The ASB recently approved an exposure draft of a revision of ASOP No. 18, now titled Long-Term Care. The ASOP provides guidance to actuaries when performing actuarial services with respect to long-term care (LTC) benefit plans sponsored by insurers or other entities. The standard applies to actuaries designing, pricing, or determining funding of an LTC benefit plan and also to actuaries measuring or evaluating LTC liabilities within an LTC benefit plan. The standard does not apply to actuaries providing actuarial services related to LTC benefits for Medicaid eligible recipients, unless the actuarial services are for a long-range financial projection of LTC benefit expenditures and eligible recipients under the Medicaid program. The comment deadline for the exposure draft is Sept. 1, 2021. Information on how to submit comments can be found in the exposure draft.
The ASB released its2020 Annual Report, which highlights the board’s accomplishments throughout the year, including adopting three revised ASOPs, approving five exposure drafts for comment, and approving proposals to revise 10 existing ASOPs and one actuarial compliance guideline.
The standard, which was last revised in 2008, applies to actuaries when performing actuarial services, including giving advice, in connection with Continuing Care Retirement Communities (CCRCs) (including nonprofit and for-profit entities) or At Home Programs that are not regulated as insurance entities. These actuarial services may be performed for owners, operators, financing entities, current or prospective residents or members, as well as for other professionals or regulatory bodies.
Notable changes made to the existing standard that are reflected in the exposure draft include revising the ASOP to address actuarial practice for At Home Programs that are not regulated as an insurance entity, and new disclosure requirements intended to enhance the quality of actuarial communications regarding CCRCs and At Home Programs.
The comment deadline for the exposure draft is Feb. 1, 2021. Information on how to submit comments can be found in the exposure draft.
The ASB recently approved an exposure draft of a revision of ASOP No. 38, now titled Catastrophe Modeling (for All Practice Areas). The ASOP provides guidance to actuaries when performing actuarial services with respect to selecting, using, reviewing, or evaluating catastrophe models. At the direction of the ASB, the standard was developed to apply to all practice areas and all forms of catastrophe models, including natural catastrophes such as hurricanes, earthquakes, and severe convective storms, and other catastrophes such as terrorist acts and pandemics. Changes also were made to ASOP No. 38 to be consistent with ASOP No. 56, Modeling, and other recent ASOPs. In addition, the scope of the ASOP was expanded to include the activities “selecting, reviewing, and evaluating” models in addition to the existing activity of “using” a model when performing actuarial services. The comment deadline for the third exposure draft is Jan. 15, 2021.
The ASB also approved a third exposure draft of a proposed ASOP titled Setting Assumptions. The ASOP provides guidance to actuaries when performing actuarial services that involve setting assumptions, giving advice on setting assumptions, or assessing the reasonableness of assumptions set by others. Twenty-five comment letters were received on the second exposure draft and considered in making changes that are reflected in the third exposure draft. Notable changes reflected in the third exposure draft include significant revisions made to coordinate with ASOP No. 56, expanding the purpose to make it more consistent with the scope, and changing guidance on assumption margins to acknowledge that margins can be either explicit or implicit. The comment deadline for the third exposure draft is April 15, 2021.
Information on how to submit comments using the new comment template can be found in both exposure drafts.
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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.