ASOP 17

Question 1

Does ASOP 17 apply to providing litigation support?

Answer 1

No

Question 2

Does ASOP 17 apply to depositions?

Answer 2

Yes

Question 3

Does ASOP 17 apply to arbitrations?

Answer 3

Yes

Question 4

To what does ASOP 17 apply?

Answer 4

ASOP 17 applies to actuaries when they testify as actuarial experts at trial in hearing or arbitration in deposition or by declaration or affidavit.

Question 5

Under ASOP 17 when can an actuary challenge existing law or precedent?

Answer 5

Nothing in ASOP 17 is intended to prevent the actuary from challenging the application or a particular interpretation of existing precedent law or regulation where such application or interpretation would in the opinion of the actuary be inconsistent with otherwise appropriate actuarial practice.

Question 6

Is ASOP 17 intended to alter the actuaries choice of assumptions and methods?

Answer 6

This standard is not intended to restrain unreasonably the selection of actuarial assumptions or methods the communication of actuarial opinions or the relationship between the actuary and a principal.

Question 7

For purpose of ASOP 17 what is an Actuarial Assumption?

Answer 7

The value of a parameter or other actuarial choice having an impact on an estimate of a future cost or other actuarial item under evaluation.

Question 8

For purpose of ASOP 17 what is an Actuarial Method?

Answer 8

A procedure by which data are analyzed and utilized for the purpose of estimating a future cost or other actuarial item.

Question 9

For purpose of ASOP 17 what is an Actuarial Opinion?

Answer 9

A conclusion drawn by an actuary from actuarial knowledge or from the application of one or more actuarial methods to a body of data.

Question 10

For purposes of ASOP 17 what is Data?

Answer 10

Statistical or other information that is generally numerical in nature or susceptible to quantification.

Question 11

Who is an Expert for purposes of ASOP 17?

Answer 11

One who is qualified by knowledge, skill, experience, training or education to render an opinion or otherwise testify concerning the matter at hand.

Question 12

For purpose of ASOP 17 what is Material?

Answer 12

An item is material if it has an impact on the affected actuarial opinion which is significant to the interested parties.

Question 13

For purpose of ASOP 17 what is Testimony?

Answer 13

Communication presented in the capacity of an expert witness at trial in hearing or arbitration in deposition or by declaration or affidavit. Such testimony may be oral or written, direct or responsive, formal or informal.

Question 14

For purpose of ASOP 17 what is Testimony?

Answer 14

Communication presented in the capacity of an expert witness at trial in hearing or arbitration in deposition or by declaration or affidavit. Such testimony may be oral or written direct or responsive formal or informal.

Question 15

Who does the actuary serve when providing expert testimony?

Answer 15

An actuary providing expert testimony performs an important service to the actuarys principal the forum and the public by explaining complex technical concepts that can be critical to resolution of disputes.

Question 16

If two actuaries both give testimony and their conclusions are completely different has one necessarily committed malpractice?

Answer 16

Actuaries may differ in their conclusions even when applying reasonable assumptions and appropriate methods and a difference of opinion between actuaries is not in and of itself proof that an actuary has failed to meet professional standards.

Question 17

What should an actuary do if in the course of providing expert testimony he believes a law or regulation conflicts with appropriate actuarial practices?

Answer 17

The actuary should disclose the conflict subject to the constraints of the forum.

Question 18

When giving expert testimony may act as an advocate for his principal?

Answer 18

Yes. However, acting as an advocate does not relieve the actuary of the responsibility to comply with the Code of Professional Conduct and to use reasonable assumptions and appropriate methods.

Question 19

Must the actuary disclose his Principal when giving expert testimony?

Answer 19

Yes. The actuary should identify the principal on whose behalf the actuary is to give expert testimony. This principal usually names a representative such as an attorney or manager to whom the actuary reports during the course of the assignment. Even though that representative may retain or pay the actuary the actuary’s ultimate obligation is to the principal and not to the principal?s representative.

Question 20

When giving expert testimony may act as an advocate for his principal?

Answer 20

Yes. However acting as an advocate does not relieve the actuary of the responsibility to comply with the Code of Professional Conduct and to use reasonable assumptions and appropriate methods.

Question 21

Must the actuary disclose his Principal when giving expert testimony?

Answer 21

Yes. The actuary should identify the principal on whose behalf the actuary is to give expert testimony. This principal usually names a representative such as an attorney or manager to whom the actuary reports during the course of the assignment. Even though that representative may retain or pay the actuary the actuary’s ultimate obligation is to the principal and not to the principal?s representative.

Question 22

Must the actuary disclose his Principal when giving expert testimony?

Answer 22

Yes. The actuary should identify the principal on whose behalf the actuary is to give expert testimony. This principal usually names a representative such as an attorney or manager to whom the actuary reports during the course of the assignment. Even though that representative may retain or pay the actuary the actuary’s ultimate obligation is to the principal and not to the principal’s representative.

Question 23

Must the actuary disclose his Principal when giving expert testimony?

Answer 23

Yes. The actuary should identify the principal on whose behalf the actuary is to give expert testimony. This principal usually names a representative such as an attorney or manager to whom the actuary reports during the course of the assignment. Even though that representative may retain or pay the actuary the actuary?s ultimate obligation is to the principal and not to the principal?s representative.

Question 24

When giving expert testimony what should the actuary disclose if he uses assumptions chosen by another party?

Answer 24

If the actuary performs calculations using prescribed or alternative assumptions or methods different from the assumptions or methods selected by the actuary in forming the actuary’s expert opinion the actuary should state subject to the constraints of the forum whether the results are consistent with the actuary’s own expert opinion.

Question 25

May the actuary rely on information and instructions provided by the principal’s representative?

Answer 25

Yes. The principal usually names a representative such as an attorney or manager to whom the actuary reports during the course of the assignment. In the absence of evidence to the contrary the actuary may rely upon information and instructions from the representative as though they came directly from the principal.

Question 26

When giving expert testimony what should the actuary disclose if he uses assumptions chosen by another party?

Answer 26

If the actuary performs calculations using prescribed or alternative assumptions or methods different from the assumptions or methods selected by the actuary in forming the actuary’s expert opinion the actuary should state subject to the constraints of the forum whether the results are consistent with the actuary?s own expert opinion.

Question 27

How should the actuary testify about opposing sides testimony?

Answer 27

The actuary should testify objectively focusing on the reasonableness of the other testimony and not solely on whether it agrees or disagrees with the actuary’s own opinion.

Question 28

When giving expert testimony what are the issues with hypothetical questions?

Answer 28

Hypothetical questions may fairly reflect facts in evidence may include only a part of the facts in evidence or may include assumptions the actuary believes to be untrue or unreasonable.

Question 29

May any actuary refuse to answer hypothetical questions when giving expert testimony?

Answer 29

The actuary may refuse to answer hypothetical questions based upon unreasonable assumptions subject to the constraints of the forum.

Question 30

If an actuary has previously testified in a similar matter is that actuary precluded from testifying in this matter?

Answer 30

No, but when giving expert testimony the actuary should be mindful of statements the actuary may have made on the same subject. If the actuary employs different methods or assumptions in the current situation the actuary should be prepared to explain why.

Question 31

How should the actuary testify about opposing sides testimony?

Answer 31

The actuary should testify objectively focusing on the reasonableness of the other testimony and not solely on whether it agrees or disagrees with the actuary?s own opinion.

Question 32

When giving expert testimony is an actuary required to offer information that is adverse to the interest of his client?

Answer 32

Although the actuary must respond truthfully to questions posed during cross-examinations the actuary need not volunteer information that may be adverse to the interest of the principal.

Question 33

If an actuary has previously testified in a similar matter is that actuary precluded from testifying in this matter?

Answer 33

No but when giving expert testimony the actuary should be mindful of statements the actuary may have made on the same subject. If the actuary employs different methods or assumptions in the current situation the actuary should be prepared to explain why.

Question 34

What should an actuary do if discovers an error after giving testimony?

Answer 34

If after giving expert testimony the actuary discovers that a material error was made the actuary should make appropriate disclosure of the error to the principal or the principal’s representative as soon as practicable.

Question 35

What information should an expert actuary written report include?

Answer 35

The scope of the assignment including any limitations or constraints;.descriptions and sources of the data; actuarial methods and actuarial assumptions used in the analysis

Question 36

When actuary is delivering oral expert testimoney what two things should an actuary do?

Answer 36

1. The actuary should express opinions in a manner appropriate to the intended audience. 2. The actuary should to the extent practicable be prepared to document oral testimony.

Question 37

What are some of the forums that an actuary may provide expert testimony?

Answer 37

Administrative hearings, executive branch proceedings, arbitration, extra-judicial proceedings, legislative branch proceedings and committee hearing, courts of laws, depositions, affidavits

Question 38

What are some of the issues that an actuary should consider before taking on an expert witness assignment?

Answer 38

1. Qualified 2. Meet qualification standards 3. Conflict of interests 4. Prior testimony given in any matters 5. Any constraints that will be put on the actuary by the forum that may affect actuary’s ability to abide by Actuarial Code

Question 39

What are some examples of what a pension actuary may be called to testify on?

Answer 39

actuarial present values of retirement or other benefits; actuarial values incident to a divorce; cost impact of liability decisions or legislative/regulatory proposals; lost earnings of a decedent or injured person and the actuarial present value of such lost earnings; malpractice alleged of an actuary; relationships between risk and return on investments; and withdrawal liability assessments under multiemployer benefit plans.

Question 40

What are some of the forums that an actuary may provide expert testimony?

Answer 40

Administrative hearings, executive branch proceedings, arbitration, extra-judicial proceedings, legislative branch proceedings and committee hearding, courts of laws, depositions, affidavits