Code of Conduct Flashcards
Who is an ‘Actuary’ for purposes of the Actuarial Code of Conduct?
An individual who has been admitted to a class of membership to which the Code applies by action of any organization having adopted the Code.
What is an ‘Actuarial Communication’ for purposes of the Actuarial Code of Conduct?
A written, electronic, or oral communication issued by an Actuary with respect to Actuarial Services.
What is ‘Confidential Information’ for purposes of the Actuarial Code of Conduct?
Information not in the public domain of which an Actuary becomes aware as a result of providing Actuarial Services to a Principal. It includes information of a proprietary nature and information that is legally restricted from circulation.
What are ‘Actuarial Services’ for purposes of the Actuarial Code of Conduct?
Professional Services provided to a Principal by an individual acting in the capacity of an actuary. Such services include the rendering of advice, recommendations, findings, or opinions based upon actuarial considerations.
What is ‘Principal’ for purposes of the Actuarial Code of Conduct?
A client or employer of the Actuary.
What is Precept 1 of the Actuarial Code of Conduct?
An Actuary shall act honestly, with integrity and competence, and in a manner to fulfill the profession’s responsibility to the public and to uphold the reputation of the actuarial profession.
What is Precept 2 of the Actuarial Code of Conduct?
An Actuary shall perform Actuarial Services only when the Actuary is qualified to do so on the basis of basic and continuing education and experience, and only when the Actuary satisfies applicable qualification standards.
What is Precept 3 of the Actuarial Code of Conduct?
An Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy applicable standards of practice.
What is Precept 4 of the Actuarial Code of Conduct?
An Actuary who issues an Actuarial Communication shall take appropriate steps to ensure that the Actuarial Communication is clear and appropriate to the circumstances and its intended audience, and satisfies applicable standards of practice.
What is Precept 5 of the Actuarial Code of Conduct?
An Actuary who issues an Actuarial Communication shall, as appropriate, identify the Principal(s) for whom the Actuarial Communication is issued and describe the capacity in which the Actuary serves.
What is Precept 6 of the Actuarial Code of Conduct?
An Actuary shall make appropriate and timely disclosure to a present or prospective Principal of the sources of all direct and indirect material compensation that the Actuary or the Actuary’s firm has received, or may receive, from
another party in relation to an assignment for which the Actuary has provided, or will provide, Actuarial Services for that Principal. The disclosure of sources of material compensation that the Actuary’s firm has received, or may receive, is limited to those sources known to, or reasonably ascertainable by, the Actuary.
What is Precept 7 of the Actuarial Code of Conduct?
An Actuary shall not knowingly perform Actuarial Services involving an actual or potential conflict of interest unless: the Actuary’s ability to act fairly is unimpaired; there has been disclosure of the conflict to all present and known prospective Principals whose interests would be affected by the conflict; and all such Principals have expressly agreed to the performance of the Actuarial Services by the Actuary.
What is Precept 8 of the Actuarial Code of Conduct?
An Actuary who performs Actuarial Services shall take reasonable steps to ensure that such services are not used to mislead other parties.
What is Precept 9 of the Actuarial Code of Conduct?
An Actuary shall not disclose to another party any Confidential Information unless authorized to do so by the Principal or required to do so by Law.
What is Precept 10 of the Actuarial Code of Conduct?
An Actuary shall perform Actuarial Services with courtesy and professional respect and shall cooperate with others in the Principal’s interest.