CAA Actuarial Practice & Regulation Flashcards
6 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CAA Actuarial Practice & Regulation flashcards as text
An actuary who fails to maintain their continuing professional development (CPD) requirements may face which consequence?
Answer: Loss of good standing with their professional body and potential disciplinary action
Failure to meet CPD requirements can result in loss of good standing with the professional body and may lead to disciplinary action, including suspension of membership.
What is a 'Scope of Work' document in an actuarial engagement?
Answer: A formal agreement defining the objectives, methods, data, and deliverables of an actuarial assignment
A Scope of Work document formally defines the purpose, methods, data requirements, timeline, and deliverables agreed upon for an actuarial engagement.
Under US generally accepted actuarial principles (GAAP), actuaries must select assumptions that are:
Answer: Reasonable and appropriate given the purpose of the analysis and relevant experience
Actuarial standards require that assumptions be reasonable and appropriate for the specific purpose, supported by relevant experience data and professional judgment.
What is the purpose of the 'Actuarial Memorandum' accompanying a US statutory valuation?
Answer: To document the methods, assumptions, and data used so that another actuary can understand and evaluate the work
The Actuarial Memorandum documents the methods, assumptions, and data underlying a statutory valuation so that the work can be independently understood, replicated, and evaluated.
Which of the following is an example of a 'principal' in an actuarial engagement?
Answer: An entity such as a company or board that retains or employs the actuary and relies on the actuarial work product
A principal is the entity that retains, employs, or otherwise engages the actuary and on whose behalf the actuarial work is performed.
What does 'adverse deviation' refer to in actuarial reserving?
Answer: A deviation in which actual results are worse than expected, causing reserves to be inadequate
Adverse deviation occurs when actual claims experience is worse than the assumptions underlying the reserves, potentially causing those reserves to be insufficient.