Y E AR B OO K 1 996

When we build, let i t be such work as our descendants will thank

us for : and let us think , as we lay stone on stone, that the time

will come when men will say as they look upon the labor and the

substance , " See! this our fathers did for us." - JOHN RUSKIN

AMERICAN ACADEMY of ACTUARIES

AAA

AMERICAN ACADEMY of ACTUARIES

1100 Seventeenth Street NWSeventh Floor

Washington , DC 20036

Telephone 202 223 8196

Facsimile 202 872 1948

Tab le of (In() ttiiI'Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Academy Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Academy Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Actuarial Board for Counseling and Discipline . . . . . . . . . . . . . . . . . . . .31Actuarial Standards Board and Committees . . . . . . . . . . . . . . . . . . . . .32Past Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35Jarvis Farley Service Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Robert J . Myers Public Service Award . . . . . . . . . . . . . . . . . . . . . . . . . 39History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40Strategic Plan 1995 -2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46Statement of Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59Code of Professional Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Professional Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Committee Appointment Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Guidelines for Making Public Statements . . . . . . . . . . . . . . . . . . . . . . . .67Guidelines for the Development of Practice Notes . . . . . . . . . . . . . . . . . .73Working Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Application for Admission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82Prescribed Examinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Actuarial Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84

Actuarial Clubs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Board and Committee Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93Meetings Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95

-Boa l -TT of DI 1•Hc ' I ( )1 -Ls

Vine Amorneo['uc Ptrs,dcrit

Jack NI TurnymstPre ldc,tt199()

Iohn M Be,tl.nI'Ut' Pu',,Jeut

199('

Lam, GunplemanPtesidcn,t-Eic t

1996

Arnold A . I ) c kct e Prr„dew

1'97

David P FIN-nnTtoAoidc„t

C'I rk', barn H Wabun Stephen 1L Kem Charles A Bv' .ut David G Hartutau

I', P,(•~tilet,t •b A rrt~fl Irnlntd, uti• Pu,t P,c I ,,lc„ t Pa,r P,c„ dca,t1990 19')8 11)117

Robert A. Anker199 7

Michlel h ('allah .in19,)f,

llfuc( C 13assnlal,

I ),are

Johif H I httieI')')8

All-.n J l3ec,

jett I III n„h1'}1)c,

jo.ui E Harman 17a, 1d M H,-ll.md Nark V hSactas1Y)7 1')')7 I')<),

William F Bluhni

191)1,

'alit Crutterman

1tiChard I) I'e it l C1')x)7

6

Ho%%,trd NI Phillips Ahcc Ito,eiiblatt Brian E Scott

11)1)(, Isis ItM7

James R S.~enson1 s)c)~

~ ears mdiLate the 4 LAI that directors' terms erp,re

Robert E. Wilcox1997

7

Wilson W Wyatt Jr .E.Xciutu'e Directoi

ir' .uinc' 13 Aiider,oii("onhollo

Lauren M BloomGcm-ral Caarr+cl

Gar% 1) HrndricksDu<<toi of !'uhla Poliq,nod (.1111-f L(ollovil i t

Ken Krehhielt1 ,iclatc Duciti,

T-),an,3 H i\3urph)

Edrtoi, ~' unttn~ siteChn,tuie E Nickcr'an

Dnc tou,Sraadald~ PrJk'am

ai, ! DiIii101 of Opctatialis

8

1 (•d ( 1e l ily 1 I a (TWikon W W}'att JrExecutive Director

Joanne B AndersonGoutrc'het

Ken KrehbielAssociate Director o/ Conii , ieatrorr~

Michael A AnzickHealth Poll,-)''Analyst

Lauren M . BloomGeneral Counsel

Christine M Cascids

_ 1ssrstarn Dracrar of Public Policy

Kathleen M Clark-BlandStaff Acconruanr

Pamela S CrunipronSystein Adrmmstrator

Neil S DhillonAlangEet of Cnnurnnrinriions

Christine Delta4dinini6liatir c Assrrt,int, Gown :uncatraru

Thomas C GrimSta 4rronrey

Elizabeth Banks HartstieldRlert[nip _4scrstanr

Robert E Heitzrnan ]rStnrot Pension Fellow

Gar-, 1) HendricksDuectot of Public Policy and Chief Ecoriouusr

Gwendolvn F. Hughes

L.terutive .Assistant

Maria C JohnsonReceptionist , . 1duiinislraiive Assstant

Doreen M Moaning.4dnnnntianve Assistant, Public Pole)'

Dana H. MurphyEditor, Contingencies

Christine E . NickersonDirector, Standards Pisrjtatscrud Ditertor o] Opuaiioas

Alberta OsuchukwuAccounting and Adimnistratrvr 4ssr_,rant

Cheryl Padilla{dnunrsrrat [vc-Edttorial Asscstan

Anne M . RankinStandards Editor

David F Rivera

Lc~i+lnave and Rcoidatory Specialist

Jean K Rosales

Assistant Duectoi of Public Polity

Renee Saunders

Mi,u<gcr of Publications and Graphr, Dcsiti'n

Calh Schnndt

Conlnbtttrnq Editor, Contingencies

Jeffrey P Speicherd tanager of cJi mlier Conirnrirnrannne

Rita Hoffman W inkelLegal Assrst,vrt

Membership AdministrationSusan C Steinbach, .4lernbershrp .llana ;er475 North Marringale Road, Suite 800

Schaumburg, IL 60173Telephone 708 7(16 3513Facsimile 708 706 3599

9

AA(1(1(t11y. Cotlltitil1eeeAcademy committees and task tutees are appointed aunuall\, the periodrunning from the close of one annual meeting to the opening of the next

Executive CommitteeBetween meetings of the Board of Directors, this c omnuttcc his the since pow-

ers as the board, ,-,itli certain cxccprion, listed in Arti It IV of the bvl .ms

Ordinarily, it acts only in matters of urgency uid makes re onunend.itions to

the Board of I )Irectors on uuporrant matters-

Jack i 4 Turngiitst Vinct AmorosoPresidciii I'tr Prr,cdreii

Larr} Zinipleman John M Berrko

Pxsidrru-Elect I ins Picsidc°ict

Stephen R Keen Acnold A Ihcke

Scnetaly-Tica+cnei I i'e Prc•cdccit

Charles A Bnan Das id 11 FIN-nnPa't Prc qdent I i,e P ( ' (Soil

Charles Barry H Watson

I ire Piesrdeni

Stiff Liaisc,u, Wilson W . W att Jc .

Review CommitteeThis committee reviews Academy ,tatcnicnt,, for consisteucv oitli the

Acadent mission and established policy and reports to the board of I )irecmreas needed but ar le ist annually

Bruce C, Bassuian . ( :hanhecsorcI Iarold 1. Brownlee Joan E_ Herman

St', (~ Liaison Garv I) . Hendricks

1 fl

Presidents Advisory CommitteeThis committee oversees Acadeius nianageurrnt and prep.]-Cs recommenda-tion for the ELc utis e Committee on policy issues

Jack M. Turncluist. C7iairpcruc'oCharles A Bryan Wilson W Wyatt /r

Larry Zunplenian

Nominating CommitteeThis committee nominates a slate of candidates for the Board of Directors for

presentation at the annual meeting and nominates a slate of candidates forAcademy officers for presentation to the Board of Direi torn

David G Hartnian, ChanpcuoirCharles A Bryan, I ix Chaupersorc

Robert A. Anker Mark V. MactasDavid M Holland ,Jack M TurnquistRichard D Pearce I arty Zinrpleman

Stir(/ Lrarnnr Wilson W Wy.itt Jr

Committee on PlanningThis committee reviews the Academy s objectives and recommends alterna-tive strategies that should be considered to achieve these objectives and hn .i-these strategies might be modified under alternative external developments orfuture changes in the Academy's environment

Larry Ziniplem n, ChairpcisoriRobert A Anker Mark V MactasDavid M Holland Richard D . Pearce

.Staff Lrumnr Wilson W Wyatt Jr

Litigation Review CommitteeThis committee provides broad-hased oversight of briefs the Academy submitsas amicus curiae to assure that the subject matter is appropriate for Academy

connient, that statements contained therein do not contradict Academy posi-tions . and that the briefs have been prepared in accordance with Acadenivguidelines . It authorizes submission of the briefs to the appropriate court,

Larry Zinrplenian, Chairpcoi'uVince Amoroso David P l lynnJohn M Bertko Charles Barry H, WatsonArnold A. Dole

Staff Liaison . Lauren M. Bloom

11

Financial Reporting Steering CommitteeThis committee ~onrdurates all lin .iiicial reporting ieti iLies across practiLe

lines It act, as a liaison to other conunittees within the profcssioo, to theaccounting protl'ssron, and to stare and federal reulator' bodies, mchidin

the Financial Accounting; Standaids Board and Government Accounting ;Standards Board, the National Association of [nouiance Commissioners, theSecurities and Exchange Coinnussion, and otheis . It cieates and oversees spe-

cial cross-discipliiiar} task forces as necessary The committee also serves as aconilterpart to the American Institute of Certified Public Accouiit .uit"

Relations with Actuaries Conunittee to provide a facility for comniunicationbetween the actuarial and acenunting professions . [n this capacity it des' 'lops

and maintains cooperative relations between actuaries and certified publicaccountants, explores areas of mutual concern, and adt ises the Actuarial

Standards Board and Acacleiriy leadership and uienrbership of significant

developments

Barbara LDavid B AtkinsonHarold L Barnev

James E HohmannLawrence A . JohansenLeonard Kolonis

Sot der, Ch,nrpei niJan A LonunclcRichard S RobertsonJack TurnquistWilson W Wyatt JiLair Ziuipleman

Sr.ttf'Lrataorr • Christine E Nickerson,

Gar} 1) Hendricks

Task force on Insurer SolvencyThis task force assures that the actuarial profession is actively cftcctrecl ,and publicly addressing the issues relaying to the solvency of U_S . financialinstitutions, particularly life, health, and property/casualty insurers .

Theodossius Athanassiades . ( :h,nrposcii

[T isk force members to he announced in January 1996 )

Sty Iff Lianeil' Garv I ) Hendricks

12

Risk Classification Oversight CommitteeThis comnuttcc meets at least .uiuu .illy to icview i isk classiticanoii issues isrhzv° relare ro public policy imtiariyes, to assure conestent tre,irmenr of riskclassification issues across practice areas, ind to review the need for inter-area

coordination on risk ( lassitic .ition issues

Edward C Shoop, ( :IiaiynruoirJoan E, Herman Karen F. TerryJariies B Keller James E Turpin

Staff Liaison Gary I) Hendncks

Task Force on ReinsuranceThus task force identities appropriate issues at both the federal and state levelschar the Academy could respond to, suggests priorities, and recommendsresponses consistent with its resources and schedule In addition, the task

force considers the broad role that the Academy can play in this area

David 13, Atkinson, Crar,petncinKenneth j Clark Paul A SchusterStuart B Caudanz Lee lZ SteeneckMiry Row land Hennessy Diane WallaceJoseph W Levin

StatJ Liaison Garv 1) Hendncks

Task Force on MembershipThis task force reviews the strength of members' affiliation vv rth the Academy.uid recornniends actions that the Acadeir may take to nrodrts its currentpractices to strengthen that affiliation

William F Bluhm, Charipcr;otrBruce C Bassinan Wilson W_ Wvatt JrSam Gurternlan Larry Zunpleman

I Iovvard M Phillips

StetLiaison . Lauren 141 Bloom,Ken Krehbiel, Christine L . Nickerson

13

David F Flynn, I in PresrdcntP ml G O'Connell I ice CG,iupeoen

Robert A. AnkerAlbertJ- Beer

Linda L . BellLeRoy A . bison Jr .Brian Z BrownFrederick W Kilhourne

Frederi k 0 KistJan A LommeleRichard J Roth Jr.Brian E ScottEdward C ShoopMichael L Toothman

Staff Liaison. Gary 1) . Hendricks, Jean K Rosales

Committee on Property and Liability IssuesThis comnntrce monitors legislative and regulatory activities in the propertyand liability area, excluding financial reporting it prepares statements onproperty and liability issues for submission to the public and private sectors

Paul G O'Connell, CianpusonRaja R Bhagavatula Layne M OnuferJames D Hurlev Waltei Wright

Sta/JLaison Jean K Rosales

Catastrophe Reserving and Natural DisastersInsurance Work Group

Paul G O'Conncll, CliaiipercorrGuidon K . Hav Glenn MoversDavid H . Hays P,atricia J Webster

Ronald T Kozlowski

Staff Liaison Jean K Ros .ilcs

Federal Medical Malpractice Reform Work GroupJames 1) Hurley, Ch,viperson

William L Buins Timothy L . GrahamLinda A Denibiec Edward M. Wrahcl Jr

Staff Liaisorr• Gary D Hendricks,David F Rivera

Environmental Liabilities Work GroupRaj.s R_ Bhagavartila, Cfranpcrson

Amy S Bouska Gus KrauseRobert P Irvan Lee R . Steeneck

.St,iff Liaison Gary 1) Hendricks,David F Rivera

Redlining Work GroupWalter Wright . Chairperson

Charles H Boucek Gary GrantThomas L Ghezzi Anne Kelly

Staff Liaison . Jean K . Rosales

Workers Compensation Work GroupLayne M Onufer. Oiaitprrrrmi

RobertBmeuCumining Lee M SmithBarry L Lle«ellyn Nancy R Treitel

James Magalska Bryan C. WareDavid Mormon

Staff Canon Gan, 1) Hendrick s ,David F Rivera

14

Committee on Property and Liability Financial ReportingThi, coinnvttec momtnrs d~tivitics regarding financial rcpertin related toprnpcity and liabihty inks, revienns proposals made hs various organizationsalteetnig the actuarial aspects of Financial reporting and auditing issues relatedto prope•itc and liahilit risks, and evaluates property and liability insuranceaid self-insurance accouminc issues

Jan A Lonunele, Chairpcr,oii

Ralph S. Blanchard IIILinda A DembiecGeorge DunlapRobert W GossrowGary- R losephsonElise C LiebersRichard W LoNhchael G McC,arteiDavid S Powell

Shift Lmr,oti

Sheldon RosenbergLinda A ShepherdHarvey A. ShermanLisa A SlotznickSusan T SzkodaPatricia A TeufelGarv G V-enterRobert H Wainscott

Jean K Rosales

Joint Program Committee for the Casualty Loss Reserve SeminarThis committee deselops the program for the Casualty Loss Reserve Seminar,cosponsored by the Ac adem\ , the Casualty Actuarial Society, and theConference of Consulting Actuaric,

Brian G Bros.-ii, Chauilu'i, " F1Ronald J Sn austiom I ice (:hanpeooii

Betty H Barrow Gary V. NickersonSteven R Fallon Joseph L . PetrelhLouise A. t-rancis Diane R RohnLeon R Gottlieb Jonathan RobertsJohn j I cwandowski Chris M Sucharjeffres H, Mak er Thomas V, Warthcn IIIE Tom Mulder Mark E Yingling

Sta/f Liaiscsi . Christine E Nickerson

Task Force on Property and Casualty Risk-Based CapitalThis task force works prunaiily with the National Association Of InsuranceC:oininissioner% At the request of the NAIL, the task force analyzes issues ofconcern to the NAIC's Risk-Based Capital Working Group and Task Forceand piovidc, recommendatinrn on ways to clarity and improve the Risk-Based Capital hn nitilas,

Frederick 0 Kist, CisiupersoirNolan E AschRalph S Blanchard Ill

Paul BraithwaiteRobert I' ButsicSholoin FeldblumJunes F GolzJames D Hut rev

Stiff Lmison Gan, D

Robert S KaplanElise C LicbeisDaniel K. LyonsMichael A McMutrayWilliam J Rowl,indSusan T Szkoda

Hcndncks

15

John M Bcrtko ['i,c Pii,i ds'urR eland E

I )avid J BahnHarold L BarneyHoiN aid J BolnickWilliam F BluhinStephen D BrinkWilliam J FalkAlan D FordHarry I) GarberJoan E HermanDarrell D KnappTed A LyleBartley L Munson

(Gup) King, I'itc (hanpciOoi1Layne M Onuf[rPeter L PerkinsJOFrei- 1' . PetertilJulia T PhilipsAlice RosenblattGeoffrey C SandlerHarry L. Sutton JrJames J . WatersJean M WodarczvkRobert E WilcoxDavid W. Wille

Sr,i}"Liaison Michael A Anziek

Guaranteed Issue/Universal Access Work Group

Thomas j Stoiber . ChairpcuoimDavid J. Balm Donna C. NovakCecil D Bykerk Peter M ThextonP Anthony Hammond David W Wille

Richard Nienuec

Staff Liaison, Michael A Arizick

Medical Savings Accounts Work GroupEdwin C Hustcad, Chalrpcrcni

Peter G Hendee Harry L Sutton JrRolmd E. (Guy) King George B Wagoner jr_Mark E Litow 'I honias 1, WildsnuthGerald 1t . Shea

Stay Liji.ioi7 Michael A . Anzick

t6

Committee on Federal HealthThis committee furthers the actuarial profession's involvement in policy issuesrelated to the design, cost, and financing of the nations health care Thecommittee monitors federal legislative and regulatory activities in the healtharena and prepares congressional testimony, position papers, and other publicstatements on key health issues . In addition, the committee meets foniiallyand informally with senior federal health policy makers and their staffs Issueson specialty subjects may be referred to an appropriate work group under thedirect supervision of the I Iealth Practice Council

Stephen D Brink, Chaaper,onGeoffrey C Sandler, Vi ,e Chairperson

Alfred A l3urgharn JrAlan D FordDonato GaSpdrro

Jdliies Gutterriiau

Edwin C . HusteadDavid E KerrRoland E . (Guy) KingPhilip J . LehpamerWalter T Liptak

Bartley L. MunsonDavid A Shea JrGerald R SheaJohn J . SchubertHarry L. Sutton JrSheree SwansonMichael j ThonipsonThonras F Wildsrinth

Staff Liaison . Michael A. Anzick

Managed Care Work Group Medicare Work GroupWilliam R. Jones, Chairperson Roland F. (Guy) King, Chairperson

Ronald E Bachman David A Shca Jr David V Axene Solomon Mussey

Stephen D Brink Gerald lL Shea David E . Kerr Harry L. Sutton Jr

Paul j Donahuc Harry L_ Sutton Jr Walter T Liptak John C Wilkin

James Guttcrrnan Shcrce Swanson Robert G Lynch David W WilleG Russell Hu h William C Weller. g Staff Liaicow Michael A AnzickWalter T Liptak David W_ WillsThomas X Lnnergdn Earl L WhitneyGeot rey C Sandler

Staff Lraison Michael A Anzick

Committee on Long-term CareThis committee addresses actuarial issues affecting long-terns-care plans . Itmonitors and comments on developments in this area at both the federal andstate levels and works with regulators and policy makers to assist in develop-ing public policies in connection with long-term-care insurance policies Infulfilling its charge, the committee maintains liaison with the NationalAssociation of Insurance Commissioners and other appropriate entities .

Bartley L Munson, ChanpernoirHarold L. Barney, I lie Chairperson

Vincent L Bodnar Eric StallardMalcolin A Cheung

Staff Liaison . Michael A Anzick

17

Committee on State HealthThis committee further, the actuarial ptutession"s involvement vi policy issuesrelated to stag regulation of health insui .nice and other health i, tu .n-ial issues

at the state level The committee ssorks primirily through uiterstare associa-tions such as the National Association of Insurance Coninussioners but alsoprovides assistance directly to states when appropriate. the committee coor-dinates closely with the Federal Health Committee to assure appropriateAcademy involvement in health-related issues at all lesels of government

Peter L Perkms, Chaupcii iii

Subcommittee on NAIC LiaisonDairell I) Knapp . Chaiipciocn

C Nick Bietcr Donna C NovakP- Anthony Hammond Franklin J RoseDavid E Kerr Jerome F SeamanLeonard Kolonis William C W elleiDavid W LibbeySteven E LippaiRobert C Mcilander

Robert E WilcoxRobert K Yee

Staff Liaison Christine M Cassidy

Subcommittee on State Health InitiativesAlan D Ford, Ch iupcoirn

P Anthony Hanmiond Jerome F SeamanDavid E Kerr John W C- StarkLeonard Kolonis Michael.] ThompsonDonna C Nosak William) Thompson

StateLiaison Christine M Cassidy

Any Willing Provider Work GroupWilliam J. Thompson, Chairpervum

Darrell D . Knapp Michael -I 'I hompson

StatTLiauon Christine M Cassidy,David F Rivera

Medicaid Work GroupPeter L Perkiiis, Chairpcisiiir

Donna C Novak James N RobertsDavid F Ogden John W C StarkJay C_ Ripps Michael J Thompson

Stag Liainvi Christine M Cassidy

18

Task Force on Health Organizations Risk-Based CapitalThis task force works primarily with the National Association of InsuranceCornrnissioners (NAIL) At the request of the NAIL, the task force analyzes

issues of concern to the NAIC's Risk-Based Capital Working Group andTask Force and provides recommendations on ways to clarify and improve

the Risk-Based Capital formulas,

William F. Bluhrri, ChairpersonPeter L . Perkins, Vice Chairperson

Linda C . BallRobert W BealC Nick BieterWilliam J . Bugg JrApril ChoiMichael J . CowellJoseph L DunnAlan D Ford

Andrew S GalendaP Anthony HammondBurton D JayDarrell 1) KnappLeonard Kolom'David W Libbey

Steven E LippaiMichael S McLaughlinKarl Madrecki

Robert G MeilanderScott R MunseDonna C NovakAlden E . OlsonRegiria V RohnerGeoffrey C . SandlerDavid E ScarlettJerome F SeamanThomas j StoiberHarry L. Sutton Jr .James R. SwensonMichael j ThompsonWilliam J. ThompsonPatrick WallnerWilliam C . WellerRobert K. Yee

Staff Liaison- Christine M Cassidy

19

Arnold A I hcke, I )cc I'rrsidevrCaide Olsen, I ice Chinijeoori

I)asidJ ChrintiansonShane A Chalke

Donna R. ClaireGlen M GamnullLarry M . GorskiJoan E HermanJames E I-lnhmann

Staff Liaison Jean K

Frank S . IrishRandall P MireCraig It Raymond

Richard S RobertsonEdss and S SihnsBarbara L . SnyderRobert E Wilcox

Roe ales

Committee on Life InsuranceThis committee monitors legislative and regulatory activities in the life insur-aueearea, excluding financial reporting . It prepares statements on life insuranceissues for dissemination to the membership or for suhnussion to appropriateorganizations, both governmental and private Issues on certain specialty subjectsare referred to the appropriate committee for action

Randall PWilliam CarrollDonna R. ClaireFrank P DinoBarbara J LautzenheiserLeo Lebos Jr

James E P0771

Mire, ChaupeooirCraig It RaymondJeffrey S SchhnsogShirle,, ShaoBarbara L SnyderRoger K. Wiard-Bauer

Stall Liaison Jean K . lkosales

life Nonforfeiture Work GroupRandall P . Mire . Chairperson

Donna It Claire Craig R RaymondDouglas C Doll P Andrew Ware

,S taft Liai,or Jean K . Rosales

Reserving for Minimum Guaranteed Death Benefitsin Variable Annuities Work Group

Thomas A Campbell,Stephen C Preston, Chairpersons

Abraham S Gootzeit Michael W PadoRobert J. Johansen Timothy J. RuarkJack Luff

Sta1/ Liaison Jean K Rosales

20

Committee on Life Insurance Financial ReportingThis coniinitrcc monitors activities regarding financial reporting related to lifeand health insurance, reviews proposals made b\ various public and privatesector c}rg;tnizations affecting a~countmg and auditing issues related to life andhealth insurance, and generally is responstl_ile for analvsrs and recnunnienda-tions on li c and health insurance arcnunting issues

James E Hohmann, C:hanpeicoriEdward L Bobbins, I '[cc Chaiyersorr

Bruce Bengtson Michael J . O'ConnorDonna R Claire Stephen N_ PatzmanAndrew R Creighton Frank W PodreharacScott H DeLong III Meredith A RatajczakVincent W Donnelly Donald E SinningJames P. Gieaton Eric It SchuenngLeonard Kolonas Henry W Siegel

Louis J Lomhardi James D- Wallace

Staff Liarsim Jean K Rosales

Task Force on Annuity ValuationThis task force ~,s orks directly with the National Association of InsuranceCommissioners It reviews the current annuity valuation law and is responsi-ble for analysis and reconmiendations on annuity valuation issues

Douglas C D oil .Errol Cramer, Chairpcr . (, ru

Thomas A CampbellDonna R ClaireHarvex HalpertRoger ll iohnisou

J .mics O'ConnorI )aniel O'SullivanStephen j Preston

Craig R Ray-niondMark C RossleyStephen A SmithDennis L Staiilc,,Patrick 1) StudleyJonathan L WooleyP Andress Ware

,Staff Liaison . Jean K . Rosales

21

Task Force on Genetic Testing and Life InsuranceThis task force monitors legislative and regulatory activities involving the useof genetic testing by life insurers It is responsible for preparing materials to

educate insurers, legislators, regulators, and organizations, both governmentaland private, on actuarial aspects of thn issue

David J Christianson, ChanpeuonRonald I Becker Mark E Litow

Cecil D. IJykerk Michael F ManningJoan E Herman Irvin J . Stricker

James B Keller

Stiff Liauori• Jean K Rosales

Task Force on Life Risk -Based CapitalThis task force works primarily with the National Association of InsuranceCommissioner At the request of the NAIC . the task force analyzes issues of

concern to the NAIC's Risk-Based Capital Working Group and Task Forceand provides recommendations on ways to clarify and improve the Risk-

Based Capital formulas

Cande Olsen, ChairpersonGerald A. Anderson Louis M_ Pirog

Robert A Brown Jan L. PollnowMichael J Cowell James F ReiskytlJoseph L Dunn Stephen A J ScdlakNorman E. Hill James A TolliverDouglas M . Hodes Bruce L WailachPaul F Kolkman Michael L Zurcher

Staff Liaison Jean K Rosales

Task Force on State Variations in Standard Valuation LawThis task force examines problems faced by appointed actuaries as a result ofvariations in state valuation laws and regulations, considers approaches forreducing such problems, and makes recommendations for consideration byAcademy leadership

Shirley Hwci-Chung Shao, ChairpersonFrank P Dino Stephen N, PatzmanTimothy F Hams Troy J PritchettThomas R I Ierget Donald E SanningJay M. Jaffe James N_ Van Elsen

Staff Liaison Gary D Hendricks

Voice Amocoso, i in' Thr.tr faitLa fence j . Slier, I iu Chmrpennrr

Jerild I Bog.irt Stephen R Kern

Christopher Bone Mark V MactasEdward E BurrowsMichael E Callahan[ Ieidi Racklcy DexterRon GebhardrsbaticrLawrence JohansenBarbara Blatt Kalben

statr Liaison

Richard PearceHoward M, PhillipsPatricia L ScahillDonald j . SegalKeith WilliamsLarry Zi nplcmau

Christine M . Cassidr

Senior Pension FellowRobert E. Heitzman lr

The Academy established its Senior Pension Fellow program in 1916 to buildthe Lredibility of pension actuaries on Capitol Hill and to promote constructivedebate on national retirement income policy Through regular interaction withfederal regulators and legislator, and Academy volunteers . the Senior PensionFello« influences Washnigtou legislators, and by extension other governmentsand regulators, to rely on the Academy as the objective resource for the knowl-edge and skills of the actuarial profession

The Senior Pension Fellow works with the Pension Practice Council andserves as the profession's primary policy liaison on pension issues lie estab-lishes and develops close relationships with the congressional tax writing andpension staffaiid regulators within the executive branch

Pension CommitteeThis coinniittec addresses actuarial issues affecting public and private pensionplans, excluding financial reporting The committee monitors federal tax,PBGC. and other ERISA-related developments It consults with Congress andrelevant regulatory agencies on the effect of regulation on employer pensionsand retirement security and comments on pending legislation and regulations .

Ron Gebhardtsbauer,James E Turpin,

Richard J Barney

CltarrpcrsorrI ice Chanpercori

Franklin D . PendletonFrederick B Bass William A RennertEdssard E Burrows Richard G SchreitniuellerLawrence Deutsch Donald J SegalAllen Gorrelick Lawrence j SherDennis J . Graf William J SohnLawrence A Johansen Robert D SteinhornDavid R Kass Michael N_ SwiecickiEthan A Kra James F VerlautzWilliam N . Kuendig 11 Lane B WestJudith L Latta Wallace W . Wilson

Stti(j Liaison . Christine M Cassidv

?3

Committee on Pension AccountingThis committee monitors activities and review, propos.ils regarding financialreporting related to pension plans The committee Is generally responsible foranalysis and recommendations on pension accounting Issues

Lawrence A_ Johuisen, C/valtpersoti

Paul W BarkerSteven BlandBenjamin I GottliebJane 1) ParentMaim J . Paull

Robert D StetnhornJoseph P StrazeniskiStanley TannehaunsHenry N Winslow

Sta(f Liavoii Christine M Cassidy

Committee on Social InsuranceThis committee provides and promotes actuarial reviews and analyses of U Ssocial insurance systems The committee prepares comments on pending legis-lation regarding federal social insurance programs and government reports onthese programs

Jerald L_ Bogart, Chmrper cm

James A Bcirnc Gregory J . SavordRichard S l-ostei Bruce D SchohclStephen C Goss Ronald L SolomonBenjamin I, Gottheh Eric StallardC_ David Gustafson

Sniff Lorrsoir• Christine M Cassidy

Task Force on Trends in Retirement Income SecurityThis task force is charged with studying trends in retirement income with theemphasis on the longer-terns future The task force will report its findings onthe outlook of retirement income security and make recommendations

Larry Zimpleman, ChairpessoirEdward E Burrows Mark T RuloffRobert A. Moe Stanley C SamplesFred W Munzemnaier Stanley Weislander

titatl'Llaison Christine Nl Casndv

Joint Program Committee for the Enrolled Actuaries MeetingThis committee develops a program for the Enrolled Actuaries Meeting,cosponsored by the Academy, the Conference of Consulting- Actuaries, andthe Societs, of Actuaries .

Barbara Blatt Kalben , C'haiupcooirPeter 1 ), Verne, 1 he Chciirpeison

Retry BermCrutis M. CartolamoWilliam P ForniaNeil A. ParmenterWilliam D . PartridgeRobert H Schranim

Donald J. SegalLawrence j (;herRonnie ThierinanAmy C VienerRichard A, WattsVickie N . Williams

.Statf Tiar,oir• Christine E . Nickerson

24

Charles B .irrs H . Watson, 11-c I'rrndentEdwin C . Hustead, lice Cha pn nr

Wiliani F I3luhrnLinden N ColeCurtis E . Huntingto nHenry K KnoyvltonRobert B LikmnsMary Frances Miller

Jeffrey P PetertilHcm,ard M. PhillipsRichard S RobertsonAllan W RyanI)onald E . Sanning

Staff Liaison Lauren M . Bloom,Clitistiue E Nickerson

Committee on International IssuesThis committee responds to requests from outside the United States regardingstandards of practice and qualification to sign U S public statements, to shareinformation with the international issues coumnittees of the other US actuanalorganizations, and to initiate discussion,, with non-U S ictuarial organizationsabout having common standards for accreditation

Curtis F. Huntington, ChairpersonAllan D Af leckRobert L. CollettKaren L GervasoniKeith J . GoodellDavid G HartmanHeidi E . HutterHarold C Ingraham Jr.Kevin M. law

W James MacGinnitieBruce D MooreJames j- MurphyJohn C Nan,ell

Raymond E SharpJames N. Stanard

Fernando J . Troncoso

Staff Liaison Lauren M Bloom

Committee on Professional ResponsibilityThis comrmttee promotes within the profession knowledge of standards of con-duct, qualification, and practice, and suggests ways and mean,, for enforcement,compliance, and monitoring of the effectiveness of those standards

Allan W . Rvin, ClraupersonThomas I Bakos James A MilesRichard A Block David S. l'owellThomas K Curtis Donald E . SaniiuigRussell S Fisher Bruce A StahlEdward F. McKeman Wallace W Wilson

Staff Liaison- Chnuune E Nickerson

25

Committee on QualificationsThe, committee invests ates issues aitsinu ,vith respect to the mininiunirequirements neeessarv to quality uienibers to perform pubhch required actu-arial functions, recommends to the Beard of 1)irectors minimum qualificationstandards, including continuing educanon requirements, for such nienibers,and counsels members on questions relating to mdiv ideal qualification, Italso develops guidelines tot the administration of the Academ} qualificationstandards, mcludmg c .enitimiiiig education requirenieuts

Robert B Likins, CliaupruoiiCharles L McClenahan, 1 icy' Cararrprisna

Brian A. Jones Terrence M O'BnenJames L Lewis Jr john P ParksDaniel j McCarthy Adam J Reese

Staf Liaison Lauren M Bloom Rita Hoffman Winkel

Task Force on Opinion ReviewThis task fierce was established to develop a procedure foi ievievv of actuarialopinions filed on behalf of failed insurance companies

William F Bluhni, Chaiipcr,on

Larry D Baber James R. SvvensonJan A I ommcle Robert E WilcoxJames F Reiskvtl

Skiff Liaison Lauren M Bloom

Task Force on Implementation of Professionalism CoursesThis task force vvas established to develop piopam matenals on professionalismand promote the presentation of professionalism sessions .

Donald E Sannmg, Chaups•rsorr

Richard A. Block James B MilhollandLinden N Cole Mary Frances MillerThomas K. Custis Roger Schultz

Staff Liaison . Lauren M Blooni

Committee on Actuarial Public ServiceThis committee develops recommendations and plans for implementation ofthose recommendations for encouraging and promoting the importance of

public sector employment for actuaries

Edwin C Husread . C it iirpcrsorrJames A Beirne Benjamin I Gottlieb

John K. Booth Nancy I I Kichak

William Carmello Michael W Morgan

StaffLiaison' Thomas C Griffin

26

NAIC/Academy/ABCD/ASB Joint CommitteeThis committee serves as a forum for discussing ptofessionalisni and otherissues of importance to actuaries that involve the actisities of the NationalAssociation of Insurance Commissioners (NAIL) ('ominittet membershipincludes each of the state commissioners who are actuaries, the chairs and vice

chairs of the NAIC Life & Health and Casualtti Actuarial Task Forces chairsor their designated representatives from the Actuarial Standards Board and theActuarial Board for Counseling and Discipline, and the Amenean Academy ofActuaries president, executive director, vice president of the Council on

Professionalism, and chairperson of the Committee nn Qualifications

Dwight K Bartlett 111, ChairpcrsoiRobert E Wilcnk, I ire Chairperxiu

LeRoy A Boison Jr Charles QuackenbushElton Bonier George M. Reider Jr .John P Crawford Richard S. RobertsonHenry K. Knowlton Edward S SumsChns P Krahhng Jack M TurnquistRobert B. Likins Therese M VaughanTed A Lyle Charles Barry H WatsonMark D Peavy Wilson W. Wyatt Jr.

Stephen R_ Kern, Secrerar-Treasurer

Budget and Finance CommitteeThis conirnittee prepares financial projections and the annual budget, and rec-

ommends the dues structure to the Board of Directors It also develops andmaintains the investment policy for Academy funds, such policy to be imple-mented by the Secretary-Treasurer

Stephen R Kern, CliairpersooBruce C Bassman James R SwensonJohn 11 . Flittie

Staff Liaisosr Joanne B Anderson

27

Wilson W W yart Jr , E.cccritme Director

Committee on PublicationsThis committee provides policy direction and guidance for Acadrinvpublications

E Tom Mulder, Clrmrprrson

The 1 rtnerral 1 Ihd 21`1'Adam Reese, Editor

Associate EditorsWilliam Carroll Patrick J GrannanRonald Gebhardtsbauer

EmoI!ed Attr{care°s R,pt rtRichard G . Schreitumeller, Editor

.4 ui iatc Edih+n

John W Attcridg Donald J Segal

James A Kenney lames E TurpinAdnen R L I3omharde

Editorial Advisory Boardfor Contingencies

This hoard provides policy guidance, technicalreview, and oversight to staff editors in the

production of Contrncrri1ies, the magazine ofthe actuarial profession

E Tom Mulder, Ck4dilpisorrHarold J. Brownlee Julia T PhilipsCurtia F Huntington Richard 5_ Robertson

Frederick W Kilboume Bruce D SchohelCraig A Olnev Mavis A . Walters

Staff L arson Ken Krehbiel,Jefrty P Speicher

Joint Academy/ Society of ActuariesWork Group on Communication

for Health Issues

Julia T Philips , (haispirMo )1Peter Berry Das id A. Shea JrLucutda M I ewis Shcrec SwansonOscar Lesvis Leigh M Wachenheim

Staff L,~ar orr• Ken Krehbiel,Michael A Anzick

Depattines EditorsArthur W Anderson Ken KrehbielThomas I Bakos W Keith Slo .ui

Alan Goldberg 'Jet rey P SpeicherYves G Guerard

,'iiarl Lun wn Dana H Murphy

28

Council of PresidentsThe Cuunul of l'resnleuts provides a busnie,s and oc ial forum to promotecoordination ~ooperauon, and trust among the lcadeiship of the or~'uuzationsrepresenting acniatles in Canada, Mexico, and the United States

Robtit A 4,nkei, CAS Nesille S Heudenon, CIAAlbert j Beer, CAS [)avid M Holland, SOAMichael F. Callahan, ASl'A Mark V Mactas, CCASerpo C imposortega Cniz, CONAC l'edro Pacheco, CONACMarc J Ferret, CIA Richard 1) Ptarce . ASPAJeff 1-urnish,CCA Jack M Turncluist, AAASam Guttenuau, SOA Larry Zimplcnian, AAA

Council of Presidents-ElectThe Council of Presidents-Fleet of the United States and Canadian organiza-tions and a comparable representative from Mexico, complements the mis-sion of Council of Presidents and focuses nn the development of workingrelationships and mutual trust

Allan M Kaufrnan . Facilitate,Robert A Anker, CAS Pedio Pacheco, CONACNeville S Henderson , CIA Richard 1) Pearce ASPADas id NI Holland, SOA Larry Zimplrni in, AAAMark V_ Mactas, CCA

Start Liauoti Wilson W Wyatt Jr

Advisory Group for forecast 2111111This group of rcpresentitives from all Forecast 2000 sponsoring organizationsadvises public relations staff on the course of tht program . reviews results, andmakes recommendations to the Council of Presidents .

Wilson W W\-att Jr , Clr,ittp ersorrPaul H Abbott Jr ., ASPA Frederick W Kilbourne, CCARobert L. Brown, CIA Anthony T Spano, SOARobeiti j . Garland, CAS Mavis A Walters, CAS

Staff Liaison Ken Krehbiel

29

Education and Examination Management Committeeof the Society of Actuaries

llamcl J_ McCarthy

Education Policy Committeeof the Casualty Actuarial Society

Jerome A Degerness

Public Relations Committeeof the Society of Actuaries

Anthony T. Spano

30

i\ctiiat'ialfor (lotiiiseii ingan Di scipl_1110

The Actuarial Board for Counseling and Discipline (ABCU) was established as an independententity managed through the Academy on Januar v 1, 19Q2

Upon delegation of appropriate authority from a participating actuarial organization andacceptance of that delegation bs the ABC1), the ABCD is authorized ' (1) to consider allcomplaints arid - or questions concerning alleged violations of the applicable Code ofl rotessional Conduct and all questions that may arise as to the conduct of a member of a par-ticipating; actuarial organization in then member ' s relationship to the organization or its nrciai-hers, or i n the uieuibtr 's professional practice , or a$ectuig the interests of the actuarial profes-sion, (2 ) to counsel individuals acursed of violations of the applicable Code of ProfessionalConduct regarding their actions , ( 3) to recommend a public disciplinary action against an indi-vidual to any participating organization of which that individual is a member , (4) to accept andrespond to requests for guidance from members of the participating organizationis , and (5) toserve as ombudsman between members of participatuig actuarial organizations, or betweensuch members and the public , for the purpose of informally resolving complaints concerningthe professional conduct of such members

Actuarial Boardfor Counseling and Discipline

Henry K . Knowiton, ChwrprrsoaA Norman Crowder Ill . fine Cii iiiper_.oiiW alter J Fitzgibhon jr , Vic ' Ch vrpevsan

Daphne 1) Bartlett Joseph j LeubcAlan N Ferguson Kenneth W Porter

David L. Hewitt Jerome A. Scheibl

Stiff Liabeir Lauren M Bloom,Thomas C Griffin

31

i1(' l 1 Ia l' I c 1 Stah1(hlTt'( s ()a r(-PThe Actuarial Standards Board (ASB) ss is established as ,in independent entity managed throughthe Academy on July 1, 1Wi The ASH has the authority to prescnhe its own operating prncc-duies, to establish committees, subcommittees, and task forces it may deem necessary in carrying

out its assigned functions ; and to appoint individuals to positions on such coinnuttees, subcom-

mittees, •111(i task forces The operating committees report to the ASH and function under itsdirection The ASB also has the authority to approve exposure of proposed standards and holdpublic licarings on them, and to adopt recommended standards of practice

The AS13 is charged : (1) to direct and manage the development of actuarial standards ofpractice by its operating committees in all areas of actuarial practice ; (2) to expose, promul-

gate or adopt, and publish actuarial standards of practice, within its sole discretion and pur-suant to such procedures as it deems appropriate, in all area'. of actuarial practice, and (3) toprovide continuous review of existing st,uidards of practice and determine whether they are inneed of amendment, alteration, expansion, or elinnnation .

Actuarial Standards BoardRichard S Robertson, Clianpersorr

Edward E Burrows, [ crc Ch iiipercoe

Daniel J . McCarthy, I "ire Clranpcisorr

Philhp N lien-Zvi Frank S IrishHarper L Carrett Jr. Harm- L. Sutton Jr.

David G Hartman James R Sss enson

San(] Liaison . Christine E . Nickerson,

Anne M. Rankin

32

Casualty Committee of the ASBIn accordance with piuccdures prescribed by the ASB, this coninuttee devel-ops actuarial standards of practice in the piopertv/casualry Insurance area

LeRoy A Boison Jr , ChairpcoorrMichael A LaMonica I cc Canurpereori

Martin Adler R Michael LambDouglas J Collins Steven G LehmannFrederick Cripe Stuart N I erwickDaniel j Flaherty Robert J . LindquistEdward Ford Robert S Miccolis

Spencer M Gluck Marc B PeailRobert W Gossrow Patricia A, TeufelDavid j Grady Margaret W TillerGary Grant Jonathan WhiteE LeRoy Heer Mark WhitmanBertram A Horowitz Paul E Wulterkens

Subcommittee on RatemakingGary Grant, Charrpeison

Subcommittee on ReservingMartin Adler . Chairperson

Task Force on ReinsuranceDouglas j Collins, Chanprr.s on

David j Grady Gary K RansomDavid Koegel Jcrome E Tuttle

Task Force on Rate of ReturnMark Whitman, Chairperson

David Appel Claus MetznerRobert A Bailey Michael j MillerRobert P_ Butsic Richard G WallSteven G Lehmann

Task Force on Risk Margins (Special Issues)Spencer M. Cluck, Clrairpcrsen

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

Health Committee of the ASBIn accordance with procedures prescribed by the ASh, this committee developsactuarial standards of practice in the health insurance area

Ted A Lyle, CharrpersorrRobert M Duncan Jr. Mark D PeavyRobert J Ingram John A PriceMary j Murlev Richard j Shepler

W. H. Odell Joe P SternfeldDavid F Ogden

33

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

Edward S . Shins, ChtriipenoirFrederick j Sievert, I uc Chairpenun

John W Brumbach Godfrey PerrottEdward B. Kiffel Thaddeus W. TrentonWilliam Koenig Michele G Van LeerWalt N Miller Roger Wiard-BauerLew Nathan Michael L . Zurcher

Pension Committee of the ASOIn accordance with procedures prescribed by the ASB, this committee devel-

ops actuarial standards of practice in the pension area

Heidi R Dexter, ChairpmLuiRichard Q Wendt, I icc Chairperzooi

Richard Berger Lawrence j SherNorman L Jones Kenneth Steiner

James Laws Diane M. StormLindsay J Malkiewich Lee j Trad

Eric I Palley James E Turpin

1RRO SubcommitteeKenneth Steiner, Chauperson

Arthur Anderson Franklin E PetersSteve Parker

Task Force on long-term CareIn accordance with procedures prescribed by the ASB, this task force developsactuarial standards of practice in the area of long-term care

Bartley L Munson, ChairpersonLoida Rodis Abraham Dennis M O'BrienDonald M Charsky Andrew M . Perk-insGary I Corliss William C Weller

Editorial Advisory Committee of the ASBThis coininittee advises the operating committees on the format, style, struc-

ture, and consistency of proposed standards

Henry W Siegel, Chanpci,otiJanet L Fagan Michael J ThompsonJanet A Pendleton

34

tat8 Off (' 'S1965 -66 1966-67

Henry F Rood President Thomas E MurrinThomas E Murrin President-Elect John 11 MillerFrank J . Gadient Vice Presidents Frank J . GadientLaurence H Longley-Cook Laurence H. Longley-CookJohn H . Miller H Raymond StrongH. Raymond Strong Andrew C WebsterGeorge M Bryce Secretary Norton E MastersonRobert E Bruce Treasurer Robert E . Bruce

1967-68 1968-69John H Miller President Wendell MillimanWendell Milliman President-Elect Walter L RuglandEdward D Brown Jr Vice Presidents Edward D Brown JrWilliam J_ Leslie Jr William J . Leslie JrFrank J . Gadielit Paul T RotterAllen L Mayerson Harold W. SchlossNorton E Masterwn Secretary Norton E MastersonRobert E. Bruce Treasurer Robert E_ Bruce

1969-70 1970-71Walter L Rugland President H Raymond StrongH. Raymond Strong President-Elect Robert J MyersPaul T. Rotter Vice Presidents Donald F CampbellHarold W Schloss John K DyerDonald F Campbell Harold E CurryRobert J Myers Morton D. MillerNorton E Masterson Secretary William A . HalvorsonRobert E . Bruce Treasurer Robert E . Bruce

1971-72 1972-73Robert j . Myers President Morton D MillerMorton D_ Miller President-Elect Ernest J MoorheadHarold E Curry Vice Presidents Robert E . BruceErnest J Moorhead Julius VogelRobert E . Bruce Reuben I JacobsonJulius Vogel Daniel J McNamaraWilliam A_ Halvorson Secretary William A HalvorsonDale R Gustafson Treasurer Dale R Gustafson

1973-74 1974-75Erect J Moorhead President Daniel J McNaniaraDaniel J McNaniara President-Elect Thomas P Bowles JrWilliam A_ Halvorson Vice Presidents Richard L JoheReuben I Jacobson Robert C WintersThomas P Bowles Jr . Edwin F BoyntonRichard L Johe Kenneth H . RossWalter S Rugland Secretary Walter S RuglandDale R. Gustafson Treasurer Dale R Gustafson

35

1975-76 1976-77Thomas P Bowler Ir President Robert C WintersRobert C Winters President-Elect Edwin F BoyntonEdv,in F ]3oynton Vice Presidents Dale R GustafsonKenneth H. Ross M. Stanley HughevDale R Gustafson Ronald L Bornhuettcr

M Stanley Hughey Louis GarfinWalter S . Rugland Secretary Ralph E EdwardsJames O. Webb Treasurer James 0 Webb

1977-78 1978-79Edwin F. Boynton President Dale R GustafsonDale R Gustafson President-Elect Ronald L BornhuetterRonald L Bornhuettcr Vice Presidents Preston C . BassettLotus Garfin Charles C Hewrtt JrPreston C . Bassett Herbert L DePrengerCharles C_ Hewrtt Jr Walter L Grace

Dwight K Bartlett III Secretary Dwight K Bartlett IIIJames O. Webb Treasurer Kevin M. Ryan

1979-80 1980-81Ronald L Bornhuetter President Walter L GraceWalter L Grace President-Elect William A . HalvorsonMary H. Adams Vice Presidents Richard S RobertsonHerbert L. DePrenger P. Adger WilliamsRichard S Robertson A Norman Crowdcr III

P. Adger Wrlliams Bartley L . MunsonCharles Barr, H . Watson Secretary Charles Barry H . Watson

Kevin M Ryan Treasurer Kevin M Ryan

1981-82 1982-83William A Halvorson President P Adger WrlianisP. Adger Williams President-Elect A Norman Crowder IIIA Norman Crowder III Vice Presidents David R. CarpenterBarley L Munson William A Ferguson

David R. Carpenter John A. FibigerWilliam A Ferguson Walter S RuglandCarl R. Ohman Secretary Carl R OhmanW James MacCinnitic Treasurer W . James MacGinnitie

1983-84 1984-85A Norman Crowder III President M Stanley HugheyM Stanley Hughey President-Elect Bartley L MunsonJohn A Fibiger Vice Presidents David G HartmanWalter S . Rugland David M . ReadeDavid G. Hartman Harold J BrownlccDavid M Reade Carl R OlunanCarl R. Ohuian Secretary Robert H Dobson

Burton D Jay Treasurer Burton I) Jay

36

1985-86 1986-87Bartley L Mun,on President Preston C . BassettPreston C Bassctt President-Elect John A . FibigerHarold j Broi nlee Vice Presidents Edward H FriendEdward H Friend W James MacGinnitie

W James MacGinnitie Burton D JayCarl R. Ohman Mavrs A WaltersRobert H . Dobson Secretary Robert H DobsonBurton D Jay Treasurer Daniel J . McCarthy

1987-88 1988-89John A Fibiger President W James MacGinnitieW James MacGinnitie President-Elect Harold J BrownleePhilip N Ben-Zvi Vice Presidents Phillip N Ben-ZviBurton D Jay Harper L Garrett lrJoseph J . Stahl 11 John H. HardingMavrs A. Walter, Joseph J Stahl ItVirgil D Wagner Secretary Virgil D WagnerDaniel J McCarthy Treasurer Daniel j McCarthy

1989-90 1990-91Harold J Brownlee President Mavis A WaltersMavis A. Walters President-Elect Harry D GarberHarry 1) Garber Vice Presidents Robert H DobsonHarper L Garrett Jr Charles E. FarrJohn H Harding Darnel J McCarthyDaniel J McCarthy Michael A WaltersVirgil D. Wagner Secretary Richard H SnaderThomas D Levy Treasurer Thomas D Levy-

1991-92 1992-93Harry D Garber President John H. HardingJohn H Harding President-Elect David G HartmanRobert H . Dobson Vice Presidents Howard J BolnickR Stephen Radcliffe Stephen P LoweRichard H Snader Walter N MillerMichael A Walters Richard H . SnaderLarry D Zimpleman Larry D ZimplemanThoinas 1) Levy Secretary-Treasurer James R Swenson

1993-94 1994-95David C. Hartman President Charles A BryanCharles A Bryan President-Elect Jack M. TurnquistHoward J. Bolnick Vice Presidents John M. BertkoHoward Fluhr Howard FluhrPaul f• Kolkman David P . FlynnStephen P Lowe Paul F KolkmanJack M Turnquist Charles Barry H WatsonJames R Swenson Secretary-Treasurer James R. Swenson

37

C l ∎ rT I C L• \ 1T

SFlv' 1(r(' Awardn 1991, the Academy established aperpetual award to honor the memo-ry of one of its longtime, indefatiga-

ble volunteers . Jarvis Farley was a chartermember of the Academy and an invalu-able resource for Academy staff and theentire actuarial profession . His untiringvolunteer work for the Academy epito-mized the caliber of service to be hon-ored by this award. He began serving onAcademy committees in 1972 and con-tinued until his death in 1991 .

The Academy Executive Committeeeach year will select the Jarvis FarleyService Award recipient, if it determinesthere is a deserving candidate . The

recipients are announced and honored atthe Academy's annual meeting . Eachhonoree receives an engraved pewterPaul Revere bowl, custom designed byKirk Stiefl. A slightly larger, permanentbowl, engraved with the name of eachrecipient. is displayed at the Academy .

Jarvis Farley Service AwardRecipients

199? Mary Hardiman Adams1993 Jerome A Scheibl1994 Douglas C . Borton1995 Harry L. Sutton Jr

38

Ru1*i'-1 .1 .1] yei'sPubliC ServiCE I -d

J n 1994, the Academy, through itsCommittee on Actuarial PublicService, established the Robert J .

Myers Public Service Award to recog-nize the extraordinary lifelong publicservice of Robert J Myers, who waschief actuary for the Social SecurityAdministration from 1947 to 1970 .

The exceptional career of Myers wasrecognized with the public announce-ment of the award at the Academy'sannual meeting in Washington, D.C., onSepteniber 31i_ Myers was instrumentalin the design and funding of the SocialSecurity systeni and worked for theSocial Security Administration for somethirty-five years . Although politicalpressure often conflicted with his profes-sional responsibilities, Myers neverveered from a path of professionalintegrity- He continues to commandrespect within and outside the profes-sion, and he remains an inspiration to allpracticing actuaries .

Recipients of the Robert J . MyersPublic Service Award will be selected

through the Committee on ActuarialPublic Service on the basis of their con-tributions to the common good throughservice to the government or otherorganizations in the public sphere .While honoring individual recipients,the award will also call attention to thesignificant benefits the general publicreceives from the actuarial profession .

A specially designed medal was pre-sented to Mr Myers at the award's inau-guration The permanent medal ismounted on a custom-designed pedestaland displayed at the Academy office inWashington Future recipients willreceive engraved medals, and theirnames will be engraved on the base ofthe permanent medal at the Academy

Robert J . MyersPublic Service Award

Recipients1995 John O. Montgomery

39

n October 25, 1965, the AmericanAcademy of Actuaries was orga-ruzed as an unincorporated associa-

tion to serve the actuarial profession in

the United States The corresponding

national body in Canada, the Canadian

Institute of Actuanes, had been incorpo-

rated earlier that same year For many

years, the actuarial profession in North

America had consisted of four bodies-the Casualts Actuarial Society, the

Conference of Actuaries in Public

Practice, the Fraternal Actuarial

Association, and the Society- of Actuaries

In 1964, the members of those four

organizations, recognizing the need for a

single body to represent actuaries of all

specialties, approved formation of an all-

inclusive organization of qualified U S

actuaries

On April 29, 1966, the Academy wasreorganized as .a corporation under theIllinois General Not For ProfitCorporation Act Henry F Rood,whose presidential address to the Societyof Actuaries in 1958 had voiced the firstformal proposal for such a national body,was elected president

In September 19811, the FraternalActuarial Association, one of the fourfounding organizations, closed its doors .Its dissolution indicated that the needs offraternal actuaries had been increasinglyniet by other actuarial organizations andthat the National Fraternal Congress hadincreasingly been providing a forum forfraternal actuaries

In 1990, the Academy- Board ofDirectors established four practice coun-cils to represent the nraiur areas of actu-arial practice casualty, health, life, andpensions . In 1992, the Council onProfessionalism leas created to oversee

the Academy's responsibility to set andmaintain professional standards Fachcouncil has broad authority to set itspractice area's public policy agenda, spe-cific policy initiatives are carried out byAcademy comnuttees that report to thepractice councils .

The five councils are headed by vicepresidents, who together with the presi-dent, president-elect, unuiediate pastpresident, and secretary-treasurer, consti-tute the Academy's executive committee .

In 1994, the Academy Board ofDirectors approved a strategic plan for1995-2000 and a new mission statementemphasizing the Academy's roles in pub-lic policy formulation and professional-ism The Academy's mission is toensure that the American public recog-nizes and benefits from (1) the indepen-dent expertise of the actuarial professionin the formulation of public policy, and(2) the adherence of actuaries to highprofessional standards in dischargingtheir responsibilities .

Membership RequirementsAcademy membership is intended toserve as the hallmark of a qualified actu-ary in the United States

All US residents who were fellows(or the equivalent) of the four existingbodies on October 25, 1965, were auto-niatrcally enrolled as Academy members,subject to their indicated assent by pay-ing the dues There were 1 .427 charternienibers of the American Academy ofActuaries

The Academy immediately' set aboutmaking its existence known to other

actuaries not eligible as charter members

It vas required that any such actuary

40

demonstrate adequate knowledge andskills- Many were admitted by thisroute, some after passing special proc-tored examinations A requirement ofseven years of responsible actuarial expe-rience (five years for fellows by examina-tion of the existing bodies) was imposed

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

Nonresidents of the United States canbe admitted to membership if they meetthe Academy's educational and experi-encc standards, can demonstrate familiar-ity with U S. actuarial practices, andhave a need to perform actuarial dutiesin the United States

Professional ConductIn December 1965, the Guides toProfessional Conduct were first issued .Over time, these were revised and sup-plemented by Interpretative OpinionsTogether, the Guides and Opinions

formed a core of ethical guidance formembers i n all phases of their profession-al lives. In September 1991, the Boardof Directors approved a new set of ethi-ca] precepts as recommended by theCouncil of Presidents Task Force on theCode of Professional Conduct . Theintent of the task force was to seek adop-tion of a common code of ethical tenetsby all organizations representing actuariesin North America. The Academy wasthe first body to adopt the Code, whichbecame effective January 1, 1992 .

The Code of Professional Conductincludes Precepts and Annotations thatrequire a high standard of ethics andresponsible performance expected ofprofessionals . Specifically, the Preceptsrequire actuaries to abide by standards ofpractice, as promulgated by the ActuarialStandards Board, and by qualificationstandards, adopted by the AmericanAcademy of Actuaries . The Code hasbeen adopted in substantially similarform by all the professional societies rep-resenting actuaries in the United Statesand Canada, uniting the profession inthis area for the first time .

Counseling and DisciplineSince its inception, the Academy hasrecognized the need for a disciplinaryprocedure to enforce standards of con-duct and the need to provide the publicand fellow actuaries with an avenue toexpress grievances regarding the proFec-stonal activities of Academy members .For many years . the responsibility forhandling complaints, investigatingcharges, and proposing disciplinary mea-sures rested with the Committee onDiscipline . Largely because duplicationsof effort by the disciplinary committeesof the various actuarial organizationsfrustrated effective discipline, and also asa result of the adoption by all actuarial

41

organizations of a common Code ofProfessional Conduct, in 1991 the mem-bers of the Academy voted to amend thebylaws and create the Actuarial Boardfor Counseling and Discipline (ABCD) .

The ABCD is a separate entity affili-ated with the Academy It investigatesalleged violations of the Code ofConduct lodged against members of anyactuarial organization that delegatesinvestigative authority to the ABCD .The Academy and other organizationshave delegated such authority . Forthose activities that in the opinion of theABCD do not merit public discipline, orin response to actuaries' requests forguidance, actuaries will be counseledprivately and assisted in complying withthe requirements of the Code ofProfessional Conduct, qualification stan-dards, and standards of practice

Standards of PracticeThe Academy commenced issuing stan-dards of practice, called Recommendations,in 1973. These recommendations weresupplemented by interpretations . Amajor step forward in the developmentand management of standards of practicewas taken in 198 with the creation ofthe Interim Actuarial Standards Board(IASB) The IASB served as the proto-type for a permanent Actuarial StandardsBoard (ASB), which was created in June1988 by a bylaw amendment vote .

The ASB is a separate entity affiliatedwith the Academy. It has sole responsi-bility to initiate the development of andto adopt new standards Standards ofpractice include statements on the tech-niques, applications, procedures, andmethods that have been generallyaccepted by the profession The Code ofProfessional Conduct requires actuanes tobe knowledgeable about and abide bythese pronouncements .

Legal RecognitionIn December 1966, the NationalAssociation of Insurance Commissioners(NAIC) adopted a resolution supportingrecognized standards of actuarial compe-tence and conduct and urging each com-missioner to support the efforts of theAcademy to gain official recognition .All states now have regulations that rec-ognize Academy membership as qualifi-cation for signing insurance companyannual statements, some have corre-sponding recognition for public employ-ee retirement systems . The first state toact was Indiana, which provided for cer-tification of actuaries by a state board ina 1968 law . The general pattern fol-lowed in other states has been issuance ofadministrative orders or regulations

In 1975, the responsibility expectedof actuaries was spelled out by a newrequirement that the actuary who signs alife insurance company annual statementmust express an opinion on the actuarialelements, including an opinion on theadequacy of reserves . The Academyresponded with recommendations to theprofession on how this responsibilityshould he met .

In 1980, a similar requirement wasadded to the property and liabilityinsurance company annual statement,except that the requirement was at thediscretion of the domiciliary insurancecommissioner Again the Academyresponded with appropriate recommen-dations to the profession .

In 1990, at the urging of theAcademy, the NAIC eliminated the dis-cretion of individual states As a result,virtually all annual statements from prop-erty/casualty companies in the UnitedStates must be accompanied by a lossreserve opinion from a "qualified actu-ary," defined as a member of theAmerican Academy of Actuariesapproved by the Casualty Practice

42

Council, or as a member of the CasualtyActuarial Society, or otherwise approvedby the doiniciliary commissioner

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

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

Expressions of Professional OpinionThe first mayor influence of the Academybeyond the boundaries of the professionwas in its response, beginning in 1972, tothe audit guide for stock life insurancecompanies by the American Institute ofCertified Public Accountants This coop-erative endeavor has led to regular andclose association between the actuarialand accounting professions

The Academy has also becomeincreasingly active in dealing with vari-ous government entities on a variety ofpublic issues . In 1982, the Board ofDirectors adopted Guidelines for MakingPublic Statements in connection with thisactivity. The guidelines were updated in1993 .

Joint Activities of ActuarialOrganizations

The North American actuarial bodiescooperate in many ways, largely throughjoint sponsorship of actuarial examina-tions and the work of joint committeesIn December 1972, the Academy wasinstrumental in launching an informalbody, the Council of Presidents, to fos-ter even greater understanding and com-

mon purpose In 1976, the actuarialorganizations jointly formed theActuarial Education and Research Fundto foster the growth of basic actuarialresearch throughout the profession andto arrange for necessary financing ofsuch research

AdministrationAt the outset, the Academy sharedadministrative facilities with the Societyof Actuaries in Chicago (since moved toSchaumburg, Illinois) A major step toincrease the value and influence of theAcademy was taken in January 1976when the Academy became headquar-tered in Washington, D C . TheWashington office is responsible for allstaff functions other than those related tothe membership database, which remainin Schaumburg.

MeetingsHistorically, the Academy has held itsannual meetings in the fall of the year, inconjunction with the annual meeting ofone of its founding organizations InNovember 1996 the Academy will holdits annual meeting in Boca Raton .Flonda-site of the Casualty ActuarialSociety annual meeting In the spring .the Academy will sponsor a public poli-cy briefing, featuring a prominentWashington legislator as luncheonspeaker

Since 1976, the Academy and theConference of Consulting Actuarieshave cosponsored the Enrolled ActuariesMeeting. In 1989, the Society ofActuaries was added as a cosponsorThese meetings are a primary means ofcontinuing education for pension actuar-ies across the nation Nineteen eighty-one saw the introduction of a series ofCasualty Loss Reserve Seminars, spon-sored jointly by the Academy, the

43

Casualty Actuarial Society, and theConference of Consulting Actuaries .The seminars are of particular interest toproperty/casualty actuaries and lossreserve specialists

PublicationsThe Academy continues to expand thenumber and scope of its publicationsEach year, it publishes this yearbook,which includes committee listings, theBoard of Directors, and Academy staff,in addition to such information asbylaws and application for admission tothe organization .

Each month the Academy publishesThe Actuarial Update (which became abimonthly publication in 1977, andbegan monthly production in 1981) andseveral enclosures, including the "ASSBoxscore" (started in 1987), a status

report on various standards projects, and

Actuarial Standards Board news In addi-

tion, the Enrolled .-Ictnarres Report, a

newsletter focusing on the concerns of

pension actuaries, is published four tunes

during the year .

In November 1995 the Academyissued its first annual report to informmembers of the year's outstanding publicpolicy and professionalism accomplish-ments. The Academy's roster of publi-cations also includes fact books on theAcademy and the Actuarial StandardsBoard (ASB), the annual reports of theASB and the Actuarial Board forCounseling and Discipline, and thebimonthly magazine Contingencies. TheAcademy also produces public policymonographs and issue briefs based onthe work of the Academy committee orwork group formed to address specifickey issues .

44

Slraleo-ic I _i il

I IIn 1994, the American Academy ofActuanes undertook a strategic plan-ning process guided by key profes-

sional, membership , and organizationalissues. These issues , explicitly statedwithin the strategic plan, are the founda-tion for all the Academy' s activities.

Mission StatementThe strategic mission of the Academyarticulates the Academy's purpose andhighlights the basic value of theAcademy to the profession. The strate-gic mission of the American Academy ofActuaries for 1995-2000 is .

To ensure that the Americanpublic recognizes and benefits from(1) the independent expertise of theactuarial profession in the formula-tion of public policy, and (2) theadherence of actuaries to high pro-fessional standards in dischargingtheir responsibilities .

General ObjectivesThe Academy's purpose is expressed inthe strategic plan's general objectives

I J!l -`_>I lU l lThrough these general objectives, theAcademy determines its strategic prior-ities .

1 . Public Policy Interface . Represent theactuarial profession before public policymakers and the finance and businesscommunity on issues of public policy .

2 Professionalism Establish, promote,maintain, and enforce professionwidestandards of practice, conduct, and quali-fication .

3 Organizarional Relationships . Establishand maintain strong relationships withprofessional and other organizationswhose actions affect actuaries and theprofession .

4 Comnunicauoms Promote and supportcommunications on public policy issuesand professionalism to public policymakers, the finance and business com-munity, the media, and the professionitself; inform the profession aboutAcademy activities .

5 Resources . Obtain and manage ade-quate resources to fulfill the Academy'sstrategic mission and general objectives .

45

Bylaw'sA CORPORATION ORGANIZED UNDER THE

ILLINOIS GENERAL NOT FOR PROFIT CORPORATION ACT(ADOPTED APRIL 20, 1966, AND LAST AMENDED IN 1595)

ARTICLE IMembership

SECTION 1 . Alemhers Individuals hav-ing membership in the Academy shall becalled "members ."

Members shall be entitled to attendmeetings of the Academy, vote, holdoffice, serve as elected Directors, makenominations, serve on committees, andgenerally exercise the rights of full mem-bership They are authorized to designatethemselves as "members" of the AmericanAcademy of Actuaries and to append totheir names the initials M .A A.A

SECTION 2. Requirements for .4dtnisstonto 1Lleinbership . Any person may apply formembership and shall become a memberby meeting the requirements containedin this section .

A Application, Each candidate foradmission must submit a written applica-tion that shall include a resume of thecandidate's education, background, andexperience, the navies of two referenceswho are members, and such additionalinformation as the Executive Committeemay request

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

the date of application, have had at leastthree years of experience in responsibleactuarial work . "Responsible actuarialwork" is defined as work that hasrequired knowledge and skill in solving

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

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

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

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

ARTICLE IIMeetings of the Members

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

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

46

President shall call a meeting of themembers At all meetings fifty membersshall constitute a quorum Notice of ameeting, specifying the place, date, andhour of the meeting, shall be given notless than twenty nor more than fortydays before each meeting

ARTICLE IIIBoard of Directors

SECTION 1 . Composition The Boardshall consist of twenty-nine Directors,comprising the nine Officers, the twoimmediate Past Presidents, and eighteenelected Directors .

SECTION 2 Electron and Tenn of Ofre .A Special Directors . The Board shall

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

B. Regular Directors . Elected Directorswho are not special Directors shall beregular Directors Each year the mem-bers shall elect a number of regularDirectors to bring the total number ofelected Directors to eighteen Candidatesreceiving the greatest number of votes

shall be elected . Such regular Directorsshall serve for a period of three years . Aretiring regular Director , other than onewho was elected to fill a vacancy, whoseterm as a regular Director expires shallnot he eligible for re -election as a regularDirector at that time . A Past Presidentwhose ex officio membership on theBoard as Past President expires shall notbe eligible for election as a regularDirector at that time If a vacancy occursamong the regular Directors , including avacancy created by the election of a reg-ular Director to an office or to the posi-tion of special Director, the vacancy maybe filled for the remainder of the unex-pired term by majority vote of the wholeBoard. The term of office of a regularDirector shall begin at the close of theannual meeting of the Academy in thecalendar year of the election and shallcontinue until the close of the annualmeeting at the end of the terns for whichthe regular Director was elected

SECTION 3 Meetings There shall be anannual meeting of the Board within sixtydays prior to the annual meeting of theAcademy Special meetings of the Boardshall be called whenever the President orat least five members of the Board sorequest

Meetings of the Board may be heldeither within or outside the state ofIllinois . Notice of the meetings of theBoard shall be given not less than tendays nor more than thirty days before themeeting , except in the event of a meet-ing of the Board following the annualmeeting of the Academy , in which eventnewly elected Directors shall be givennotice of such meeting of the Board aspromptly as possible . Such notice tonewly elected Directors may be givenpersonally, by telephone, by mail, or byfacsimile transmission,

Any action required to be taken at ameeting of the Board may be taken

47

without a meeting if a consent in writ-ing, setting forth the action so taken,shall be signed by all of the members ofthe Board

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

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

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

(b) To establish the location of theoffices of the Academy

(c) To invest and administer thefunds of the Academy .

(d) To arrange an annual audit ofthe accounts of the Secretary-Treasurer

(e) To prescribe examinations andother requirements for admission, asprovided in Article I, Section 2, ofthe Bylaws .

(I) To elect the Officers of theAcademy

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

ARTICLE IVExecutive Committee

During any interim between meetings ofthe Board, the business of the Academyshall be conducted by an Executive

Committee comprising the Officers andthe immediate Past President TheExecutive Committee shall have suchpowers as may be piovided by theseBylaws or as may be delegated to it bythe Board , except the specific powersenumerated (b), (d), (e), (f}, and (g) inSection 5 of Article III .

ARTICLE VOfficers

SECTION 1 . Offii eis The Officers ofthe Academy, all of whom shall bemembers, shall consist of a President, aPresident-Elect, six Vice Presidents, anda Secretary-Treasurer .

SECTION 2 Election and Temi ofOffice At each annual meeting of theBoard, the Directors present . by a voteof a majority of the whole Board, shallelect, separately and in the order named,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 suc-ceeded the President and has served inthat capacity for six months or more byreason of the office of President becom-ing vacant or (b) the office of thePresident -Elect is vacant , except in thecase where the President-Elect has suc-ceeded to the office of the President andhas served in that capacity for less thansix months , the Directors , by a vote of amajority of the whole Board , shall, priorto the election of the President-Elect,elect a President to serve from the closeof the first subsequent annual meeting ofthe Acadeni Y until the close of the sec-ond subsequent annual meeting of theAcademy

Except as hereinafter provided, thePresident-Elect, having been so elected atan annual meeting of the Board, shall

48

commence the terns as Presidrrjt-Elect atthe close of the first subsequent annualmeeting of the Acadeni and shall auto-niatically succeed the President at theclose of the second subsequent annualineetmg of the Academy, and shill serveas the President until the close of thethird subsequent annual meeting of theAcademy . In the event the office ofPresident becomes vacant, the President-Elect shall automatically succeed to fill thevacancy for the unexpired terns APresident-Elect who so succeeds thePresident and serves in that capacity forless than six months prior to the close ofthe first subsequent annual meeting of theAcademy following succession to thePresidency shall further serve as Presidentuntil the close of the second subsequent

annual meeting of the AcademyThe terns of Vice President shall be

two years . At the first annual meeting ofthe Board following adoption of this pro-vision, three Vice Presidents shall beelected At the second annual meeting ofthe Board following adoption of this pro-vision, two Vice Presidents shall be elect-ed The term of each Vice Presidentelected at each annual meeting of theBoard shall he from the close of the firstsubsequent annual meeting of theAcademy until the close of the third sub-sequent annual meeting of the Academy .In the event of a vacancy i n the office ofVice President, the Board may elect areplacement for the remainder of thevacancy of that office Said replacementmay thereafter be eligible for re-electionas a Vice President at the meeting atwhich the term expires A retiring VicePresident is not otherwise eligible for re-election as a Vice President at the meet-ing at which the terni expires

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

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

Each Officer shall hold office for theterm elected and until a successor shallhave been elected

In the event of vacancy in the office ofboth the President and President-Elect,the Board shall by majority vote of thewhole Board elect a member to fill thevacancy for the unexpired term of thePresident

In the event a vacancy occurs amongthe Vice presidents, or in the office ofSecretary-Treasurer, the Board shall bymajority" vote of the whole Board elect amember to fill the vacancy for the unex-pired term .

ARTICLE VIDuties of Officers

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

SECTION 3 . President-Elect ThePresident-Elect shall have such duties asmay be assigned by the President or bythe Board In the absence of thePresident, or in the event of thePresident's inability or refusal to act, thePresident-Elect shall perform the dutiesof the President's office .

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

SECTION 4 Secretor}-Treasurer . TheSecretary-Treasurer shall record and fileminutes of all meetings of the Board,

49

give all notices . he custodian of the cor-porate records of the Academy, and ingeneral shall perform all customary dutiesincident to the office of Secretary-Treasurer If the President is absent orunavailable, the Secretary-Treasurer maysign, with any other person authorizedby the Board, contracts or other instru-ments that the Board has authorized tobe executed

The Secretary-Treasurer shall alsokeep a register of the members, havecharge of the preparation and publica-tion of any yearbook that may be pub-lished, have general supervision of anyarrangements for holding examinations,have charge and custody of all funds andsecurities, collect dues, pay bills, preparefinancial statements, and in general per-form all customary duties incident to theoffice of Secretary-Treasurer TheSecretary-Treasurer shall give a bond forthe faithful discharge of all such duties,the cost of which shall be paid by theAcademy .

ARTICLE VIIFinances and Contracts

SECTION 1 . Dues Except as here-inafter provided, each member shall paysuch dues for each calendar year as maybe established by the Board Such duesshall be payable as of January 1 of thecalendar year. At the time when dues arepayable. any member who has becometotally disabled or who, having attainedan age to be selected by the Board. andhaving retired from active work or whohas attained age 7U . so notifies theSecretary-Treasurer in writing shall begranted exemption from the payment ofdues by the Executive Committee Inaddition, any member who (a) is expect-ed to earn no significant income for thecalendar year from actuarial activities,

and (b) is within a class of members eli-gible for dues waiver as determined bythe Board shall he granted exemptionfrom the payment of dues by theExecutive Committee

It shall be the duty of the Secretary-Treasurer to cause to be notified by mailany member whose dues may be sixmonths in arrears and to accompany suchnotice by a copy of this Section . If duesremain unpaid, such person shall, on thedate that falls three months after the dateof mailing such notice, cease to be amember of the Academy for all purposesother than with respect to any penalty orother action determined under disci-plinary procedures as provided in ArticleIX, relating to conduct prior to such dateReinstatement as a member shall be sub-ject to such conditions as the Board mayprescribe

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

SECTION 3. Ccruracts . The Board mayauthorize any Officer or agent to enterinto any contract or execute and deliverany instrument in the name or on behalfof the Academy .

SECTION 4 Cecrks All checks, drafts,or other orders for a payment ofmoney. notes, or other evidences ofindebtedness shall be signed by suchOfficer or agent of the Academy as shallfrom time to time be determined bythe Board

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

5u

ARTICLE VIIIResignation of Members

Any member niay at any time file a res-ignation in writing with the Seeretary-Treasurer, and, unless it is rejected bythe Executive Committee, it shallbecome effective as of the date it wasfiled The Executive Committee mayreject a resignation only if a complaintor charge is pending against the memberor if a complaint or charge is filed withinsixty days after the date that the mem-ber's attempted resignation is filed . Amember whose resignation is rejected bythe Executive Committee may appeal inwriting to the Board The Board mayaffirm or set aside an ExecutiveCommittee decision to reject a menn-ber's resignation by a majority vote ofthe members of the whole Board

Notwithstanding the foregoing, theBoard may in its discretion permit the res-ignation of a member against whom acomplaint or charge is pending TheBoard, on written application of anymember who has resigned, may reinstatesuch member subject to such conditions asit may prescribe .

ARTICLE IXPublic Discipline

SECTION 1 Coniplaiitts and RcfenaL .A Complaints concerning alleged

violations of the Academy's Code ofProfessional Conduct, and all questionsthat may arise as to the conduct of amember, in the member's relationship tothe Academy or its members, or in themember's professional practice, or affect-ing the interests of the actuarial profes-sion, constitute matters for serious con-siderationB. Such complaints and questions shall

he referred to the national organizationresponsible for professionwide counseling

and discipline in the nation where theaction occurred : the Actuarial Board forCounseling and Discipline (ABCD) inthe United States and the CanadianInstitute of Actuaries (CIA) in Canada

SECTION 2 Consideration of PublicDisciplinary Action

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

B, Public disciplinary action includesa public reprimand, suspension ofAcademy membership, or expulsionfrom the Acadeniv

C. The member who is the subject ofa public disciplinary recommendationfrom the ABCD or the CIA shall havethe right to ippear personally and bycounsel (at the member's expense) beforethe Disciplinary Committee to explainwhy that recommendation should not befollowed .D.'I'he nieniber involved shall be

notified not less than forty-five days inadvance as to the time, date, and placewhere the Disciplinary Committee willconsider the matter The notificationmay be ni .tde by certified mail or in suchother manner as the DisciplinaryCommittee may direct. The time limitmay be waived by mutual agreement ofthe parties .

E. An action of the DisciplinaryCommittee to publicly reprimand, suspend,or expel a member requires an affinmativevote of two-thirds of the whole member-ship of the Disciplinary Committee

F. An action by the DisciplinaryCommittee to publicly reprimand, sus-pend the rnenibership of, or expel amember is effective forty-five days afterthe date of the action, if the memberdoes not appeal the action to the Board,

5 l

and, in the event of such an appeal, theaction is effective on the date when theappeal is decided by the Board

SECTION 3 -lppralc to the Board Amember against whom an order of publicreprimand, suspension, or expulsion hasbeen rendered shall . upon application to

the Board within forty-five days after theaction of the Disciplinary Committee, beentitled to appeal to the Board at its nextregularly scheduled niceting, under thefollosving conditions

A. All rights and privileges of mein-bership shall be retained during the pen-dency of the appeal

B The notice of appeal shall be inwriting and shall stipulate that the appeal-ing member consents to the mailing tothe members of the Board of a transcriptand all applicable evidence m a formapproved by the Disciphiiary Conunittee

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

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

SECTION -4_ Ri uislalruicirt An individ-ual who has been expelled or suspendedfrom the Academy may be reinstatedonly through an action of the Board ofDirectors

SECTION 5 . Confidentiality of Ptwcecdu{t"Except as otherwise provided in theseBylaws or by waiver of the person underinvestigation , all proceedings under thisArticle shall be confidential and keptsecret .

SECTION h. NotificationA. The Board of Directors shall notify

Academy members in all instances in

n hich a iiiember is subiect to public dis-ciphne. At the same tinge notification isgiven to the members, the Board ofDirectors shall also give notice of thepublic discipline to all other actuarialorganizations of which the uidividttal is amember and to other organizations,including governmental entities, that, inthe opinion of the Board, should alsoreceive notice of the action . The Boardof Directors array ako give notice of pub-lic discipline to such newspapers or}our-nals as it may select .

B . If the case arises from a writtencomplaint, notice of the disposition of

the case shall be furnished to the cony

plainarit

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

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

ARTICLE XActuarial Board

for Counseling and DisciplineSECTION l . E,tahh,linrut rind Pinpoes

A There shall be established withinthe Academy an entity to be known asthe Actuarial Board for Counseling andDiscipline (ABCD) Upon delegation ofappropriate authority from a participatingactuarial organization and acceptance ofthat delegation by the ABCD, the

J1

AB( 1) will be authorized1 To consider all coniplainrs

.iiid/or questions concerning allegedviolations of the applicable Code ofProfessional Conduct and all ques-tions that may arise as to the conductof a member of a participating actuar-ial organization in the member's rela-tionship to the organization or itsnienibers, in the ineniber's profes-sional practice, or affecting the inter-ests of the actuarial profession .

2 To counsel individuals accusedof violations of the applicable Codeof Professional Conduct, regardingtheir actions

3 . To recommend a public disci-plinary action against an individual toany participating organization ofss hit h that individual is a member4 To serve as ombudsman

between members of participatingactuarial organizations, or betweensuch members and the public, for thepurpose of informally resolving com-plaints concerning the professionalconduct of such members

5. To accept and respond torequests for guidance from membersof the participating organizations

B. The ABCD is authorized to issuesuch rules of procedure and operatingguidelines not inconsistent with therequirenieuts of this Article as it deemsappropriate .

SECTION 2 .1ierrrher. and _4ppoinrin'rttaA The ABCD shall consist of nine

persons appointed from the membershipof the participating organizationsAppointments will usually be made forthree-year terms , but appointments forshorter terns may he made to assure thatone-third of the inenibers will beappointed each year A member mayserve no more than two consecutiveterms

B Members of the ABCD shall be

broadly representative of all areas of artu-arial practice They shall be appointed byand serve at the pleasure of a SelectionCommittee composed of the Presidentsand Presidents-Elect of the participatingorganizations . The President of theAcademy shall serve as Chairperson ofthe Selection Committee . If a vacancyarises among the members of the ABCD,the Selection Committee shall designate areplacement to fill out the remainder ofthe term The replacement will coin-plete that term, and may be reappointedfor one additional consecutive three-yearterm Where three or more members ofthe ABCD have an actual or potentialconflict of interest with regard to a par-ticular matter, with the result that a quo-rum of the ABCD cannot practicably beconvened to consider the matter, theSelection Committee may . in response toa request front the ABCD, appointenough special members to the ABCD toform a quorum to consider that matterThe tern of such a special member shallend at the conclusion of the ABCD'sconsideration of the matter that the spe-cial nieniber was appointed to consider;special members shall not participate inABCD consideration of any mattersother than the specific matters for whichthe special members were appointed .

SEC l JON 3. Ofaer.,A The Officers of the ABCD shall

consist of the Chairperson arid two ViceChairpersons

B The Chairperson shall be appoint-ed annually from among the members ofthe ABCD by the Selection Committee,The Chairperson shall preside at meetingsof the ABCD and shall have the otherresponsibilities described in Section 5

C The Vice Chairpersons shall he

appointed annually from anion; the

members of the ABCI) by the Selection

Committee- A Vice Chairperson shall

be designated by the Chairperson as the

53

presiding Officer in the absence of theChairperson Vice Chairpersons shallhave such other duties as may beassigned by the Chairperson

SECTION 4 .1Tectin~ and Conduct ofL3nsiucss The ABCD shall meet at leastonce each year Additional businessshall be conducted whenever requestedby the Chairperson or at least threemembers . Business may be conductedduring meetings or via mail or tele-phone. Two-thirds of the members ofthe ABCD shall constitute a quorum

SECTION 5 Aroccdurei ton Disciphiia iyRecopy moidatunn

A For any matter that arises as the

result of the receipt of a complaint or

question or an ABCD initiative, the

Chairperson and the two Vice

Chairpersons may b y majority vote

1 Dismiss the matter,2 Authorize an onibudsman to

resolve the matter, or3 Authorize a review of the matter .

B_ To review a matter, the

Chairperson shall appoint an Investigative

Officer who may appoint up to two

additional persons with the approval of

the Chairperson Such Investigative

Officer and such additional persons, if

any, shall constitute the Investigative

ConInirttee investigative Committees

shall not include members of the ABCD .1_ The Investigative Committee

shall investigate alleged violations of the

applicable Code of Professional

Conduct. The Investigative Coiivnittee

shall then recommend to the

Chairperson either

a . Disnnssal of the allegation,b That the actuary be Coun-

seled, orc That public disciplinary

action be reconiniended .2 The Investigative Comuuttee

shall observe operating procedures

and guidelines that arc established byythe ABCD that arc not inconsistentwith the requirements of this Article

C_ Following receipt of a report ofthe Investigative Committee, the ABCDshall determine by majority votewhether to

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

ABCD to consider the matter Insuch a case, a written notice shall beprepared stating plainly the chargesagainst the individual, together witha notice of the time, date, and placewhere the ABCD will meet for con-sideration thereof The charges andnotice shall be served on the individ-ual not less than forty-five daysbefore the hearing of the ABCD ,either personally or by certified mail.or in such other manner as theABCD may direct The time limitmay be waived by mutual agreementof the parties

D. In any hearing before the ABCD,the individual against whom chargeshave been made shall have the right toappear personally and by counsel (at thenicnrher's expense), to examine the evi-dence presented, to examine adversewitnesses, and to present exculpatorywitnesses and evidence The InvestigativeOfficer or designee shall appear to pre-sent the findings of the InvestigativeCommittee Witnesses called in thecourse of hearings before the ABCDshall vouch for the truth of their state-ments on their word of honor A writ-ten transcript shall be made of the pro-ceedings The ABCD shall decide allquestions of evidence at the hearing

E. If, in the course of any hearingunder this Section, evidence shall be pre-sented upon which another charge orcharges against the individual might bemade, it shall not be necessary for the

54

ABCD to prepare and serve such addi-tional charge or charges on the individu-al. Instead, the ABCD may, after rca-sonable notice to the individual andopportunity for the individual torespond, proceed to the consideration ofsuch additional charge or charges as ifthey had been made and served at thetime of the service of the original chargeor charges, and the ABCD may rendersuch decision or recommendation uponall such charges as may be justified by theevidence in the case

F Throughout proceedings underthis Section, the InvestigativeCommittee or the ABCD nay consultconfidentially with members of the pro-fession who have information or expen-enee relevant to the matter under con-sideration- However, no informationrn,iy he used unless that information isplaced into evidence and the individualagainst whom charges have been filedhas an opportunity to respond to suchinformation

G. At the conclusion of the hearing,the ABCD shall determine by majorityvote whether to :

I Dismiss the matter,2 Counsel the actuary, or3 Prepare a written report includ-

ing a recommendation for public rep-rimand, suspension, or expulsion ofthe individual addressed to each par-ticipating organization of which theindividual is a member A majority ofthe whole ABCD must vote in theaffirmative if a recommendation is tobe made for public disciplinary action .The report shall state plainly thecharge or charges against the individ-ual, and shall be accompanied by atranscript of the proceedings, copiesof all evidence, and a rationale for therecommendation . A copy of thereport and the accompanying materialshall be provided to the individual

against whom the charge or chargeshave been made

SECTION 6 Counseling . Any counsel-ing conducted pursuant to this Articleshall not be considered to be disciplinaryaction, nor shall counseling imply thatthere has been any determination that aviolation of the applicable Code ofProfessional Conduct has occurred

SECTION 7 Actuarial Oinhudsiiiau .The ABCD is authorized to act as anombudsman regarding complaintsbetween actuaries or between actuariesand others. The ABCD is authorized topromulgate such rules and regulations asare necessary to effectuate this Section

SECTION 5 Staff. The ABCD willutilize the staff of the Academy for nec-essary logistical and technical support .In addition , the ABCD may retaincounsel for assistance in its deliberations

SECTION 9_ Fiiiawes .

A. The finances of the ABCD will beaccounted for separately within theAcademy system of accounts TheABCD will submit a budget request tothe Secretary-Treasurer, listing allplanned income sources and potentialexpenses, rn such f'orrn and in such detailas is mutually determined by theSecretary-Treasurer and the ABCD .The Board of the Academy will considerthis request when adopting its annualbudget and will make provision withinsuch budget for the operating expensesof the ABCD .

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

SECTION 10. Confidentiality . Exceptas otherwise provided in these Bylaws

55

or by waiver of the person under uives-rigation, all proceedings under thisArticle shall he confidential and keptsecret This requirement as to confi-dentiality shall not preclude the ABCDfrom advising, at its discretion, com-plainants and members complained ofabout the progress and outcome ofcomplaints This requirement of confi-dentiality shall not preclude the ABCi)from reviewing previously closed files asthey may relate, in any manner, to theconsideration of a new matter before it

SECTION 11 . Coniuu fill initioiis . TheABCD shall issue an annual report thatwill include a description of its activitiesfor the prior fiscal year, including com-mentary on the hypes of cases pending,resolved, and dismissed . These reportsshall not reveal any information other-wise confidential . The ABCI) shall alsoreport quarterly to the President of eachparticipating organization concerningcomplaints and counseling activitiesrelated to members of the organization .

ARTICLE XIActuarial Standards Board

SECTION 1 Establishment and Purpose,There shall be established within theAcademy an entity to be known as theActuarial Standards Boaid (ASB), whosepurposes shall be to :

A (i) Expose, (ii) promulgate oradopt, and (iii) publish attuanalStandards of Practice, within its sole dis-cretion and pursuant to such proceduresas it deeuis appropriate, in all areas ofactuarial practice, subject to the specificrequirements of this article

B Provide continuous review ofexisting Standards of Practice and deter-mine whether they are in need of

amendment, alteration , expansion, orelimination

C Direct and manage the develop-ment of actuarial Standards of Practiceby its operating committees in all areasof actuarial practice

SECTION 2 .L1( iiihers acrd .4ppoiuttnetit, .A The ASB shall consist of nine

nieuihers, each of whom shall heappointed for three-year terms No mdi-vidual may serve more than two consec-utive terns on the ASB . Terms of nieni-hership shall be staggered, so that one-third of the members are appointedannually

B_ Members of the ASB shall be

broadly representative of all areas of

actuarial practice They shall be appoint-

ed by and serve at the pleasure of a

Selection Committee c oriiposed of the

Presidents and the Presidents-Elect of

the organisations that participate m the

ABCI), or their successor organizations .

The ['resident of the Academy shall

serve as Chairperson of the Selection

Committee. The Selection Committee

shall annually appoint the Chairperson

of the ASH An individual appointed

Chairperson may not serve more than

two consecutive ternis as Chairperson

If a vacancy arises among the nienibers

of the ASB, the Selection COniinittee

shall designate a replacement The

replacement will complete that terns,

and may be reappointed for one addi-

tional consecutive three-year term

SECTION 3 Rleetint' The ASB shallmeet at least four times annually .Additional meetings of the ASB shall becalled whenever the Chairperson or atleast four members of the ASB sorequest At meetings of the ASB, two-thirds of the members of the ASB shallconstitute a quorum At least six affirma-tive votes are required for the ASB to

56

expose, promulgate, or adopt actuarialStandards of Practice-

SECTION 4. O~tccis .A Officers of the ASB shall consist of,i

Chairperson and two Vice ChairpersonsThe Vice Chairpersons shall be appointedannually from among the members of theASB by the Chairperson with the consentof the ASB

(1) One Vice Chairperson shall bethe presiding officer in the absence ofthe Chairperson and shall have suchother duties as may he assigned by theChairperson .

(2)The other Vice Chairpersonshall monitor the disposition and beresponsible for the authorization ofexpenditure of all funds associatedwith the ASB

B . The Chairperson of the ASB shallpreside at meetings of the ASB andshall designate operating committeeChairpersons with the consent of theASII . Members of the operating coni-mittees shall be appointed by eachoperating committee Chairperson withthe consent of the AS13

SECTION 5 Committees The ASB shallestablish operating committees to pre-p.ire and draft Standards of Practice forconsideration by the ASB The numberand membership of such coniinitteesshall be determined by the ASB . TheASB may establish additional coninut-tees, subcommittees, or task forces as itdeems appropriate to carry out adminis-trative or advisory functions in supportof its operations .

SECTION 6 . Finanrce .A Financial activities pertaining to

the ASB will br accounted for separatelywithin the Academy system of accounts .The ASB will submit a budget request tothe Secretary -Treasurer, listing allplanned inconie sources and potential

expenses, in such form and in such detailas are mutually determined by theSecretary-Treasurer and the ASB. TheAcademy Board will consider this requestwhen adopting the Academy annualbudget and will make provision withinsuch budget for ASB operating expenses .

B . The ASB will have discretion withregard to the expenditure of ,ill fundsallocated to it, subject only to suchaccounting and audit requirements as aremutually determined by the Secretary-Treasurer and the ASB

SECTION 7 Stiff The ASB will utilizethe staff of the Academy for all support,within the budgetary constraints of theASB, and the Academy will make avail-able to the ASB such statf support as ma\be requested_ Costs for such staff support,including overhead expenses ascertainedpursuant to a formula mutually deter-mined by the Secretary-Treasurer and theASB. will be included in the ASB budget .

SECTION 8 Coiinuuxi<arions ivitli theActuarialProfession, The ASB shall issue an

annual report that will include a descrip-tion of its activities for the prior fiscalyear, including commentary on its stan-dards activities, idmmistrative matters,and finances The ASB shall cooperatewith duly constituted actuarial authoritiescharged with enforcing standards of pro-fessional practice, and respond toinquiries regarding actions of the ASKincluding the interpretation of standardspromulgated or adopted by the ASB

ARTICLE XIINotice

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

57

ARTICLE XIIIIndemnification

Each person who at any time shall serveor shall have served as an Officer, mem-ber of the Board, committee member, ormember of any disciplinary board of theAcademy (and any such person's heirs,executors, administrators, and personalrepresentatives) shall be indemnified bythe Academy against all costs andexpenses (including but not limited tolegal fees, amounts of judgments paid,and amounts paid in settlement) reason-ably incurred in connection with thedefense of any claim, action, suit, or pro-ceeding, whether civil, criminal, adminis-trative, or other in which one or more ofthem may be involved by virtue of suchperson being or having been an Officer,member of the Board, committee mem-ber, or member of any disciplinary boardof the Academy, or in connection withany appeal therein, provided, however,that in the event of a settlement theindemnification herein provided shallapply only when the Board approves suchsettlement; and provided further that suchindemnity shall not be operative withrespect to any matter as to which suchperson shall have been finally adjudgedliable in such claim, action, suit, or pro-ceeding on aeLount of willful miscon-duct .

The rights accruing to any personunder this Article shall be without preju-dice to any rights or benefits given bythe Hoard inconsistent therewith in spe-cial cases and shall not exclude any otherrights or benefits to which the individualmay be lawfully entitled

ARTICLE XIVUse of Financial Resources :

DissolutionThe funds of the Acadcmy shall hedevoted exclusively to the purposes stat-ed in paragraph 5 of the Articles ofIncorporation No part of the net earn-ings of the Academy shall ever inure inwhole or in part to the benefit of anymember or individual If the Arademv nsdissolved, all of its remaining assets shallbe transferred to one or more organiLa-tions organized and operated exclusivelyfor purposes similar to those of theAcademy .

ARTICLE XVAmendments

Administrative, editorial, and technicalamendments to the Bylaws that do notinvolve questions of policy or affect thesubstantive rights of the Acadeni 's niern-bers may be made by a vote of two-thirdsof the Directors present at a duly con-vened meeting of the Board . Otherwise,amendments to the Bylaws may be pro-posed either by a vote of two-thirds ofthe Directors present at a duly convenedmeeting of the Board or by writtenrequest of not less than three percent ofthe members The Board shall specify areasonable period of time within whichthe proposed amendment shall be trans-nutted by the Secretary-Treasurer to themembers by mail, and the time for votesto be mailed by the members to theSecretary-Treasurer Such proposedamendment shall be accompanied by anappropriate discussion of the issues, and itshall become effective ten days followingthe end of the voting period upon theaffirmative vote of two-thirds of themembers voting

58

SEa.teiileii t o 1 PolityADOVTFI) 13Y THE EXECU FIVE COMMITTEE

OF THE AMERICAN ACADEMY OF ACTUARIES

AUGUST IS . 1993

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

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

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

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

It is also a violation of this policy foran Academy employee or member toseek to retaliate against any individual forcomplaining of a violation of theAcademy's anti-discrimination policy 2

Thi list of Inotertrd rh,n n t ilsto' 1, tomptled from apphrtble Dtstrnt of Cohunbta, Ilhtion, amid tedcral laws

'Thr. satemcut n mint ii tendr.I in prr,ludr the good-raids exeirise of an individual', legal rights

59

Cod-e ofiPif-si"(8 otia l ('i(= 1 d 1 I-( . t

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

Professional IntegrityPRECEPT 1 An actuary shall act hon-

estly and in i mariner to uphold the rep-

utation of the actuarial protession and to

fulfill the profession's responsibility to

the public .

ANNOTA TION 1- 3 . An actuaryshall not use a relationship .vith athird party to attempt to obtain illegalor materially improper treatmentfrom such third party on behalf of aprincipal ( i .e ., present or prospectiveclient or employer) .

PRECEPT '? Au actuary shall performprofessional services with integrity, skill,and careANNOTATION

2-1 "Professionalservices" refers to the rendering ofadvice, recommendations , or opinionsbased upon actuarial considerations,and also includes other services pro-vided to a principal ( r c , present orprospective client or employer) by oneacting as an actuary

Qualification StandardsANNTOT4'TON 1- 1 An actuary ful-fills the profession ' s responsibility tothe public through conlp1i .uicc withthis Code, and by offering actuarialadvice , recommendations , and opin-ions that are the product of the acto--ary's exercise oFprofessional judgincnt

ANNOTATION 1-2. An actuarywho pleads guilty to or is found guiltyof any misdemeanor related to finan-cial matters or any felony shall be pre-sumed to have contravened Precept 1of this Code, and shall be subject tothe profession's counseling and disci-pline procedures .

PRECEPT 3 An actuary shill pertcirinprofessional sen°rc es only when the .rctu-ary is qualified to do so .ind sleets .ipplica-ble qualification stand.irds

_-1NN()7:l'11014 _3-I It Is the pro-fessional responsibility of the actuaryto observe applicable qualificationstandards in the Jurisdiction 11) whichthe actuary- renders professional ser-vices and to keep current regardingchanges III these standards. Forexample, for practice m the UnitedStates, the Qualrfir itron Standardspromulgated by the AmericanAcademy of Actuaries apply, for pnic-

E1Trcm e Janu .irs t, 1994 Adopted bs- the Bond of 17ir ctors of the Anicnc .tti A adcm% of Actuanc, in Septeinhei1993

60

tice in Canada . the eligibility condi-tions promulgated by the CanadianInstitute of Actuaries as set out in theCanadian Institute ofActuanes' bylawsapply

Standards of PracticePRECEPT 4 . An actuary shall ensurethat professional services performed byof under the direction of the actuarymeet applicable standards of practice .

ANNOTATION 4-1 It is the pro-fessional responsibility of the actuaryto observe applicable standards ofpractice in the jurisdiction in whichthe actuary renders professional ser-vices, and to keep current regardingchanges in these standards . Forexample, for practice in the UnitedStates, the Standards of Practice pro-mulgated by the Actuarial StandardsBoard apply ; for practice in Canadathe Standards of Practice promulgat-ed by the Canadian Institute ofActuaries apply .

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

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

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

A ,\'UT.`1TIUN ?-' An actuarywho makes an actuarial communica-tion assuiues responsibility for itexcept to the extent the actuar\ dis-claims responsibilit,, by statingreliance on other sources Relianceon other sources means making useof those sources without assumingresponsibility therefor A communi-cation making use of such relianceshould define the extent of reliance-An actuary may rely upon othersources for information except wherelimited or prohibited by applicablestandards of practice

APs NO'I:-1 TION 5-! Any writtencommunication of professional find-ings must be signed with the name ofthe actuary who is responsible for itThe name of an organization withwhich the actuary is affiliated may beincorporated into the signature, butthe actuary's responsibilities and thoseof the organization are not affectedby the form of the signature .

PRECEPT 6 An actuary shall, in coni-municating professional findings, identi-fy the principal(s) (i .e ., the client[s] oremployer[s]) for whom such findings aremade and shall describe the capacity inwhich the actuary serves

PRECEPT 7 An actuary shall makefull and timely disclosure to a principal(i .e , present or prospective client oremployer) of the sour( cs of all direct andindirect compensation that the actuaryor the actuary's firni may receive in rela-tion to an iissignnicut for which theactuary provides professional services forthat principal

ANNOTATION 7-1 An actuarywho is not financially and organiza-tionally independent concerning anymatter related to the subject of anactuarial communication should chs-

61

close to the principal any pertinentrelationship that is not apparent

ANNOTATION 7-2 . "Indirectcompensation " is any material con-sideration received from any sourcein relation to an assignment forwhich the actuary provides profes-sional services , other than directremuneration for those services

ANNOTATION 7-3 Actuariesemployed by firms that operate inmultiple sites are subject to therequirement of disclosure of sourcesof compensation that the actuary'sfirm may receive in relation to profes-sional services with respect to a specif-ic assignment for that principal,regardless of the location in whichsuch compensation is received

Conflict of InterestPRECEPT 8. An actuary shall not per-form professional services involving anactual or potential conflict of interestunless'

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

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

(c) all such known direct users haveexpressly agreed to the performanceof the services by the actuary

ANNOTATION 8-1 . A "directuser" of an actuarv's services is a prin-cipal (i e . . present or prospectiveclient or employer) having the oppor-tunity to select the actuary and able tocommunicate directly with the actu-ary about qualifications , work, andrecommendations .

ANNOTATION 8-2 . If the actuaryis aware of any significant conflict

between the interests of the direct

user and the interests of another party

relative to the actuary's work, the

actuary should advise the direct user

of the conflict The actuary should

also include appropriate qualifications

or disclosures in any related actuarial

r oriununi, ation

Control of Work ProductPRECEPT 9 An actuary shall not per-form professional services when the actu-ary has reason to belie,,e that they may beused to mislead or to violate or evade thelaw.

ANNOTATION 9-1 Material pre-pared by an actuary may be used byanother party in a way that may influ-ence the actions of a third party Theactuary should recognize the risks ofmisquotation, misinterpretation, orother misuse of such material andshould take reasonable steps to ensurethat the material is clear and presentedfairly and that the actuary is identifiedas responsible for the material asrequired by Precept 5 of this Code .

ConfidentialityPRECEPI 11) An .ictuary shall not dis-close to another party any confidentialinformation obtained through profes-sional services performed for a principal(i .e , client or employer) unless autho-rized to do so by the principal orrequired to do so by law

ANNOTA'I1ON 10-1, "Confidentialinformation " refers to informationnot in the public domain of whichthe actuary becomes aware in con-junction with the rendering of profes-sional services to a principal . It mayinclude information of a proprietarynature, information that is legally

6?

restricted from circulation, or infor-mation that the actuary has reason tobelieve the principal would not wishto be divulged

Courtesy and CooperationPRECEPT 1 l An actuary shall per-torin professional services with courtesyand shall cooperate with others in theprincipal's (i e , client's or employer's)interest

ANNOTATION 11-1 Differencesof opinion among actuaries may arise .particularly in choices of assumptionsand methods Discussions of suchdifferences , whether directly betweenactuaries or in observations made to aprincipal by one actuary on the workof another , should be conductedobjectively and with courtesy

ANlNNO'i'A I'iON 11-2 . An actuaryin the course of an engagement oremployment may encounter a situa-tion such that the best interest of theprincipal would be served by theactuary's setting out an alternativeopinion to one expressed by anotheractuary together with an explanationof the factors that lend support to thealternative opinion . Nothing in thisCode should he construed as pre-venting the actuary fioni expressingsuch an alternative opinion to theprincipal .

ANNOTATION 11-3 . A principalhas an indisputable right to choose aprofessional advisor. An actuary mayprovide service to any principal whorequests it, even though such princi-pal is being or has been served byanother actuary in the same manner .

If an actuary is invited to advise aprincipal for whom the actuaryknows or has reasonable grounds tobelieve that another actuary is already

acting in a professional capacity withrespect to the same matter or has

recently so acted, it may be prudentto consult with the other actuary

both to prepare adequately for theassignment and to make an unformedj udgnient whether there are circum-

stances iiivolving a potential violation

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

The prospective new or additionalactuary should request the principal'sconsent to such consultation Whenthe principal has given consent, theotiginal actuary niay require reason-able compensation for the workrequired to assemble and transmit therelevant information such as perti-nent data , work papers, and docu-ments The actuary need riot pro-vide any items of a proprietarynature, such as computer programs

AdvertisingPRECEPT 12 An actuary shall notengage in any advertising or businesssolicitation activities with respect to pro-fessional services that the actuary knowsor should know are false or misleading .

ANNOTATION 1?-1, "Advertising"encompasses all communications bywhatever medium, including oralcommunications, that may directly orindirectly influence any person ororganization to decide whether thereis a need for actuarial services or toselect a specific person or firm to per-form actuarial services

Titles and DesignationsPRECEPT 13. An actuary shall makeuse of membership titles and designa-tions of an actuarial organization only ina manner that conforms to the practicesauthorized by that organization .

63

AN-NOTATION 13-1 "Title"means any title conferred by an actu-arial organization related to a specificposition within that organization"Designation" means a specific refer-ence to membership status within anactuarial organization-

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

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

ANNOTATION 14-2 Except whenan actuary is prohibited by law orwhile the actuary is acting in anadversarial environment involvinganother actuary or actuaries, when theactuary becomes aware of an apparentmaterial violation of this Code, theactuary is required to undertakepromptly the following course ofaction,

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

(b) If (a) is not appropriate or is notsuccessful, bring the apparent violation

to the attention of the appropriateumvestigatory° body For csarnplc, forviolations of this Codc arising out ofpractice in the United States, the actu-arv should refer the matter to theActuarial Board for Counseling andDiscipline, for violations of this Codearising out of practice iii Canada, theactuary should follow proceduresestablished by the Canadian Institute ofActuaries

PRECEPT 1 5. An actuary or the actu-ary's representative shall respond promptlyin writing to any letter received from aperson duly authorized by the appropriatecounseling and disciplinary body of theprofession to obtain information or assis-tance regarding possible violations of thisCode

PRECEPT 16. An actuary shall abide

by this Code of Professional Conduct

whenever providing professional ser-

vices

ANNOTATION 16-1 . Laws andregulations may impose obligationsupon the actuary . Where the require-ments of law or regulation conflictwith this Code , the requirements oflaw of regulation shall take prece-dence .

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

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

64

Profe s I oi'i a1 Sta rich rr(-'1sThis table displays the array of professional standards Unless otherwise noted, thesematerials are included in the actuarial standards handbooks

Codeof ProfessionalConduct

I)rvelnping Comnuttee joint Comnuttecon Code ofProcessional Conduct

Published Guidance Code of ProfessionalConduct booklet

Guidance for. Individualactuary-

Practice Areas Covered All four majorpnrtice areas• Life• I Ieaith

• Pension• Casualty

Standardsof Practice

Developing Coniiuluee ActuarialStandards Board

Published Guidance Standards ofPracticebooklets

Guidance foi ]Large ofprocedures forday-to-daywork . actuary'sown methods

Practice Areas Covered' Practice,uca dexnbedin the Standard

GeneralQualificationStandards

SpecificQualificationStandards

ContinuingEducationRequirements

conlillittee tillQualifications

QualifcanonStandardsbooklet

Those qualifiedto givePublic Statementsof ActuarialOpinion*

All four majorpractice areas• Life• Health• Pension• Casualty

Connnittee onQualifications

QualificationStandardsbooklet

Those qualifiedto givePublic StatementsofActuanalOpinion*

NAIC AnnualStatementOpinions for• Life & A&H• Fire & Casualty• Hasp , Med , &Dent Serv, etc

Committee onQualifications

QualificationStandardsbooklet

Retention ofthe actuary'squalifications

to give PublicStatements ofActuarial Opinion

All PublicStatementsof ActuarialOpinion

ComplianceGuidelines

Counseling& Discipline

Actuanal Actuarial BoardStandards Board for Counseling & Discipline

Compliance Acadeniv Bylaws asGuideline published in 1991, y''arhaohbooklets (Procedural guidelines

have been separately issued)

Div-to-day Compliance with Ethics,work Qualification Standards,outside and Actuarial Standardsrequirements of Practice

Practice All four major practice ireasarea descnbed • Lifein the Guideline • Health

• Pension• Casualty

* Public stareaieuts sif actuana] opinion are opinions called for by law or regulation , opinions c filled for by a stan-dard of practice or i compliance guideline as promulgated by the Actuarial Standards Board, or actuarial coni nuni-canons made fir purposes of compliance with standards promulgated by the Financial Accounting Standards Boardor the Governmental Accounting Standards Board

65

( iO I ll l ll l ttee Appolilln](10n'It lld t' I 1 1 1 t

PreambleIn accordance with the Bylaws of theAmerican Academy of Actuaries, thepresident appoints committees autho-rized by the Board of Directors To aidthe president in making such appoint-ments, the board adopted the followingguidelines with this preamble at its meet-ing on October 31, 1980 . These guide-lines reflect the board's intention toinvolve as many members as possible incommittee activities without sacrificingcontinuity. However, the effectiveness ofcommittee work is paramount, and as aconsequence, strict adherence to theguidelines is not expected, particularlywith respect to committees that interfaceregularly with other professions and/orgovernment .

Committees for which specificappointment rules are established by theboard (e .g., Nominating Committee,Actuarial Standards Board) are exemptfrom the guidelines. Appointments tojoint committees and liaison appoint-ments are subject to the guidelines appli-cable to standing committees, although

certain of the liaison appointments mustbe board members pursuant to Academypolicy and agreements with other orga-nizations .

Guidelines(1)All members of the Academy arc

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

not serve on any committee exeept in anex officio capacity .

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

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

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

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

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(ITTi(1e1Iue f(1'_~ J\Taking+Fi L h 11c sIa1eiiiei~ Is

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

statement on behalf of some Academyentity (hoard, committee, task force, etc .)to an external group . This does notinclude a statement representing theviews of an individual member Publicstatements include

1 . Statements to GovernmentalEntities-such as testimony or otherformal comments submitted to regula-tory, legislative, and investigative bod-ies at both the federal and state levels

2 Statements to Professional andOther Groups-defined as organiza-tions that efFectively have sonic regu-latory powers, even if they are notprimarily regulatory bodies, e .g , theFinancial Accounting StandardsBoard, the American Institute ofCertified Public Accountants, theNational Association of InsuranceCommissioners, or the American BarAssociation .

3 Statements to External Public-ations-including articles and otherexpository material to newspapers andperiodicals, except where such state-ments would fall under the exceptionfor media communications below

Media communications, includingletters to the editor or other editorialand expository comments to newspa-pers and periodicals, are considered tobe a special form of public coniinuni-canon that generally is not subject tothe procedural requirements of theseguidelines This special status is illrecognition of the fact that mediadeadlines prevent the utihration of the

review procedures applicable to formalpublic statements. When letters orother media opportunities (such asradio or television interviews) areanticipated, the spokesperson shouldconsult the Academy's associate direc-tor of coniniunications for specialguidance . It is generally appropriate insuch circumstances for the individualto note that the views expressed arenot necessarily those of the Academy .For media communications related toForecast 2000, special protocols apply .These are presented in Attachment 1 .Although the procedural requirementsof these guidelines are not applicableto media communications meeting theabove definitions, the spokesperson isnevertheless expected to be guided bythe section below entitled "The Scopeof Public Statements "

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

the insights of actuarial science should bethe primary focus in the profession's pub-lic pronouncements . It is important tonote, however, that the profession's tech-nical expertise encompasses a broaderspectrum than is reflected by the con-cerns of what normally would be consid-ered pure actuarial science There arenumerous instances when the actuary'sknowledge is a valuable addition to theinformation surrounding a given issue Itwould be a disscrviLe to all parties far theprofession to make public statements onlyin the narrow areas where the actuary'sknowledge is unique

Each situation must be evaluated onits. own merits to determine whether apublic statement by the Academy is

67

appropriate The tone and natuie of astatement must reflect the dignity andstandards of the profession. Statementsshould contain a clear, concise, and bal-anced presentation of the significantfacts, including relevant benefits andcosts A statement need not, however,limit itself solely to statements of fact

It is also appropriate for statements todraw inferences from statements of fact,so long as these inferences are valid Tolimit a public statement to a mere recita-tion of facts would deny the public thebenefit of the full range of the profes-sion's capabilities

A public statement generally shouldnot take positions on the social andpolitical implications of issues . It niaybe appropriate, however, to point outsocial and political implications insofar asthese implications niay be objectivelydetermined . In certain circumstances, itmay not be possible to divorce social orpolitical implications from actuarial con-siderations .

There may be some issues that haveactu'ari'al implications that arc better dealtwith by trade associations, companies, orindividuals Public statements that appearto be serf-servingg will be less effective, butthe Academy should not hesitate to speakout on matters that involve legitimateprofessional interests in fact, theAcademy has a responsibility to do so .

C. Development and Delivery of PublicStatements

Academy officers, conuilittecs, andstaff should generally follow the guide-lines presented below ni the develop-ment and delivery of public statementsAt times, these procedures may need tobe modified in order to ensure the time-liness and effectiveness ofstatenirnts

l Identification of Issues-Manypeople contribute to this activitystaff, of)cers, practice councils, com-mittees, and individual Academymembers When an issue is identified

by Academy staff, staff will contact theappropriate committee or task forcechairperson directly and copy theappiupilate Academy vice piesident(hereinafter referred to as supervisoryoflicer), unless there is a lunsdictionalquestion to be resolved (see [2]below). Early identification is criticalto the Academy's development ofwell-prepared, tunely statements

?. Authority to Proceed-If staffor supervisory officers identify anissue that may warrant a public state-ment, they will assign it to the Com-mittee or task force best able todevelop the statement If an issue issignificant for more than one practicearea, the staff and appropriate super-visorv officers will discuss the matterwith the appropriate committeechairpersons, determine which com-inittee or task force receives theassignment, and assure that propercoordination is established and main-tained through the use of point taskforces, committee liaisons, dual prac-tice council reviews, or other appro-priate means Supervisory officers, attheir discretion, nun- seek the adviceof then practice council in resolvingjurisdictional issues and achievingappropriate coordination

If a commn-iittee or task force identi-fies a matter that may warrant a publicstatement, the chairperson willpromptly advise the supervisory officerand appropriate staff lr,iisou Unlessotherwise instiucted by the superviso-ry officer, the committee/task forcechairperson may proceed in thedevelopmcnt of a statementCommittees and task forces have theauthority to develop statements solong as they are consistent with vvcll-established principles of the profes-sion and so long as the appropriatepeer review and approval proceduresare followed

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3. Notice of Public StatementPreparation-Meunbers will be keptapprised of mayor issues of concern toAcademy committees and task forcesthrough articles and announcementsin The _4rtuatial Update', and inputfrom members will be solicited bysuggesting that they contact the rele-vant chairperson Because of the largenumber of public statements, not allstatements under development can beannounced in Thi' actuarial UpdateReports summarizing committee andtask force activities during the previ-ous twelve months .rill appear in asupplement to The Actuarial updatesoon after the end of the Academyyear A complete listing of committeeand task force statements for the pre-vious calendar year also will appear inan annual supplement .

4 . Development of Statements-Conin ittees and task forces will pre-pare public statements and any sup-porting background material in accor-dance with the following guidelines-

(a) Public statements generallyrepresent the opinion of a coni nit-tee or task force- Generally, a pub-lic statement will be developed bymembers of a standing Academyconinnttec, a presidentially appoint-ed task force, or a working groupestablished by one of the Academy'sfour practice councils It is alwaysappropriate, however, to involveother Academy members consid-ered by the conniiittce, task force,or working group to have pertinentexpertise or experience . From timeto tune, it inay also be appropnateto solicit the input of non-actuanesWhen and how such input issolicited is at the discretion of thecommittee chair with the concur-rence of the supervisory officer

(b) On mayor issues that are likelyto be highly controversial within

the profession, the chairperson andthe supervisory officer should seekbroader input trnnm Academy mem-bers and leaders of the profession .Options for obtaining such inputinclude requests for comments pub-lished in The Actuarial f ipdate, dis-cussions with Academy leadershipand the leadership of other actuarialorganizations, discussions withappropriate committees of otheractuarial organizations, solicitationsand special sessions at widelyattended actuarial meetings, specialscininars on the issue, and discus-sions with other Academy convnit-tees, task forces, and workinggroups. If tune allows, the Academyexposure draft procedures alsoshould be considered The supervi-sory officer will dcferinme the mostappropriate means of obtainingmember input in consultation withthe area's practice council, theAcademy president, the committeechairperson, and the executivedirector Academy staff and thesupervisory officer are initiallyresponsible for determining if anissue is highly controversial .

(c) The Academy staff is avail-able to assist in the preparation ofpublic statements In some instances,it may not be practical to involvethe staff directly in statement prepa-ration, although committee chair-persons are strongly encouraged todo so . The involvement ofAcademy staff can be helpful inassuring the consistency of thestatement with previous publicstatements and policy decisions .

(d) In some circumstances, theAcademy staff may develop a pub-he statement on its own initiative .Staff-developed statements musthave the approval of the appropn-ate chairperson and supervisory

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officer and should be c irculated toall coininittee . task force, or work-ing group members even if thetine for comment is hunted Onlyunder extraordinary circumstancesmay the chair and supervisory offi-cer release a statement before cir-culation to the full committee,task force, or working groupStatcmcits developed by staffshould reflect previous publicstatements and policy decisions

(e) The chairperson should seeka consensus of the coininittee, taskfoice, or working group members .If there is substantial lack of con-sensus, the chairperson may electto incorporate the majority andminority perspectives into thestatenicnt, to refer the issue to thesupervisory officer, or not to issuea public statement In some cases,time constraints via,, prevent theentire committee, task force, orworking group from participatingIn the preparation of a particularstatement, and the task of draftingthe statement may be left to thechairperson or the chairperson'sdesignee(s) . In such cases, thedrafters should seek maximuminput from available coniniittee,task force, or working groupmembers .

(t) No statement should be pre-sented without appropriate peerreview. The level of peer reviewshould depend upon the level ofrisk and exposure of the statement .Before release, statements shouldgenerally be reviewed by thesupervisory officer, or designeethereof, and Academy staff Forstatements that are the work ofindividuals or small subgroups andthat have not had the benefit ofthe full group's deliberation, peerreview should include the corn-

groupnntteeitask force/workingchair and two senior reviewers iiiaddition to the supervisory officer(or designee) and staff The seniorreview persons, to be selected bythe chairperson with approval ofthe supervisory officer, should beknowledgeable and experienced inthe subject at hand and should beknown to reflect broadly heldviews of the profession . In extraor-dinary circumstances, the supervi-sory officer and staff may agree torelease a statement before coniple-tion of peer review .

(g) Staff, in consultation with thesupervisory officer, is to determineif a statement requires review bythe general counsel and will arrangewith counsel for such review

(h)The decision to issue the final

statement generally rests with thesupervisory officer, who may dele-

gate this responsibility to the coin-

mrttee, task force, or workinggroup chairperson or other

designee For issues elf mayorimportance or those deemed highly

controversial, the executive direc-tor and president also should be

consulted before the statement is

released to its intended audience

(i) When deemed appropriateby the supervisory officer, a rec-ommendation should be made tothe president that a proposed state-nient be submitted to the Board ofDirectors for review beforeissuance The board may modifyor disapprove a public statement ifit believes such action is in the bestinterest of the Academy .

5. Presentation of Statement---Thecommittee or group issuing a state-ment must be stated- The group willordinarily be a practice council work-ing group, task force, committee, orthe Board of Directors Blanket spon-

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sorship by the Academy is not to beimplied

When the audience is familiar with theAcademy and its committee structure, astatement such as the following will usu-ally be sufficient- "This statement wasprepared by the American Academy ofActuaries' XYZ Committee ."

In instances when further explanationis appropriate, the committee, task force,or working group should considerincluding additional language such as thefollowing "The comnuttcc is made tipof representatives from the entire rangeof (name of actuarial practice area) . Thecommittee includes actuaries who workas consultants, are employed by insurancecompanies, are actuanes for government(specify type of government programs, ifappropriate) and the National Associationof Insurance Commissioners, and areemployed by nonprofit (specify type, ifappropriate) organizations . 'I lie expertiseof other senior (practice area) actuariesknowledgeable of (issue) was drawnupon to prepare this statement ."

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

Any statement that involves issues ofsignificance to multiple practice areasshould clearly identify the practice area towhich the statement is intended to apply.

All public statements should he datedand submitted in written form, with an

oral presentation as appropriateStatements should be submitted onAcademy letterhead . Even when state-ments are responses to highly technicalmethodological inquiries, the generalissue being addressed should he clearlyspecified in an initial sentence or two .Except when the Academy is well-known to the audience, a formal state-ment about the Academy (samplebelow) should be included in the publicstatement . If an oral statement is to bepresented at a formal hearing, thegroup's chairperson and supervisory offi-cer will select the person or persons tomake the presentation

6 Distribution of Statements-After the statement has been formallysubmitted, the final statement will beavailable for broader distribution .Members can request a copy of thestatement by writing or calling theAcademy's Washington office

0 . Sample Description of the AcademyThe American Academy of Actuaries

is a national organization formed in 1965to bung together, in a single entity, actu-aries of all specializations within theUnited States A major purpose of theAcademy is to act as a public informationorganization for the profession Academycommittees regularly prepare testimonyfor Corigress, provide information tocongressional staff and senior federal poli-cy makers, comment on proposed federaland state regulations, and work closelywith the National Association ofInsurance Commissioners and state offi-cials on issues related to insurance andother forms of risk financing TheAcademy establishes qualification stan-dards for the actuarial profession in theUnited States and houses two indepen-dent boards The Actuarial StandardsBoard promulgates standards of practicefor the profession, and the ActuarialBoard for Counseling and Disciplinehelps to ensure high standards of profes-sional conduct are met .

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ATTACHMENT 1

Protocol for forecast 2999Statements

∎ Each year the practice councilsshould discuss Foreccict 2000 priorities fortheir practice area and give public rela-tions staff input and ideas on mayorpoints to pursue with media and withpolicy makers .∎ Ferecast 2000 public relations staff arefree to use material adapted front anyAcademy public statement (includingstatements by conunittees, task forces,the board, etc ) in preparing materialand statements for approved Major andminor topic areas Material adaptedfront Academy public statements shouldbe appropriately referenced∎ Except when time constraints areoverwhelming, the practice councils,through the council chairpersons, shouldbe asked to review Any new material orstatements that go with the public state-tnents referenced above .∎ When time constraints preclude thepractice council review above, theappropriate vice president must approveany new material before release of suchmaterial to the public .∎ Costing of proposed legislation (feder-al and state) should always be subject topractice council review and approvalafter full consideration of the potentialImpacts On the other hand, Forecast2000 material should (when comntentingon proposed legislation) identify andclearly articulate the relevant critical costfactors and say why actuaries are the pro-fessionals best equipped to provide costestimates of these factors

∎ Public relations staff will . to the max-inium extent possible, seek to developall concepts and prepare materials well inadvance of their use and seek practicecouncil input during such developmentand preparation .

Protocol for Interaction with Tradeand Other Interested Groups

Regarding forecast 2999 Activity∎ Interaction with trade groups or otherentities should be governed by twoobjectives :

-To maintain both actual andperceived independence for theAcademy .

-To foster cooperative relation-ships with groups interested in ourissues .

∎ Staff will seek input from appropriategroups as necessary in the developmentand implementation of Foreceist 2000activities .∎ When appropriate, anticipated state-ments will be discussed with key staff ofsuch groups as the American Council ofLife Insurance , Alliance of AmericanInsurers, National Association ofIndependent Insurers , Health InsuranceAssociation of America, health mainte-nance organizations , Association ofPrivate Pension and Welfare Plans,ERISA Industry Committee . NationalAssociation of Manufacturers, USChamber of Commerce, health mainte-nance organizations, and Blue Crossassociations .

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G't t 141f _'l i bexfol. U1e TAE 1ve lopment,of Practice Notes

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

areas that are intended to supplement theavailable actuarial literature, especiallywhere the areas of practice addressed aresubject to emerging technology orrecently adopted external requirementsPractice Notes are not interpretations ofstandards, nor do they convey generallyaccepted actuarial practices in the samesense that standards of practice doActuaries are not in any way bound tofollow Practice Notes .

Practice Notes are written by groupsof actuaries having practical experienceand expertise in a particular area of prac-tice There may be informal exposure ofdraft Practice Notes by the originatinggroup to meetings of other interestedactuaries, but there is no formal processfor recording or responding to any com-ments that might be generated. ThePractice Notes developed are reviewedand edited by Academy staff and, ifapproved by the appropriate practicecouncil, are published and distributed bythe Academy In contrast, actuarial stan-dards of practice and compliance guide-lines are promulgated by the ActuarialStandards Board, which adheres to proce-dures that are intended to provide dueprocess and exposure to professionalreview

The following guidelines are intendedto assist Academy officers, committees,

and staff in developing and maintainingthe timeliness and effectiveness ofPractice Notes . These guidelines aredesigned to promote consistency ofquality and style and to ensure that thepractices identified are in conformitywith the standards of practice and exist-ing regulatory requirements Nothing inthese guidelines is intended to inhibitother actuarial organizations from pub-lishing materials that provide informa-tion on current actuarial practices toassist practicing actuaries

1 Practice Council 4reisight-PracticeNotes are primarily the responsibility ofthe practice councils of the Academy .with support from Academy staff, offi-cers . and committees, committees or taskforces of other actuarial organizations,and individual actuaries

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

3 Authority to Proceed If a practicecouncil determines that a new or revisedPractice Note is nccdcd in a particulararea of practice, the practice councilchairperson ("PC chair") will request

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that an appropriate committee or taskforce within the profession develop thePractice Note

4 Developiiniit Procedures PracticeNotes will generally he developed by acommittee or task force and will beidentified as a product of that group Itmay be appropriate, however, to involveother actuaries believed by the commit-tee or task force to have pertinentexpertise or experience From time totime it may also be appropriate to solicitthe input of non-actuaries When andhow such additional input is solicited isat the discretion of the committee chairwith concurrence of the PC chair

5 . Required Disclosures-Each PracticeNote should begin with a paragraphstating that the Practice Note is not apromulgation of the Actuarial StandardsBoard or of any other authoritative bodyof the American Academy of Actuaries,identifying the group that developed thePractice Note, and explaining that infor-mation contained in the Practice Note isnot binding on any actuary and is not adefinitive statement as to what consti-tutes generally accepted practice in thearea under discussion . Blanket sponsor-ship by the Academy should not be stat-ed or implied .

6. Consensus-The chairperson shouldseek a general consensus of the commit-

tee members If there is substantial lack ofconsensus, the chairperson may elect notto issue a Practice Note, to refer the issueto the PC chair, of to incorporate thealternate perspectives into the PracticeNote .

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

8 . Final 4pproi,al-The ultimate deci-sion to issue a Practice Note rests withthe PC chair . For issues of major signifi-cance, the PC chair may consult withthe Academy executive director, as wellas the president, prior to the release ofthe note .

9 . Production and DLtribution-Production and distribution of finalPractice Notes will be handled by theAcademy . Distribution may varydepending on the audience for the notes .

10 . Annual Review-The PC chairwill initiate a review of the currentPractice Notes annually for relevance,purpose, and completeness

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- T\\~' u i'kl u ; Agreeuiii etPREAMBLE TO WORKING AGREEMENT

T his Working Agreement sets foiththe cooperative goals of theAmerican Academy of Actuaries

(Academy), the American Society ofPension Actuaries (ASPA), the CanadianInstitute of Actuaries (CIA), the CasualtyActuarial Society (CAS), the ColegioNaciotial de Actuaries (CONAC) . theConference of Consulting Actuaries(CCA), and the Society of Actuaries(SOA) This agreement is intended tofacilitate the participating organizations'efforts to increase the quality and varietyof educational and professional opportuni-tics available to their members, and toeliminate the unnecessary duplication ofeffort and activity between the organiza-tions, thereby making more efficient useof the participating organizations'resources This agreement is not intendedto restrict in any way the independentbusiness decisions of the participatingorganizations Nothing in this agreement

Implementation and Amendment1) The President and the President-

Elect of each participating organizationshall form the Council of Presidents(COP) The COP provides a business andsocial forum to promote coordination,cooperation, and trust aniong the leader-ship of the organizations representingactuaries in Canada, Me'ico, and theUnited States

Mexican representation will be con-ducted through the President or PastPresident of CONAC or any of the other

should be construed as limiting the partic-ipating organizations' right to take what-ever measures they deem necessary,appropriate, or desirable to attract, recruit,and serve their individual members .

By our signatures below, we representthat our organization, by resolution of itsgoverning board, agrees to the abovegoals. Our organization agrees to coop-erate under the terms of the WorkingAgreement and has adopted this agree-ment as a policy guide for its volunteers(i .e., committees) and professional staffmembers .

The B orkiut Agreement iifas signed onFebruary 24, 1995, by the president and pres-ident-elect of the participating orgarnratrons .American Academy of Actuaries,American Society of Pension Actuaries,Canadian Institute of Actuaries, CasualtyActuarial Society, Colegio National doActuaries, Conference of ConsultingActuaries, and Society of Actuaries

:•

actuarial organizations associated withCONAC- A'oi iarion ?ll., icana de Actuanos,Asociariiin iliexuann de Actuarios Consultores,and Junta de Honor del Colegio Nactonal deActuarios. This yearly designation will bemade known in writing to the COP in themonth ofJune

Each President is responsible for imple-menting the Working Agreement duringhis or her term of office. Each Presidentwill assure that the goals and terms of thisWorking Agreement are appropriatelycommunicated to members of the boardand to officers and staff of the organization .

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Each President will further support thePresident-Elect of that organization inthe development of the evolution of theWorking Agreement .

2) A task force of the Presidents-Electwill he established each year to review theWorking Agreement [WorkingAgreement Task Force (WA'I'F)] andother areas of mutual interest, and rec-ommend appropriate amendments totheir governing boards . In addition tokeeping this Working Agreement cur-rent, and optimizing the relationshipsamong the organizations in the future,the very existence of this high-level taskforce will promote and reinforce thepurpose of the Working Agreement .

This task force will be chaired by anactuary appointed by the incomingPresidents. This chairperson should act asa facilitator and should be someone with aknowledge of current and emergingissues

Communications Amongthe Organizations

3) Each organization shall share uponpublication with the President,President-Elect, and professional staffoffice of the other organizations items ofmutual interest, except those consideredconfidential by the organization, mailedto board members of each organization,including its yearbook, newsletter, calen-dar of planned events, and board min-utes, in addition to other important doc-uments or significant studies that wouldbe of value to the wider audience

4) Each organization shall invite thePresident and President-Fleet of theother organizations to all general mem-bership meetings, with the registrationfee waived .

5) Each organization shall in,,ite thetop professional staff person (or his or herdesignate) of each of the other organiza-

tions to all general membership ineet-ings, with the registration fee wain ed .

Public Interface6) Each organization will endeavor to

encourage the actuarial profession tospeak with one voice in each country onactuarial issues in the public policy arena

-The CAS, CCA_ and SOA rctog-nlze the Academy in the United Status,the CIA in Canada, and CONAC inMexico as the organizations responsiblefor public policy representation and itscoordination .

-The Academy and ASPA will seekmutually supportive roles regarding rele-vant issues in the public policy pensionarea in the United States . They agree tocoordinate on issues affecting actuaries inboth organizations and to seek opportu-nities to cooperate .

7) Each organization will promoteand enhance among its members thepublic policy interface function as a valu-able and necessary activity to which allactuaries should contribute, using thenational public policy interface bodies

Liaison with Non -ActuarialOrgan izations

71) Normally, the Academy in theUnited States, the CIA in Canada, andCONAC in Mexico will have theresponsibility to designate representativesof the profession to each relevant non-actuarial organization However, inthose situations where one of the otherorganizations desires to designate repre-sentatives, it should coordinate with theAcademy. CIA, or CONAC, as appro-priate .

Actuarial Research9) The SOA and CAS shall generally

be responsible for management of actu-

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anal research with input from and partic-ipation of the other organizations .However, the CIA and CONAC willhave responsibility for the managementof research issues unique to Canada andMexico respectively , particularly withregard to their university systems, coor-dinating with the SOA or CAS whereappropriate Actuarial Education andResearch Fund is one facilitator ofresearch

Actuarial Principles10) There should be no conflict or

inconsistency among the basic actuarialprinciples developed by the organiza-tions . To facilitate that outcome, the dis-tribution of discussion drafts of basicactuarial pnnciples developed by an orga-nization should provide adequate oppor-tunity for comments by the actuaries i nthe other organizations Under nomialcircumstances, at the organization level,the CAS and SOA will have the respon-sibility to manage the development ofactuarial principles

Professional Conduct,Counseling and Discipline

11) In each nation of practice, theorganizations will maintain a commonset of guides to professional conduct,including reference to appropriate quali-fication standards and standards of prac-tice, and a common set of counselingand disciplinary practices designed to beuniform

Actuarial Standards of Practice12) Each organization recognizes the

Actuarial Standards Board (ASB) in theUnited States, the CIA in Canada, andthe CONAC in Mexico as beingresponsible for promulgating actuarialstandards of practice .

Qualification Standards13) The Academy . CIA. and CONAC

have the responsibility for maintainingstandards for qualification to practice as anactuary that are uniform for actuariespracticing within each nation Eachorganization will take the steps necessaryto encourage their membership tounderstand arid abide by the qualificationstandards

Student Interfaceand Actuarial Recruiting

14) The CIA, CAS. CCA, and SOAshould coordinate efforts and cooperate inthe development of niatenals used to pro-mote the actuarial profession among stu-dents. Where appropriate, these materialsshould also refer to the profession's publicpolicy interface roles played by theAcademy, ASPA, CIA, and CONAC

Basic Education and Examination15) The CAS and SOA have respon-

sibility for the management of the basiceducation and examination process pro-vided for the education of actuaries inthe United States and Canada_However, ASPA, CIA, and CONAChave a responsibility for meeting theunique education needs of their mem-bers joint communications and cooper-ation among all organizations should beencouraged for the purpose of ininnniz-ing unnecessary duplication .

-In order to develop higher-qualityeducational material for actuaries, theorganizations, in particular the CAS andSOA, should work to coordinate theirefforts in the education and examinationof health actuanes and in the finance areas .

Continuing Education1t) For actuaries practicing ui each

nation, continuing education criteriashould be compatible .

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17) While each organization deter-mines its own continuing educationrequirements, each is encouraged toaccept for credit attendance at meetingsand seminars covering appropriate andrelevant material sponsored by any of theother organizations

Meetings , Seminars , Symposia, etc .18) An organization sponsoring a spe-

cialty meeting, seminar, or other mem-bership activity on a particular topic willconsider inviting as a cosponsor otherorganizations with interest in that topicCosponsorship does not imply sharing afinancial interest : point sponsorshipimplies sharing a financial interest

1-) Opportunities for cosponsored orjointly sponsored activities and meetingson issues of common interest should befound

SOA Sections20) Consideration should be given to

expanding the mailing list of SOASections to include interested membersof the other organizations and to encour-age, where appropriate, their participa-tion in Section activities .

Database21) Each organization agrees to dis-

cuss, develop, and implement as appro-priate the use of a common database ofmembers (including students) for thepurposes of fostering more efficientcommunication among the actuaries inNorth America, e g , with respect tomeetings and other continuing educationannouncements .

Membership Communications22) In order to promote better com-

munication among the actuaries in

North Ameri(a, each organization agrees

to participate in a discussion on the feasi-

bility of developing and implementingcommunication devices including, butnot limited to .

a North American computer bul-letin board/mailbox, and

-a standard of preparing and dis-tributing abstracts for all research beingconducted by the actuarial profession

Meetings of the Leadership23) The COP should meet at least

three times a year, once in each respec-tive country . Arrangements for themeeting (including location, agenda, andchairing the meeting) will be the respon-sibility of the host country .

24) Generally, there should continueto be a triennial meeting of the widerleadership of each organization . The pnmiary purpose of such meeting is to dis-cuss the strategic issues affecting theactuarial profession in North America,and nation-specific issues should general-ly be avoided

The following is the schedule toassign responsibility for chairing the tri-ennial meeting and making arrange-ments :

1994-CCA 2006-SOA1997-CIA 2009-CAS2000-ASPA2003-CONAC

2012-Academy

Committees25) To niiniinize future overlap, no

new committee, task force, or otherentity should be established withoutconsideration being given to coordinat-mg the effort with other relevant organi-zations

26) Each organization agrees to dis-cuss, coordinate, and implement, wherefeasible, a program to eliminate anyoverlap in the functions performed byvarious committees and members

-Where feasible, one person mayrepresent more than one orgauization .

78

When an individual is designated asa representative of one of the organiza-tions, lines of communication with thatorganization must be clearly defined .

(1) The appointment should be madeby the organization to be representedand that appointment should be inwriting,(2) In the appointing document, theline of communication should heclearly established . The individual towhom the representing membershould report should be identified,the nonnal frequency of communica-tion should be established, and theissues expected to be of importance tothe represented organization shouldbe specified: and (3) If feedback fromthe representative organization, aswell as from the representing mem-her, may be needed, the means ofgenerating that feedback should hesuggested

27) The Practice Councils of theAAA will include members from theother organizations as appropriate

Financing Activities on Behalfof the Profession

28) Consideration must be given tothe ser,,iecs being provided by eachorganization on behalf of the entire pro-fession. The multiple dues structuresmay be causing some actuaries to over-pay and some to underpay for support ofsuch services

Staff Communication , Coordination,and Support

2k)) The staffs of the seven organiza-tions will do all iii their power andauthority to support the goals and facili-tate the implementation of the WorkingAgreement The staff will maintain aStaff Working Agreement and review itsprovisions annually in a joint meeting .

-They will see that all appropriatematerials and invitations are distributedas called for by this Working Agreement .

-With respect to member meetings .continuing education seminars and othersimilar activities and events, they willcoordinate topic and date planning and,as appropriate, cooperate in develop-ment of programs and/or support andcommunication materials, including theiniplement.mtion of any cosponsorshiparrangements .

-They will coordinate date and loca-tion planning, with particular concerntoward minimizing leadership travel .

-They will work together to create acommon membership/student databaseand seek ways to maximize the coopera-tive and individual uses of that database,particularly in support of the WorkingAgreement

-They will support feasibility studiesand any resulting inipieiiientation activi-ties designed to improve overall membercommunications, including, but not lim-ited to, publications, computer bulletinboards, and common research abstracts

79

Mon hers-1 i 1 1)Academy Membership Memberships Held by Academy Members

in American Society of Pension Actuaries (ASPA} .C l A i l S i (CAS)

1994 12 133as of Nov 1Memb rshiasua ty ctuar a oc ety ,

,,e p

IncreasesAdmissions 626

Conference of Consulting Actuaries (CCA) .and Society of Actuaries (SUA)

Remstaternents 8Decreases

(As of November 1, 19( 5)

Deaths 41) ASPA GAS CCA SOA TotalWithdrawals 199 In allfour 1 1 1 1 1

Membership as of Nov 1, 1995 12,528 ASPA, CAS,&CCA 1 1 1 - I

ASPA, CAS,& SOA 1 1 - 1 1

ASPA, CCA,& SOA 36 36 36 36

Academy Membership by Employment ASPA & CASASPA & CCA 26 26 - 26

(As ofNovernber 1, 1995) ASPA & SOA 133 133 133

MembershipCAS. CCA .&SOA - 10 111 1I) 10

57 57 57CAS&CCAEmplovnaent 1993 1994 1995

-CAS & SOA - 86 86 86CCA & ',OA 687 687 687

Insurince 7nd related In one only 369 1,829 161 8,439 10,798

orgamzauom 5.245 5,544 6,1125 In none 692

Consulting practice 4,312 4,446 4.533 Total 567 1,985 979 9,393 12,528

Gosernment 185 213 21917 46A d 45eme Instrtutiomca

Other 475 513 295Academy Members Who Are Enrolled Actuaries

Retired or not known 1,11)5 1,146 1,164 (As ofNosember 1, 1995)

Una(hated 16(1 225 247 ASPA CAS CCA SOA I oral

Total 11,S-'9 12,133 12,528

In all four 1 1 1 1 1ASPA, CAS,& CCA 1 1 1 - 1

ASPA, CAS,& SOA 1 1 - l I

ASPA, CCA,& SOA 35 - 35 35 35

ASPA & CASASPA & CCA 25 - 25 -- 25ASPA & SOA I A2 - - 132 132CCA, CAS,& SOA - 2 2 2 2

CAS & CCA -CAS & SOA - 10 - 10 l0CCA & SOA - 493 493 493In one only 364 1 68 1,88f, 2,319In none 415

Subtotal 3.434

Non-Academy

Enrolled Actuanes 865Total

Fnrolled Actuaries 4,299

80

1'I~} _flI-Cl l lc t] Cm-Admiksl*011The requirements for admission to theAcademy are set forth in Article I of thebylaws An individual who meets theexperience and educational requirementsand wishes to apply may request anapplication form from either theWashington or St-liatirriburg office .

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

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

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

2 Teaching experience will counttoward the three-,ear requirement onlyto the extent that the teaching is at theParts 4 and 5 level I ligher-level coursesmay also be considered depending ontheir actuarial content .

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

4 At least two of the three yearsmust have come oil a full-time, uninter-rupted basis .

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

In the area of residency . the followingguidelines/requirements must be met

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

2. Nonresidents must state their needfor membership .

3 Nonresidents must state theirfaniiharity with US laws and practicesin their actuarial specialty area

The above guidelines/requirementsare subjcct to interpretation, and appli-cants are encouraged to review theiranswers in light of these guidelines inorder to expedite their application

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

Applications and all inquiries shouldbe addressed to :

Membership ManagerAmerican Academy of Actuaries

475 N Martnigale Road _ Suite 80(1

Schaumburg, 1L 6(1173

3. Summer. part-tune, and other 7118 706 35 13 Telephoneintermittent experience may be consid- 708 7116 3599 Facsimile

81

DuesDues as approved by the Board ofDirectors are $340 per year for mem-bers, payable on January 1 . Admissionin the first third of the year will requirefull payment of dues for that year,admission in the second third of the yearwill require payment of two-thirds ofthe annual amount, and admission in thelast third of the year will require pay-ment of one-third of the annual amount.

Article VII, Section 1 of the bylaws ofthe Academy provides that, subject tocertain provisions with respect to disabil-ity and retirement, each member shallpay such dues for each calendar year asmay be established by the Board ofDirectors of the Academy . Under thisauthority, the Board of Directors hasdetermined that dues may be waived formembers who (a) are full-time students,involved in full-tune dependent care, orserving in the military or the PeaceCorps, and (b) anticipate no materialactuarial income during the forthcomingcalendar year. Dues may also be waivedfor members who have been unem-ployed for at least one year prior toJanuary 1, 1996, and who have made nomore than $10,000 from actuarial activi-

ties or $25,010 overall in 1995, do notcurrently anticipate earning ally signifi-cant income from actuarial activities mcalendar year 1996 ; and are actively seek-ing work as an actuary or planning reen-try into the actuarial profession in theforeseeable future. The ninumurn retire-ment age has been set bw the hoard as 55The maximum limit on earned incomein order to qualify for dues waiver nnaccount of retirement or other categoriesshown above between ages 55 and 70 is$10,000 per year

Members on dues waiver automatical-ly receive the yearbook and the directo-ry, notices of annual meetings, and vot-ing materials for proposed bylaws amend-ments There is an annual charge of $75to receive other Academy mailings

Forms for permanent arid temporary

dues waiver requests can he obtained

from

Membership ManagerAmerican Academy of Actuaries

475 N _ Martingale Road , Suite 800Schaumburg, IL 60173708 706 3513 Telephone708 706 3599 Facsimile

82

Press' 1'1 bedd ExainiiiatiutisThe Academy Board of Directors, inaccordance with Article I, Section 2B ofthe bylaws , prescribes examinations asfollows .

A candidate who has attained byexamination the indicated status listedbelow shall be deemed to have met theeducation requirements for admission tomembership .

1 . Associateship in the CasualtyActuarial Society and the Society ofActuaries .

2 . Fellowship in the Canadian

Institute of Actuaries , the Conference ofConsulting Actuaries . the Faculty ofActuaries in Scotland , and the Instituteof Actuaries .

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

In those cases where familianty withactuarial practices and principles in theUnited States cannot be assumed, theExecutive Committee is empowered tocall for evidence of such familiarity .

83

Actitarial ( ) Ign I1 lZc [tiOii 8American Society Casualty Actuarial Society

of Pension ActuariesPresulerit A lbert j BeerPre+idelu-L'Iert R obert A Anker

Pre•aideiir Michael E CallahanIi,iii fate

Presidcut-EIeer Richard 1) Pearce Pat Pieuideiit Allan M. Kaufmanluuuedi arc I'ice Pirtsidruts P atrick j Giannan

Past Prcrdent Stephen R Kern Jo hii j Kollarlice Pusrdciits Steseu Fishman Micliael J . Miller

Carol 1L, Sears Susan T SzkodaGeorge J. Taylor .5er?etaiy%'1'r rs Hoc

Scnerary Sarah E Sunoneaus I'ice Pic,ident P aul Braithv cite

Treaanr'r P.ohertJ Dema1111(1 North Gle be Road, Suite 6(III

435(1 North Fairfix Drive, Suite 820Arlington , VA 22263

(7113) 3 16-931 10Facsnnile (763) 516-93118

L\ecirniteDneitoi ChesterJ Salkindf enrtit'e I ice Pre,tdeHi• Mark C: Doherty

Arhngtoii , VA 22261(7(13) 276-3111u

Fac,1111ile (703) 276-3108

E.venitil e Diicctoi James H Toisley

Colegio Nacional de ActuariosPie,idr lit S ergio Camposortrga CruzP d El P d P hCanadian Institute of Actuaries rcrt crtt- kcr roe ac et_obrrnicdiate

Pact Piesidew Hectur H. LlamasPresidcHt M.u-c J Fcrnet Seto°raly/Tcen,urcr M arilupe UgartePiesrdeut-E/rit Neville S Henderson

111irmnitare Avenida I'a triotismo 711Past President Kurt K von Schilling

Torre A, 4 l'rsolice Presidcnh Allan S Edsvards

Col San J uan MixcoacLu( Farmer

B A P F G ldMexico D F ., 6373)

rian . itz era 011 -535-59rt-769(1Jean-Louis M.iue

Harry H Pander Err ItIl k I)ircctor Marilupe UgarteSect et,try /Trcasiirer& 1'ice President Danielle C. Morin

Constitution Square

361} Albert Street , Suite 821,Ottawa, Ontario K I R 7X7, Canada

(613) 236-8 196Facsimile (613) 233-4552

E.eiutiue Doer tar. U (Rick) Ncugebauer

84

Conference of Consulting Actuaries Actuarial Educationand Research Fund

Ac•snfcut Jeff FurnishPre rdrur-Lleet Mark V Mactas

C fi iirflci SOA Lel&ov A 13oisonJrLuur li iie .

Par Pu sid(rrt Larrv 1) . Baber'anal), Robert W Wilson'Iicasmcr Harold G In raham Jr1 Ix Pn•srdcuh Wrlliaiir J Falk . gDi rcwar, Douglas C BortonFranklyn J McGrath

Allan BretiderJohn D- RadekSaris GutrcrnianMichael L ToothnianDavid M HollandSt rrctar)• Margaret Wilkinson Tiller

' Craig A MillerIr (( rsurer Joseph L . NetrelliMichael J Miller

1 III, West Lake Cook Road, Suite 335Buffalo Grove, IL 601)8'1

(7(18) 4I) x)11 )11Faccinule (71)t) -4I')-')1l()

.1Gara qrug L)HL' toi

.IJicingair Unit

Brendan ()' FarrellCharles Barry H WatsonLinden N Cole

L•.vcnttire Dircunr Rita K- DcGraaf

Society of ActuariesPrc,idrin Sani GtitrermanPresrdcrrr- L1nr David M I lollandIrrrumdiat"

Past Picsukut Barnet N Berinl 'ice Presidents Howard J Bolnrck

Joan ChangJohn J PalmerI'atricia L ScahillRobert W Stein

Scuctaiy/Tieastocit- I ice President William Carroll

475 North Marnngale Road, Suite 8f101Schauniburg, IL 60 173

(70it) 706-35unFacsunile (71)8) 7()(,-37,')()

Eve nine Ilrrectoi John E O'Cbnnor Jr .

(' i ilirnitor (c (-il J Nrsbitt

475 North Martingale Road. Suite .80)(1Schaurriburg, IL ()1)173

(708) 706-35701Facsimile (711It) 7i)h-35))

Eycrutir e Drtcetoi C urtis E Huntington

International Actuarial Association

Canadian Officersflee Ptr±idrut Marc J FernetSecretary "Jrrooiid

Coitcipou leer Morris W ChambersLondon Life Insurance Co-2i5 DufLrnn AvenueLondon, OntanoNhA 41(1 Canada(51')) 432-5281Facsimile (51')) 43L'-579ti

Couttrrl James A BnerlevKurt K von Schillin

85

United States Officerslice President Ronald L Bomhuetter

Scactary .NationalCorrespondent W James MacGinnitte

Ernst & Young, LLP600 Peachtree StreetSuite 2800Atlanta, CA 30308-2215(404) 817-5950Facsimile (404) 817 4323

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

Nevt CongressJune 6 -13, 1996

Birmingham, United Kingdom

AFIR SectionCanadian Member Michael Cohen

William M. Mercer, Ltd275 Slater Street, Suite 1100Ottawva, OntarioK 1 P 5H9 Canada(613) 230-9348Facsimile (613) 23u-c)357

U S Member James A. TillevMorgan Stanley& Company

1585 Broadway36th FloorNew York, NY 10036(212) 761-4304Facsimile (212) 761-ii521

?Next CollogrnurnOctober 1-3, 1996 Nuremberg, Germany

ASTIN SectionClimttrran andLT S Contact James N Stanard

Renaissance Reinsurance, Ltd .Sofia House48 Church StreetHamilton HM GXBermuda(809) 295-4513Facsimile (809) 292-9453

I've Chairperson Jukka Rantala, FITreasurer Jean Lemaire, BESecretary Bouke Posthuma, NLlleleiate to IAA W James MacGrmmne, USAEditors Paul Einnbrechts, SL

T) Harrv Reid, UKAssistant Editors Retie Schnieper, SZ

David Wilkie, UKOther Meniheis Edward j Levay, IS

Charles Levi, FRThomas Mack, GMErmanno Pitacco, ITGregory C Taylor, AU

Next ColloquiumSeptember 1-5, 1996 Copenhagen , Denmark

86

International Associationof Consulting Actuaries

Chairperson Michael AinoldHumans Robertson190 Fleet StreetLondon EC4A 2AHUnited Kingdom44-71-831-9561

Senetary-Treasurer Dudley Funnell2175 Manne DnveSuite 607Oakville, OntarioL6L 515 Canada(416) 825-41)46

U.S. CoinnittecRlernbers Robert J Dymowski

John j HaleyW Janies MacGinnrtie

Canadian

Representative Michael D, MillsWilliam M Mercer, LtdThe Grosvenor Building1040 W Georgia StreetSuite 1200Vancouver,British Columbia46E 4H1 Canada(604) 683-6761

Next 1leetntcJune 23-28, 1996 Gleneagles, Scotland

International Forumof Actuarial Associations

Chairperson W Paul McCrossanPartners Ltd .789 Don Mills Road4th FloorDon Mills, OntarioM3C 1T8 Canada(416) 696-301 3Facsimile (416) 429-3794

Deputy Charrper~oii Chris Daykin(c/o Institute of ActuariesStaple Inn HallHigh HolbornLondon WC I V 7Q]United Kingdom)

AicreditatioiiChairperson Walter S Rugland

ApprovalsChairperson Jean Berthon

Executive Duector Bnan Wooding(c/o Canadian

Institute of ActuariesConstitution Square360 Albert Street. Suite 82) MOttawa, OntarioK 1 R 7X7, Canadaor call [604] 929-8497Facsimile [6(1411)29-8597)

U S Ceiwnttee Roberr L Collett,Meinlirrs SOA Representative

David G. Hartman .CAS Represcntarwe

Curns E Hunnngton,ASPA Representative

W James MacGinnitie,AAA Rcpreseutatire

Walter S Rugland,1.4x1 Representative

CCA Representative TBA

87

Actuarial C'fiff)sCorrespondence to the local clubs should be Jirc ted to the secretary at the addresslisted on these pages . If a secretary is not listed, the address shown is that of the presi-dent Addresses for club presidents may be found in the Director), of .darrarial1leiuher_ Iigi

Actuaries Club of BostonAllan Ming Fen PmidentStephen M. Bata, I ice PresidentMarshall H Lyknis, Tv'r,weiGerald F Boulet, Due, foro/ Coutmmiii FdueatlonM Caro1}n McHugh, DuelWi

JfSfl ydrnt I;dlhi7hcn

Andrea. 1' 1 ohnson . Scot-tar,(c/ o John Hancotk MutualLite I miranLe Company, T-2c,P C) Box I 1 I, I3ostnn, MA IiI1 17-M 11)

Actuaries Club of Des MoinesMark S . Movie . PresidentPatncia Htttfinan, I ice PrrsidrrrtRobert Ford, Si' is ry-Trra,nrei

(c/o The Principal Financial Group,711 High Street,Des Moines, IA 5(1393-u(,l0)

Actuaries Club of HartfordAl Dal Porto, P,c±identSteve I'utternian, I icc Pir'ide,itLinda Lanko .vski, '1'reasinerDavid Addison, Snretary

(c/(, Phoenix Home Life MutualInsurance Comp,iny,One American Row,Hartford, CT 06115)

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

Gregory D Jacobs, PIesidr/rtKenneth lC Flisehel, I'ict Prr~identJeffrey A Becklev, Secretary-Tioiwrrr

(c, 'o I3eeklcy & Associate,,11495 North I'ennsvlvania, Suitt 2(I?Carmel, IN -46032)

Actuarial Club of Indianapolisi)iune R Seaman, PresidentAndy Wilkinson, I'm' PresidentKeith D all . Senetar - Treasim,i

(~/o American Statc, insurance,50(1 North Meridian Street,Indianapolis, IN 4(,2(14)

Actuarial Club of JacksonRichard G Fielding, PrrsidrrrtJohn Stenmark, i'icc P,nidcniPan Butts, Srrrrtmy-Tra ;nr'i

(c/o Blue Cross/Blue Shield,P 0 Bo. 1043, Jackson, MS 39215)

Actuarial Club of the Pacific StatesJohn F. Fritz PrrsidrrrtMartin F Gibson , V we Prrsidc•rrtI ours A Kent , Senerlry-Teasurer

(c/o Bluc Shield of Caliti'rnra,Two North Point . Third Hoot,San Francisco, CA ' ) 4133)

Actuaries Club of PhiladelphiaPeter R Schaeter, P16rdentjohn Morris, 1 'ice Pu id, rrrI)iana Goodman . TieaciuriH Sel vvn Tor ance, Sriurtar),

(c/o Hay- Hugguis Company,229 South 18th Street, Fifth Floor,Philadelphia, PA 19103-6138)

Actuaries Club of the SouthwestGars P Monnui . PrrsidrntRobert Gieving, I'itt PrrsidentHarry R Miller, Serrenrry-Timing,

(cio VAI IC, P O Box 3?0h,Houston, TX 77_253-32(16)

88

Actuarial Club of Washington . D .C .Pamela Mueller . PresidentRobert Katz, I'ue Pre relentBlame Barhani TreacurcrCara M Jareb, Scaer,ay

(c/o The Wyatt Company,15u1 ) K Street NW,Washington , I)C 200)5)

Actuarial Society of Greater New YorkRobert M Sackel, PresidentCecile M Chenevey, Vice Ptcs ;deja

of Student EducationThomas J . Troeller, TreasurerMares S Sander, Secretary

(c/o Milkman t6 Robertson, Inc,Two Pennsylvania Plaza, Suite 1552,New York, NY I i 1121-I )(}RR)

Adirondack Actuaries ClubRobert J. Callahan, PresidentArlene Woodrutl, President-ElectRichard Young, TreasiucrKathryn Lentivech, Secretary

(c/u Farm Family Life InsuranceCompany, P L} Box 656,Albany, NY 122(11)

Arizona Actuarial ClubMatthew Hassett, Prrcidrnr

(c/o Arizona State University,

Department of Mathematics,Arizona State University,

Tempe, AZ 852,X7-1804)Michael 1 . Rathfl 17W PresidentJunes Gordon, Ttea0trri

Atlanta Actuarial ClubTorn Loftrs, PresidentRalph Reese, f ice PresidcutKaren A Purcell, Secretaly-Trewurei

(L/o Hazlchnrst & Associates, Inc ,

4011 Perimeter Center Terrace,

Sum 850, Atlanta, CA 31)3-10)

Baltimore Actuaries ClubLawrence E Isaac,, PieadcntMary S McKav . ['in' PresnictuAmy S Zifl, Scortary-'l uasuret

(c/o Blue Cross/Blue Shield of Mars land,1(155 Mill Run Circle,Owurgs Mills, MI) 21117-555'))

Casualty Actuaries of the Bay AreaKay Cleary, PresidentDaniel N. Abellera, Sinctary-Trea_,ursi

(c/o Industrial Indemnity,255 California Street,San Francisco, CA 9 .1111)

Casualty Actuaries of Greater New YorkRegina M 13crcns, PresidentBrian A Hughes, Prr , uirru-EleorVincent M Senia, I-rte PresidentKenneth P Quintilian, Seciet,ay-Ttcacne/i

(c/o Millinian & Robertson, Inc ,Three Garret Mountain Plaza, Suite 303,West Paterson, NJ 1)7424-3352)

Casualty Actuariesof the Mid-Atlantic Region

Susan Miller, PresidentMichael J Caulfield, I'ice PresidentAndrea Gardner, Secretary-Treasurer

(c/o Coopers & Lybrand, LLP,241XI Eleven Penn Center,Philadelphia. PA 191,13)

Casualty Actuaries of New EnglandJeffrey P Kadison, PresidentAnn M Caraway, [ ice President o(Prnip i,,oMary Corbett, [iicc Presidc•ut ci EduratioirRoland D Lctourneau, Svcrctatp-Treasurer

(c/o Arnica Mutual Insurance Company,P O Box h(H)R, Providence, RI 1-12941))

89

Casualty Actuaries of the NorthwestHeidi J McBnde, PresrdenrGordon K. Hay, Vicc PresrdenrJulia L Pernne, Sccrctary-Treasurer

(c/o Milhrnan & Robertson Inc .,1301 Fifth Avenue . Suite 32010,Seattle, WA 98101-1380)

Casualty Actuaries of the SoutheastMark Crawsliaw, PresidentFrederick() . Kist, Prcsiderrt-ElectAndrew E. Kudera, 1 ice Prcsiderrt of ProtoranisBryan G. Young, Pite President sf EducationRoberto G Blaneo. T uc President

cJ Co1leE'c RelationsMonty J. Washburn, [ice President of

rldininistration & Secretary-Treasurer(c/o National Council onCompensation Insurance,75(1 Park of Commerce Drive,Boca Raton, FL 33487)

Central Illinois Actuarial ClubJoseph Herbers, PresidentJoseph Morrow, I icc PresidentWade Harricon, I icc PresidentBrian Sibley, Vice PresidentRose Schumacher, Secretary-Tieasirrei

(c/o Horace Mann Insurance Company,One Horace Mann Plaza,Springfield, IL 62715)

Chicago Actuarial AssociationJohn K Heins. PresidentDaniel E Wmslo,,, Premdcni-ElectJeffrey G . Allen, Vicc President, EducationAllen M. Klein, I ire President, Pro~rcrnrsNicole M . Stopoulos, Vice President,Public RelationsPeter N . Dwyer, TreasurerJohn L. Tinimerberg, Secretary

(c/o CNA Insurance Conipanies,CNA Plaza, Chicago, IL 60685)

Cincinnati Actuarial ClubJohn 17 Cecil, PresidentLinda Broncteui, I icc PtesidentHarold V Lyons, Secretary-Treasrner

(c . ,o Western-Southern Life,4(10 Broadway, Cincinnati, OH 4521)2)

Columbus Actuarial ClubLisa Thompson, PiesidentDave Garverick, lice PtesrdetttMichael P Sparrow-, Secretary-Treaiirrer

(c/n Nationwide Insurance Company',One Nationwide Plaza, 1-10-T3,

Colunmbus, OH 4321b)

Kansas City Actuarial ClubMichael G Baker, PresidentMark Billingsley, [ire PresidentRoger K. Annin, Treasurer

(c/o Pyramid Life Insurance Company,6201 Johnson Drive,Shawnee Mission, KS 662111)

Little Rock Actuarial ClubJoseph A. Kreuz, PresidentJudith Kirk, Vice PrrtidcntFrank Walker, Secretary-Treasures

(c/o National Old Line/Aegon USA,P 0 Box 2900, Little Rock, AR 72203)

Los Angeles Actuarial ClubAngelica M Michail, PresidentEddie C Tong . lice PresidentRobert L. Canfield, TreasurerLaurie Weyuker, Sccrctary

(c/n Blue Cross of California,211(10 Corporate Center Drive,

Newbury Park, CA 9132(1)

Michigan Actuarial SocietyMartha M. Spennv, PresidentBenjanun C Peters, Vice Presidoir

Steven Haas, 7',casrnerJames D Anderson, Secretary

(c/o Gabriel Roedei Smith & Company,1111 N . Main Street, Suite 440,Ann Arbor, MI 481(14)

Middle Atlantic Actuarial ClubWillis B Howard, PresidentToin Bowling, I ice PresidentSally Burner, Senerary-Treasurer

(clo Health CareFinancing Administration,

1)325 Security Boulevard, L-I EQOS,Baltimore . MD 212(17)

90

Midwestern Actuarial ForumDavid N Hailing, Presi deritKaren E_ Amundsen, I've Pre,identJohn Aquino, Education Officer

William ( Von Seggern, Secretary-Trcasurer(c/o AAA Michigan,17381) N Laurel Park Drive,Livonia, Ml 48152)

Nashville Actuarial ClubRandall H Smith, PresidesSam W. Talley, Secretary-Treasurer

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

Nebraska Actuaries ClubLawrence D . Fisher, PresidentLynn Fneseri, Secretary-Treasurer

(c/o Ameritas Life Insurance Corporation,59)10 0 Street, Lincoln, NE 68510)

Oklahoma Actuaries ClubRonald J Byrne . PresidentWarren L. Shepheid, Vice PresidentLyle E Nelson, Secretary-Treasurer

(c/o Amencan Fidelity Group,P O Box 25523,Oklahoma City, OK 73125)

Portland Actuarial ClubNina Pileggi, PresidentJames E . Care, I ice PresidentPcnnv Butler, Secretary-Treasurer

(c/o Independent Actuaries,12655 SW Center, Suite 150,Beaverton, OR 971)05-1601)

St. Louis Actuaries ClubDaniel E Kirner, PresidentG. Thomas Mitchell, lice PresidentJanice M Jones, Secretary-Treasurer

(c/o General AmericanLife Insurance Company,13045 Tesson Ferry Road,St Louis, MO 63128)

Salt Lake Actuarial ClubMark W Birdsall, PresidentPaul 1)aniels, I ice PresidentMark W Birdsall, Set retary-Trcasurer

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

San Francisco Actuarial ClubGregg Schlappich, PresidentColleen McCarthy, Vice PresidentDavid Voss, Treasurer

(c/o Buck Consultants, Inc100 California Street,San Francisco, CA 94111)

Seattle Actuarial ClubCraig Reynolds, PresidentJohn Kaleas, Vice PresidentJoni Fassett, TreasurerWayland M Hubbart, Secretary

(c/o WM Life Insurance Company .1201 Third Avenue, Suite 60(1,Seattle, WA 981(11)

Southeastern Actuaries ClubRobert A Potter, PresidentPeggy M Rubin, Vice, PresidentJohn A MacBarn, Seereiary-Treasurer

(c/o Actuarial Resources Corporation,

1844 N Belcher Road, Suite 10113,Cleani,ater, FL 34625)

Southern CaliforniaCasualty Actuaries Club

Todd J Hess, PresrdenrJoseph P Henkes, Lice PresidentJoanne M. Ottone, Secretary- I'reasnrer

(c/o Underwriters Reinsurance Company,22801 Ventura Boulevard, Suite 300 .Woodland Hills, CA 91364)

91

Southwest Actuarial Forum (SWAF) Vermont Enrolled Actuaries ClubCathtrmt Taylor, Pie,ident1A' . DaIt' Mouti ouicrv, I icc Ac, J'iitDanicl C,oddard, /i nr t,ro}' '1 'rca±rncr

(c, ,o Hnu,ton (,cncrallucurancc Company,4055 International Plaza,Fort Worth . TX 76109)

South Florida Actuarial ClubSanford L Nuebarth, PrcodentChristine L Moore, I iu' Pi idcoirJetii-cy-C Harper, Ticauius

(c/n American B .uikers Insur.nu e Group,11222 Quail Roost I )rive,Miami, FL 33M)

Twin Cities Actuarial ClubBradley E Barks , P;oidcutLouis H. Anderson , G'icc PresidcutRuth B Johnson , Se ictaiy-Trc,totttcr

(c/o Northwe , tcrn NationalLite In,uiancc,?(1 Was}nugtuu Avcnuc South,Minneapolis , MN 554111)

Annie Brown Volduwii, 15csnferrtWilliam J C,lIlnan , 5 r(ictarp - Tir,t,uoci

(cio National Lit'e InNuranceOne National Life Drive,Montpelier VT (15(,(1-1)

West Michigan Actuarial ClubWilliam T Biiard, Precrdent

(c/o Delta Dental Plan of Michigan,P O Box 30 .11(,Lansing, Ml 4(909)

Wisconsin Actuaries Clubl),uucl L Shinni,k , Pu•,ulcntJohn D, Dawson , 3Iectrq~ Ca,,rdurttt,rJanet W Reinke, Secretary -Trimrorei

(0o CUNA Mutual Insurance Group,5910 Mmcial Point Road, P O Box 391 .Madison, WI 53701)

92

I3uaid a ll 1 (k)1t1_ m i i 1( '(1

The Board of Directors has adopted thefollowing policy with respect to atten-dance at and participation in Academymeetings

I All meetings of Academy commit-tees (with exceptions noted an paragraph2 below) are open to members of theAcademy

2 Meetings of the Board of

Directors or the Executive, Discipline,and Nominating Committees are notopen to other than members of thosecommittees and invited guests .

3 Members attending Academymeetings are free to observe the conductof those meetings; they may participatein discussions only with the consent ofthe chairperson .

93

-Teet i i i s ( ;a~ le l( lay 1Annual Meeting Enrolled Actuaries Meeting

1996 November 10-13Boca Raton Resort & ClubBoca Raton

1996 March 18-20Sheraton Washington HotelWashington, D C .

Casualty Loss Reserve Seminar 1997 March 17-19Sheraton Washington Hotel

1996 September 16-17San Francisco Hilton

Washington, D .C

San Francisco 1998 March 23-25Sheraton Washington Hotel

1997 We-,tin Peachtree PlazaSeptember 29-30Atlanta

Washington, D C.

Actuarial Standards Board1996 January 24-25

Atlanta

April 17-18Washington, D.C .

July 23-24Boston

October 23-24Washington, D .C .

94

Pt t h1it-z1-1l_O 11 8Publications can be obtained from the Washington , D C . office Prices are in U Sdollars and include postage in the United States and Canada, Remittance must accom-pany your order .

Contuigencies, the magazine of the actuarial professionbimonthly , controlled circulation

The Actuarial Updatemonthly , controlled circulation newsletter

Enrolled ctuares Reportquarterly, controlled circulation newsletter

1996 Armenian Acath'iny f )Actua r ies Yearbook$2500

1996 Dire try of Acntniial Alerubershrps$1000(1

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

$25 .00 each

hadeniy Alert on Pension and Employee Benefits$40.00

1996 Directory of Enrolled Actumics$50.00

American Acadenily ofActuaries Fait Bookno charge

Actuarial Standards Board Fact Bookno charge

Actuarial Board for Counseling & Discipline Annual Reportno charge

Actuarial Standards Board Annual Reportno charge

Actuarial Board fir Counseling & Discipline' An Introductionno charge

American Acadeniy ql Actuaries Journalback issues from 1977 to 1987 available at $35 .00 each

95

AMIRICAN ACADEMY OF ACTUARIES

1100 SEVENTEENTH STREET NW

SEVENTH FLOOR

WASHINGTON, DC 20036

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