CAS Continuing Education & Professional Development 3 — Questions and Answers
Question 1: An actuary discovers mid-project that the work requires expertise in a specialty they lack. According to the Code of Professional Conduct, they should:
- Complete the work and note limitations in the report
- Seek appropriate assistance or decline the engagement (Correct answer)
- Disclose the limitation only if asked by the client
- Proceed if the deadline is urgent
Correct answer: Seek appropriate assistance or decline the engagement
Precept 2 requires actuaries to recognize the limits of their competence and either obtain necessary assistance or decline to perform the work.
Question 2: The term 'principal' in the CAS Code of Professional Conduct refers to:
- The lead actuary on a project
- An entity or individual on whose behalf actuarial services are performed (Correct answer)
- The actuarial organization that employs the member
- Any person who reviews actuarial work product
Correct answer: An entity or individual on whose behalf actuarial services are performed
A principal is defined as any client, employer, or other entity on whose behalf an actuary performs actuarial services.
Question 3: Which organization jointly publishes Actuarial Standards of Practice (ASOPs) that apply to CAS members?
- The CAS alone
- The Actuarial Standards Board (ASB) (Correct answer)
- The American Academy of Actuaries (AAA)
- The Society of Actuaries (SOA)
Correct answer: The Actuarial Standards Board (ASB)
The Actuarial Standards Board (ASB) is the independent body that promulgates ASOPs applicable to actuaries in the United States, including CAS members.
Question 4: A CAS member on an extended leave of absence for 18 months wants to know how this affects their CE obligation. Which statement is most accurate?
- CE requirements are suspended automatically during any leave
- The member should contact CAS to discuss leave provisions or extensions (Correct answer)
- CE hours can be front-loaded before the leave to cover the absence
- Leave periods count as CE hours at a rate of 2 hours per month
Correct answer: The member should contact CAS to discuss leave provisions or extensions
CAS has provisions for members facing unusual circumstances; members should contact CAS directly to request any accommodation or extension during extended leave.
Question 5: Which of the following is an example of a 'conflict of interest' that must be disclosed under the CAS Code of Professional Conduct?
- Having actuarial credentials from another organization
- Holding a financial interest in a company whose reserves you are certifying (Correct answer)
- Disagreeing with a client's business strategy
- Using proprietary software developed by your employer
Correct answer: Holding a financial interest in a company whose reserves you are certifying
A financial interest in an entity whose actuarial work you are performing creates a conflict of interest that must be disclosed to the principal under Precept 7.
Question 6: CAS Continuing Education requirements apply to which membership categories?
- ACAS candidates only
- FCAS members only
- Both ACAS and FCAS members (Correct answer)
- All exam candidates regardless of membership status
Correct answer: Both ACAS and FCAS members
CE requirements under CAS policy apply to both Associates (ACAS) and Fellows (FCAS) who are active members.
Question 7: Under ASOP No. 41, an actuarial communication must include which of the following?
- A detailed biography of the signing actuary
- Identification of the actuarial standard of practice used (Correct answer)
- A glossary of all technical terms
- Prior year comparison figures
Correct answer: Identification of the actuarial standard of practice used
ASOP No. 41 requires actuarial communications to disclose the actuarial standards of practice that were followed in performing the work.
CAS Continuing Education & Professional Development 3
An actuary discovers mid-project that the work requires expertise in a specialty they lack.
According to the Code of Professional Conduct, they should: