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KEY POINTS
New Guidance in the Revised Introduction to the Actuarial Standards of Practice Now Numbered ASOP No. 1
Includes Defined Common Actuarial Terms of Construction
Explains When You Use the Term, “Actuarial Soundness,” You Must Define It
Effective June 1, 2013
RELATED LINKS
Read ASOP No. 1 Now
Visit the ASB web site
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ASOP No. 1, Introductory Actuarial Standard of Practice, is a complete revision of the previous Introduction. It includes new, additional content as well as clarification of prior language, and sets the “ground rules” for all ASOPs. For example, here are three things you need to know about ASOP No. 1:
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Now defined: Common terms that appear in ASOPs such as “must,” “should,” and “may.”
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If you use it, define it: If the term “actuarial soundness” is used, you will need to define it in all actuarial communications issued on or after June 1, 2013.
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Numbering changes: The Introduction to the Actuarial Standards of Practice has been revised, and is now numbered ASOP No. 1. The ASOP previously numbered No. 1, Nonguaranteed Charges or Benefits for Life Insurance Policies and Annuity Contracts, is now ASOP No. 2, taking the place of the repealed ASOP No. 2, Recommendations for Actuarial Communications Related to Statements of Financial Accounting Standards Nos. 87 and 88.
What you need to do:
Read ASOP No. 1 now, and stay tuned for more learning opportunities about its guidance coming in June. |
