Exam 6C Practice Question 22
Study guide: Exam 6C
A P&C insurer's Appointed Actuary values the liability for remaining coverage using a method that differs from the one illustrated in a CIA educational note for her situation. She has documented why her method suits the insurer's business. A peer reviewer writes that "departing from the educational note is a departure from the standards of practice and must be disclosed as such in the report."
Which critique of the peer reviewer's comment is most valid?
- A) An educational note is not binding: the actuary may use another method, but remains responsible for its being accepted actuarial practice
- B) The comment is correct: an educational note's method is the only accepted practice for the situation it describes
- C) The comment is correct, because educational notes bind members once the Actuarial Guidance Council approves them for distribution
- D) An educational note binds only Fellows of the CIA, so the comment applies only if the actuary is a Fellow
- E) Educational notes never go out of date, so an older note's method must be used even after practice has changed
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