17. Which of the following situations are Statements of Actuarial Opinion (SAOs)?
Question
17. Which of the following situations are Statements of Actuarial Opinion (SAOs)?
A: When an actuary is asked, “What is the health care trend you have experienced for your commercial business?” and he or she replies, “10%.”
B: When an actuary is asked, “What is the expected health care trend for your commercial business for next year?” and he or she replies, “10%.”
Situation A is not an SAO, assuming the actuary's reply is based on compiled data alone without any actuarial considerations.
Situation B generally involves actuarial considerations and would be an SAO.
(Section 1 and Appendix 1)
Last updated December 2014
B: When an actuary is asked, “What is the expected health care trend for your commercial business for next year?” and he or she replies, “10%.”
Situation A is not an SAO, assuming the actuary's reply is based on compiled data alone without any actuarial considerations.
Situation B generally involves actuarial considerations and would be an SAO.
(Section 1 and Appendix 1)
Last updated December 2014
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