CAS Actuarial Standards & Ethical Guidelines 3

Question 1

Under ASOP No. 36 (Statement of Actuarial Opinion for Property and Casualty Loss and Loss Adjustment Expense Reserves), the appointed actuary's opinion covers reserves as of:

Accepted Answer

The statement date specified in the opinion

Answer

ASOP No. 36 requires the opinion to pertain to reserves as of the specific statement date identified in the actuarial opinion.

Question 2

A 'qualified actuary' for purposes of signing the NAIC Annual Statement actuarial opinion must be a member in good standing of which organization?

Accepted Answer

The Casualty Actuarial Society or the American Academy of Actuaries meeting P&C qualifications

Answer

The NAIC requires the signing actuary to be a member of the CAS or an AAA member meeting the P&C qualification standards.

Question 3

Under the CAS continuing education requirements, what is the minimum number of continuing education (CE) hours required for a Fellow of the CAS in a two-year period?

Accepted Answer

30 hours

Answer

CAS Fellows must complete at least 30 CE hours every two-year period to maintain compliance with professionalism requirements.

Question 4

Which ASOP most directly governs an actuary performing a ratemaking analysis for a personal automobile insurer?

Accepted Answer

ASOP No. 13 (Trending Procedures in Property/Casualty Insurance)

Answer

ASOP No. 13 specifically addresses trending procedures used in property/casualty ratemaking, making it most directly applicable.

Question 5

The concept of 'materiality' in actuarial standards primarily means that an item or assumption is material if:

Accepted Answer

Its omission or misstatement would likely influence the decisions of intended users

Answer

Materiality is defined by the potential influence on intended users' decisions, not by a fixed dollar threshold.

(CAS) Casualty Actuarial Society Practice Test

(CAS) Casualty Actuarial Society Practice Test

CAS Actuarial Standards & Ethical Guidelines 3