14. Is it possible to designate a communication as “not a Statement of Actuarial Opinion” by marking it as such, or by marking it “draft”?
Question
14. Is it possible to designate a communication as “not a Statement of Actuarial Opinion” by marking it as such, or by marking it “draft”?
Although the U.S. Qualification Standards (USQS) contemplates some situations where it may be possible for an actuary to label an SAO a “draft” for purposes of the Principal’s expectation and reliance, great care must be taken not to try to strain interpretations of what a reasonable Principal would consider an SAO regardless of the word “draft” on an opinion. Appendix 1 of the USQS contains more detailed information on this subject. An actuarial opinion is defined by its contents and the reliance intended to be placed upon it, not by an arbitrary label applied by the actuary who produced it.
The USQS define a Statement of Actuarial Opinion (SAO) as “an opinion expressed by an actuary in the course of performing Actuarial Services and intended by that actuary to be relied upon by the person or organization to which the opinion is addressed” (the Principal) [emphasis added] (Section 1).
Appendix 1 of the USQS provides extensive further clarification that effectively narrows the ability of actuaries to try to restrict communications in the ways proposed. A draft opinion provided to a Principal typically “is an SAO unless … clearly marked that it should not be relied upon.” However, “if there is a reasonable likelihood that the Principal will rely on the draft regardless of intent, that is an indication that the draft is an SAO.” Further, “if the Principal is not subsequently sent a final report … that is an indication that the draft report is an SAO.” Appendix 1 includes additional examples to guide practitioners in individual cases.
Last updated December 2014
The USQS define a Statement of Actuarial Opinion (SAO) as “an opinion expressed by an actuary in the course of performing Actuarial Services and intended by that actuary to be relied upon by the person or organization to which the opinion is addressed” (the Principal) [emphasis added] (Section 1).
Appendix 1 of the USQS provides extensive further clarification that effectively narrows the ability of actuaries to try to restrict communications in the ways proposed. A draft opinion provided to a Principal typically “is an SAO unless … clearly marked that it should not be relied upon.” However, “if there is a reasonable likelihood that the Principal will rely on the draft regardless of intent, that is an indication that the draft is an SAO.” Further, “if the Principal is not subsequently sent a final report … that is an indication that the draft report is an SAO.” Appendix 1 includes additional examples to guide practitioners in individual cases.
Last updated December 2014
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