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Recent Academy Activity, March 30-April 3, 2015

On Tuesday, March 31, Mark Freedman, former president of the Society of Actuaries, filed a voluntary motion to dismiss the remaining claim alleging defamation, which was pending in the circuit court in Cook County, Illinois, against Academy Immediate Past President Tom Terry. The motion requires presentment to and approval of a judge, which is pro forma but required and scheduled for April 7. On Feb. 24, 2015, Judge Peter Flynn dismissed all other claims against the Academy. This withdrawal of the remaining defamation claim against Tom Terry as an individual brings to a close all claims against any party related to the Academy. The dismissal of the specific counts against the Academy and the withdrawal of the specific count against Tom Terry reaffirm the validity and vitality of the profession’s self-disciplinary process.

NAIC Outreach

Academy President Mary D. Miller, along with representatives of the Actuarial Standards Board (ASB), the Actuarial Board for Counseling and Discipline (ABCD), and the Committee on Qualifications (COQ), addressed the three primary actuarial task forces in connection with the NAIC Spring 2015 National Meeting, March 28-31 in Phoenix. Miller updated regulators on the previously discussed proposed qualifications validation process. It is being developed in the form of an easy-to-use online attestation, which members may voluntarily use to illustrate and document their compliance with the U.S. Qualification Standards for issuing NAIC annual statement actuarial opinions for life, health, and property and casualty.

The Academy’s outreach at the NAIC continued with its popular regularly scheduled dialogue and breakfast with regulators, providing an in-person forum for regulators around the United States to have candid discussions about their actuarial professionalism concerns with representatives from the Academy’s professionalism bodies including the ABCD, the ASB, and the COQ. The discussion ranged from further review and comments on the proposed Academy attestation and other actuarial qualification issues, to statistics from the newly released ABCD 2014 Annual Report.

LHQ Seminar Registration Open

Registration is now open for the 2015 Life and Health Qualifications Seminar, to be held Nov. 9-12 in Arlington, Va. See why so many of your peers find this seminar the most succinct and effective way to acquire the required basic education and continuing education to assist in being qualified to sign NAIC annual statement life and health actuarial opinions.

This seminar is the primary source of instruction for actuaries who wish to be qualified to issue actuarial opinions for either the NAIC Life and A&H Annual Statement or the NAIC Health Annual Statement but may not have met the basic education requirements set forth in Section 3.1.1 of the U.S. Qualification Standards (USQS).

Register early: Seats are limited and will fill up quickly.

Alerts

  • NAIC Recap: At the NAIC Spring 2015 National Meeting, held March 28-31 in Phoenix, Academy volunteers addressed issues ranging from pandemic effects on the insurance sector to professionalism before regulators. Members also presented on the principle-based approaches to life insurance, annuities, and long-term care; and risk-based capital changes to life, health, and property and casualty formulas.

    The Academy has issued an Alert detailing the many activities of the Academy and of the NAIC at the spring meeting. Read the whole Alert here or in the member section under “Cross-Practice Alerts.”

  • IMF Notes Stronger Insurance Oversight: The International Monetary Fund on Thursday released the 2015 U.S. Financial Sector Assessment Program (FSAP) for the insurance core principles. The IMF concluded that U.S. insurance supervision has been significantly strengthened in recent years due to lessons learned from the financial crisis and the adoption of several recommendations from the 2010 FSAP. Read the full Alert here or in the member section under “Cross-Practice Alerts.”

Recently Released

  • The latest issue of Actuarial Update heralded the enhanced ASB website. The website now features interactive elements on ASB documents including ASOPs and exposure drafts, as well as an improved user-focused design. Also in this issue: The Health Practice Council released an issue brief on the expansion of the definition of “small groups” under the Affordable Care Act; a webinar on how state and local pension plans became underfunded attracted more than 400 attendees; and Academy volunteers offer an actuarial perspective during visits to Capitol Hill.
  • In the Spring 2015 edition of the Enrolled Actuaries Report, read about recent sweeping reforms to multiemployer pension plans that may affect millions of Americans; comment letters the Pension Committee sent to the IRS and the PBGC on mortality tables and late retirement actuarial equivalence, respectively; and the benefits of allowing qualified defined benefit pension plans to provide longevity annuities directly, rather than requiring buyers to purchase an insurance contract.

News From the ASB

  • ASB Annual Report released. The ASB’s 2014 Annual Report is now available. The report highlights the Board’s accomplishments in 2014, which includes its adoption of four final revised actuarial standards of practice (ASOPs), approval of six exposure drafts for comment, approval of four proposals for new or revised ASOPs, and issuance of two requests for comments on potential new or revised ASOPs.

Public Policy Activities

  • The Health Practice Council’s Risk Sharing Work Group submitted a letter to the Division of Regulations Development of the Centers for Medicare & Medicaid Services with comments on the 2014 medical loss ratio (MLR) annual reporting form. 

Upcoming Events

  • Discuss the issues of an aging population: This year, as Social Security turns 80, both Medicare and the Older Americans Act turn 50, and the 6th White House Conference on Aging is convened, the issues of an aging population are in the spotlight. Join us on April 8 for an Academy Capitol Forum webinar on the topic. Leslie Fried, senior director for the National Council on Aging’s (NCOA) Center for Benefits Access, will offer an overview of the NCOA, discuss the importance of focusing on policy issues that have implications for an aging population, and highlight some of the work the NCOA is doing on issues ranging from long-term care to economic security to benefits access.
  • Rate review and disclosures under the ACA: Join us April 10 as panelists from the Center for Consumer Information and Insurance Oversight (CCIIO) answer your pressing questions about rate review and disclosure under the Affordable Care Act, specifically the Unified Rate Review Template and Actuarial Memorandum.
  • Post-NAIC webinar: The Life Practice Council will hold a post-NAIC webinar on April 17 from noon to 1:30 p.m. EDT. Moderator Dave Neve, chairperson of the Academy Life Reserves Work Group, will lead a discussion of topics covered at the spring NAIC meeting. Speakers will include Mike Boerner, chair of the NAIC’s Life Actuarial (A) Task Force, and Mark Birdsall, chair of the NAIC’s Life Risk-Based Capital (E) Working Group.

Lack of COI Policy Acknowledgments: Volunteers Dropped

  • In accordance with the Academy’s policy, 72 volunteers have been removed from their Academy committee positions because they failed to comply with the Academy’s policy that its volunteers expressly acknowledge the longstanding Conflict of Interest (COI) policy applicable to all volunteers.

    Committee member and interested party acknowledgments are a vital element in the Academy’s ability to maintain its standards in providing unbiased, reliable information for policymakers and others who rely on actuarial insight to inform their decisions regarding U.S. fiscal and societal challenges. The Academy requires members who serve in volunteer positions with the Academy to annually acknowledge its longstanding COI policy, and to comply with the continuing education (CE) requirements of the U.S. Qualification Standards. Individuals who serve as interested parties must formally acknowledge the Academy’s COI policy as well.

Surprise an Exceptional Colleague or Mentor

  • As this is the Academy’s 50th anniversary, now is the perfect time to recognize an Academy member for his or her service to our profession and public service. Each year the Academy honors members who devote themselves to the actuarial profession through their public service and volunteer efforts with our Robert J. Myers Public Service Award and Jarvis Farley Service Award, respectively.

    • The Jarvis Farley Service Award honors actuaries whose volunteer efforts on behalf of the Academy have made significant contributions to the advancement of the profession.
    • The Robert J. Myers Public Service Award honors members of the Academy who have made an exceptional contribution to the common good. The Myers Award honors an actuary for a single noteworthy public service achievement or a career devoted to public service.

    All members are invited to nominate Academy members for these and our Outstanding Volunteerism Awards. The awards will be presented at the Academy’s 50th anniversary celebration in November. Help us recognize those who have given so much to the profession today—learn more and submit your nomination(s) now.

Academy in the News

  • A (Crystal Lake, Ill.) Northwest Herald story exploring options for closing a funding gap in local police pensions cites analysis from the Academy issue brief, The 80% Pension Funding Standard Myth. The story was also published in MySuburbanLife.com.
  • An Academy issue brief, Potential Implications of the Small Group Definition Expanding to Employers with 51-100 Employees, was the subject of a blog post by a law firm. The post cites the Academy’s analysis to help readers understand the effect of this change in definition by the Affordable Care Act on the health insurance landscape.
  • On March 30, Academy Assistant General Counsel Sheila Kalkunte spoke to an audience of approximately 150 at the MassMutual Actuarial Gathering in Chicopee, Mass., on professionalism issues including the topic of qualifying for a new/emerging area of practice. To request a speaker on actuarial professionalism for your event, click here.

Note: Some links in this email go to external websites and may require registration. The Academy is not responsible for the content of these websites. Links may expire.