The ASB recently adopted a final revision of ASOP No. 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations, during its September meeting.Significant modifications from the current version of the ASOP include making the guidelines for a reasonable assumption consistent with the guidelines contained in ASOP No. 27, Selection of Economic Assumptions for Measuring Pension Obligations, and revising the guidance in the ASOP to require disclosure of rationale for assumption selection. The standard will be effective for any actuarial work product with a measurement date on or after June 30, 2015. Earlier adoption of the standard is encouraged. The final revision of ASOP No. 35 can be viewed in the "Soon-to-be Effective ASOPs" section under the "Standards of Practice" tab.
The ASB recently approved a revision of ASOP No. 38 for exposure, now titled Catastrophe Modeling (for All Practice Areas). The proposed revision will apply to actuaries in all practice areas performing professional services when selecting or using catastrophe models, whether or not they are proprietary in nature.
Comments are being sought on various areas of the ASOP including, Whether it's clear that the proposed revised ASOP applies to all practice areas; whether the inclusion of other perils such as "terrorist acts and pandemics" in the definition of "Catastrophe Model," is appropriate; and whether the proposed revised ASOP is flexible enough to allow for new developments in practice. The comment deadline for the exposure draft is December 30, 2013.
The ASB recently approved an exposure draft of a revision of ASOP No. 8 now titled Regulatory Filings for Health Benefits, Health Insurance, and Entities Providing Health Benefits. Due to the significant number of changes in the rate filing and rate review process due to the Affordable Care Act, revisions to the current ASOP No. 8, Regulatory Filings for Health Plan Entities, were needed as the current ASOP No. 8 did not provide adequate guidance in the current environment.
Revisions to ASOP No. 8 will give guidance to actuaries that must prepare rate filings under more rigorous state and federal requirements for filing health insurance premium rate increases. It also provides further guidance to actuaries reviewing regulatory filings either as peer reviewers or as regulatory actuaries. The comment deadline for the exposure draft is October 15, 2013 and can be viewed under the tab “Exposure Drafts.”
The ASB adopted a revised version of the Introductory Actuarial Standard of Practice. The Introduction was revised to clarify the meaning of such terms as “must” and “should”; to include a definition of “deviation”; and to make other revisions to the language that were not substantial but did help clarify meaning in various sections. Also, to reinforce that the Introduction contains guidance that must be followed, it has been numbered as ASOP No. 1. Subsequently, the existing ASOP No. 1, Nonguaranteed Charges or Benefits for Life Insurance Policies and Annuity Contracts, is renumbered as ASOP No. 2, since the existing ASOP No. 2, Recommendations for Actuarial Communications Related to Statements of Financial Accounting Standards Nos. 87 and 88, was repealed in March 2011. The effective date for the revised Introduction is June 1, 2013. The ASOP can be viewed under the tab “Current Actuarial Standards of Practice.”
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About The ASB
The Actuarial Standards Board (ASB) sets standards for appropriate actuarial practice in the United States through the development and promulgation of Actuarial Standards of Practice (ASOPs). These ASOPs describe the procedures an actuary should follow when performing actuarial services and identify what the actuary should disclose when communicating the results of those services.