Summer Quiz, Part II: U.S. Qualification Standards

Professionalism Counts, July 2025

This is the second part of our summer professionalism quiz, which focuses on the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (U.S. Qualification Standards, or USQS). Before you dive into the pool or ocean for a refreshing break from the heat, dip your toe into the questions below and see how you do. Perhaps a celebratory ice cream will be in order! [1]

1. How does the USQS define “Statement of Actuarial Opinion” (SAO)?

• Only statutory opinions are SAOs under the USQS
• Any opinion expressed by an actuary while performing Actuarial Services and intended by that actuary to be relied upon by the person or organization to which the opinion is addressed
• Any opinion expressed by an actuary while performing Actuarial Services
• None of the above

2. To be qualified to perform a particular actuarial service, an actuary must:

• Meet applicable qualification standards
• Be able to look at oneself and say “I am qualified to do this work”
• Be familiar with every actuarial standard of practice
• All of the above

3. In a situation where neither one of two actuaries alone is qualified to issue an SAO, the actuaries may issue the SAO jointly, as long as they collectively meet the requirements of the USQS.

• True
• False

4. Actuaries who designate themselves as “retired” in the actuarial directory may perform actuarial services, including issuing SAOs, on occasion without meeting the continuing education (CE) requirements of the USQS-as long as they meet all other requirements, met the CE requirements when they were working full time, and qualify for dues waivers based on age.

• True
• False

5. An actuary who issues SAOs in two or more distinct areas of actuarial practice must satisfy the basic education and experience requirement in each area. In meeting the CE requirement, an actuary should include material from each area of actuarial practice.

• True
• False

6. What CE is required each year under the General Qualification Standard?

• 30 hours, including 5 in the form of “organized” activities, 3 on professionalism topics, 1 on bias topics, and at least 3 hours on business skills topics
• 40 hours, including 10 in the form in the form of “organized” activities, 5 on professionalism topics, and 1 on bias topics
• 25 hours, including 3 in the form of “organized” activities, 6 on professionalism topics, 2 on bias topics, and at least 3 hours on business skills topics
• 30 hours, including 6 in the form of “organized” activities, 3 on professionalism topics, and 1 on bias topics

7. Which of the following are SAOs?

• Draft of an actuarial report provided to the actuary’s client
• Reserve opinion
• Asset adequacy analysis
• Meeting minutes

8. How long must actuaries keep their CE records?

• At least 1 year
• At least 6 years
• At least 7 years
• At least 10 years

9. Do Enrolled Actuaries need to meet the USQS CE requirements?

• Yes
• No
• It depends

10. When does a newly credentialed actuary need to meet the USQS CE requirements?

• The year after earning the credential
• Before earning the credential
• Before issuing any statement of actuarial opinion
• None of the above

11. How do I know whether I can count an activity as CE?

• The event description lists how much CE the activity can qualify for.
• The organizer said so.
• I’ve made a good-faith determination that the activity is relevant to my actuarial work.

Answers

1. B. “For the purposes of the USQS, a ‘Statement of Actuarial Opinion’ (SAO) is an opinion expressed by an actuary who is subject to [the Code] by virtue of membership in a U.S.-based actuarial organization, where such opinion is expressed 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.” (Section 1, paragraph 3)
2. A and B. Refer to Precept 2 of the Code. Note that B) is often referred to as the “Look in the Mirror Test.”
3. True. (Section 2.4)
4. False. Actuaries must be qualified to perform actuarial services and issue SAOs, regardless of retirement status or age.
5. True. (Section 2.3.3)
6. D. (Sections 2.2.2 and 2.2.6)
7. A, B, and C. Appendix 1.II lists common actuarial opinions and communications and whether they are SAOs.
8. B. (Section 6.1)
9. C. Enrolled Actuaries who are members of any of the five U.S.-based actuarial organizations must meet the USQS CE requirements in addition to the continuing professional education requirements of the Joint Board for the Enrollment of Actuaries.
10. C. Once an actuary becomes a member of any of the five U.S.-based actuarial organizations (not just the Academy), the actuary must comply with all the requirements of the USQS before issuing an SAO in the U.S.
11. C. The USQS states that CE must be “relevant,” that is, the CE broadens or deepens an actuary’s understanding of one or more aspects of the work an actuary does; exposes an actuary to new and evolving techniques for addressing actuarial issues; expands an actuary’s knowledge of practice in related disciplines that bear directly on an actuary’s work; or facilitates an actuary’s entry into a new area of practice. (Section 2.2.6)

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[1] “Professionalism Counts” thanks former ABCD member Allan Ryan and the Committee on Professional Responsibility, c. 2018-19, for the inspiration for this quiz series.