Actuarial Notes

Actuarial Communications

By Actuarial Standards Board · 2010 · ASOP No. 41

Study guides: Exam 6U, Exam CP-321, Exam GH-101, Exam GH-201U, Exam GH-301

The Actuarial Standards Board's guidance to actuaries on actuarial communications, applying within any practice area. This revision (Doc. No. 120) was adopted in December 2010 to make the standard clearer and less confusing in wording and structure, and is effective for actuarial communications issued on or after May 1, 2011.

On the syllabus

  • Exam CP-321 — Outcomes 2g; the standard excluding its Appendices.
  • Exam GH-101 — Outcomes 2f; the standard excluding its Appendices.
  • Exam GH-201U — Outcomes 1g; the standard excluding its Appendices.
  • Exam GH-301 — Outcomes 3c; the standard excluding its Appendices.
  • Exam 6U — objective C6; the standard as adopted in December 2010 (the content outline cites it as an online publication).

Transmittal Memorandum

  • The version then in effect had been in force for eight years and applied to all U.S. actuaries in all areas of practice; the ASB had received comments about a lack of clarity and confusion in its wording and structure.
  • The ASB issued a first exposure draft in September 2008 and received twenty-three comment letters.

1 Purpose, Scope, Cross References, and Effective Date

  • 1.1 Purpose
  • 1.2 Scope
    • Applies to actuaries issuing actuarial communications within any practice area; it does not apply to communications that include no actuarial opinion or other actuarial findings, such as brochures, fee quotes or invoices.
    • Where other guidance contains communication requirements additional to or inconsistent with this standard, those requirements supersede it.
  • 1.3 Cross References
  • 1.4 Effective Date

2 Definitions

  • 2.1 Actuarial Communication
    • A written, electronic, or oral communication issued by an actuary with respect to actuarial services.
  • 2.2 Actuarial Document
  • 2.3 Actuarial Finding
  • 2.4 Actuarial Report
    • The set of actuarial documents that the actuary determines to be relevant to specific actuarial findings that is available to an intended user.
  • 2.5 Actuarial Services
  • 2.6 Deviation
    • The act of departing from the guidance of an ASOP.
  • 2.7 Intended User
  • 2.8 Oral Communication
  • 2.9 Other User
  • 2.10 Principal
    • A client or employer of the actuary.

3 Analysis of Issues and Recommended Practices

  • 3.1 Requirements for Actuarial Communications
    • 3.1.1 Form and Content
    • 3.1.2 Clarity
    • 3.1.3 Timing of Communication
    • 3.1.4 Identification of Responsible Actuary
  • 3.2 Actuarial Report
  • 3.3 Specific Circumstances
  • 3.4 Disclosures Within an Actuarial Report
    • 3.4.1 Uncertainty or Risk
    • 3.4.2 Conflict of Interest
    • 3.4.3 Reliance on Other Sources for Data and Other Information
    • 3.4.4 Responsibility for Assumptions and Methods
    • 3.4.5 Information Date of Report
    • 3.4.6 Subsequent Events
  • 3.5 Explanation of Material Differences
  • 3.6 Oral Communications
  • 3.7 Responsibility to Other Users
  • 3.8 Retention of Other Materials

4 Communications and Disclosures

  • 4.1 Disclosures in any Actuarial Communication
    • 4.1.1 Identification of Responsible Actuary
    • 4.1.2 Identification of Actuarial Documents
    • 4.1.3 Disclosures in Actuarial Reports
  • 4.2 Certain Assumptions or Methods Prescribed by Law
  • 4.3 Responsibility for Assumptions and Methods
  • 4.4 Deviation from the Guidance of an ASOP

Appendix 1 Background and Current Practices

  • Background
  • Current Practices

Appendix 2 Comments on the Second Exposure Draft and Responses

Related readings

  • ASOP 41 - Actuarial Communications — the same standard, as the CAS Exam 6U content outline cites it

Sources