Is Freddie in violation of any of the applicable professional standards by completing this alternative “aggressive” actuarial report?
YES While Freddie can serve as an advocate for PLIC, through his professional actuarial credentials he has accepted the requirement to act with integrity and in a manner to uphold the reputation of the actuarial profession as stated in Precept 1 of the Code of Professional Conduct. The dramatic change from a very conservative to a very aggressive approach undermines the public credibility of the profession and gives appearance that insurance companies can manipulate the results of the actuarial report to fit the situation at hand. This claim could certainly damage the reputation of the profession. Further, Precept 8 requires that “An Actuary who performs Actuarial Services shall take reasonable steps to ensure that such services are not used to mislead other parties.” With respect to the documentation issue, Section 5.2 of Actuarial Standard of Practice 8 requires that the Actuary disclose any material change in assumptions from prior reports. The aggressive report represents a very ma
