1. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 0 Actuarial Malpractice: Guide for a Practicing Actuary CASUALTY ACTUARIAL SOCIETY Disney World – June 19, 2007 Session C2 Tom Griffin Senior Staff Attorney American Academy of Actuaries

2. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 1 -1- Ron Lepinskas’ Dos & Don’ts Diligence Due Care How to Avoid Legal Pitfalls?

3. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 2 -2- What Standard of Care? Your Agreement Prudent, Skilled Professional Profession’s “Community” Standards

4. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 3 -3- What Professional Standards? Code of Professional Conduct - Precept 1, Professional Integrity - Precept 2, Qualification Standards - Precept 3, Standards of Practice

5. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 4 -4- Professional Standards (cont) Code of Professional Conduct - Precept 4, Communications and Disclosure - Precept 7, Conflict of Interest - Precept 8, Control of Work Product

6. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 5 -5- Professional Standards (cont) Statements of Principles - Loss Reserves - Ratemaking - Valuations

7. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 6 -6- Professional Standards (cont) Actuarial Standards of Practice - Introduction to the ASOPs - ASOP #9, Documentation and Disclosure - ASOP #23, Data Quality

8. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 7 -7- Professional Standards (cont) Actuarial Standards of Practice - ASOP #36, Statement of Actuarial Opinion - ASOP #41, Actuarial Communications

9. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 8 -8- Professional Standards (cont) Qualification Standards New Qualification Standards

10. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 9 -9- Professional Standards (cont) Authoritative Literature

11. CASUALTY ACTUARIAL SOCIETY Meeting, Spring 2007 Actuarial Malpractice: Guide for a Practicing Actuary 10 -10- Why Do the Right Thing? Decrease Legal Risks Personal Satisfaction Personal Reputation Reputation of the Profession Avoid Discipline