Practice Test Geeks(CAS) Casualty Actuarial Society Practice Test
← All CAS Flashcard Decks

Professional Ethics and Standards Flashcards

7 cards from real CAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Professional Ethics and Standards flashcards as text

  1. Under ASOP No. 41, when an actuary's work product contains a material assumption that significantly deviates from what another actuary would consider reasonable, what must the actuary do?

    Answer: Disclose the assumption and the rationale for its use

    ASOP No. 41 requires actuaries to disclose material assumptions and explain the rationale when those assumptions may not be considered reasonable by other actuaries.

  2. A CAS member is asked by their employer to sign an actuarial opinion they did not prepare and disagree with. What is the appropriate course of action?

    Answer: Refuse to sign and, if necessary, resign from the assignment

    An actuary must not sign an opinion they disagree with; if pressured, they should refuse and may need to withdraw from the engagement.

  3. Which of the following best describes the concept of 'materiality' in actuarial standards of practice?

    Answer: An item whose inclusion or exclusion could reasonably influence a decision-maker's conclusions

    Materiality refers to whether an item could reasonably affect decisions made by those relying on the actuarial work product.

  4. An actuary discovers a significant error in a previously issued reserve opinion after the financial statements have been filed. What should the actuary do first?

    Answer: Inform the principal and discuss the need for correction or disclosure

    The actuary's first duty is to notify the principal of the error so the appropriate corrective action, including potential disclosure, can be determined.

  5. Under the CAS Code of Professional Conduct, Precept 4 addresses which of the following?

    Answer: Performing actuarial services only when qualified

    Precept 4 states that an actuary must only perform actuarial services for which they are qualified by knowledge, skill, and experience.

  6. A property-casualty actuary is asked to opine on a life insurance reserve. She has no life actuarial training. Which precept of the Code is most directly relevant?

    Answer: Precept 4 — Qualification Standards

    Precept 4 requires that an actuary be qualified for the specific type of actuarial work performed; P&C training does not qualify one for life reserve opinions.

  7. When an actuary relies on data provided by others, what does ASOP No. 23 require?

    Answer: The actuary must disclose reliance on the data and note any material deficiencies found

    ASOP No. 23 requires actuaries to disclose reliance on data supplied by others and to note any material data deficiencies discovered during review.