Question

If the actuary has deviated materially from the guidance set forth in an applicable ASOP, the actuary can still comply with the ASOP by stating the deviation within the actuarial communication with respect to:

a) Providing a detailed explanation of the deviation
b) Acknowledging the deviation without explanation
c) Ignoring the deviation
d) Reporting the deviation to legal authorities

Answer 1

An actuary must disclose and provide a detailed explanation of any material deviation from the Actuarial Standards of Practice within the actuarial communication.

Step-by-step explanation:

If an actuary has materially deviated from an applicable Actuarial Standard of Practice (ASOP), they can still be in compliance with the ASOP if they disclose the deviation within the actuarial communication. The correct course of action is to:

1. Provide a detailed explanation of the reasons for the deviation.

Merely acknowledging the deviation without an explanation or ignoring it is not sufficient. Reporting the deviation to legal authorities is not mentioned in the ASOPs as a method of compliance, as the focus is on transparent communication within the actuarial report itself.