,American Academy of Actuaries

THIRTY

330Y E ARS

Serving the Actuarial Profession

MI. LnILMn HLHUtP1T VI- AIL IUAKItS

~ '`7fb1 ff=1rWashington , DC -24W a f' 0 3 CTel : 202-223-8196/Fax: 202-872-1948

nAlaml4ennedy--1Assistant Director,Standards Program

Joanne AndersonFinancial Officer

Susan SteinbachMembership Manager(Chicago Office')

Kathleen BlandFinancial Assistant

(Open)Acctg/Admin. Asst

David BryantAssistant Director,Government Info .

Christine CassidyAssistant Director,Government Info.

Michael AnzickHealth Policy Analyst

Doreen Moaning. Admin . Assistant,

Government Info .

David RiveraLegislative Ass't

iKen KrehbielAssistant Director,R Relations r'~

Jeffrey SpeicherPublic RelationsSpecialist

(Open)PublicationsProduction Assistant

ch Par er ,ADire hl3J

blic Relations

Dana MurphyEditor,Contingencies

ue

Andrea PinkneyAdmin . Assistant,Public Relations

Antst Editor

Lauren M . BloomGeneral Counsel

Il(Open)Staff Attorney

Christine E . NickersonDirector, Standards Prog.

JpDirector, Operations

Cheryl AyanianAdmin./Edit . Ass't,Standards Program

James J. MurphyExecutive Vice President

Gary D. HendricksDirector, Govt Info.& Chief Economist

*Chicago Office : 475 Martingale Road, Suite 400, Seh burg, IL 60173. Tel: 708-706-3513/Fax : 708-706-3599

Pamela S. CrumptonExecutive Assistant

Renee CoxPublications Manager& Graphics Designer

I

Maria C . JohnsonReceptionist

,American Academy of Actuaries

'a r b.

Wd en we build, let it be meh work as our descendants will thank us for :and let its 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

TABLE OF CONTENTSAcademy Leadership & StaffBoard of Directors_ 5Headquarters & Staff__ 9

Academy Committees_____ _ _ 10

Actuarial Board for Counseling & Discipline 20

Actuarial Standards Board & Committees 21

Past Officers 23

Jarvis Farley Service Award 24

Robert J. Myers Public Service Award 24

History 25

Strategic Plan 1995-2000 28

Bylaws of the American Academy of Actuaries 29

Statement of Policy 39

Code of Professional Conduct _ a0

Professional Standards 44

GuidelinesCommittee Appointment GuidelinesGuidelines foi Making Public Statements 47Guidelines for the Development of Practice Notes 51

Membership _ 53Application for Admission 54Dues 55Prescnbcd Examinations 55

Other Actuarial Organizations 56Actuarial Clubs 39

CalendarsBoard & Committee Meetings 61Meetings Calendar 63

Publications 64

ACADEMY LEADERSHIP & STAFF

John M1 . BertkoT 'Ice President

1996

BoARn OF DmEcroRs

Charles A . BryanPresident

1995

Howard FluhrT 'ice President

1995

JackM. TurnquistPresident-Elect

1995

I)aud P Flymnice President

1996

Charles Barry 11. Watson James R Swenson John H . HardingE ice President Secretary-Treasurer Past Presdent1996 1995 1995

Paul F. Kolkman1 iee Pr-eudent

1995

l)avid G. HartmanPast President

1996

5

Robert A . Anker1997

Alhert J . Beer1997

Larry- D Baber1995

Barnet N. Berm1995

Bruce C . Bassman1996

William F. Bluhm1996

Jeff Furnish Glen AI Gammill Sam Gutterman1997 1995 1917

Tw'ila Bastian1995

Michael E. Callahan1 1)97

loan E . Herman1997

6

Allan R1 Kaufman1995

Stephen R. Kern1995

Brian E. Scott1997

Years indicate the year that dlreuors' terms expire

Roland F. (Guy) King1995

Robert E . Wilcox1997

7

tHoward M . Phillips

1996

Joanne B . AndersonController

Gary D. HendricksDirector

of Government Informationand Chief Etonoriust

Dana H. MurphyEditor, Contingencies

Lauren M, BloomGeneral Counsel

Ken KrehbielAssociate Directorof Communications

Christine E. NickersonDirector,

Standards Programand Director of Operations

8

HEADQUARTERS & STAFF1100 Seventeenth Street N-W, 7th Floor

Washington, DC 20036Telephone (202) 223-8196Facsimile (202) 872-1948

(Eitension numbers are in parentheses)

Joanne B. Anderson (111) Doreen M . Moaning (118)Controller

Michael A. Anzick (138)Ilealth Policy Analyst

Lauren Al . Bloom (131)General Counsel

Christine M . Cassidy (145)Assistant Director of Government Information

Kathleen M. C13t4--Bland (1 12)Staff f Accountant

Pamela S Crumpton 26)(1t Admmtstrator

Thomas C . Griffin (107)AttorneyStaff Attorney

Elizabeth Banks Hartsfield (132)Meetings Assistan t

Gary D. Hendricks (125)Director o f Government Informationand ChiefEconomist

Gwendolyn E Hughes (133)mrltn er

Maria C . Johnson (100)Receptionist, Administrative Assistant

Ken Krehbiel (134)Associate Director of Communications

DianMaryn (127)Mee s Coordinator

Administrative Assistant, Government Info matioi

Dana H . Murphy (146)Editor, Contingencies

Christine 1+; Nickerson (122)Director, Standards Programand Director of Operations

Alberta Osuchukw-u (102)Accounting and Admintstratr'e Assistant

Cheryl Padilla (136)Adnnnistrative/Editorial Assistant

Andrea A. e 116)Administr e snstatrt, Communications

Anne M . Rankin (114)Standards Editor

David F. Rivcra (144)Legislative Assistant, Government Information

Jean K . Rosales (117)Assistant Director of Government Information

Renee Saunders (113)Manager of Publications and Graphic Design

Jeffrey P . Speicher (115)Manager of Member Communications

Rita Hoffman Winkel (135)Legal Assistant

Membership Administration475 North Martingale Road, Suite 800

Schaumhurg, IL 60173Telephone (708) 706-3513Facsimile (708) 706-3599

Susan C . Steinbach, Membership Manager

c,dti . A A4I~ Is'

9

ACADEMY COMMITTEESAcademy committees and task forces are appointed annually, the period running from 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 IV of thebylaws. Ordinarily, it acts only in matters ofurgency and makes recommendations to theBoard of Directors on important matters .

Charles A. BryanPresident

Jack M. TurnquistPresident-Elect

James R. SwensonSecretao y-Treasurer

Howard I'luhrVice President

Paul F. KolkmanVice President

David G . HartmanPast President

John Al, BertkoTice President

David P . FlynnVice President

Charles Bany H. WatsonV we President

Staff Liaison : Executive Vice President,Lauren M . 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 .

Glen M. Gammill, ChairpersonBruce C. Bassman Joan E. Herman

Staff Liaison Gary D . I iendricks

Presidential CommitteesPresident's Advisory Committee

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

Charles A. Bryan, ChanpersonDavid G. Hartman Jack Al . Turnquist

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 tothe Board of Directors .

John H Harding, ChairpersonDavid G . Hartman , Vice Chairperson

Albert J . Beer Jeff FurnishCharles A . Bryan Sam GuttermanMichael E. Callahan Jack M. Turnquist

Staff Iaazrmi . Executive Vice President

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 hemodified under alternative external develop-ments or future changes in the Academy'senvironment .

Jack Nl. 'l urnqui st, ChairpersonAlbert J . Beer Jeff FurnishMichael E. Callahan Sam Gutterman

StaffLiaison Executive Vice President

10

Litigation Review CommitteeThis committee provides broad-based oversightreview of briefs the Academy submits as amicuscnriae to assure that the subject matter is appro-priate for Academy comment, that statementscontained therein do not contradict Academypositions, and that the briefs have been preparedin accord with Academy guidelines . It authorizessubmission of the briefs to the appropriate courts .

Jack M. Turnquist, ChairpersonJohn M. Bertko Paul F . KolkmanHoward Fluhr Charles Barry H WatsonDavid P Flynn

StaffLiaison• Lauren M . Bloom

Financial Reporting Steering CommitteeThis committee serves as a clearinghouse for allfinancial reporting issues affecting the actuarialprofession . It identifies and assigns issues to thecasualty, life, health, and pension financial report-ing committees and maintains general oversightof the committees' efforts It also creates andoversees special cross-disciplinary task forces asnecessary .

Barbara L Snyder, ChairperonLeroy A. Boison Darrell D KnappCharles A. Bryan Ted A. LyleGary Corbett W. James MacGmniticPatrick J. Grannan Heidi Rackley DexterJames E IIohmann Edward S . SihnsLawrence A. Johansen Jack M Turnquist

Staff Liaison Christine E, Nickerson,Gary Hendricks

Committee on Relations with AccountantsThis committee and the parallel AICPA Relationswith Actuaries Committee provide a facility forcommunication between the actuarial and account-ing professions. It develops and maintains cooper-ative relations between actuaries and CPAs,explores areas of mutual concern, and advises theActuarial Standards Board and Academy leadershipand membership of developments in such matters .

Barbara L . Snyder, ChairpersonCharles A. Bryan Lawrence A. JohansenGary Corbett Darrell D . KnappPatrickJ. Grannan Jack M. TurnquistJames E. Hohmann

Staff Liaison. Christine E . Nickerson,Gary Hendricks

Task Force on Insurer SolvencyThis task force assures that the actuarial profes-sion is actively, effectively, and publicly address-ing the issues relating to the solvency of U.S .financial institutions, particularly life, health,and property/casualty insurers .

John H . Harding, ChairpersonWilliam F Bluhm Henry K. KnowltonIIowardJ Bolnick Paul F KolkmanRonald L . Bornhuetter Stephen P. LoweShane A. Chalke James J . MurphyArnold A. Dicke Walter S RuglandCharles F Farr Brian F. ScottHarry D. Garber James R SwensonDavid G. IIartman John G . TurnerFrank S. Irish Michael A. WaltersAllan M. Kaufman

Staff Liaison Gary D . Hendricks

Task Force on Fair ValueJames F. Hohmann, Chairperson

Robert P. Butsic Stephen D. ReddyDouglas G . Dull Robert R . ReitanoC. Phil Elam Richard S RobertsonSholom Feldblum Edward L . RobbinsJacqueline M. Keating David Y . RogersDouglas S. Kolsrud Henry W. SiegelKaren Olsen MacDonald Steven A . SmithS. Michael McLaughlin Barbara L . Snyder

Staff Liaison Gary D . Hendricks

Task Force on ReinsuranceThis task force identifies appropriate issues atboth the federal and state levels that the Academycould/should respond to, prioritizes them, anddevelops appropriate responses consistent with itsresources and schedule . In addition, the task forceconsiders the broad role that the Academy canplay in this area and whether that suggests anongoing committee be established to carry onthat work.

Diane Wallace, ChanpersonKenneth J. Clark Joseph \V. LevinStuart B Grodanz Paul A SchusterMary Rowland Hennessy Lee R. Steeneck

Staff Liaison: Gary D. Hendricks,Jean K . Rosales

II

Casualty Practice CouncilDavid P. Flynn, Vice President

Patrick J . Grannan, Vice ChairpersonAlbert J. Beer Andrew E. KuderaLinda L. Bell Paul G. O'ConnellLeRoy A. Boson, Jr. Richard J. Roth, Jr.Mary Rowland Hennessy Brian E ScottFrederick W. Kilboume Edward C . ShoopFrederick O . Kist William Van Ark

StaffLiaison Gary D. Hendricks

Committee on Property and Liability IssuesThis committee monitors legislative and regula-tory activities in the property and liability area(excluding financial reporting and risk classifica-tion issues) . It prepares statements on propertyand liability issues for submission to the publicand private sectors .

Paul G. O'Connell, ChairpersonThomas L. Ghezzi James D . HurleyMary Rowland Hennessy Pamela Sealand Reale

StaffLiaison : Gary D. Hendricks

Committee on Propertyand Liability Financial Reporting

This committee monitors activities regardingfinancial reporting related to property and liabilityrisks, reviews proposals made by various organiza-tions affecting the actuarial aspects of financialreporting and auditing issues related to propertyand liability risks, and property and liability insur-ance and self-insurance accounting issues .

Patrick J . Grannan, ChairpersonJan A. Lommele, Vice Chairperson

Ralph S . Blanchard III Jay B . MorrowLinda A. Dembiec David S. PowellJanet L. Fagan Sheldon RosenbergRobert W. Gossrow William J. RowlandAlan E. Kaliski Harvey A. ShermanElise C. Liehers Susan T. SzkodaRichard W. Lo Gary G. VenterMichael G. McCarter

StaffLiauon: Jean K. Rosales

Joint Program Committeefor the Casualty Loss Reserve Seminar

This committee develops the program for theCasualty Loss Reserve Seminar .

Andrew E. Kudera, Char personBrian Z. Brown, Vice Chairperson

Betty H. Barrow Gary V. NickersonSteven R. Fallon Joseph L . PetrelliJames M. Foote Diane R . RohnLouise A. Francis Chris M. SucharJeffrey H. Mayer Ronald J. SwanstromStephen T. Morgan Mark E YinglingE. Toni Mulder

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

12

Health Practice CouncilJohn M. Bertko, Vice President

Alice Rosenblatt, Pice ChairpersonWilliam F Bluhm Nancy F . NelsonHoward J . Bolnick Paul G O'ConnellAlan D. Ford Peter L . PerkinsHarry D Garber Jeffrey P. PetertilJoan E, Herman Julia T . PhilipsRoland E. (Guy) King Harry L. Sutton, Jr .Darrell D. Knapp James J . WatersTed A. Lyle David W. WilleBartley L. MMunson Robert F Wilcox

Staffj Liaison Michael A Anzick

Committee on Federal HealthThis committee furthers the actuarial profes-sion's involvement in policy issues related to thedesign, cost, and financing of the nation's healthcare . The committee monitors federal legislativeand regulatory activities in the health arena andprepares congressional testimony, positionpapers, and other public statements on keyhealth issues . In addition, the committee meetsformally and informally with senior federalhealth policy makers and their staffs . Issues onspecialty subjects may he referred to an appro-priate work group under the direct supervisionof the Health Practice Council

Stephen D . Brink, ChairpersonStephanie Aldrich Hartley L MunsonRobert C Benedict Mark D PeavyAlfred A. Bingham. Jr . Geoffrey C . SandlerAllen Feezor John J . SchubertAlan D. Ford David A . Shea, JrDonato Gasparro Gerald R. SheaJames Gutterman Harry L . Sutton, JrEdwin C. Hustead Sheree SwansonDavid E. Kerr Michael J. ThompsonRoland E . (Guy) King Jean H. WalkerPhilip j Lehpamer William C WellerWalter T . Liptak Jerome WinkelstemStephen A. Meskin Norman J . 'twitter

Staff Liaison- Michael A. Anzick

Committee on Long-term Care'1 his committee addresses actuarial issues affect-ing long-term- care plans . It monitors and com-ments on developments in this area at both thefederal and state levels and works with regulatorsand policy makers to assist in developing publicpolicies in connection with long-term-careinsurance policies . In fulfilling its charge, thecommittee maintains liaison with the NationalAssociation of Insurance Commissioners andother appropriate entities .

Bartley L . Munson, ChairpersonHarold L . Barney, Vice Chauaperson

Vincent L Bodnar Dennis DewittMalcolin A. Cheung Eric Stallard

Staff Liaison : Michael A. Anzick

Committee on State HealthThis committee furthers the actuarial profes-ston's involvement in policy issues related tostate regulation of health insurance and otherhealth actuarial issues at the state level . Thecommittee works primarily through interstateassociations such as the National Association ofInsurance Commissioners but also provides assis-tance directly to states when appropriate . Thecommittee coordinates closely with the FederalHealth Committee to assure appropriateAcademy mtulvcmcnt in health-related issues atall levels of government .

William F Bluhm, ChaarperconPeter L. Perk-ins, Vice Chairperson

Subcommittee on State Health InitiativesAlan D . Ford, CL+arrperson

Robert B Cumming Donna C . NovakP. Anthony Hammond Dorothy PetersenDavid E Kerr James R SwensonLeonard Koloms .Michael J. ThompsonS. Michael iMcLaughlm William J. Thompson

Staff Liaison Christine iMI Cassidy

Subcommittee on NAIC LiaisonDarrell D . Knapp, Chairpermn

Robert W Beal David W LibbeyRobert C . Benedict Steven E . LippaiC. Nick Bieter Robert G McilanderApril Choi Donna C . NovakP Anthony Hammond Robert E . WilcoxLeonard Koloms Robert K Yee

Sraff Liaison . Christine M . Cassidy

13

Life Practic e CouncilPaul F . Kolkman, Vice PresidentRandall P . Mire, !,ice Chairperson

David J . Christianson Frank S . IrishShane A. Chalke Richard S . RobertsonDonna R. Claire Edward S. SumsArnold A. Dicke Barbara L . SnyderGlen M. Gamnull Diane WallaceLarry N1 . Gorski P. Andrew WareJoan E. Herman Robert E WilcoxJames F. Hohniann

Staff Liaison : Jean K. Rosales

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 .

David J . Christianson, ChairpersonRonald 1 . Recker Dennis T . McNeeseCecil D, Bykerk Kenneth P QumtihanJoan E. Herman Edward C. ShoopJames H. Keller Irwin J . StrickerMark E. Litow Karen TerryMichael F. Manning Richard G. Well

Staff f Liaison . Jean K. Rosales

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, ChairpersonRandall P. Mire. Vice Chairperson

William Carroll Craig R. RaymondDonna R Claire Jeffrey S SchlingsugFrank P. Dino Jack SeigelMichael J. Hambro Dennis L . StanleyJames E, Pozzi Joseph H Tan

Staff Liaison . Jean K. Rosales

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 recummendations on life and healthinsurance accounting issues .

James E. Hohmann, ChaiiperssnEdward L. Robbins, Vice Chairperson

Donna R. Claire Anthony T SpanoAndrew R. Creighton Frank WV. PodrebaracScott H. DeLong III Meredith A RatalczakJames P. Greaton Donald E. SanningLeonard Kuloins Eric R . SchueringLouis J. Lombardi Henry W. SiegelMichael O'Connor James D. WallaceStephen N . Pat/man

Staff Liaison . Jean K. Rosales

Liaison Memberon the Credit Insurance Experience Committee

of the Society of ActuariesWilliam C. Meyer, Jr .

14

Pension Practice CouncilHoward Fluhr, Vice President

Ronald Gebhardtsbauer, Vice ChairpersonTwila Bastian Howard M . PhillipsEdward E. Burrows Kenneth W . PorterMichael F Callahan Heidi Rackley DexterLawrence A Johansen Gregg P . RichterSteven R. Kern Lawrence J . ScherMark V Mactus John C . WillunNeil A. Parmenter Larry D . Zimpleman

Staff Liaison . Christine M Cassidy

Pension CommitteeThis committee addresses actuarial issues affect-ing public and private pension plans . The com-mittee monitors federal tax, PBGC, and otherERISA-related developments . It consults withCongress and relevant regulatory agencies on theeffect of regulation on employer pensions andretirement security and comments on pendinglegislation and regulations .

Gregg P. Richter, ChairpersonRichard J Barney Samuel S . Lyons, Jr .Frederick B Bass Franklin D, PendletonEdward E . Burrows A. Frederick Rohlfs, Jr .Lawrence Deutsch Richard G . SchreitmuellcrDavid P. Fnedlander Donald J . SegalRonald Gebhardtsbauer William J . SohnAllen Gorrelick Robert D . SteinhnrnSteven J. Haas Michael E . SwiecickiLawrence A . Johansen James E. TurpinDavid R. Kass James F . VerlautzEthan E Kra Lane B . WestWilliam N. Kuendig II Wallace W. Wilson

Staff Liaison . Christine M . Cassidy

Committee on Pension AccountingThis committee monitors activities and reviewsproposals regarding financial reporting related topension plans . The committee is generallyresponsible for analysis and recommendations onpension accounting issues .

Lawrence A . Johansen, ChairpersonPaul W. Barker Jane D. PacelliMark G. Beilke Robert D. SteinhornSteven Bland Joseph P. StrazemskiBenjamin I. Gottlieb Stanley H. TannebaumJames M. Jackson Henry N. Winslow

StaffLiatson : Christine M. Cassidy

Committee on Social InsuranceThis committee provides and promotes actuarialreviews and analyses of US social insurance sys-tems. The committee prepares comments onpending legislation regarding federal social insur-ance programs and government reports on theseprograms

John C Wilkin, ChairpersonJames A. Beirne Gregory J. SavordStephen C. Goss Bruce D. SchobelBenjamin I. Gottlieh Ronald L. SolomonEdwin C. Hustead

Staff Liaison- Michael A Anzick

Task Force on Trendsin Retirement Income Security

This task force is charged with studying trends mretirement income with the emphasis on thelonger-term future . The task force will report itsfindings regarding the outlook of retirementincome security and make recommendations .

Larry D Zimpleman, ChairpersonEdward E. Burrows Stanley C . SamplesRobert Clark Fred IV. MunzenmaierMark 'I'. Ruloff Sheila R Zedlewski

Staff Liaison . Christine M . Cassidy

15

Joint Program Committeefor the Enrolled Actuaries Meeting

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

Law rcnce J . Sher, ChairpersonBarbara Blatt Kalben, [ice Charrpervin

Twila Bastian William D . PartridgeBetty Berni Eugene SchlossWilliam P. Fornia Donald J . SegalAlbert J . Klemherg Peter D VerneErie P. Larson Richard A WattsJeffrey A . Levy Vickie N WilliamsNeil A. Parmenter

Staff Liaison, Christine E Nickerson,Gjwendolyn E . Hughes

Council on ProfessionalismCharles Barry H. Watson, hrhe President

VincentAmoroso Edwin C HusteadLinden N. Cole Robert B. LikinsGary Coihett Mary Frances MillerA Norman Crowder III Jeffrey P PetertilJohn A Fibiger Howard M . PhilhpsJohn H. Harding Donald F. SanningKenneth W . Hartwell Alfred O. WellerCurtis E Huntington

Staff Lianwi Lauren M Bloom,Christine E . Nickerson

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 standai ds for accreditation .

Curtis E Huntington, ChairpersonAllan D. Affleck Bruce D MooreCharles Greeley James N . StanardHeidi E Nutter James A . TillcyHarold G. Ingraham, Jr. J Philip Turner1N James iMacGinmtie James IN' Yow

Stef fl .urtwrr Lauren M . Bloom

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 .

Kenneth `V Hartwcll, LbairpersonRichard A. Block James A MilesSue Ann Collins David S . PowellRobert B Crompton !Ulan W RyanThomas K. Curtis Donald E. SanningRobert H . Di eyei John «' C StarkRussell S Fisher Jerome M. SteinW James MacGinnine Wallace W WilsonEdward F . McKernan

Staff Liaison Christine F . Nickerson

16

Committee on QualificationsThis committee investigates issues arising withrespect to the minimum requirements necessaryto qualify members to perform publicly requiredactuarial functions, recommends to the Board ofDirectors minimum qualification standards(including continuing education requirements)for such members, and counsels members onquestions relating to individual qualifications . Italso develops guidelines for the administration ofthe Academy qualification standards (includingcontinuing education requirements) .

Robert B Lik-ins, Jr , ChairpersonRuth F. Frew Raymond F. McCaskeyBrian A. Jones Charles I .. McClenahanJames L Lewis, Jr. Stephen A. MeskinDaniel j McCarthy Terrence M. O'Brien

Staff I.iaio n. Lauren M. Bloom

Task Force on Professionalism CourseDonald E . Sannmg, Chairperson

Nancy A. Behrens Mary Frances MillerRichard A. Block David S . PowellLinden N. Cole Jerome M. Stein11' James MacGinnitie

Staff Liason Christine F Nickerson

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 Benjamin I. GottliebJohn K. Booth Nancy H . KichakWilham Carmello Michael W. .MorganKevin J. Conley

Staff} Liaison. Christine M. Cassidy,Thomas C. Gnffin

Liaison Memberon the Education & Management Committee

of the Society of ActuariesDaniel J . McCarthy

Liaison Memberon the Education Policy Committee

of the Casualty Actuarial SocietyJerome A. Degerness

17

Committees Under the Supervisionof the Secretary-Treasurer

James R. Swenson, Sen-etary-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 he implementedby the Secretary-Treasurer

James R, Swenson, ChairpersonBruce C. Bassman Stephen R. KernWilliam F. Bluhm Roland E. (Guy) King

Staff Liaison Joanne B. Anderson

Communications CommitteesKrenrtive !ice President

Committee on Publications'I'bis committee provides policy direction andguidance for Academy publications

E. Toni Mulder, Chanpcrson

The .actuarial UpdateAdam Reese, Editor

Associate Editors\i'o liam Carroll Patrick J . GrannanRonald Gebhardtsbauer

Enrolled Actuaries ReportRichard G . Schreitmueller, Editor

Associate EditorsJohn W. Atteridg Donald J . SegalJames A. Kenney James E .TurpmAdnen R. LaBombarde

Staff Liaison . Ken Krehbiel,Jeffrey P. Speicher

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

E. Toni Mulder, ChairpersonHarold J . Brownlee Julia T . PhilipsCurtis E Huntington Richard S . RobertsonFrederick W. Kilbourne Bruce D . SchohelCraig A. Olney Vlavis . Falters

Department EditorsArthur W. Anderson Ken KrehhielThomas L. Bakos W. Keith SloanRalph E. Edwards Jeffrey P SpeicherYves G. Gucrard

Staff Liaison Dana H Murphy

18

Advisory Group for Forecast 2000This group of representatives from all Foiccast2000 sponsoring organizations advises public rela-tions staff on the course of the program, reviewsresults, and makes recommendations to theCouncil of Presidents,

Executive Vice President, ChanpersonPaul H. Abbott, Jr., Anthony T. Spano,ASPA SO_A

Robert L . Brown, Nlavis A. Walters,CIA CAS

Frederick W . Kilbourne,CCA

Staff Iaarron . Ken Krehbicl

Liaison Memberon the Public Relations Committee

of the Society of ActuariesAnthony P1'. Spano

Joint CommitteesCouncil of Presidents

This is an informal body established to coordinateactivities of the actuarial organizations on this conti-nent and to address professional questions .

Larry D Baber, CCA Allan M . Kaufman, CASAlbert J. Beer, CAS Stephen R Kern, ASPABarnet N. Bern, SOA Hector H . Llamas,Charles A. Bryan, AAA CONACMichael E. Callahan, ASPAJose Luis Salas . CONACMarc J. Fernet, CIA Kurt K vnn Schilling,Jeff Furnish, CCA CIASam Gutterman , SOA Jack Al . Turnquist, AAA

Council of Presidents Task Forceon the Working AgreementRuth F Frew, Facilitator

Albert J. Beer Sam GuttermanMichael E. Callahan Jose Luis SalasMarc J. Fernet Jack M, TurnquistJeff Furnish

Staff Liaison James H. Tinsley

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 is authorized : ( 1) to consider all complaints and/or ques-dons 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) toserve as ombudsman between members of participating actuarial organizations , or between such mem-bers and the public, for the purpose of informally resolving complaints concerning the professional con-duct of such members .

ACTUARIAL BoARnFOR COUNSELING & DISCIPLINEA. Norman Crowder III, ChairpersonDaphne D. Bartlett, Vice Chairperson

Walter J . Fitzgibbon, Jr., Vice ChairpersonAlan N. Ferguson Joseph J. LeubeDavid L. Hewitt Kenneth W. PorterHenry K. Knowlton Jerome A. Scheibl

Staff Liaison : Lauren M. Bloom,Thomas C . Griffin

20

ACTUARIAL STANDARDS BOARD& COMMITTEES

The Actuarial Standards Board (ASB) was established as an independent entity within the Academy onJuly 1, 1988. The ASS 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 toapprove exposure of proposed standards and public hearings on them, and to adopt recommended stan-dards of practice .

The ASB is charged: (1) to direct and manage the development of actuarial standards of practice byits operating committees in all areas of actuarial practice ; (2) to expose, promulgate or adopt, and pub-lish actuarial standards of practice, within its sole discretion and pursuant to such procedures as it deemsappropriate, in all areas of actuarial practice ; and (3) to provide continuous review of existing standardsof practice and determine whether they are in need of amendment, alteration, expansion, or elimination .

AcTuARIAt, STANDARDS BoAxnGary Corbett, Chairperson

Frederick W. Kilbourne, Vice ChairpersonDaniel J . McCarthy, f 'ire Chairperson

Phillip N. Ben-Zvi Frank S . IrishEdward E. Burrows Richard S. RobertsonHarper L . Garrett, Jr. Harry L. Sutton, Jr .

Staff Liaison: Christine E . Nickerson,Anne M. Rank-in

Casualty Committee of the ASBIn accordance with procedures prescribed by theActuarial Standards Board, this committee devel-ops actuarial standards of practice in the proper-ty/casualty insurance area .

Subcommittee on RateniakingGary Grant, Chairperson

Subcommittee on ReservingMartin Adler, Chairperson

LeRo A Boison Jr Chair ersony . , ., pMartin Adler Bertram A. Horowitz Task Force on Rate of ReturnDouglas J. CollinsF d k C i

R. Michael LambS

Mark Whitman, Chairpersonre eric r pe tuart N. Lerwick David Appel Claus S. MetznerDaniel J, Flaherty Robert J . Lindquist Robert A . Bailey Michael J. MillerEdward Ford Robert S . Miccolis Robert P. Butsic Richard G WollSpencer M. Gluck Marc B. Pearl Steven G . Lehmann

.

Robert W, Gossrow Patricia A. TeufelDavid J. Grady Mark WhitmanGary Grant Paul E, Wulterkens Task Force on ReinsuranceF. LeRoy Heer Douglas J . Collins. Chairperson

Richard M. Beverage Gary K RansomJames A . Hall III

21

Task Force on Risk MarginsSpencer M Gluck, Chairperson

Ralph S . Blanchard III Roger M. HaynePaul Braithwaite Thomas J . KozikRobert P . Butsic Stephen P . LoweLinda A. Dembiec Lewis H . Roberts

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

Heidi Rackley Dexter, ChairpersonSteven I . A] in Lawrence J . SherRichard Berger Kenneth A . SteinerC. David Gustafson Lee j Trad

Health Committee of the ASB Norman L. Jones James E. TurpinIn accordance with procedures prescribed by the James Laws Richard Q. WendtActuarial Standards Board , this committee developsactuarial standards of practice in the health field .

Ted A. Lyle, ChairpersonRobert M Duncan, Jr. Mark D PeavyRobert J . Ingram John A. PriceWilliam H Odel] Richard j SheplcrDavid l' Ogden Joe P. Sternfeld

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 .

Edward S . Silins, Chairper.naiDonald F. Behan Walter N. MillerRobert M Beucrlem Lew NathanEdward B Eiffel Frederick J . SievertWilliam Koenig Thaddeus W. TrentonRichard S. Miller Michael L. Zurcher

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

Bartley L. Munson, Chairperson

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 .

Charles E Farr, ChairpersonRobert B. Cumming Henry W, SiegelJanet L. Fagan James E. Turpm

22

PAST OFfICERS1965 .116 196/1-T7

1 11N

1-112 15X2-XI

Herrn F Rural Put riJ'ni IhomaSE AIuntn SS'illiarnA Ilalr orson lhnrdt nt P Adger R511umsI hnmas E \hunn Pi orient-Flat John H Miller P -Ldger R-dhams Pin'elmrr- Um I Normtn ( rowder IIII rant I Gadlenc I re Prertd, ecr I rank j Grdtent a Norman I rnwder ITT 1 u . Prer,Jrst. Davul R C. rrpenrerLmrutce H Lamglcr-Ceok Lauteuee It Lteigu t-Cook Bartle yC A1.-nn S'dhamA FergusonJohn I I Miller H Rat mood Strung D.aVLd R Carpcntcr ]nhn A FibigcrH Rttrnond Strong And", C Alehster l\'ilham A Fergrnon S',dterS Rug] aid(surge ai Bnce Seciitccn Norton L Sla=tctson ( arl R C)hntan Sroettn Carl R OhmanRobert h Bruce T-.- Rnhert F Better A' JanreuMac(rnrmnc T"o"m- S4 I ones M,urA, mmue

"167-65 1968--"

9 1981-8T 19X45 FJohn II Stiller F,-d-, A'emlcll ALlhman a Nuntrau Cruwder III Pr unlertt \ l Stanley HughctIV-dell Ahllnnau P a rdret-Elect Walt,, I . Rughnd Al Sttnlet Ileghsv P.errdent- Elrc' Btrtkt L Alun,onEdw trd D Bruttn. Jr A,,e Pm,Jrm Fist trd H Braun, Ir Jnh,,A Ftbtgcr I ass t'•e¢drea M-1 G HarnnanW,lfi- J T-11,, T, ASlhaer 1 Leshe, Jr \t altar S Rughnd Dated M ReadeFtankJ Gadient Paul T Rnttcr Dnil G Hart nan HirnldJ Bur,rnloeAllenL \latcrson Harold V. -hl- DterI Al Rerde Carl R Oh-anN."- L Masters- Se tear Norton F Mast-u11 Carl K Oluuan S"', NO Robert H DohsonRobot L Bnice Treucurr + Robert It Bruce Burton I) -la) T--- Burton D jai

leld) "t) 177(1 71 1995-g6 19X(_8711 alterL Rughnd 11, "d- H Raymond brining Bards L ,\Tunsun Prexdeet Presnue C : BassettH Rat anmd Strong Tr n,dent-L'hit RobertJ Xlivrs Preston C . Bassett P, r<ulent- Elnt John a FibtgerPaul T Rector ft,, Prutdents Donald F C rmphc1l H irold I Brnw'nkc [nr !'rendrnr kdw ardH InendHarold SS ',,hl .,, John K Dice Fdw and ll Fnemi AV Jan- NI-C-11111c

Donald F C amphell Harold L Cur, l\' James MacGmnnit Burton D JaiRobert J Slvers Morton D Miller Carl F Ohnian SIar r, A St alrcrsNorton F Maseerson Seleraey Wdham A Fl rlvursun Rnhert T-I Dnbson Scoetmy Rularr I I DolnnnRnhert F Bruce Treawrrr Rubett h Bruce Burton D Jac Tnrrner DanielJ \lcCarthi

1071-72 19-2--7i 19811-A~1RobsrtJ Allsrs Pr„e leer MurmnD ALller IahnS Fthtger Prruient A- James afar GmnrneMeant. D \hour Pr rid. er-Eteri LrnestJ dour head AV James ialacdumrtre /-Ass Blurt-Lied Ilaraid I Br rrynleeI larnld E Cur" I -nr P- rderrtr Robert E Prose Phttbp N Ben-Zit T'- Psrctdrtt, Plullip N Bcn-ZvtFrnsstJ bloencud I uhns Vogel E- L) /at Hoper L (--t j,Robert F Brier Reuben I Jaurbstur Joseph J Swhl II John H Hardnglupus Vugel Daniel T Alclamara Mans A Walter' JnsephJ StahlIl''dhamA Hahnr , on Sratrmt Wdham_1 ] lahnrsnn Virgil D t1'tgner S,nrtrny lSrgd U N'rgmerDilc R C ,rntafwu Treanae, Dale R Gustafson Dame1J AIuCaitht Fxn,n+e+ DamelJ \hCarthv

1573-'3 1973-7 5 IaI% r+() 190(1-5tFrntstJ Aloorheiii Piendutr DinislJ Me\ antara HarotdJ Brncynkc Ptm ideu• A1ty--S A Walter,DamrlJ AleNanrara P+eerU,nr- Ffe r Thnmss P R-1-, lr ATacis a SV'alrers Pt r,+derrr- Flirt If .. .. D ( earlierA-dltane A Hahoron I-,,, Pr, eIents Richard L John Ilarn- D Gancx r IArePrt .mtetc Robert II DuhsonReuben I Jacob.-n Robert C 1S'mtcrs Harper L Garrote, It Charier I FarrI homa ; P Baules, Ir Flute F Roynrnn John H Hardng I] uuel J All( anthyRshaid L Juhe Kenneth H Kurt Damt1J McCartlrs ahchael A A titers'Valter S Rugtand Seen tdrrry Walter S Rugland Vigil D kVagner Si,remrv Richard H SnaderDole R Gnsrafsnn Trrurerrr Dale R Gusrtfion Thomas D L,- T erc.rrnr 'I h, -uus D Lev}

1971 76 1977' t991-92 1ti92-`1TThorn rs P Boules, -Ir P•urderr + Robert C lVmter, Harry D Gather PA, ardent J ohn H HardingRnbcr.C SVmtcrs Pre , rdc,rr- Elecr LdimF Royrtron John H Hardng Pr ear, et - Fleet David C, HarrmanFdwm F Bnynnm f"" Pr-d""' Dale R Gusrafson Rub,.rH Dobsun [1te Y+evdn~t, Howard J BolntekKenneth II Ross At Stanlci Hughe} R Stephen Radchlte Stephen P LoweDale R Gustafson Ronald I Bomhnerter Richard H Snader Walter K ATdlerAI Sranlet Heghev Louis Ciartin ALchacl A Halters RichanlIf SnaderWalter S Rugland S '-t." Ralph F Ed nards Larn D Zimpteman Larn D Zimplemanlam e' O 11 ebb 1--, James O Wehh I homas D Leery Sartmr~ -7rrauerrr James R Swensnn

1977-7X Iu7 9-79 1991-9&F'dwm F Bwnton Preudent Dale R Gustalsun David G I Iartman Pr-dentDale R Gustafeon President-Ela'r Ronald L Bnrnhnceter Charles a Bryan Pvertdetrr-E/.rrRnnzld I Burnhuerrer l ice Prendert_c Presrun C Bassett HtmardJ Bi,lmrk bi.e PrerrdemnLocus Garln Charles C I Icwitt, Jr Howard l'luhrPreston C Bassett Herbert L DcPrcnger Pattl I- KnikmanCharles C Fervor, Jr A'attce L Grace Stephen P LitterDwight K , Bartlett III Seaetart Dwight K Bartlett III Jack l,l TurnquistJames O Wehb T, eartnee Kcvm,at Riar James R S wtn9nn Sen erlr] - l,farnm

1979-gn 19811-41Ronald L Bumhuetrer Prc,rdrnt Walter L GraceWalter L Grace 19 errient-Elete William A HalvorsonMary H Adam ; I'rrc' Prerrdeec Rrrhard S ReberrynnHerberoL DePrenget P Adger A'tlhamsRichard S Robertson A Norman Crowder IIIP Adger Adhams

B H A'atsCharl n 5 r turBarrlevL MunsonChar I B H ..'arsones o

Kevin M Ryanrr e y

Treasurern

Kevin 41 Ryan

23

JARVIS PARLEY SERVICE AWARDIn 1991, the Academy established a perpetualaward to honor the memory of one of its long-time, indefatigable volunteers . Jarvis Farley wasa charter member of the Academy and an invalu-able resource for Academy staff and the entireactuarial profession . His untiring volunteerwork for the Academy epitomized the caliber ofservice to be honored by this award He beganserving on Academy committees in 1972 andcontinued until his death in 1991 .

The Academy Executive Committee eachyear will select the Jarvis Farley Service Awardrecipient, if it determines there is a deserving

candidate . The recipients are announced andhonored at the Academy's Annual Meeting . Eachhonoree receives an engraved pewter Paul Reverebowl, custom designed by Kirk Stieff. A slightlylarger , permanent bowl, engraved with the nameof each recipient, is displayed at the Academy .

Jarvis Farley Service Award Recipients

1992 Mary Hardiman Adams1993 Jerome A. Scheibl1994 Douglas C. Borton

ROBERT J . MYERS PUBLIC SERVICE AWARDIn 1994, the Academy, through its Committee onActuarial Public Service, established the Robert J .Myers Public Service Award to recognize theextraordinary lifelong public service of Robert J .Myers, who was chief actuary for the SocialSecurity Administration from 1947 to 1970 .

The exceptional career of Myers was recog-nized with the public announcement of theaward at the Academy's Annual Meeting inWashington, D .C ., on September 28. Myers wasinstrumental in the design and funding of theSocial Security system and worked for the SocialSecurity Administration for some thirty-fiveyears . Although political pressure often conflict-ed with his professional responsibilities, Myersnever veered from a path of professional integri-ty. He continues to command respect within andoutside the profession , and he remains an inspi-ration to all practicing actuaries .

Recipients of the Robert J Myers PublicService Award will he selected through theCommittee on Actuarial Public Service on thebasis of their contributions to the common goodthrough service to the government or otherorganizations in the public sphere . While hon-oring individual recipients, the award will alsocall attention to the significant benefits the gen-eral public receives from the actuarialprofession .

A specially designed medal was presented toMr. Myers at the award 's inauguration . The per-manent medal is mounted on a custom-designedpedestal and displayed at the Academy office inWashington . Future recipients will receiveengraved medals, and their names will beengraved on the base of the permanent medal atthe Academy.

24

HISTORYOn October 25, 1965, the American

Academy 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 U .S . 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 organizationsand that the National Fraternal Congress hadincreasingly been providing a forum for fraternalactuaries .

In 1990, the Academy Board of Directorsestablished four practice councils to representthe major areas of actuarial practice-casualty,health, life, and pensions. In 1992, the Councilon Professionalism was created to oversee theAcademy's responsibility to set and maintainprofessional standards. Each council has broadauthority to set its practice area's public policyagenda, specific policy initiatives are carried outby Academy committees that report to the prac-tice councils .

The five councils are headed by vice presi-dents, who together with the president, presi-dent-elect, immediate past president, and secre-tary-treasurer, comprise the Academy's executivecommittee .

In 1994, the Academy Board of Directorsapproved a strategic plan for 1994-2000 and anew mission statement emphasizing theAcademy's roles in public policy formulation andprofessionalism . The Academy's mission is toensure that the American public recognizes andbenefits from the expertise of the actuarial pro-fession through ( 1) its members ' contributions topublic policy formulation and (2) conscientiousdischarge of its members' responsibilities inaccordance with professional standards .

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 indicatedassent 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 of Actuaries.This class consisted of nonmembers of theAcademy who became enrolled actuaries underthe Employee Retirement Income Security Act of1974 (ERISA), subject to acceptance of theirapplications by the Academy Subsequently, inJanuary 1979, the bylaws were further amended toeliminate 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 of

25

Actuaries or that required for status as an enrolledactuary under ERISA.

Nonresidents of the United States can headmitted to membership if they meet theAcademy's educational and experience standards,can demonstrate familiarity with U S . actuarialpractices, and have a need to perform actuarialduties 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 Forceon 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 effective January 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 standards ofpractice, as promulgated by the ActuarialStandards Board, and by qualification standards,adopted by the American Academy of Actuaries .The Code has been adopted in substantially simi-lar form by all the professional societies represent-ing actuaries in the United States and Canada,umung the profession 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, investi-gating charges, and proposing disciplinary mea-sures rested with the Committee on DisciplineLargely because duplications of effort by the disci-plinary committees of the various actuarial orga-

niiations frustrated effective discipline, and also asa result of the adoption by all actuarial organw.a-dons of a common Codc 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 actuaial organization that delegates inves-tigative authority to the ABCD The Academyand other organizations have delegated suchauthority . For those activities that in the opinionof the ABCD do not merit public disripluie, orin response to actuaries' requests for guidance,actuaries will be counseled privately and assistedin complying with the requirements of the Codeof Professional Conduct, qualification standards,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 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 he knowledgeable about andabide by these pronouncements

Legal Recognitionin December 1966, the National Association ofInsurance Commissioners (NA-IC) 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 msur-

26

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-anes 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 actu-aries was spelled out by a new requirement thatthe actuary 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 be met .

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

In 1990, at the urging of the Academy, theNAIL 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 as amember of the Casualty Actuarial Society, or oth-erwise approved by the domiciliary commissioner

In 1983, :3 statement of actuarial opinion sim-ilar 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, and for the qualifications of actuar-ies 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 . This 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 activity.The guidelines were updated in 1Q93 .

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 19712, 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) . A majorstep to increase the value and influence of theAcademy was taken in January 1976 when theAcademy became headquartered in Washington,D C The Washington office is responsible forall staff fimctions other than those related to themembership database, which remain inSchaumburg

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 . In 1995, the Academy annualmeeting will be held in October, in conjunctionwith the annual meeting of the Society ofActuaries . In the spring, the Academy will spon-sor a public policy briefing, featuring a promi-nent Washington policymaker as luncheonspeaker. Since 1976, the Academy and theConference of Actuaries in Public Practice (sincerenamed the Conference of ConsultingActuaries) have cosponsored the EnrolledActuaries Meeting; in 1989, the Society of

27

Actuaries 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, spon-sored jointly by the Academy, the CasualtyActuarial Society, and the Conference ofConsulting Actuaries . The seminars are of par-ticular interest to property/casualty actuaries andloss reserve specialists .

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, andAcademy staff, as well as such material as bylawsand application for admission to the organization .

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 1987), a statusreport on various standards projects andActuarial Standards Board news . In addition, theEnrolled 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,and annual reports for the Actuarial StandardsBoard and the Actuarial Board for Counselingand Discipline . June 1989 saw the premiere ofContingencies, a four-color, bimonthly magazinewith advertising, aimed at both actuarial andnon-actuarial audiences .

STRATEGIC PLAN 1995-2000In 1994, the American Academy of Actuariesundertook a strategic planning process guided bykey professional, membership, and organization-al issues . These issues, explicitly stated withinthe strategic plan, are the foundation for all theAcademy's activities .

Mission StatementThe strategic mission of the Academy articulatesthe Academy's purpose and highlights the basicvalue of the Academy to the profession . Thestrategic mission of the American Academy ofActuaries for 1995-2000 is

To ensure that the American public rec-ognizes and benefits from (1) the indepen-dent expertise of the actuarial profession inthe formulation of public policy, and (2) theadherence of actuaries to high professionalstandards in discharging their responsibilities .

General ObjectivesThe Academy' s purpose is expressed in thestrategic plan's general objectives . Through

these general objectives, the Academy deter-mines its strategic priorities .

1 . Public Policy Interface Represent the actuarialprofession before public policy makers and thefinance and business community on issues ofpublic policy.

2 . Professionalism. Establish, promote, maintain,and enforce professionwide standards of practice,conduct, and qualification.

3 . Organizational Relationships Establish andmaintain strong relationships with professionaland other organizations whose actions affectactuaries and the profession .

4. Communications Promote and support com-munications on public policy issues and profes-sionalism to public policy makers, the financeand business community, the media, and the pro-fession itself; inform the profession about theAcademy activities .

5 . Resources. Obtain and manage adequateresources to fulfill the Academy's strategic mis-sion and general objectives .

28

BYLAWS OF THE AMERICAN ACADEMYOF ACTUARIES

A CORPORATION ORGANIZED UNDER THEILLINOIS GENERAL NOT FOR PROFIT CORPOR.9TION ACT(ADOPTED APRIL 29, 1966, AND LAST AMENDED 1N 1993)

Article IMembership

SECTION 1 . Members . Individuals havingmembership in the Academy shall be called"members."

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.

acter or professional integrity, the candidate mayappeal to the Board . The procedures for the con-duct of such appeal shall be as prescribed by theBoard .

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.

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

must submit a written application that shallinclude a resumd 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 examina-tions prescribed from time to time by the Boardof Directors, hereinafter called the "Board ."

C. Erpetnnce. Each candidate must, at the dateof application, have had at least three years ofexperience in responsible actuarial work ."Responsible actuarial work" is defined as workthat has required knowledge and skill in solvingpractical actuarial problems in any of the followingfields : life and health insurance involving individu-al policies, group insurance, social insurance, pen-sions, or property and liability insurance.D. References Evidence of character and pro-

fessional mtegnty of the candidate shall have beendeduced by references from two members whohave known the candidate for at least eighteenmonths or from other sources . If the application isrejected on the basis of evidence of lack of char-

Article HMeetings of the Members

There shall he an annual meeting of the mem-bers 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 I IBoard of Directors

SECT ION 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 OfficeA. Special Directors . The Board shall desig-

nate a number of seats on the Board, not toexceed eight, to he filled by a class of specialDirectors consisting of representatives of otherU.S . actuarial organizations whose presence onthe Board is deemed helpful to the Academy .Special Directors shall he elected by majority

29

vote of the whole Board and shall serve for a peri-od of twa years. If a vacancy occurs among thespecial Directors . the vacancy may be filled forthe remainder of the unexpired terns by majorityvote of the whole Board . The term of office of aspecial 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 special Director was elected

B. Regular Directovs Directors who are notspecial Directors shall be regular Directors .Each year the members shall elect a number ofregular Directors to bring the total number ofDirectors to eighteen . Candidates receiving thegreatest number of votes shall be elected, Suchregular Directors shall serve for a period of threeyears . A retiring regular Director, other thanone who was elected to fill a vacancy, whoseterm as a regular Director expires shall not beeligible for re-election as a regular Director atthat time . A Past President whose ex officiomembership on the Board as Past Presidentexpires shall not be eligible for election as a reg-ular Director at that time . If a vacancy occursamong the regular Directors, including a vacan-cy created by the election of a regular Directorto an office or to the position of special Director,the vacancy may be filled for the reminder ofthe unexpired term by majority 'dote of the wholeBoard. The term of office o( a regular Directorshall begin at the close of the annual meeting ofthe Academy in the calendar year of the electionand shall continue until the close of the annualmeeting at the end of the terns for which theregular Director was elected

SECTION 3 . Mcetingc 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 thirty days before themeeting, except in the event of a meeting of theBoard following the annual meeting of theAcademy, in which event newly elected Directors

shall 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 he 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 . Ditties and Pozreis 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 theAcademy. Without prejudice to the generalpowers so conferred, the Board shall have thefollowing specific pow ers

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

(h) 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 presciibe examinations and otherrequirements for admission, as piovided inAincle 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 comprisingthe 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 (h), (d), (e), (f), and(g) in Section 5 of Article III .

30

Article VOfficers

SltC'I'ION I Officer, 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 . Ateach annual meeting of the Board, the Directorspresent, by a vote of a ma)ority of the wholeBoard, shall elect, separately and in the ordernamed, a President-Elect, two or more VicePresidents, 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 of (h) the office ofthe 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 twoyears. At the first annual meeting of the Boardfollowing adoption of this provision, three Vice

Presidents shall he 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 he 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 m the office of ' ;ice President,the Board may elect a replacement for theremainder of the vacancy of that office . Saidreplacement may thereafter be eligible fur 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 retiringPresident shall thereafter be permanently ineligi-ble 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 malonty rote of the whole Board elect amember to fill the vacancy for the unexpiredterm of the President,

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

SECTION 2. President - Elect The President-I• .lect shall have such duties as may he assigned by

31

the 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 dudes of the President's office .

SECTION 3 . Eke Presidents. Each of the 'LicePresidents 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 thepreparation 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 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 pro-vided, each member shall pay such dues for eachcalendar 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 arepayable, any member who has become totallydisabled or who, having 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 (a) is expected to earn no significantincome for the calendar year from actuarialactivities, and (b) is within a class of memberseligible for dues waiver as determined by theBoard shall he granted exemption from the pay-ment of dues by the Executive Committee .

It shall be the duty of the Secretary-Treasurerto cause to be notified by mail any memberwhose dues may he six months in arrears and toaccompany such notice by a copy of this Section .If dues remain unpaid, such person shall, on thedate that falls three months after the date of mail-ing such notice, cease to he a member of theAcademy for all purposes other than with respectto any penalty or other action determined underdisciplinary procedures as provided in Article II,relating to conduct prior to such date .Reinstatement as a member shall be subject tosuch conditions as the Board may prescribe .

SECTION 2 . Publications . 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 . Contracts The Board may autho-rive any Officer or agent to enter into any con-tract or execute and deliver 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 be signed bysuch Officer or agent of the Academy as shallfrom time to time be determined by the Board .

SECTION 5. Deposits . All hinds of the AcademyHot 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 nut 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 member 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 prescribe

32

Article IXPublic Discipline

SECTION 1 Complaints and ReferralsA. 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 organization responsiblefor professionwide 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 .

SECTION 2 . Consideration of Puhlu 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. The 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 he 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 membership

of, or expel a member is effective forty-five daysafter the date of the action, if the member doesnot appeal the action to the Board, and, in theevent of such an appeal, the action is effective onthe date when the appeal is decided by the 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 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 ma 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 .

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 . Notifications.A. 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 governmental

33

entities, 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 the DisciplinaryCommittee to publicly- reprimand, suspend, orexpel a member, the notification should take placeforty-five days after the Committee's action, and,if the member is appealing the decision to theBoard of Directors, the notification should statethat the decision is being appealed . Once theBoard of Directors has acted on this appeal, thereshould be a notification of that action .

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

Article XActuarial Board for Counseling and DisciplineSECTION 1 . Ectahlrshment cnd Purposes

A. There shall be established within theAcademy an entity to he known as the ActuarialBoard for Counseling and Discipline (aBCD)Upon delegation of appropriate authority from aparticipating actuarial organization and acceptanceof that delegation b} the ABCD, the ABCD willbe authorized :

1 . To consider all complaints and/orquestions concerning alleged violations ofthe applicable Code of Professional 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 organi .ation or its members, inthe membei'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, regai cling their actions .

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

4. To serve as ombudsman between

members 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

5. To accept and respond to requests forguidance from members of the participatingorganizations .B. The ABCD is authorized to issue such

rules of procedure and operating guidelines notinconsistent with the requirements of this Articleas it deems :ippiopriate .

SECTION 2 . .1Ieml'ei.q iiiid .-lppornnnt?ucA. The ABCD shall consist of nine persons

appointed from the membership of the partici-pating organizations Appointments will usuallybe made foi three-year terms, but appointmentsfur shorter terms may be made to assure thatone-third of the members will be appointed eachyear . A member rna} serve no more than threeconsecutn e 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 the Academyshall serve as Chairperson of the SelectionCommittee . If a vacancy aiises among the mem-hers of the ABCD, the Selection Committee shalldesignate a replacement to fill out the remainderof the term The replacement will complete thatterm. and may be reappotnted for two additionalconsecutive three-year terms . Where three ormore members of the ABCD have an actual orpotential conflict of interest with regard to a pai-ticular matter, with the result that a quorum ofthe ABCD cannot practicably he convened toconsider the matter, the Selection Committeemay, in response to a request from the ABCD,appoint enough special menibeis to the ABCD toform a quorum to consider that matter Theterm of such a special member shall end at theconclusion of the ABCD's consideration of thematter that the special member was appointed toconsider: special members shall not participate inABCD consideration of any matters other thanthe specific matters for which the special niem-hers were appointed .

34

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 from 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 be appointedannually from among the members of the ABCDby the Selection Committee . A Vice Chairpersonshall he designated by the Chairperson as the pre-siding Ofticer 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 year .Additional business shall be 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

i

SECTION 5 . Pr-ocedur -ev for DisciphnaryRecornviendattions

A. For any matter that arises as the result ofthe receipt of a complaint or question or anABCD initiative, the Chairperson and the twoVice Chairpersons may by majority vote,

1 . Dismiss the matter,-' . Authorize an ombudsman to resolve

the nrattei, 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 theInvestigative Committee Investigative Committeesshall not include members of the ABCD .

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,b That the actuary be counseled, orc . That public disciplinary action be

recommended .

2 . The Investigative Committee shallobserve operating procedures and guidelinesthat are established by the ABCD that are notinconsistent with the requirements of thisArticle .

C. Following receipt of a report of theInvestigative Committee, the ABCD shall deter-mine by majority vote 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, a v rit-ten notice shall be prepared stating plainly thecharges against the individual, together ssrth 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 limit may bewaived by mutual agreement of the parties.'

D . In any hearing before the ABCD, theindividual 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 shallvouch 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

E. If, in the course of any hearing under thisSection, evidence shall be presented upon whichanother charge or charges against the individualmight be made, it shall not he necessary for theABCD to prepare and serve such additionalcharge or charges on the individual . Instead, theABCD may, after reasonable notice to the inch-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 upon

35

all 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 consideration .However, no information may be 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 ABCDshall determine by majority vote 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 by a transcript of the proceedings, copiesof all evidence, and a rationale for the recom-mendation. A copy of the report and theaccompanying material shall be 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 ofProfessional Conduct has occurred.

SECTION 7 . Actuarial 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 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 male 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 quarterlyto the President of each participating organiza-tion concerning complaints and counseling activ-ities related to members of the organization .

Article XIActuarial Standards Board

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

A (i) Expose, (ii) promulgate or adopt, and(iii) publish actuarial Standards of Practice, with-

36

in its sole discretion and pursuant to such proce-dures as it deems appropriate, in all areas of actu-arial 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 nd AppointmentsA. 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 mem-bership shall he staggered, so that one-third ofthe members are appointed annually .

B Members of the ASB shall be broadly rep-resentative of all areas of actuarial practice . Theyshall be appointed by and serve at the pleasure ofa Selection Committee composed of thePresidents and the Presidents-Elect of the organi-zations that participate in the ABCD, or theirsuccessor organizations . The President of theAcademy 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 themembers of the ASB, the Selection Committeeshall designate a replacement. The replacementwill complete that term, and may be reappointedfor one additional consecutive three-year term .

SECTION 3. Meetings. The ASB shall meet atleast four times annually . Additional meetings ofthe ASB shall he 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 . The

Vice 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 for consideration by theASB. The number and membership of such com-mittees shall be determined by the ASB . TheASB may establish additional committees, sub-committees, or task forces as it deems appropri-ate to carry out administrative or advisory func-tions in support of its operations .

SECTION 6 . 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 ASB operating expenses .

B. The ASB will have discretion with regardto the expenditure of all funds allocated to it,subject only to such accounting and auditrequirements as mutually determined by theSecretary-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 support

37

as may be requested. Costs for such staff support,including overhead expenses ascertained pur-suant to a formula mutually determined by theSecretary-Treasurer and the ASR, will he 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 onits standards activities, administrative matters,and finances . The ASB shall cooperate with dulyconstituted actuarial authorities charged withenforcing standards of professional practice, andrespond to inquiries regarding actions of theASB, including the interpretation of standardspromulgated or adopted by the ASB .

Article XIINotice

The requirement that notice be given to mem-bers or other persons shall be satisfied when aletter has been deposited in a United StatesPostal Service mailbox addressed to the lastknown address of such person .

Article XIIIIndemnification

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-plinary 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, ormember of any disciplinary board of theAcademy, or in connection with any appeal there-in; provided, however, that in the event of a set-dement 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 rightsor benefits given by the Board inconsistenttherewith in special cases and shall not excludeany other rights or benefits to which the individ-ual may be lawfully entitled .

Article XIVUse of Financial Resources: Dissolution

The funds of the Academy shall he devoted exclu-sively to the purposes stated in paragraph 5 of theArticles of Incorporation No part of the net earn-ings of the Academy shall ever inure in whole orin part to the benefit of .my member or individual .If the Academy is dissolved, all of its remainingassets shall be transferred to one or more organi-zations organized and operated exclusively forpurposes similar to those of the Academy .

Article XVAmendments

Administrative, editorial, and technical amend-ments to the Bylaws that do not involve ques-tions of policy or affect the substantive rights ofthe Academy's members may be made by a voteof two-thirds of the Directors present at a dulyconvened meeting of the Board Otherwise,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 he transmitted by theSecretary-Treasurer to the members by mail,and the time for votes to be mailed by the mem-bers to the Secretary-Treasurer Such proposedamendment shall be accompanied by an appro-priate discussion of the issues, and it shallbecome effective ten days following the end ofthe voting period upon the affirmative vote oftwo-thirds of the members voting .

38

STATEMENT OF POLICYADOPTED BY 1 HE I XECUTIVE CO\L\1ITTEE(IFTHEAMERICAN \C\DE.11YOF,ACTUARIES

AUGUST l5, 1993

The American Academy of Actuaries ("theAcademy") is an equal opportunity employer. Italso offers services, membership benefits, andopportunities to its present and prospectivemembers (referred to hereinafter collectively as"members") on a nondiscriminatory basis . It isthe Academy's policy to refrain from unlawfuldiscrimination against employees and memberson the basis of race, color, national origin, ances-try, personal appearance, age, gender, pregnancy,marital status, sexual orientation, faintly responsi-bilities, religious affiliation, matriculation, politi-

"I he list of prntectrd charactenstics is compiled from applica-hle District of Coiuinbia, Illinois, and tederal lass .

'Thus statement n not intended to preclude the goud-taitliexercise of ar individual 's legal rights

cal affiliation, physical, mental, or emotional dis-ability, source of incoine, place of residence, orunfavorable discharge from military service, asthose terms are defined by applicable state andfederal law These characteristics are referred tohereinafter as "protected characteristics."'

Further, it is the Academy's policy to provideits employees and members with a working envi-ronment that is free from unlawful discrimina-tion based upon any of the protected characteris-tics described above . No Academy employee ormember should be subjected to such discrimina-tion while working for, or engaging in activitiesconducted by, the Academy

It is also a violation of this policy for anAcademy employee or member to seek to retaliateagainst any individual for complaining of a viola-tion ot the Academy's anti-discrimination policy..

39

CODE OF PROFESSIONAL CONDUCTPreamble

The Precepts of this Code of ProfessionalConduct identify the professional and ethicalstandards with which an actuary must comply .The Annotations provide additional explanatory,educational , and advisory material to members ofthe actuarial profession on how the Precepts areto be interpreted and applied . An actuary musthe familiar with, and keep current with revisionsto, the Code of Professional Conduct and itsPrecepts and Annotations.

Professional IntegrityPRECEPT 1. An actuary shall act honestly andin a manner to uphold the reputation of the actu-arial profession and to fulfill the profession'sresponsibility to the public.

ANNOTATION 1-1 An actuary fulfills theprofession's responsibility to the publicthrough compliance with this Code, and byoffering actuarial advice , recommendations,and opinions that are the product of the actu-ary's exercise of professional judgment .

ANNOTATION 1-2 An actuary who pleadsguilty to or is found guilty of any misdemeanorrelated to financial matters or any felony shallbe presumed to have contravened Precept 1 ofthis Code, and shall be subject to the profes-sion 's counseling and discipline procedures .

ANNOTATION 1-3. An actuary shall not usea relationship with a third party to attempt toobtain illegal or materially improper treat-ment from such third party on behalf of aprincipal ( i .e ., present or prospective client oremployer) .

PRECFPT 2. An actuary shall perform profes-sional services with mtegnty, skill, and care .

ANNOTATION 2-1, "Professional services"refers to the rendering of advice , recommenda-tions, or opinions based upon actuarial consid-erations, and also includes other services pro-vided to a principal (i .e ., present or prospectiveclient or employer) by one acting as an actuary.

Qualification StandardsPRECEPT 3. An actuary shall perform profes-sional services only when the actuary is qualified todo so and meets applicable qualification standards .

ANNOTATION 3-I It is the professionalresponsibility of the actuary to observe appli-cable qualification standards in the jurisdic-non in which the actuary renders professionalservices , and to keep current regardingchanges in these standards . For example, forpractice in the United States, theQualification Standards promulgated by theAmerican Academy of Actuaries apply ; forpractice in Canada, the eligibility conditionspromulgated by the Canadian Institute ofActuaries as set out in the Canadian Instituteof Actuaries ' bylaws apply .

Standards of PracticePRECEPT 4. An actuary shall ensure that pro-fessional services performed by or under thedirection of the actuary meet applicable stan-dards of practice .

ANNOTATION 4-1 It is the professionalresponsibility of the actuary to observe appli-cable standards of practice in the jurisdictionin which the actuary renders professionalservices, and to keep current regardingchanges in these standards . For example, forpractice in the United States, the Standardsof Practice promulgated by the ActuarialStandards Board apply ; for practice inCanada, the Standards of Practice promul-gated by the Canadian Institute of Actuariesapply

ANNOTATION 4-2 . Where there is a ques-tion regarding the applicability of a standardof practice, the professional judgment of theactuary , taking into account the applicableaccepted principles of actuarial practice, shallprevail .

Effective January 1, 1994 Adopted by the Board of Directorsof the American Academy of Actuanes m September 1993 .

40

DisclosurePRECEPT 5 . An actuary shall, in communicat-ing professional findings, indicate clearly that theactuary is responsible for the findings .

ANNOTATION 5-I . An actuary who makesan actuarial communication should indicateclearly the extent to which the actuary orother source(s) are available to provide sup-plementary information and explanation .

ANNOTATION 5-2 . An actuary who makesan actuarial communication assumes respon-sibility for it except to the extent the actuarydisclaims responsibility by stating reliance onother sources . Reliance on other sourcesmeans making use of those sources withoutassuming responsibility therefor . A commu-nication making use of such reliance shoulddefine the extent of reliance . An actuary mayrely upon other sources for informationexcept where limited or prohibited by appli-cable standards of practice .

ANNOTATION 5-3. Any written communi-cation of professional findings must be signedwith the name of the actuary who is responsi-ble for it. The name of an organization withwhich the actuary is affiliated may be incor-porated into the signature, but the actuary'sresponsibilities and those of the organizationare not affected by the form of the signature .

PRECEPT 6. An actuary shall, in communicat-ing professional findings, identify the principal(s)(i.e ., the client[s] or employer[s]) for whom suchfindings are made and shall describe the capacityin which the actuary serves.

PRECEPT 7. An actuary shall make full andtimely disclosure to a principal ( i.e ., present orprospective client or employer) of the sources ofall direct and indirect compensation that theactuary or the actuary's firm may receive in rela-tion to an assignment for which the actuary pro-vides professional services for that principal .

ANNOTATION 7-1 . An actuary who is notfinancially and organizationally independentconcerning any matter related to the subject

of an actuarial communication should dis-close to the principal any pertinent relation-ship that is not apparent.

ANNOTATION 7-2 . "Indirect compensa-tion" is any material consideration receivedfrom any source in relation to an assignmentfor which the actuary provides professionalservices , other than direct remuneration forthose services .

ANNOT.ATION7- 3. Actuaries employed byfirms that operate in multiple sites are subjectto the requirement of disclosure of sources ofcompensation that the actuary's firm mayreceive in relation to professional serviceswith respect to a specific assignment for thatprincipal, regardless of the location in whichsuch compensation is received .

Conflict of InterestPRECEPT 8 . An actuary shall not perform pro-fessional services involving an actual or potentialconflict of interest unless :

(a) the actuary's ability to act fairly isunimpaired; and

(b) there has been disclosure of the con-flict to all known direct users whose interestswould be affected by the conflict ; and

(c) all such known direct users haveexpressly agreed to the performance of theservices by the actuary.

ANNOTATION 8-1 . A "direct user" of anactuary's services is a principal (i.e ., presentor prospective client or employer) having theopportunity to select the actuary and able tocommunicate directly with the actuary aboutqualifications , work, and recommendations .

ANNOTATION 8-2. If the actuary is awareof any significant conflict between the inter-ests of the direct user and the interests ofanother party relative to the actuary' s work,the actuary should advise the direct user ofthe conflict. The actuary should also includeappropriate qualifications or disclosures inany related actuarial communication .

41

Control of Work ProductPRECEPT 9 . An actuary shall not perform pro-fessional services when the actuary has reason tobelieve that they may he used to mislead or toviolate or evade the law .

JNNOI . II'ION9-1 . Material prepared by anactuary may be used by another party in a waythat may influence the actions of a third party .The actuary should recognize the risks ofmisquotation . misinterpretation , or othermisuse of such material and should take rea-sonable steps to ensure that the material isclear and presented fairly and that the actuaryis identified as responsible for the material asrequired by Precept 5 of this Code .

ConfidentialityPRECEPT 10. An actuary shall not disclose toanother party any confidential informationobtained through professional services per-formed for a principal (i.e ., client or employer)unless authurited to do so by the principal orrequired to do so by law

ANNOTATION 10-1 "Confidential infor-mation" refers to information not in the pub-lic domain of which the actuary becomesaware in conjunction with the rendering ofprofessional services to a principal . It mayinclude information of a proprietary nature,information that is legally restricted from cir-culation, or information that the actuary hasreason to believe the principal would notwish to be divulged .

Courtesy and CooperationPRECEPT 1 i An actuary shall perform profes-sional services with courtesy and shall cooperatewith others in the principal' s (i .e ., client's oremployer' s) interest .

ANNOTATION 11-1 Differences of opin-ion among actuaries may arise, particularly inchoices of assumptions and methods .

Discussions of such differences , whetherdirectly between actuaries or in observationsmade to a principal by one actuary on thework of another , should he conducted ob l ec-tively and with courtesy .

ANNOIATION 11-2 . An actuary in thecourse of an engagement or employment mayencounter a situation such that the best inter-est of the principal would be served by theactuary' s setting out an alternative opinion toone expressed by another actuary togetherwith an explanation of the factors that lendsupport to the alternative opinion . Nothingin this Code should be construed as prevent-ing the actuary from expressing such an alter-native opinion to the principal .

ANNOTATION 11-3 A principal has anindisputable right to choose a professionaladvisor . An actuary may provide service toany principal who requests it, even thoughsuch principal is being or has been served byanother actuary in the same manner.

If an actuary is invited to advise a principalfor whom the actuary knows or has reasonablegrounds to believe that another actuary isalready acting in a professional capacity withrespect to the same matter or has recently soacted, it may he prudent to consult with theother actuary both to prepare adequately forthe assignment and to make an informed judg-ment whether there are circumstances involv-ing a potential violation of this Code thatmight affect acceptance of the assignment.

The prospective new or additional actuaryshould request the principal's consent to suchconsultation . When the principal has givenconsent, the original actuary may require rea-sonable compensation for the work requiredto assemble and transmit the relevant infor-mation such as pertinent data, work papers,and documents The actuary need not pro-vide any items of a proprietary nature , such ascomputer programs.

42

AdvertisingPRECEPT 12 . An actuary shall not engage inany advertising or business solicitation activitieswith respect to professional services that the actu-ary knows or should know are false or misleading .

ANNOTA TION 12-1 . "Advcrnsmg" encom-passes all communications by whatever medi-um, including oral communications , that maydirectly or indirectly influence any person ororganization to decide whether there is a needfor actuarial services or to select a specific per-son or firm to perform actuarial services .

Titles and DesignationsPRECEPT 13 . An actuary shall make use ofmembership titles and designations of an actuari-al organization only in a manner that conformsto the practices authorized by that organization .

ANNOTATION 13-1 "Title" means anytitle conferred by an actuarial organizationrelated to a specific position within thatorganization . "Designation" means a specif-ic reference to membership status within anactuarial organization .

Collateral ObligationsPRECEPT 14. An actuary with knowledge of anapparent, unresolved material violation of thisCode shall disclose such violation to the appropri-ate counseling and discipline body of the profes-sion, except where the disclosure would divulgeconfidential information or be contrary to law .

4,NNO'1'A7'1ON 14-1 A material violationof this Code is one that is important, hasinfluence or effect, or affects the merits of asituation , as opposed to one that is trivial,does not affect an outcome, or is one merelyof form .

ANNOTATION 14-2 Except when an actu-ary is prohibited by law or while the actuaryis acting in an adversarial environmentinvolving another actuary or actuaries, whenthe actuary becomes aware of an apparentmaterial violation of this Code, the actuary isrequired to undertake promptly the follow-ing course of action-

(a) If appropriate, discuss the situationwith the other actuary or actuaries and, ifnecessary, agree upon a course of action toensure that the apparent violation is resolved ;

(b) If (a) is not appropriate or is not suc-cessful, bring the apparent violation to theattention of the appropriate investigatorybody. For example, for violations of thisCode arising out of practice in the UnitedStates, the actuary should refer the matter tothe Actuarial Board for Counseling andDiscipline, for violations of this Code arisingout of practice in Canada, the actuary shouldfollow procedures established by theCanadian Institute of Actuaries .

PRECEPT 15 . An actuary or the actuary's repre-sentative shall respond promptly in writing to anyletter received from a person duly authorized bythe appropriate counseling and disciplinary bodyof the profession to obtain information or assis-tance regarding possible violations of this Code .

PRECEPT 16. An actuary shall abide by thisCode of Professional Conduct whenever provid-ing professional services

ANNOTATION 16-1 Laws and regulationsmay impose obligations upon the actuary .Where the requirements of law or regulationconflict with this Code, the requirements oflaw or regulation shall take precedence

ANNOTATION 16-2 . For professional ser-vices rendered in Canada, the rules of theCanadian Institute of Actuaries apply .

43

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

Developmg 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 Actuarial of ActuarialOpinion` Opinion"

Practice Areas All four major All four major NAIC AnnualCovered practice areas : practice areas Statement

• Life • Life opinions for• Health • Health • Life & A&H• Pension • Pension • Fire & Casualty• Casualty • Casualty • Hosp ., Med, &

Dent . Serv., etc.

Public Statements of Actuarial Opinion are opinions called for by law or regulation , opinions called fnr by a Standard of Practice

or a compliance guideline as promulgated by the Attuanal Standards Board ; or attuanal communications made fur purposes of compliantwith standards promulgated by the Financial Accounting Standards Board or the Governmental Accounting Standards Board.

44

ContinuingEducationRequirements

Standardsof Practice

ComplianceGuidelines

Counseling& Discipline

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

Board Board

Qualification Standards of Compliance Academy Bylaws asStandards Practice Guideline published in 1995 Yearl'ookbooklet booklets booklets (Procedural guidelines

have been separately issued)

Retention of Range of Day-to-day Compliance with Ethics,the actuary's procedures for work : Qualification Standards,qualifications day-to-day outside and Actuarial Standardsto give Public work requirements of PracticeStatements of actuary's ownActuarial Opinion methods

All Public Practice Practice All four major practice areasStatements area described area described • Lifeof Actuarial in the Standard in the Guideline • HealthOpinion • Pension

• Casualty

45

GUIDELINESCOMMITTEE APPOINTMENT GUIDELLNES

PreambleIn accordance with the Bylaws of the AmericanAcademy of Actuaries, the president appointscommittees authorized by the Board ofDirectors. To aid the president in making suchappointments, the board adopted the followingguidelines with this preamble at its meeting onOctober 31, 1980 . These guidelines reflect theboard's intention to invoke as many members aspossible in committee activities without sacnfic-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 foi which specific appointmentrules are established by the hoard (e g ,Nominating Committee, Actuarial StandardsBoard) are exempt from the guidelines .Appointments to joint committees and liaisonappointments are subject to the guidelines appli-cable to standing committees, although certain ofthe liaison appointments must he hoard 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 offuucapacity .

(3) A person should be chairperson of astanding committee for no more than three yearsand should retire from the committee after scrs-ing as chairperson .

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

(5) 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.

46

GUIDELINTS FOR MAKING PUBLIC STATEMENTS

A. Wb. at Constitutes a Public StatementA public statement is a formal, written state-

ment on behalf of some Academy entity (board,committee, task force, et(- .) to an external group .This does not include a statement representingthe views of an individual member. Public state-ments include

1 . Statements to Governmental Entities-such as testimony or other formal commentssubmitted to regulatory, legislative, andinvestigative bodies at both the federal andstate levels .

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

3 . Statements to External Publications-including articles and other expository mate-rial to newspapers and periodicals, exceptwhere such statements would fall under theexception for media communications below.

Media communications, including lettersto the editor or other editorial and expositorycomments to newspapers and periodicals, areconsidered to be a special form of public com-munication that generally is not subject to theprocedural requirements of these guidelines .This special status is in recognition of the factthat mcilia deadlines prevent the utilization ofthe review procedures applicable to formalpublic statements When letters or othermedia opportunities (such as radio or televi-sion interviews) are anticipated, the spokesper-son should consult the Academy's associatedirector of communications for special guid-ance It is generally appropriate in such cir-cumstances for the individual to note that theviews expressed are not necessarily those of theAcademy For media communications relatedto Fo-erait 2000, special protocols applyThese are presented in Attachment 1Although the procedural requirements of

these guidelines are not applicable to mediacommunications meeting the above defini-tions, the spokesperson is nevertheless expect-ed to he guided by the section below entitled"The Scope of Public Statements ."

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

insights of actuarial science should he the primaryfocus in the profession's public pronouncements .It is important to note, however, that the profes-sion's technical expertise encompasses a broaderspectrum than is reflected by the concerns ofwhat normally would be considered pure actuarialscience. There are numerous instances when theactuary's knowledge is a valuable addition to theinformation surrounding a given issue it wouldbe a disservice to all parties for the profession tomake public statements only in the narrow areaswhere the actuary's knowledge is unique .

Each situation roust be evaluated on its ownmerits to determine whether a public statementby the Academy is appropriate. The tone andnature of a statement must reflect the dignity andstandaids of the profession . Statements shouldcontain a clear, concise, and balanced presenta-tion of the significant facts, including relevantbenefits and costs . A statement need not, howev-er, limit itself solely to statements of fact .

It is also appropriate for statements to drawinferences from statements of fact, so long asthese inferences arc valid . 'I o limit a publicstatement to a mere recitation of facts woulddeny the public the benefit of the full range ofthe profession's capabilities .

A public statement generally should not takepositions on the social and political implicationsof issues . It may be appropriate, however, topoint out social and political implications insofaras these implications may be objectively deter-mined In certain circumstances, it may not bepossible to divorce social or political implicationsfrom actuarial considerations,

There may be some issues that have actuarialimplications that are better dealt with by tradeassociations, companies, or individuals . Publicstatements that appear to be self-serving will beless effective, but the Academy should not hesi-

47

tate to speak out on matters that involve legiti-mate professional interests . In fact, the Academyhas a responsibility to do so .

C. Development and Delivery of PublicStaterrieaits

Academy officers, committees, and staffshould generally follow the guidelines presentedbelow in the development and delivery of publicstatements . At times, these procedures may needto be modified in order to ensure the timelinessand effectiveness of statements .

1 . Identification of Issues Many peoplecontribute to this activity : staff, officers,practice councils, committees, and individualAcademy mernhers W ien an issue is identi-fied by Academy staff, staff will contact theappropriate committee or task force chairper-son directly and copy the appropriateAcademy vice president (hereinafter referredto as supervisory officer), unless there is ajurisdictional question to be resolved (see [21below) . Early identification is critical to theAcademy's development of well-prepared,timely statements .

Authority to Proceed-If staff orsupervisory officers identify an issue that maywarrant a public statement, they will assign itto the committee or task force best able todevelop the statement . If an issue is signifi-cant for more than one practice area, the staffand appropriate supervisory officers will dis-cuss the matter with the appropriate commit-tee chairpersons, determine which committeeor task force receives the assignment, andassure that proper coordination is establishedand maintained through the use of joint taskforces, committee liaisons, dual practicecouncil reviews, or other appropriate means .Supervisory officers, at their discretion, mayseek the advice of their practice council inresolving jurisdictional issues and achievingappropriate coordination .

If a committee or task force identifies amatter that may warrant a public statement,the chairperson will promptly advise thesupervisory officer and appropriate staff liai-son. Unless otherwise instructed by thesupervisory officer, the committee/task forcechairperson may proceed in the development

of a statement . Committees and task forceshave the authority to develop statements solong as they are consistent with well-estab-lished principles of the profession and so longas the appropriate peer review and approvalprocedures are followed

3. Notice of Public Statement Prepa-ration-Members will be kept apprised ofmajor issues of concern to Academy commit-tees and task forces through articles andannouncements in The ilctuarial Update, andinput from members will he solicited by sug-gesting that they contact the relevant chair-person Because of the large number of pub-lic statements, not all statements under dcvel-opment can he announced in The ActuarialLpdate. Reports summarizing committee andtask force activities during the previoustwelve months will appear in a supplement toThe 4ctu arial Update soon after the end of theAcademy year . A complete listing of com-mittee and task force statements for the pre-vious calendar year also will appear in anannual supplement

4. Development of Statements-Committees and task forces will preparepublic statements and any supporting back-ground material in accordance with the fol-lowing guidelines :

(a) Public statements generally repre-sent the opinion of a committee or taskforce . Generally, a public statement willhe developed by members of a standingAcademy committee, a presidentiallyappointed task force, or a working groupestablished by one of the Academy's fourpractice councils . It is always appropriate,however, to involve other Academy mem-bers considered by the committee, taskforce, or working group to have pertinentexpertise or experience. From time totime, it may also be appropriate to solicitthe input of non-actuaries . When andhow such input is solicited is at the discre-tion of the committee chair with the con-currence of the supervisory officer .

(h) On major issues that are likely to behighly controversial within the profession,the chairperson and the supervisory officer

48

should seek broader input from Academymembers and leaders of the profession .Options for olitarning such input includerequests for comments published in TheActuarial Update, discussions with Academyleadership and the leadership of otheractuarial organizations, discussions withappropriate committees of other actuarialorganizations, solicitations and special ses-sions at widely attended actuarial meetings,special seminars on the issue, and disius-sions with other Academy committees, taskforces, and working groups . If time allows,the Academy exposure draft proceduresalso should he considered . The superviso-ry officer will determine the most appro-priate means of obtaining member input inconsultation with the area's practice coun-cil, the Academy president, the committeechairperson, and the executive vice presi-dent Academy staff and the supervisory-officer are initially responsible for deter-mining if an issue Is highly controversial

(c) The Academy staff is available toassist in the preparation of public state-ments. In some instances, it may not bepractical to involve the staff directly instatement preparation, although commit-tee chairpersons arc strongly encouragedto do so . The involvement of Academystaff can be helphil in assuring the consis-tencv of the statement with previous pub-lic statements and policy decisions

(d) In sonic circumstances, theAcademy staff may develop a public state-ment on its own initiative Staff-devel-oped statements must have the approvalof the appropriate chairpei son and super-vison, officer and should be circulated toall committee, task force, or workinggroup members even if the tune for cairn-ment is limited . Only under extraordi-nary circumstances may the chair andsupervisory officer release a statementbefore tin ulatiun to the full cornrnittee,task force, or working group . Statementsdeveloped by staff should reflect previouspublic statements and policy decisions .

(e) The chairperson should seek aconsensus of the committee, task forte, or

working group members . If there is sub-stantial lack of consensus, the chairpersonmay elect to incorporate the majority andminority perspectives into the statement,to refer the issue to the supervisory offi-cer, or not to issue a public statement. Insome cases, time constraints may preventthe entire committee, task force, or work-ing group from participating in the prepa-ration of a particular statement, and thetask of drafting the statement may be leftto the chairperson or the chairperson'sdesignee(s) . In such cases, the draftersshould seek maximum input from avail-able committee, task force, or workinggroup members.

(f) No statement should be presentedwithout appropriate peer review . 'l'hc levelof peer review should depend upon thelevel of risk and exposure of the statement.Before release, statements should generallyhe reviewed by the supervisory officer, ordesignee thereof, and Academy staff. Fotstatements that are the work of individualsor small subgroups and that have not hadthe benefit of the full group's deliberation,peer review should include the commit-tee/task force/working group chair and twosenior reviewers in addition to the supervi-sory officer (or designee) and staff. Thesenior review persons, to be selected by thechairperson with approval of the superviso-ry officer, should be knowledgeable andexperienced in the subject at hand andshould be known to reflect broadly heldviews of the profession In extraordinarycircumstances, the supervisory officer andstaff may agree to release a statementbefore completion of peer review .

(g) Staff, in consultation with thesupervisory officer, is to determine if astatement requires review by the generalcounsel and will arrange with counsel forsuch review .

(h) The decision to issue the final state-ment generally rests with the supervisoryofficer, who niay delegate this responsibili-ty to the committee, task force . or workinggroup chairperson or other designee . Forissues of mayor importance or those

49

deemed highly controversial , the executivevice president and president also should beconsulted before the statement is releasedto its intended audience .

(i) When deemed appropriate by thesupervisory officer, a recommendationshould be made to the president that aproposed statement be submitted to theBoard of Directors for review beforeissuance . The board may modify or disap-prove a public statement if it believes suchaction is in the best interest of theAcademy .

5, Presentation of StatementThe com-mittee or group issuing a statement must bestated . The group will ordinarily be a practicecouncil working group , task force , committee,or the Board of Directors Blanket sponsor-ship by the Academy is not to be implied .

When the audience is familiar with theAcademy and its committee structure , a state-ment such as the following will usually be suffi-cient " This statement was prepared by theAmerican Academy of Actuaries' XYZCommittee."

In instances when further explanation isappropriate, the committee , task force, or work-ing group should consider including additionallanguage such as the following : "The committeeis made up of representatives from the entirerange of (name of actuarial practice area) . Thecommittee includes actuaries who work as consul-tants, are employed by insurance companies, areactuaries for government (specify type of govern-ment programs , if appropriate) and the NationalAssociation of Insurance Commissioners , and areemployed by nonprofit (specify type, if appropri-ate) organizations . The expertise of other senior(practice area ) actuaries knowledgeable of (issue)was drawn upon to prepare this statement."

As a general rule, Academy statements do notidentify the individual members of the groupthat developed them . In some cases , however,identifying members of the group may add to thecredibility of the statement or serve some otherpurpose such as meeting the requirements of theintended audience . The decision to identifyindividual authors should be made in consulta-tion with the supervisory officer and Academystaff. Unless there is good reason not to do so,

non-actuaries who participated in the formula-tion of the statement should be identified andtheir non-Academy-member status and roleidentified in footnotes or otherwise

Any statement that involves issues of signifi-cance to multiple practice areas should clearlyidentify the practice area to which the statementis intended to apply .

All public statements should be dated and sub-mitted in written form, with an oral presentationas appropriate . Statements should be submittedon Academy letterhead . Even when statementsare responses to highly technical methodologicalinquiries, the general issue being addressed shouldbe clearly specified in an initial sentence or two .Except when the Academy is well-known to theaudience, a formal statement about the Academy(sample below) should be included in the publicstatement. If an oral statement is to be presentedat a formal hearing, the group's chairperson andsupervisory officer will select the person or per-sons to make the presentation .

6 . Distribution of Statements-After thestatement has been formally submitted, thefinal statement will be available for broaderdistribution . Members can request a copy ofthe statement by writing or calling theAcademy's Washington office .

D. Sample Description of the AcademyThe American Academy of Actuaries is a

national organization formed in 1965 to bringtogether, in a single entity, actuaries of all spe-cializations within the United States . A majorpurpose of the Academy is to act as a publicinformation organization for the professionAcademy committees regularly prepare testimo-ny for Congress, provide information to con-gressional staff and senior federal police makers,comment on proposed federal and state regula-tions, and work closely with the NationalAssociation of Insurance Commissioners andstate officials on issues related to insurance andother forms of risk financing, The Academyestablishes qualification standards for the actuar-ial profession in the United States and housestwo independent boards . The ActuarialStandards Board promulgates standards of prac-tice for the profession, and the Actuarial Boardfor Counseling and Discipline helps to ensurehigh standards of professional conduct are met .

50

ATTACEMINT I

Protocol for Forecast 2000 Statements∎ Each year the practice councils should dis-cuss Forecast 2000 priorities for their practicearea and give public relations staff input andideas on major points to pursue with media andwith policy makers .∎ Forecast 2000 public relations staff are freeto use material adapted from any Academy pub-lic statement (including statements by commit-tees, task forces, the board, etc .) in preparingmaterial and statements for approved major andminor topic areas . Material adapted fromAcademy public statements should be appropri-ately referenced .∎ Except when time constraints are over-whelming, the practice councils, through thecouncil chairpersons, should be asked to reviewany new material or statements that go with thepublic statements referenced above∎ When time constraints preclude the piacticecouncil review above, the appropriate vice presi-dent must approve any new material beforerelease of such material to the public .∎ Costing of proposed legislation (federal andstate) should always be subject to practice councilreview and approval after full consideration of thepotential impacts . On the other hand, Forecast

2000 material should (when commenting on pro-posed legislation) identify and clearly articulatethe relevant critical cost factors and say why actu-aries are the professionals best equipped to pro-vide cost estimates of these factors .∎ Public relations staff will, to the maximumextent possible, seek to develop all concepts andprepare materials well in advance of their useand seek practice council input during suchdevelopment and preparation .

Protocol for Interactionwith Trade and Other Interested Groups

Regarding Forecast 2000 Activity∎ Interaction with trade groups or other enti-ties should be governed by two objectives

-To maintain both actual and perceivedindependence for the Academy .

-To foster cooperative relationshipswith groups interested in our issues

∎ Staff will seek input from appropriate groupsas necessary in the development and implemen-tation of Forecast 200U activities,∎ «'hen appropriate, anticipated statementswill he discussed with key staff of such groups asACLI, AIA, AAI, NAII, HLAA, HMO groups,Blue Cross associations, ERIC, APPWP, theU.S. Chamber of Commerce, and NAM

GUIDELINES FOR THE DEVELOPMENT OF PRACTICE NOTES

The purpose of Practice Notes is to provideinformation to actuaries on current actuarialpractices in areas that are intended to supple-ment the available actuarial literature, especiallywhere the areas of practice addressed are subjectto emerging technology or recently adoptedexternal requirements . Practice Notes are notinterpretations of standards, nor do they conveygenerally accepted actuarial practices in the samesense that standards of practice do . Actuaries arcnut in any way bound to follow Practice Notes .

Practice Notes are written by groups of actu-aries having practical experience and expertise ina particular area of practice . There may be infor-mal exposure of draft Practice Notes by the origi-nating group to meetings of other interested actu-aries , but there is no formal process for recordingor responding to any comments that might begenerated The Practice Notes developed arereviewed and edited by Academy staff and, ifapproved by the appropriate practice council, arepublished and distributed by the Academy, In

51

contrast, actuarial standards of practnc and corn-pliance guidelines are promulgated by theActuarial Standards Board, which adheres to pro-cedures that are intended to provide due processand exposure to professional review

The following guidelines are intended toassist Academy officers, committees, and staff indeveloping and maintaining the timeliness andeffectiveness of Practice Notes . These guidelinesare designed to promote consistency of qualityand style and to ensure that the practices identi-fied are in conformity with the standards of prac-tice and e%isttng regulatory requirementsNothing in these guidelines is intended to inhibitother actuarial organizations from publishingmaterials that provide information on currentactuarial practices to assist practicing actuaries .

1 . Prererrce Council Oz'eisight Practice Notesare primarily the responsibility of the practicecouncils of the Academy, with support fromAcademy staff, officers, and commiirccs; corn-mittees or task forces of other actuarial organiza-tions, and individual actuaries .

2 . Initiation ofRequest-While the practicecouncils are chaiged with monitoring the needfor new Practice Notes and the revision of exist-ing Practice Notes, any actuary or entity mayrequest that the development or revision ofPractice Notes he considered for a specific areaof practice. Such requests may be directed to theappropriate practice council for evaluation ofneed, approval, and implementation

3 .Autborrti, to Proceed-If a practice councildetermines that a new or revised Practice Note isneeded in a particular area of practice, the prac-tice council chairperson f"PC chair") will requestthat an appropriate committee or task force w ith-in the profession develop the Practice Note .

4. Development Procedures-Practice Noteswill generally be developed by a committee ortask force and will be identified as a pioduct ofthat group . It may be appropriate, however, toinvolve other actuaries believed by the commit-tee or task force to ha+e pertinent expertise orexperience . From time to time it inay also he

appropriate to solicit the input of non-actuaries .When and how such additional input is solicitedis at the discretion of the committee chair withconcurrence of the PC chair .

5 . Required Disclosures Each Practice Noteshould begin with a paragraph stating that thePractice Note is not a promulgation of theActuarial Standards Board or of any otherauthoritative body of the American Academy ofActuaries, identifying the group that developedthe Practice Note, and explaining that informa-tion contained in the Practice Note is not bind-ing on any actuary and is not a definitive state-ment as to what constitutes generally acceptedpiactice in the area under discussion . Blanketsponsorship by the Academy should not he statedor implied

6 Consensus--The chairperson should seek ageneial consensus of the committee members. Ifthere is substantial lack of consensus, the cliatt-person may elect not to issue a Practice Note, torefer the issue to the PC chair, or to incorporatethe alternate perspectives into the Practice Note

7 Review Procedures-No Piactice Noteshould be released without appropriate peerreview . At a minimum, Practice Notes should bereviewed by the committee or task force chairper-son, the PC chair and/or his or her designee(s),and Academy staff. All Practice Notes mustreceive legal and editorial review by the Academystaff to assure legality and consistency with previ-ous notes and standards of practice .

8. Final Approval The ultimate decision toissue a Practice Note rests with the PC chairFoi issues of majoi significance, the PC chairmay consult with the Academy executive vicepresident, as well as the president, prior to therelease of the note

Q. Production and Drvtrrhntion-Productionand distribution of final Practice Notes will behandled by the Academy. Distribution may vary-depending on the audience for the notes .

10 .An,uial Reiniew-The PC chair will initiatea review of the current Practice Notes annuallyfor relevance, purpose, and completeness

52

MEMBERSHIPAcademy Membership Memberships Held by Academy Members

in American Society of Pension Actuaries (ASPA)

Membership as of Nov 1 1993 11 529Casualty Actuarial Society (CAS),

. , ,InLreascs.Admissions 780

Conference of Consulting Actuaries (CCA),and Society of Actuaries (SOA)

Reinstatements IIDecreases

(As of November 1, 1994)

Deaths 47 ASPA CAS CCA SOA TotalWithdrawals 140 In all four 1 1 I 1 1

Membership as of Nov. 1, 1994 12,13 3 ASPA, CAS& CCA 1 1 1 l

ASPA, CAS& SOA 1 1 1 1

ASPA, CCA& SOA 37 - 37 37 37

Academy Membership by EmploymentASPA & CASASPA & CCA 25 25 25

(As of November 1) ASP, \& SOA 139 - 139 139CAS CCA

Membership, ,

& SOA - 10 10 10 10CAS &CCA 60 60 60

Employment 1992 1993 1994-

CAS & SOA 77 - 77 77CCA & SOA - - 698 698 698

Insurance and related In one only 383 1,702 166 8, 129 10,380organizations 5,186 5,245 5,544 In none - - - - 704

Consulting practice 4,245 4,312 4,446 Total 587 1,852 998 9,092 12,133Government 172 185 213Academic institutions 45 47 46Other 234 475 513 Academy Members Who Are Enrolled ActuariesRetired or not known 1,169 1,105 1,146 (As of November 1, 1994)Unaffiliated 160 225 ASPA CAS CCA SOA Total

In all four I 1 1 1 1Total 11 ,051 11,529 12,133 ASPA, CAS,

&CCA I 1 1 1ASPA CAS, ,&SOA 1 1 - I l

ASPA, CCA,& SOA 36 - 36 36 36

ASPA & CASASPA & CCA 24 - 24 - 24ASPA & SOA 138 - - 138 138CCA, CAS,& SO-41 2 2 2 2

CAS & CCACAS & SOA 10 10 10CCA & SOA 502 502 502In one only 376 1 65 1,853 2,295In none 417Subtotal - - - 3,427Non-AcademyEnrolled Actuaries 758

't'otalEnrolled Actuaries 4,185

53

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 orSchaumhurg 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 he 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 he handwritten legibly, preferably type-written . Applicants should take care to submitreferences who meet the requirements set forthin the general instructions of the applicationform. They should also encourage their refer-ences to return 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 towardthe three-year requirement only to the extentthat the teaching is at the Parts 4 and 5 level .Higher-level courses may also be considereddepending on their actuarial content .

3 Summer, part-time, and other intermit-tent experience may be considered for the threeyears, but it is especially important to demon-strate that this is "responsible actuarial work "

4 At least two of the three years inust 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 inthe United States .

In the area of residency, the following guide-lines/requirements must be 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 U.S . laws and practices in their actuarialspecialty area

The ahove 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 S50 mustaccompany the application This is a charge forprocessing the application and will not heapplied toward the payment of dues for thosecandidates accepted . Application fees paid bycandidates who are not accepted will nut berefunded .

Applications and all inquiries should beaddressed to :

Membership ManagerAmerican Academy of Actuaries475 N . Martingale Road, Suite 800Schaumburg , IL 60173(708) 706-3513 Telephone(708) 706-3599 Facsimile

54

DuEsDues as presently approved by the Board ofDirectors are $325 per year for members,payable on January 1 . Admission in the firstthird of the year will require full payment ofclues for that year, admission in the second thirdof the year will require payment of two-thirds ofthe annual amount, and admission in the lastthird of the year will require payment of one-third of the annual amount

Article Vii, Section I of the Bylaws of theAcademy provides 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 he established by the Board ofDirectors of the Academy. Under this authority,the Board of Directors has determined that duesmay he waived for members who (a) are full-timestudents, involved in full-time dependent care, orserving in the military or the Peace Corps, and(b) anticipate no material actuarial income duringthe forthcoming calendar year. Dues may also bewaived for members who have been unemployedfor at least one year prior to January 1, 1995, andwho have made no more than $10,000 from actu-arial activities or $25,000 overall in 1994 ; do not

currently anticipate earning any significantincome from actuarial activities in calendar year1995, and are actively seeking work as an actuaryor planning reentry into the actuarial professionin the foreseeable future . The minimum retire-ment age has been set by the board as 55 . Themaximum limit on earned income in order toqualify for dues waiver on account of retirementor other categories shown above between ages 55and 70 is $10,000 per year .

Members on dues waiver automaticallyreceive the yearbook and the directory, notices ofannual meetings, and voting materials for pro-posed bylaws amendments . " There is an annualcharge of $40 to receive other Academy mailings .

Forms for permanent and temporary dueswaiver requests can be obtained from

Membership ManagerAmerican Academy of Actuaries475 N . Martingale Road, Suite 800Schauinburg, IL 6017 3(708) 706-3513 Telephone(708) 706-3599 Facsimile

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 be 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 ofTitle III of the Employee Retirement IncomeSecurity Act 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 .

55

OTHER ACTUARIAL ORGANIZATIONSAmerican Society

of Pension ActuariesPresident Stephen R. KernPresident-Flect Michael E. CallahanImmediate Past President Paul S. Polapmkl ice Presidents Steven Fishman

Karen A. JordanRichard I) . Pearce

Secretary Carol R SearsTreasurer Robert H . Schramm

43 50 N . Fairfax Drive, Suite 820Arlington, VA 22203

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

Casualty Actuarial Society

President Allan M. KaufmanPresident-Elect AlbertJ . BeerImmediate Past President Irene K . BassLice Presidents Paul Braithwaite

Alice H . GannonDavid N HaflmgJohn J . KollarMichael J . Miller

Assistant Secretary Regina M . Berens

1100 N. Glehe Road, Suite 600Arlington, VA 22201

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

Executive Director. James H. Tinsley

Executive Director: Chester J . Salkind

Canadian Institute ofActuariesPresident Kurt K. von SchillingPresident-Elect Marc J . FernetImmediate Past President James A. BrierleyVice Presidents Allan S . Edwards

Neville S . HendersonJean-Louis MasseDavid j OakdcnOwen A. Reed

Colegio National de ActuariosPresident Ilector H . LlamasImmediate Past President Pablo None~aSeeretarylTreamrei Marilupe Ugarte

Avenida Patriotismo 711Torre A, 10 Piso

Col. San Juan MixcoacMexico D.F ., Mexico011-525-598-7690

Executive Director- Marilupe Ugarte

SeeretaiylTreasurer& Vice President Danielle G Morin

Constitution Square360 Albert Street, Suite 820

Ottawa, Ontario K1R 7X7, Canada(613) 236-8196

Facsimile (613) 233-4552

Executive Director: Rick Neugebauer

Conference of Consulting Actuaries

President Larry D . BaherPresident-Elect Jeff EurmshImmediate Past President Larry D . KeysLice Presidents Alice H. Edmondson

Mark V MactasJohn D RadekMichael L Toothman

Secretary Margaret Wilkmson TillerTreasurer Thomas G . Nelson

1110 West Lake Cook Road, Suite 2 3 5Buffalo Grove, IL 60089

(708) 419-9090Facsimile (708) 419-9091

Executive Director: Rita K. DeGraaf

56

Society of ActuariesPresident Barnet N . BernPresident-Elect Sam GuttermanI7mnedmtePastPrecrdeut R Stephen Radcliffe1 'ice Presidents Howard J. Bolnick

Cecil D . BykerkShane A. ChalkeArnold A DickeRobert'"'. Stein

Sen-etaa ylTreasurerdt [ice President William Carroll

475 North Martingale Road, Suite 800Schaumburg, IL 60173

(708) 7116-3500Facsimile (708) 706-3599

Evecrrtive Director- John E. O'Connor, Jr .

Actuarial Education and Research FundChairperson Charles Barry ITWatson,

CCATreasurer- LeRoy A Boison, Jr, CASSecretary Craig A. Miller, ASPADirectors Douglas C. Borton, CCA

Allan Brender, CIARandall J. Dutka, CIASam Gutterman, AAADavid M. Holland, SOAHarold G . Ingraham, Jr .,ASPA

Michael J . iVb [let, CASBrendan O'Farrell, AAA

Managing Director Linden N. ColeMichigan Unit

Coordinator Cecil J Nesbitt

475 North Martingale Road, Suite 800Schaurnhurg, IL 60173

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

Ea.eattrve Director- Curtis F . Huntington

International Actuarial Association

Canadian OfficersVice President Yves GuerardSecretary-NationalCorrespondent Morris \V. Chambers

London Life Insurance Co255 Dufferm AvenueLondon, OntarioN6A4h1 Canada(519) 432-5281

Counul James A. BrierleyKurt K. von Schilling

United States OfficersT'icc President Ronald L. BornhuetterSecretary 'NationalCorrespondent W. James MacGmnitie

Ernst & Young, LLP600 Peachtree StreetAtlanta, GA 30308-2215(404) 817-5950

Council Allan D. AffleckCharles GreeleyCurtis E . HuntingtonCharles Barry H llratson

Next CongressSeptember 10-15,1995 Brussels. Belgium

AFIR SectionCanadian Member Michael Cohen

William M. Mercer, Ltd .275 Slater StreetSuite 1100Ottawa, OntarioKIP 5H9 Canada(613) 230-9348

US. Member James A . TilleyMorgan Stanley& Company

1221 Avenue of theAmericas

New York, NY 10020(212) 296-5780

Next ColloquiumSeptember7-8, 1995 Brussels , Belgium

57

AS"TIN SectionUS Contact James N Stanard

RenaissanceReinsurance, Ltd .

Sofia House48 Church StreetHamilton Illbt GXBermuda(809)295-4513

Next ColloquiumSeptember 19-20,1995 Louvain, B lgium

International Associationof Consulting Actuaries

Chairperson Michael ArnoldHymans Robertson190 Fleet StreetLondon EC4A 2AHGreat Britain44-71-831-9561

Sea-etaay-Treasurer Dudley Funnell2175 Marine DriveSuite 607Oak illeOntario L6L 5L5Canada(905) 825-4046

U S CommitteeMembers Robert J . Dymowski

John J . HaleyW James MacGinnitie

Canadian Representmtme Michael D . MillsWilliam At. Mercer, Ltd .The Grosvenor Building1040 W. Georgia StreetSuite 1200VancouverBntish Columbia 46E 4H1Canada(604) 683-6761

Next MeetingJune 23-28, 1996 Gleneagles, Scotland

58

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 maybe found in the Directory of Acttiarial Memberships .

Adirondack Actuaries ClubEdwardW Brown, PresidentRobert Priest, Vice President o f Puhlet RelatwueTimothy Sommers, Vice President

o fMeeting AdmrmstrationMona '"'asserman, TreasurerMichele Saxe, Secretary

(c/o Farm Family Life Insurance Company,P.O. Box 656, Albany, NY 12201)

Actuaries Club of BostonAllan Ming Fen, PresidentStephen M. Batla, Vice PresidentMarshall H . Lykins, Treasurer-Gerald F. Boulet, Director o f Continuing EdieatannM. Carolyn McHugh, Director of Student FArrrationAndrew P . Johnson, Secretary

(c/o John Hancock MutualLife Insurance Company, T-25,P.O. Box 111, Boston, MA 02117-01 11)

Arizona Actuarial ClubJames H. Gordon, PresidentWilliam K Robinson, Secretary-Treasurer

(c/o Milliman & Robertson, Inc .,4041 North Central, Suite 1430 .Phoenix, AZ 85012)

Atlanta Actuarial ClubTom Lofris, ProidrutRalph Reese, Vice PresidentKaren Shelly Purcell , Secretary-Treasurer

(c/o Hazlehurst & Associates, Inc .,400 Perimeter Center Terrace, Suite 850,Atlanta, GA 30348)

Baltimore Actuaries ClubLawrence E . Isaacs, PresidentMary S. McKay. P -ice PresidentAmy S . Ziff, Secretary-Treasurer

(c/o Blue CrossBlue Shield of Maryland,10455 f ill Run Circle,Owings M'hlls, MD 21117-5559)

Casualty Actuaries of the Bay AreaRoberta J . Garland, PresidentDaniel N Ahellera, Secretary-Treasurer

(c/o Crum & Forster Corporation,255 California Street,San Francisco, CA 94111)

Central Illinois Actuarial ClubKevin Roper, PresidentJoseph Herbers, President-ElectAlison Dossett, Secretary-Treasurer

(c/o State Farm Life Insurance Company,I State Farm Plaza, Bloomington, IL 61710)

Chicago Actuarial AssociationMark A. Davis, PresidentJohn W. Harding, President-ElectJeffrey G Allen, Vice President, Public RelationsJohn K. Heins, Vice President, ProgramsWarren R. Luckner . I ice President, EducationJohn O. Norton, TreasurerVirginia 'vl. Vlcek, Secretary

(c/o TPF & C/Towers Perrin,200 W. Madison, Suite 3 300,Chicago, IL 60606)

Cincinnati Actuarial ClubGerald A. Lockwood, PresidentRichard A. Ballard, Vice PresidentHarold V. Lyons, Secretary-Treasurer

(c/o Western-Southern Life,400 Broadway, Cincinnati, OH 45202)

Columbus Actuarial ClubShelley Gahel, PresidentJoe Falk, Vice PresidentLisa Thompson, Secretary- Treasurer

(c/o NationvJde Insurance Company,One Nationwide Plaza , Life Actuarial, 1-11-03,Columbus, OH 43216)

59

Actuaries Club of Des MoinesJoAnn Rumelhart , PresidentMark S. Movie, Vice PresidentPatty Huffrnan, Secretary-'I reasvrer

(c/o Blue Cross/Blue Shield,636 Grand Avenue. Des Moines, IA 5{1309)

Actuaries Club of HartfordDave Levenson, PresidentAI Dal Porto, Vice PresidentLinda Lanknwskt, TrearurerDavid Addison, Secretary

(c/o Phoenix Home Life MutualInsurance Company,One American Row, Hartford, CT 06115)

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

Gregory D . Jacobs, PresidentJeffrey A. Beckley, Secetary-Treasurer

(c/o Beckley & Associates, Inc . .11495 North Pennsylvania, Suite 200,Carmel, IN 46032)

Actuarial Club of IndianapolisArthur L. Wilmes, PresidentLarry A. Haefner, f `ice PresidentDiane R Seaman , Secretary-Treasurer

(c/o The Associated Group,120 Monument Circle,Indianapolis , IN 46204)

Actuarial Club of JacksonGlen Allen Castle, PresidentDarla Harrison, Vice PresidentMark Lee, Secretary-Treasurer

(c/o Southern Farm BureauLife Insurance Company .P O. Box 78, Jackson, MS 39205-0078)

Kansas City Actuarial ClubJohn R. Miller, PresidentMichael G . Baker, Vice PresidentMark Billingsley, Secretary-Treasurer

(c/o Pyramid Life Insurance Company,6201 Johnson Drive .Shawnee Mission, KS 66201)

Little Rock Actuarial ClubJerry F . Enoch, PresidentJoseph A. Krenz, f ice PresidentJudith Kirk, Secretary-Treasuu-er

(c/o USAble Corporation,312 West Capitol, Suite 718,Little Rock, AR 72203)

Los Angeles Actuarial ClubAngelica M I1lichail, PresidentEddie C . Tong, [`ice PresidentRobert L . Canfield, TreasurerLaurie Weyuker, Senetmy

(c/o Blue Cross of California,2000 Corporate Center Drive,Newbury Park, CA 91320)

Michigan Actuarial SocietyMartha M. Spenny, PresidentBenjamin G. Peters, i ice PresidentSteven Haas, TreasurerJames D. Anderson, Secretary

(do Gabriel Roeder Smith & Company,101 N. Main Street, Suite 440,Ann Arbor, 'III 48104)

Casualty Actuaries of the Mid Atlantic RegionDavid Lacefield, PresidentSusan Miller, biro PresidentAndrea Gardner, Secretary-Treasurer

(do Coopers & Lybrand,24(10 Eleven Penn Center,Philadelphia , PA 19103)

Middle Atlantic Actuarial ClubWillis B . Howard, PresidentTom Bowling, T ice PresidentSally Burner, Secretary-Treasurer

(c/u Health Care Financing Administration,6325 Security Boulevard, L-1 EQOS,Baltimore, MD 21207)

Midwestern Actuarial ForumJerry W. Rapp, PresidentDavid N . Hailing, flue PrecedentKaren Amundsont, Education OfficerWilliam J . Von Seggern, Secretary Treasurer

(c/o AAA Michigan,17380 N. Laurel Park Drive,Livonia, MI 48152)

60

Nashville Actuarial ClubRandall H. Smith, PresidentSam W Talley, Secretarv-Ti easitrer-

(c/o American GeneralLife & Accident Insurance Company,Mail Code 2614, Seventh & Union,Nashville, TN 37250)

Nebraska Actuaries ClubLori Stevens Gohde, PresidentLawrence D Fisher, Secretary-Treasurer

(c/o Central States Health & Life,96th & Western, Omaha, NE 68134)

Casualty Actuaries of New EnglandJeffrey P Kadison, PresidentAnn M. Conway, Vice President of Progr-anicMary Corhett, Vice Pre idenr o f EducationRoland D Letourneau, Secretary-Treasurer

(c/o Arnica Mutual Insurance Company,P.O. Box 6008, Providence, RI 02940)

Actuarial Society of Greater New YorkJohan L Loter, PresidentPaul Puleo, [ ice President i f.Shidint EducationThornas J Troeller, TreasurerMarcia S . Sander , Secretary

(c/o Milliman & Robertson Inc .,'1 wo Pennsylvania Plaza, Suite 1552,New York, NY 10121)

Casualty Actuaries of Greater New YorkOrm Al Linden, PresidentRegina M . Berens. [ice PresidentBrian A . Hughes, Secretary-Treasurer

(c/o Skandia America Group,Zurich Reinsurance Centre,I Liberty Plaza, 53rd Floor,New York, NY 10006)

Casualty Actuaries of the NorthwestHeidi J . iMcBride, PresidentGordon K Hay, F ice PresidentJulia L. Perrine, Secretary-Treasiirer

(c/o Milliman & Robertson Inc ,1301 Fifth Avenue, Suite 3800,Seattle, WA 98101-1380)

Oklahoma Actuaries ClubRonald J . Byrne, PreoulentWarren L Shepherd, ['ice PresidentLyle E . Nelson, Secretary-Tieanner-

(c/o American Fidelity Group,P 0. Box 25523,Oklahoma City, OK 73125)

Actuarial Club of the Pacific StatesJohn F Fritz, PresidentMartin F . Gibson, Vice Pi eiidentLouis A . Kent, Secretary-Treasurer

(c/o Blue Shield of California,Two North Point, 3rd Floor,San Francisco, CA 94121))

Philadelphia Actuaries ClubNeville Arum, PresidentPeter R . Schaefer, Vice PresidentDiana Goodman, TreasurerMarc Preminger, Secretary

(c/o CIGNA Corporation,1601 Chestnut Street, TLP-24,Philadelphia, PA 19192-2235)

Portland Actuarial ClubDonald A Jones, PresidentNina Pileggi, [ice PresidentJames E . Carr, Secretary- Treasiirer

(c/o Standard Insurance Company,P.O Box 711, Portland, OR 9707)

St. Louis Actuaries ClubKaren A King, PresidentDaniel E. Kirner, [ice PresidentG. Thomas Mitchell, Secretary-Treasurer

(c/o Thomas Mitchell Consulting,7 North Brentwood Boulevard, Suite 309,St . Louis, MO 63105)

Salt Lake Actuarial ClubMarkW. Birdsall, PresidentPaul Daniels, ['ice PresidentMark \V. Birdsall , Secretary-Treasurer

(c/o Beneficial Life Insurance Company .36 South State Street,Salt Lakc City, UT 84136)

61

San Francisco Actuarial ClubThomas D Matthews, PresidentLeslie L . Thompson, Vice President &Secretary

(c/o CIGNA,101 California Street, Suite 1910,San Francisco, CA 94111)

Seattle Actuarial ClubJ. Lynn Peabody, PresidentJean B . Liebmann, Vice PresidentGwendolyn Walker, TreasurerMichael N . Morin, Secretary

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

Southeastern Actuaries ClubWilliam H Bowman, PresidentDouglas C. Doll, Vie PresidentPeggy M. Rubin, Secretary-Treasurer

(c/o Southern EducatorsLife Insurance Cmpany,3320 Holcomb Bridge Road,Norcross, GA 30092)

Casualty Actuaries of the SoutheastMark Crawshaw, PresidentFrederick O. Kist, President-ElectAndrew E Kudera, Vice President of ProgramsBryan G Young, Vice President of EducationRoberto C . Blanco, T 'we President of College RelationsMonty J. Washburn, Vice President r f -ldnnnsnauon~^ Secretary--Treasurer

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

Southern California Casualty Actuaries ClubWarren B . Tucker, PresidentCharles I. Petit, Vice PresidentTodd j Hess, Secret cry-Treasurer

(c/o Underwriters Reinsurance Company,22801 Ventura Boulevard,Woodland Hills, CA 91364)

South Florida Actuarial ClubSanford L . Nuebarth , PresidentChristine L . Moore, Vice PresidentJeffrey C . Harper, Treasurer

(c/o American Bankers Insurance Group,11222 Quail Roost Drive, Miami, FL 33157)

Southwest Actuarial Forum (SWAF)1V. Dale Montgomery, Presidentlllyron L . Dye, Vice PresidentHolmes M. Gwynn, Education OfficerDebra L. Werland, College RelationsDiane R. Rohn , Secretary-Treasurer

(c/o 12377 Merit Drive, Suite 1200,Dallas, TX 75251-2600)

Actuaries Club of the SouthwestGary P. Monnm , PresidentRobert Greying , Vice PresidentHarry R Miller , Secretmy- Treasurer

(d/o VALIC, 2919 Allen Park-way,Mail Code L6-05, Houston, TX 7 7019)

Twin Cities Actuarial ClubJuliaT Philips, PresidentJerome A . Degerness, Vice PresidentBradley E Barks, Secretary-Treasurer

(c/o Life USA,300 South Highway 169, Suite 700,Minneapolis, 'SIN 55426)

Vermont Enrolled Actuaries ClubAnnie Brown Voldman, PresidentWilliam J . Callnan, Secretary-Treasurer•

(c/o National Life Insurance,One National Life Drive,Montpelier, \'T 05604)

Actuarial Club of Washington, D .C .Pamela Mueller, PresidentRobert Katz, Vice PresidentBlaine Barham, TreasurerCara M . Jareb, Secretary

(do The Wyatt Company, 1500 K Street NW,Washington, DC 20005)

West Michigan Actuarial ClubWilliam T . Billard, President & Secretary-Treasurer

(c/o Delta Dental Plan of Michigan,P.O. Box 30416,Lansing, MI 48909)

Wisconsin Actuaries ClubDaniel L . Shinnick , PresidentJohn D . Dawson , Vleeting CoordinatorJanet V/ Reinke, Secretary- Ti easurer-(c/o CUNA Mutual Insurance Group,5910 Mineral Point Road,Madison , WI 53701)

62

CALENDARSBOARD & COMMITTEE MEETINGS

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

I All meetings of Academy committees(with exceptions noted in paragraph 2 below) areopen to 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 .

i . Members attending Academy meetingsare free to observe the conduct of those meet-ings, they may participate in discussions onlywith the consent of the chairperson .

MEETINGS CALENDAR

Annual Meeting Actuarial Standards Board1995 October 16-18 1995 January 18-19

Marriott Copley PlaceBoston

Casualty Loss Reserve Seminar

Atlanta

April 19-20Washington, D.C .

July 25-26

1995 September 18-19Boston

1996

Chicago Marriott DowntownChicago

San Francisco

October 12-13Washington, D.C .

1995

Enrolled Actuaries Meeting

March 20-22

1996

Sheraton Washington HotelWashington, D.C .

March 18-20

1997

Sheraton Washington HotelWashington, D.C .

March 17-19Sheraton Washington HotelWashington, D .C .

63

PUBLICATIONSPublications 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 . ~

S ~` . C ~tl Yil~ ~2Zih~ of E ~c~=id'tFd"Contingencies, the magazine of the actuarial profession

bimonthly controlled circulation

The Acttranal Updatemonthly controlled circulation newsletter

Enrolled rkrtanraes Reportquarterly controlled circulation newsletter

1995American .lcaderny of Actuaries Yearbook$25 .00

1995 Directory r f A ctuarial Memberships$100.00

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

$25.00 each

Academy Alert on Pension and Employee Benefits$35 .00

1993 Directory of Enrolled Actua nei$30 .00

American Academy of Actuaries Fact Bookno charge

Actuarial Standards Board Fact Bookno charge

Actuarial Boardfor Counseling & Discdplirce . lnnual Reportno charge

Actuarial Standards Board Annual Reportno charge

Actuarial Board for Counseling t Discipline- An introductionno charge

American Academy of At tuaries Jouraurlback issues from 1977 to 1987 available at $35 .00 each

64

,,4merican Academy o f Actuaries1100 Seventeenth Street N\'V

7th F loorWashington, DC 20036