CAS Actuarial Standards & Ethical Guidelines

Question 1

What is the primary purpose of actuarial standards of practice (ASOPs)?

Accepted Answer

To ensure actuaries follow professional guidelines.

Answer

To regulate insurance company profits.

Answer

To standardize premium rates across companies.

Answer

To limit the number of practicing actuaries.

Question 2

Which organization is responsible for setting actuarial standards of practice in the U.S.?

Accepted Answer

Actuarial Standards Board (ASB)

Answer

Society of Actuaries (SOA)

Answer

Casualty Actuarial Society (CAS)

Answer

National Association of Insurance Commissioners (NAIC)

Question 3

Why is ethical conduct important for actuaries?

Accepted Answer

To maintain public trust and integrity.

Answer

To comply with corporate interests.

Answer

To increase job opportunities.

Answer

To standardize insurance policies.

Question 4

What action should an actuary take when faced with a potential conflict of interest?

Accepted Answer

Disclose the conflict and take appropriate steps.

Answer

Ignore the conflict if it benefits the company.

Answer

Follow instructions from management without disclosure.

Answer

Transfer the responsibility to another actuary.

Question 5

What is a key requirement for actuaries under the CAS Code of Professional Conduct?

Accepted Answer

To perform duties with integrity and competence.

Answer

To maximize company revenue.

Answer

To prioritize corporate interests above all else.

Answer

To avoid reviewing previous actuarial work.

Question 6

What should an actuary do if they discover a significant error in their previous work?

Accepted Answer

Disclose and correct the error.

Answer

Ignore it unless someone else notices.

Answer

Blame the error on external factors.

Answer

Delete records of the mistake.