteven J . Haas Michael E. Swiecicki Actuaries, and the Society of Actuaries .David R . pass James E . '1 urpin Douglas C Holden, ChahperronNorman S. Losk James F Verlautz Jeffrey A . Leiy, Vine C'hariprisunSamuel S . Lyons, Jr . Wallace W . Wilson 'I wily Bastian Neil A, ParmenterFranklin D. Pcndleton Betty Berm Eugene Schloss

Staff Liaison . Christine Al . Cassidy Barbara K . Blatt Lawrence J . ShcrHoward Fluhr Peter D . VerneDaniel G Laline, Jr. Richard A WattsEric P. Larson Vickie N . Williams

Staff Liaison Christine F . Nickerson,G%endolyn E Hughes

15

Council on ProfessionalismRichard H. Snader, Vice President

John K. Booth Roland (Guy) KingA. Norman Crowder III W . James MacGinmtieRuth F. Frew Jerome A . ScheiblHarry D. Garber Jack M. Turnquist

Staff Liaison . Lauren M. Bloom

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

W. James MacGinnitie, ChairpersonRobert B . Crompton Patricia L . ScahillRobert H. Drever David E . ScarlettKenneth W Hartwell William David SmithFrank L. Katz John W.C. StarkEdward J . Peters Jerome M . SteinDonald E Sanning Wallace W. Wilson

Staff Lraivon. James J Murphy,Christine E Nickerson

Committee on QualificationsThis committee identifies and recommends tothe Board of Directors minimum QualificationStandards 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. McC lenahanRuth F. Frew Mark J. SobelRobert B. Likins Charles BarrvH. WatsonDaniel J. McCarthy Walter C. Woodward

Staff Liaison . Lauren M. Bloom

Special Casualty Qualifications SubcommitteeDavid S Powell , Chairperson

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

Staff Liaison . 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, which designates thechairperson .

The committee' s responsibilities include theformulation of the Code of ProfessionalConduct, including exposure to the members ofthe participating organizations ; assistance to theparticipating organizations in consideration andadoption of the Code, as is or in modified form ;once step one i s complete , ongoing maintenanceof the Code of Professional Conduct, and deter-inination of whether a set of Interpretations tothe Code is required, and, if so, development ofthe Interpretations, including exposure to themembers of the participating organizations .

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

Staff Liaison' Lauren M. Bloom

16

Committees Under the Supervisionof the Secretary-Treasurer

James R. Swenson, Senetaiy-Treasurer

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

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

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

Committee on Relations with AccountantsThis committee and the parallel AICPARelations with Actuaries Committee provide afacility for communication between the actuarialand accounting professions This committeedevelops and maintains cooperative relationsbetween actuaries and CPAs and explores areasof mutual concern; comments on proposedaccounting and auditing standards and guidanceaffecting the profession ; coordinates develop-ment, as necessary, of actuarial guidance relatedto accounting and auditing matters ; works withregulatory bodies on related issues , in coordina-tion with the Committee on Life InsuranceFinancial Reporting, and the Committee onPension Accounting (or other appropriate com-mittees) ; and advises the Actuarial StandardsBoard and Academy leadership and membershipof developments in such matters.

Charles A Bryan, ChairpersonHarold L. Barney Stephen P . LoweDarrel J. Croot Jeffrey P. PetcrilArnold A. Dicke Barbara L. SnyderPatrick J. Grannan Jack M. TurnquistStephen G. Kellison Diane WallaceNorman S. Losk

Staf}Liaisan : Christine E . Nickerson

17

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

Curtis E . Huntington, ChanpeisonAllan D. Affleck Bruce D MooreCharles Greeley James N StanardCharles A. Hachcincister James A. TilleyHeidi E. Nutter J . Philip TurnerHarold G. Ingraham , Jr . Charles Barry H, WatsonW. James MacGinmtie James W. Yow

Staff Liaison- Lauren NI Bloom

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

Evelyn Toni Mulder, Chafiperi'on

Tlie .4etiaaraal LpdateEvelyn Toni Mulder, Editor

Associate EditorsWilliam Carroll Charles Barry H. WatsonStephen A. Meskin

Enrolled Actuaries ReportRichard G. Schreitmueller, Editor

.1 .unciate EditanJohn W Atteridg Adrien R. LaBombardeJames A. Kenney Donald J. Segal

Staff'Liaison- Erich Parker

Editorial Advisory Board for ContingenciesThis board provides policy guidance, technicalre%iew, and oversight to staff editors in the pro-duction of Coaitiiigencies, the magazine of theactuarial profession

Roland (Guy) King, CheirpenimiDaphne D . Bartlett Craig A. OlneyHarold J, Brownlee Richard S. RobertsonCurtis F Huntington Mavis A W altersFrederick AV. Kilbourne

Deparnnent EditorsArthur W. Anderson Ken KrehbielThomas L. Bakos Adam J . ReeseYves G. Guerard W . Keith Sloan

Staff Liaison Erich Parker, Dana Murphy

Advisory Group for Forecast 2000This advisory group of representatives from allFoi-erast 20(11) sponsoring organizations advisespublic relations staff on the course of the pro-gram, reviews results, and makes recommenda-tions to the Council of Presidents.

James J. Murphy, ChairpersonPaul H . Abbott, Jr., ASPA Evelyn Toni Mulder, CASRobert L Brown, CIA Anthony T. Spano, SOAFrederick W. Kilbourne, CCA

Sta f f Liaison' Erich Parker

1s

Joint CommitteesCouncil of Presidents

This is an informal body established to coordinateactivities of the actuarial organizations on thiscontinent and to address professional questions

Irene K. Bass, CAS John H. Harding, AAAJames A. Brierley, CIA David G. Harunan, AAAMorris W Chambers, CIA Larry D . Keys, C CARobert H. Dobson, CG A, Paul S . Polapin, ASPADavid P . Flynn, CAS R Stephen Raddrffe, SOARobert E . Guamera, ASPA Walter S . Rugland, SOA

Council of Presidents Task Forceon the Working AgreementW. Paul McCrossan, Facilitator

Irene K. Bass Larry D KeysJames A. Brierley Paul S . PolapinkDavid G. Hartman R . Stephen Radcliffe

Staff Lannn James JAiirphy

Liaison Appointments

Liaison Memberan the Education Policy Committee

of the Casualty Actuarial SocietyGustave A. Krause

Liaison Memberon the Public Relations Committee

of the Society of ActuariesAnthony T . Spano

Liaison Memberon the Credit Insurance Experience

Committee of the Society of ActuariesWilliam C Meyer, Jr.

19

ACTUARIAL BOARDFOR COUNSELING & DISCIPLINE

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

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

Aciu iIAL BoARnFOR COUNSELING & DISCIPLINE

A Norman Crowder I11, ChairpersonDaphne D. Bartlett Curtis D. HamiltonAlan N. Ferguson David L. HewittJohn A. Fibiger Joseph J. LeuheWalter J . Fitzgibbon, Jr . Jerome A. Scheibl

Staff Liaison . Liaison: Lauren M . Bloom

20

ACTUARIAL STANDARDS BOARD& COMMITTEES

The Actuarial Standards Board (ASB) was established as an independent entity within the Academy onJuly 1, 1988 The ASB has the authority to prescribe its own operating procedures ; to establish 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 oper-ating committees report to the ASB and function under its direction . The ASB also has the authority toauthorize exposure of proposed standards and public hearings on them, and to adopt recommendedStandards of Practice .

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

AcTu UUA , STANDARDS BomwJack M. Turnquist, ChairpersonGary Corbett, Z ice Chairperson

P. Adger Williams, Vice ChairpersonEdward E. Burrows Daniel J . McCarthyWillard A. Hartman Richard S. RobertsonFrederick W Kilbourne Harry L . Sutton, Jr .

Staff Liaison: Christine E. Nickerson,Alan M . Kennedy

Casualty Committee of the ASB Subcommittee on RatemakingIn accordance with procedures prescribed by the LeRoy A. Boison, Jr., ChairpersonActuarial Standards Board, this committee devel-ops actuarial Standards of Practice in the proper- Subcommittee on Reservingty and casualty insurance area . James A. Faber, Chairperson

Michael J . Miller, Chairperson Subcommittee on ReinsuranceMartin Adler E. LeRoy HeerRichard M. Beverage Bertram A. Horowitz David J. Grady, ChairpersonLeRov A. Boison Jr. Eldon J. Klaassen, Subcommittee on ValuationDouglas J . Collins R. Michael LambFrederick Cripe Stuart N . Lerwick Douglas J . Collins, ChairpersonJames A. Faber Robert J. Lindquist Subcommittee on Rate of ReturnDaniel J Flaherty Jerry A . MiccolisSpencer M. Gluck Robert A. Miller III Mark Whitman, Chairperson

RansomRobert W Gossrow Gar K. y . Subcommittee on Risk MarginsDavid J. Grady Mark WhitmanGary Grant Paul F . Wulterkens Spencer M . Gluck, ChairpersonJames A . Hall III

21

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

Ted A Lyle, ChairpersonWilliam F . Bluhm David F OgdenRobert ib1 . Duncan, Jr. Mark D. PeavvLarry M. Gorski John A PriceRobert J . Ingram Richard J . SheplerSpencer Koppel Allen J . SorboEllen Lamale Joe P. StcrnfcldWilliam H Odell

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, ChairpersonDonald F Behan Richard S . MillerTimothy F. Harris Frederick]. SievertFrank S Irish Edward S SilmsRobert W Maull

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

Mary H. Adams, ChairpersonSteven L Min IIarry S. Purnell IIILall Bachan Richard G. RoederRobert S . Byrne, Jr. Kenneth A. SteinerC David Gustafson Lee j TradSilvio Ingui

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

Robert W Haver, ChairpercunDonald E . Sanning , L' ice Chairperson

Alan S. Breitman Joseph J . PoplaskiHarry A. Don Kenneth tip' PorterSteven J . Ferruggia William A . ReimertJoseph P . Macaulay George J RoccasStephen A . Meskin

Specialty Committee of the ASBIn accordance u ith procedures prescribed by theActuarial Standards Board, this committee devel-ops actuarial Standards of Practice in areas notaddressed by the committees above

Stephen G . Kellison, ChanpersonHarold 1. Barncy Robert J . MyersSteven A. Harrold Alwyn V. PowellPhilip D . Miller

Data Quality Task ForcePhilip D . Miller, Chairperson

Lall Bachan James B . MilhollandRichard S. Biondi Virginia R PrevostoLarry M. Gorski Donald E . Sanning

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

Bartlev L. Munson, ChanpersonDonald M. Charsky John P . Kinney 111Abraham S . Gootzeit Edward A. MurphyRobert A. Hall Dennis M . O'BrienJames T. Helton Gerald R Shea

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

Jerome A Scheibl, ChairpersonJanet L. Fagan David E . ScarlettCharles E. Farr Henry W. Siegel

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PAST OFFICERSI'M -rat I °N,47 107, 9-h 11 1-181-i I

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John 11 Miller H Ratmond Strong Rich.ud S Rnhertsu a A Nm=nan ( m,.du IIIH Ra)annnd Strunr Andrea ( R•eh'ter P Adger IVrlltsms Burden 1 AhrnsnnGeorge M Brµe Srur arv Nurrnu F Mart cone ( harlea B H Watron Sri m a y Chines B 11 1VatsonRuhcrt L Bruce Ira nine, Rnhert L Bruce Kev in S] R,an Treaeuv ScumM Ryan

1961--68 1068-a 0 ]081-F2 198' 8(John Haldlcr Panet,nr Ilendcl1 .11dlnnan 1151ham4IIdvorsan Ptardcnt P Sdgcrrldham,Wendell .lhlltman Piemalrnr-Elrrr Hl alterL Rugland P Adger\t511nnts Rcadrer-EJ, t 1 NnrmanCroaderIIIEd-,dl) Brnwn,Jr [a, Prnrdm u Edri art D Brown, Jr A Nrnman Croudcr Ill Pl,nd,rrr, Di .r I R CarpenterRilliamT Leslie Jr \VdhatnJ Lshe,Jr Bartlei L ALrnsnn 1Vdhun 1 FerguwnFr ml) Gadrcu Paul T Rains David R Carp,ntcr hhn k Fob€gerthen L .MGv,,rsnr Harold P Sr hloss HVdlram 1 Fcrnvsun Walter S RuglandNortonh Mastcrson S•rrrrtny Norman L• alasarvan Carl R Ohman Scnetaey Carl R OhnianRobert h Base =limo-, Robert E Bn,ua IV J noes Var( .mumc Fr,avu er IV Jams AlacCanmue

1969 70 10 TG-T I 10R ;-R-F [094-dc

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Paul F Rotter f ui Prutdenrs Donald F Camplrell JohnA Fihager Iran Pr wrdrrarr DasnlU flirt nHarold 11' S,bliac J,ihmK D, en Walt, rS Rugland DavidSl RondoDerailF ( amph .ll Harold E Currl David G Hartman Harold] 13-1' cRoheraJ Sinrss alortonI) Aldlcr Dasd S7 Rode CarlH OhmanNorton F .llasrerson Smetarn IVdltam A I lahnrsnn Carl R Uhman Sr m erary Rrncrr Ff Duhsun

Rob- F Brine T-11 11111 Robot I Bruce Burton D Jan Lemijo Burton D lan

1071-72 1472_7' 1085-86 1986-87RobcrtJ ais•cn Prnrdenr SmartenD Miller Bartlre L Munson Pr rudnrr Preston( Prsu rrMorton D1Fnllcr Prntdnrr-Fl„r FutrstjS1n,,rbrad PrrvtonCBaroLrt Pattleer-/'lert I~hn•HFabrgerIlandd F Currr r Preo'iemr Roman F Rrnte IlarnI1 j Brownlee f i.t Prntdn•h Fa]nardH FnerdFrondd-Nonrhead JuhusVogel Fdoand11Friend HH'Jamer\lacGmmucRobert[' Bone Rcuben l la-bane SI Jan- 4far(,moms RunuuD JarJulmvH-ogel DamelJ ALNamara Carl H I]hntan AFasnt S WalrersWrlltam l flair nr.nn Srnrmry Sldluni A Halru- nr Rnc,rt H Dnhsnn Srrretan Robert H DohsonDale R Gustafsun j "'em Dale R Gmtahon Burton D Jay Tremai er DamelJ McCarthl

191-'1-74 I0 4-7s 1487_93 19f8-8,)

FrnectJ Munrhunl Pm,ndnu D"-I3 ai.Namena John 1 Frhig.r Pread,nt 14 latnesm5lacGtnmaeIlanaclJ McNamara Pre,airnt-Fix FhumanP Boo It-a, Ir R JamcsManGmnrtic Fmrvdrnt-P7ert IlaroldT Boo-leeWilliam A Hall omi i f i,e Pmevdnrt Richard L Johc Phdhp N Rur-Lvr f -',e Preardrnn Phdhp N Ben-ZanReuben I Jnaobeun Rahi,n C Winter. Burton D la . Flarpcr I Garrerr, JrThumr, P Ruwlcs, 1-r Flnm F Busnwn JosephJ Stahl 11 John H HardingRichard L Johe Kenneth I[ It- Masts A, SValters JnsoJh I Stahl IIRatter S Rugland S•'-tun Walter S Rugland S ir4nl D M agnu St,reianv Vugil D WagnarDale R Guotafeon 'Ironm,r Dale R Guaahrin DamelJ '11117 -h a Trrararer D-111 I All-Cal dl ,

1075-76 1976-77 1480-40 19A_91I hotna, P BOUIcs,Jr Pa,udena Robert C R'tntcre HamldJ Braxnlu Pi eaadent Alavis A Walter,Robert C Winters Prudent-Flair Ed- F Bovnton Mans A Welrrrs P,rndent-Flirt Flair; D Gan bar

FdnanF Bolatmn foe Prnndrnt Dale R Gustafson Harry Ii Garher Liar Prerrdenu Roherrl] DnhsnnKenneth H Ross AF Sranhs Hangman HarperL Garrett, Jr C harles I, FurDale R Castatson Ronald L Bornhuener John 11 Harding DamelJ 1fd,anhaSI Stinlea Hughat Louis Garlic DamelJ A1rCanha Shthael•H WalicrsIl alter S Rugland 9cnera+l Ralph F F dwards Virgil D Wagner Sn' r aura Rim hard H SnadcrJ11-1 0 R chin 7"-- Jameo F Cabin F homaa U Lest I redaur I hernia D Lu1'

1977-78 1979--70 LIMA-,Edwin F Bosnton Pneemdrnr Dale R Gustafsen Harr) D Garher PwrdntrDaAL R Grnrafsun PrriJnar-Mot Ronald 1, Burnhuetter John IL I [ardmg Ira ni mat-FlearRnnalt L Rnuihnerter I a, Pnwdrnm Fin smn C Bass,•rr Rumen H Duhson l ne Pread,naLumsGarhn Charks(, Hervitt,Jr R Stephen Rad(liffepre'-- C Oarsmen Herbert L DePrenger Richard 11 SnakeChurler C Hunan Jr 11 after L Grace Ahrha,l'\Walt-DwightK Bankirlll Srnrrary LlwnghrK Rarrletr litJamc,U IHchb 1"14- KcmAl Rein

I"' ny l) ZnnplemanThomas D Law erSerremr7 1-."

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ORIGINSHISTORY

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

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

The original plan had been to obtain a feder-al charter as the first step toward seeking legalrecognition of the profession . When this couldnot be promptly obtained, the Academy was dis-solved as an unincorporated association and, onApril 29, 1966, 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 forsuch a national body, was elected president .

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

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

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

All 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

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

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

After January 1, 1970, educational require-ments were gradually increased until 1976 . InJanuary 1976, an amendment to the bylaws creat-ed a new nonvoting class of membership designat-ed Affiliate of the American Academy ofActuaries This class consisted of nonmembers ofthe Academy who became enrolled actuariesunder the Employee Retirement Income SecurityAct of 1974 (ERISA), subject to acceptance oftheir applications by the Academy. Subsequently,in January 1979, the bylaws were further amendedto eliminate the distinction between Affiliates andmembers of the American Academy of Actuaries,as well as to set the experience required at threeyears of responsible work . Subsequently, theAcademy board set the basic educational require-ment at that of the Associateship level in theCasualty Actuarial Society or the Society ofActuaries or that required for status as an enrolledactuary 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, thesewere revised and supplemented by InterpretativeOpinions. Together, the Guides and Opinionsformed a core of ethical guidance for membersin all phases of their professional lives . InSeptember 1991, the Board of Directorsapproved a new set of ethical precepts as recom-mended by the Council of Presidents Task Force

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

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

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

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

Standards of PracticeThe Academy commenced issuing Standards ofPractice, called Recommendations, in 1973 .These Recommendations were supplemented byInterpretations. A major step forward in thedevelopment and management of Standards ofPractice was taken in 1985 with the creation ofthe Interim Actuarial Standards Board (LASB) .The TASB 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 withthe Academy. It has sole responsibility to initiatethe development of and to adopt new standards .Standards of Practice include statements on thetechniques, applications, procedures, and meth-ods that have been generally accepted by theprofession . The Code of Professional Conductrequires actuaries to be knowledgeable about andabide by these pronouncements .

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

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

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

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In 1990, at the urging of the Academy, theNAIC eliminated the discretion of individualstates . As a result, virtually all annual statementsfrom property/casualty companies in the UnitedStates must be 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 siin-dar 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-non established extensive and specific standardsfor actuarial reports, for disclosure and fiduciaryrelationships, and for the qualifications of actuai-ics in pension work.

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

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

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

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

MeetingsHistorically, the Academy held its annual meet-ings in the fall of the year , in conjunction withthe annual meeting of one of its founding orga-nizations In 1990, the Academy began holdingits own separate annual meeting, essentially anoutgrowth of the established Washington brief-ing and luncheon . Starting in 1976, theAcademy and the Conference of ConsultingActuaries began cosponsoring the EnrolledActuaries Meeting; in 1Q89 , the Society ofActuaries was added as a cosponsor . Thesemeetings are a primary means of continuing edu-cation for pension actuaries across the nation.Nineteen eighty-one saw the introduction of aseries of Casualty Loss Reserve Seminars, whichwere initially jointly sponsored by the Academyand the Casualty Actuarial Society . In 1990, theConference of Consulting Actuaries was addedas a cosponsoring organization The seminarsare of particular interest to property/ casualtyactuaries and loss reserve specialists . In additionto these meetings, each year bungs other jointlysponsored meetings, seminars , and workshops ona variety of subjects

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

26

ments, ceased publication with the 1987 edition .That information is now included in a specialsub)ect supplement to the Academy's newsletter,The 9etitart,tl Lpidate .

Each month the Academy publishes TheActuarial Update (which became a bimonthlypublication in 1977, and began monthly produc-tion in 1981) and several enclosures , includingthe "ASB Boxscore" ( started in 1Q87), a statusreport on various standards pro)ects andActuarial Standards Board news . In addition, theF.rrrolled Actuaries Report, a newsletter focusing onthe concerns of pension actuaries , is publishedfour times during 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 Drge t, a communications primer, andannual reports for the Actuarial Standards Boardand the Actuarial Board for Counseling andDiscipline . The single most significant additionto the array of publications occurred in June1989, with the premiere of Contingencies, a four-color, bimonthly magazine with advertising,aimed at both actuarial and nonactuarial audi-ences . Cantrugen eses has garnered five prestigiousmagazine awards since its launch.

STATEMENT OF PURPOSE*

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

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

The .academy's Statement of Purpose sas adopted by the .

Board of Duectocs m 1951

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BYLAWS OF THE AMERICAN ACADEMYOF ACTUARIES

A CORPORATION ORGANIZED UNDER THEILLINOIS GENERAL NOT FOR PROFIT CORPORATION ACT(ADOPTED APRIL 2Q, 1966 AND LAST AMENDED IN t99I)

Article IMembership

SECTION 1 . Members . Individuals having mem-bership in the Academy shall he called "niem-hers ."

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

SECTION 2 . Requirements for Admission toIVfenebership 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 havepassed, or have received credit for, the exanima-tions prescribed from time to time by the Boardof Directors, 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 appli-

cation is rejected on the basis of evidence of lackof character or professional integrity, the candi-date may appeal to the Board . The proceduresfor the conduct of such appeal shall be as pre-scribed by the Board .

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

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

Article IIMeetings of the Members

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

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

Article IllBoard of Directors

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

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

28

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, itmay he filled for the unexpired term by majorityvote of the whole Board . The term of office ofan elected 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 theterm for which the Director was elected anduntil a successor 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 he called wheneverthe President or at least five members of theBoard so request .

Meetings of the Board may be held eitherwithin or outside the state of Illinois . Notice ofthe meetings of the Board shall be given not lessthan ten days nor more than thirty days before themeeting, except in the event of a meeting of theBoard following the annual meeting of 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 he taken without a meeting if aconsent in writing, setting forth the action sotaken , shall be signed by all of the members ofthe Board.

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

SECTION 5 . Duties and Pourerr. 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 mayhe appropriate to carry nut the purposes of the

Academy . Without prejudice to the generalpowers so conferred, the Board shall have thefollowing specific powers :

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

(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 pow-ers as may be provided by these Bylaws or asmay be delegated to it by the Board, except thespecific powers enumerated (b), (d). (e), (f), and(g) in Section 5 of Article III .

Article VOfficers

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

SECTION 2 . Election and Term 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

29

President-Elect is vacant, except in the casewhere the President-h.lect 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, thePresident-Elect, having been so elected at anannual meeting of the Board, shall commencethe term as President-Elect at the close of thefirst subsequent annual meeting of the academyand shall automatically succeed the President atthe close of the second subsequent annual meet-ing of the Academy, and shall serve as thePresident until the close of the third subsequentannual meeting of the Academy . In the event theoffice of President becomes vacant, thePresident-Elect shall automatically succeed to fillthe vacancy for the unexpired term. A President-Elect who so succeeds the President and serves inthat capacity for less than six months prior to theclose of the first subsequent annual meeting ofthe Academy following succession to thePresidency, shall further serve as President untilthe close of the second subsequent annual meet-ing of the Academy .

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

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

election for another term as President orPresident-Elect.

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

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

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

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

Article V'IDuties of Officers

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

SECTION 2 . President-Elect The President-Elect shall have such duties as niay lie assignedby the President or by the Board . In the absenceof the President, or in the event of thePresident 's inability or refusal to act, thePresident-Elect shall perform the duties of thePresident's office .

SECTION 3 T 'ice Presidents. Each of the VicePresidents shall have such duties as may beassigned by the President or by the Board.

SECTION 4 Secretary-Treasurer. TheSecretary--Treasurer shall record and file minutesof all meetings of the Board, give all notices, becustodian of the corporate records of theAcademy, and in general shall perform all cus-tomary duties incident to the office of Secretary-Treasurei .

The Secretary-Treasurer shall also keep aregister of the members , have charge of the

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

Article VIIFinances and Contracts

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

It shall be the duty of the Secretary-Treasurer to cause to be notified by mail anymember whose dues may be six months inarrears and to accompany such notice by a copyof this Section If dues remain unpaid, such per-son shall, on the date that falls three monthsafter the date of mailing such notice, cease to bea member of the Academy for all purposes otherthan with respect to any penalty or other actiondetermined under disciplinary procedures asprosided in Article IX, relating to conduct priorto such date . Reinstatement as a member shallbe subject to such conditions as the Board mayprescribe.

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

SECTION 3 Contriints The Board may aotho-rice any Officer or agent to enter Into any con-tract or execute and delner any instrument inthe name or on behalf of the Academy

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

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

Article VIIIResignation of Members

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

Article IXPublic Discipline

SECTION 1 . Complaints and Referrals .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'sprofessional practice, or affecting the interests ofthe actuarial profession, constitute matters forserious consideration.

B. Such complaints and questions shall bereferred to the national organvation responsiblefor profession-wide counseling and discipline inthe nation where the action occurred theActuarial Board for Counseling and Discipline

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(ABCD) in the United States and the CanadianInstitute of Actuaries (CIA) in Canada .

SECTION 2 Conaderatwon of Public DisciplinaryAction.

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

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

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

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

E. 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 effec-tive on the date when the appeal is decided bythe Board .

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 conditionsA. All rights and privileges of membership

shall be retained during the pendency of theappeal,

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

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

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

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

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

SECTION 6 . NotificationsA. The Board of Directors shall notify

Academy members in all instances in which amember is subject to public discipline . At thesame time notification is given to the members,the Board of Directors shall also give notice ofthe public discipline to all other actuarial organi-zations of which the individual is a member andto other organizations, including 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 com-plaint, notice of the disposition of the case shallbe furnished to the complainant

C. In the case of an action by theDisciplinary Committee to publicly reprimand,suspend or expel a member, the notificationshould take place forty-five days after theCommittee's action and, if the member isappealing the decision to the Board ofDirectors, the notification should state that thedecision is being appealed . Once the Board ofDirectors has acted on this appeal, there shouldbe a notification of that action .

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

Article XActuarial Board for Counseling and DisciplineSECTION 1 . Establishment acrd Purposes .A. 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, theABCD will be authorized

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

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

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

4. To serve as ombudsman betweenmembers of participating actuarial organiza-tions, or between such members and thepublic, for the purpose of informally resolv-ing complaints concerning the professionalconduct of such members .

B. The ABCD is authorized to issue suchrules of procedure and operating guidelines notinconsistent with the requirements of this Articleas it deems appropriate .

SECTION 2 Members and AppointmentsA. The ABCD shall consist of nine persons

appointed from the membership of the partici-pating organizations Appointments will usuallybe made for three-year terms , but appointmentsfor shorter terms may be made to assure thatone-third of the members will be appointed each

year . A member may serve no more than threeconsecutive terms

B. Members of the ABCD shall be broadlyrepresentative of all areas of actuarial practice .They shall be appointed by and serve at the plea-sure of a selection committee composed of thePresidents and Presidents -Elect of the participat-ing organizations . The President of theAcademy shall serve as Chairperson of theSelection Committee if a vacancy arises amongthe members of the ABCD, the SelectionCommittee shall designate a replacement to fillout the remainder of the term .

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

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

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

C. The Vice Chairpersons shall be appointedannually from among the members of the ABCDby the Selection Committee . A ViceChairperson shall be designated by theChairperson as the presiding officer in theabsence of the Chairperson Vice Chairpersonsshall have such other duties as may be assignedby the Chairperson .

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

SECTION 5 . Procedures fnr DrseaphvaryRecommendations

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.

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

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

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

recommended.2 . The Investigative Committee shall

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

Investigative Committee, the Chairperson, withthe concurrence of a majority of the ABCD .shall determine whether to :

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

to consider the matter . In such a case, awritten notice shall be prepared statingplainly the charges against the individual,together with a notice of the time, date, andplace where the ABCD will meet for consid-eration thereof. The charges and noticeshall he served on the individual not less thanforty-five days before the hearing of theABCD, either personally or by certified mail,or in such other manner as the ABCD maydirect . The time limit may be waived bymutual agreement of the parties .D. In any hearing before the ABCD, the

individual against whom charges have been madeshall have the right to appear personally and bycounsel (at the member's expense), to examinethe evidence presented, to examine adverse wit-nesses, and to present exculpatory witnesses andevidence . The Investigative Officer or designeeshall appear to present the findings of theInvestigative Committee. Witnesses called inthe course of hearings before the ABCD shall

vouch for the truth of their statements on theirword of honor . A written transcript shall bemade of the proceedings. The ABCD shalldecide all questions of evidence at the hearing .

F If, in the course of any hearing under thisSection, evidence shall be presented upon whichanother charge or charges against the individualought he 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 and opportunity for the individual torespond, proceed to the consideration of suchadditional charge or charges as if they had beenmade and served at the time of the service of theoriginal charge or charges, and the ABCD mayrender such decision or recommendation uponall such charges as may be justified by the evi-dence in the case .

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

G. At the conclusion of the hearing, theABCD shall determine whether to :

1 Dismiss the matter,2 Counsel the actuary, or3. Prepare a u ritten 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 bemade for public disciplinary action . Thereport shall state plainly the charge orcharges against the individual. and shall heaccompanied by a transcript of the proceed-ings, copies of all evidence and a rationale forthe recommendation . A copy of the reportand the accompanying materials shall be pro-vided to the individual against whom thecharge or charges have been made .

SECTION 6 . Coumeling Any counseling con-ducted pursuant to this Article shall not he con-

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sidered to be disciplinary action, nor shall coun-seling imply that there has been any determina-tion that a violation of the applicable Code ofProfessional Conduct has occurred .

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

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

SECTION 9 . FinancesA. The finances of the ABCD will be

accounted for separately within the Academysystem of accounts, The ABCD will submit abudget request to the Secretary-Treasurer, list-ing all planned income sources and potentialexpenses, in such form and in such detail as ismutually determined by the Secretary-Treasurerand the ABCD. The Board of the Academy willconsider this request when adopting its annualbudget and will make provision within such bud-get for the operating expenses of the ABCD .

B. The ABCD will have discretion withregard to the expenditure of all funds allocatedto it, subject only to such accounting arid 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 fiscal

year, including commentary on the types of casespending, resolved, and dismissed . These reportsshall not reveal any information otherwise confi-dential . The ABCD shall also report quarterlyto the President of each participating organiza-tion concerning complaints and counselingactivities related to members of the organization .

Article XIActuarial Standards Board

SECTION 1 Fitablisbnieut 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, (u) promulgate or adopt, and(in) publish actuarial Standards of Practice, with-in its sole discretion and pursuant to such proce-dures as it deems appropriate, in all areas ofactuarial practice, subject to the specific require-ments of this article .

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

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

SECTION 2. Members andAppozntments.A The ASB shall consist of nine members,

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

B Members of the ASB shall be appointedby a selection committee composed of thePresidents and the Presidents-Elect of theAcademy, the Casualty Actuarial Society, theConference of Consulting Actuaries, the Societyof Actuaries, or their successor organizations .The President of the Academy shall serve asChairperson of the Selection Committee . TheSelection Committee shall annually appoint theChairperson of the ASB An individual appointedChairperson may not serve more than two con-secutive terms as Chairperson . If a vacancy arisesamong the members, the Selection Committeeshall designate a replacement The replacementwill complete that term, and may be reappointedfor one additional consecutive three-year term .

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

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

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

(1) One Vice Chairperson shall be thepresiding 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 responsiblefor the authorization of expenditure of allfunds associated with the ASB .

B . The Chairperson of the ASB shall presideat 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 f