/THE ACTUARIAL

Academy Seminar SpotlightsPension Regulatory Alternatives

Pension Benefit Guaranty Corporation. r-- --.-- - r- --'1 :-,,'-,_ .7 - : ulator may take appropriate action . Typically,joy under ERISA and the regulations of the IRS, Department of Labor, a& If the review committee finds that an actuary is not in compliance, the reexercise of greater professionall judgment than U .S. pension actuaries en- ulators with a confidential opinion on actuaries' compliance with standards .

C losing the gap between pension actuaries and regulators was the focus of a May 2 sem-

inar sponsored by the Pension Practice Council inWashington, D .C. "Some people

will flinch when I say this," said Academy Pension Vice President Vince Amoroso,

"but regulators and pension actuaries are somewhat adversarial, and don't have a cor-

dial working relationship ." Amoroso's goal for the seminar was to stimulate dialogue between

actuaries and regulators on improved pens plan regulation and greater cooperation bejotween the two groups .

At the seminar, actuarial leaders from the United Kingdom and fessional valuations, and we'll get them out of the profession ."'

Canada outlined their countries' regulatory structures, which permit the Eventually, a CIA review committee was established to provide reg-

In both the U.K. and Canada, the key togreater leeway is increased professional respon-sibility. Chris Daykin, chief actuary for the U.KKgovernment, explained that under a new law,British pension plan actuaries have a statutoryobligation to report financial misconduct andnoncompliance with regulations . "The actuaryis not expected to go sniffing around looking forviolations ;' said Daykin . "However, if you comeacross them in the course of your actuarial work

you have a firm duty to blow the whistle .Whistle blowing is expected to be a significantprotection against insolvency, enabling the reg-ulator to receive early warning of any prob-lems,' he added. Since the requirement wentinto, effect on April 6, several hundred viola--Lions have been reported. The statute protects plan actuaries from litiga-tion for reporting violations .

As set forth in actuarial practice standards, the duties of the UK.pen-sion actuary are to certify that the minimum funding requirement hasbeen maintained, advise plan trustees on a schedule of future contributions,carry out a formal evaluation every three years for plan members, andvalue the plan for tax purposes. The actuarial profession is responsiblefor determining its own qualification standards, and all aspects relating todiscipline are in the hands of the profession rather than regulators .

Another feature of the British regulatory system that boosts the ac-tuarial role is the semi-autonomous Office of Government Actuary, theagency that Daykin now heads. The office advises all U.K. regulatory

bodies with authority for pensions and insurance . The office is financedby fees from those agencies, as well as from income from consulting workwith foreign governments .

According to Paul McCrossan, former president of the CanadianInstitute ofActuaries (CIA), Canadian actuaries once faced the threat ofgovernment restrictions on their funding and valuation functions. Proposedregulations responded to concern by the government revenue agency that"actuaries couldn't be trusted ."

The Canadian profession responded to the challenge by beefing upits own disciplinary efforts . "The CIA told the Finance Committee of theHouse of Commons, `We are a profession, not a trade association,"'McCrossan said . "'Give us the names of actuaries who perform unpro-

the actuary is given e opportunaty to cor-rect the problem before disciplinary chargesare brought. Like all Canadian professions, theCIA disciplinary process is public, with all pro-ceedings on the public record and open to thepress.

Individual Canadian actuaries also havethe responsibility to self-police . An actuary isrequired to discuss unprofessional conduct withthe offending actuary, and if the conduct is notrectified, must take it to CIA discipline com-mittee. Actuaries who ignore violations arethemselves subject to sanction . As an example,McCrossan told of an error in pension as-sumptions made by a large firm, which wascorrected without disclosure and later detect-

ed by regulators . The offending actuary was suspended, and his superiorpublicly reprimanded for unacceptable conduct .

Finally, Canadian actuaries in all practice areas must complete annualcompliance questionnaires. Actuaries are responsible for the veracity of theiranswers, which can be used in later disciplinary proceedings . "You sweatblood when you fill out that questionnaire, " McCrossan said.

Contrasting the US. system with Canada's, McCrossan said, "Wedon't have to follow detailed regulations , but rely on professional guidance .Personally, I prefer to practice under my system because I get to exercisejudgment:'

US. regulators who participated in the seminar included PBGCacting executive director Joseph Grant; PBGC actuary Dave Gustafson ;American Society of Pension Actuaries Executive Director Brian Graf, ffor-merly with thejoint Committee on Taxation ; Carolyn Smith of that com-mittee; Harlan Weller of the IRS; and Richard Hinz of the Department ofLabor.

Academy President Larry Zimplernan said, "The symposium demon-strates the Academy's commitment to dealing with the real problems ofpension actuaries . We recognize the problems and are serious about tak-ing steps to deal with them :'

The complete transcript of the seminar is available from the Academy. To obtain acopy, fax your request to Doreen Evans at 202-872-1948. An in-depth report willappear in theAugust Enrolled Actuaries Report.

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Career ChangeTakes NickersonBack to SchoolIn 14 years of service to theAcademy, Christine Nickerson woremany hats. She initiated the gov-ernment information work that hasbecome the Academy public policyprogram, supervised the Academy'smeeting department, and, for thepast nine years, ad-ministered the workof the ActuarialStandards Board.On May 30,

Christine left herAcademy post andmoved on to thedaunting set ofchallenges faced byan elementary-school teacher.This summer, she

tiatives to permit banks to under-write insurance and insurance-likeproducts. According to Snyder, thetrend toward bank underwritingraises serious actuarial concernsthat have never been adequatelyaddressed by the courts, regulators,or Congress.

Snyder's testimony emphasizedthe distinction between insurancerisk and investment risk . She not-ed that an increasing number of fi-nancial instruments in the con-

sumer market, suchas variable-rate an-nuities, involveboth types of risk."Insurance risk isdifferent from in-vestment risk, andrequires differentmanagement andregulatory over-sight," Snyder said."The risk associat-ed with many in-

Christine Nickerson

begins a year-long universitycourse to qualify as a certifiedteacher. After completing her stu-dent teaching, Christine hopes tostart her new career in the 1998-99school year. " g ng in educa-tion has been a -standing am-bition of mine," she says, "and Ilook forward to helping childrenacquire the basic skills they willneed in life:'When as er proudest

achievement a the Academy,Christine cited her work with theASB. "It's been immensely satis-fying to see the standards programgrow from infancy to its currentplace of respect in the profession,"she said. Speaking for theAcademy staff, Executive DirectorWilson Wyatt said, "We thankChristine for her many contribu-tions to the Academy over the past14 years, and wish her well as shechanges careers . We will missher."

Bank UnderwritingCould PoseSolvency Threat

Barbara Snyder

Insurance un-derwriting bybanks couldlead to solven-cy problemsand jeopardyfor consumers,AcademyFinancial

Reporting Vice President BarbaraSnyder told the NationalAssociation of InsuranceCommissioners (NAIC) at anApril 29 hearing of its Committeeon Banks and Insurance inWashington, D.C . The Academypresented the actuarial perspectiveon legislative and regulatory ini-

surance products could be largeenough to threaten the solvencyof the underwriting banks .Moreover, insurance risk can betremendously volatile, particularlyif the insured pool for a particularproduct has not been adequatelyanalyzed,"she added .

According to the Academy,banks that develop and market in-surance products should meet thesame kind of reserving require-ments as insurers under state lawand regulation. Without such re-serves, funds may be unavailableto pay policyholders' claims .Alternatively, the solvency of banksmay be threatened if they are re-quired to pay claims for whichthey have not established adequatereserves . Bank failures, with theaccompanying harm to theAmerican economy and public,would be a predictable result. "Ifbanks are permitted to underwriteinsurance, they should have ap-propriate reserving requirementsand regulatory oversight to ensurethat policyholders' claims will bepaid and the public will be pro-tected;' said Snyder.

The Academy testimony alsonoted that functional regulation ofbank insurance activities should bebased on the level of insurance riskpresented by the product or ser-vice being offered, and not on thename given to that product or ser-vice. "If a debt cancellation con-tract is contingent upon the death,disability, or loss of employment ofthe debtor, that contract is essen-tially credit insurance, and shouldbe regulated as such," said Snyder .

Snyder told the NAIC groupthat regulation of bank underwrit-ing should make provision for ac-tuarial projection of the insurancerisk . "Actuaries can offer the bank-ing industry expert assistance indealing with insurance risk andwith investment risk as well," shesaid .

Academy NotesCamp Bill PitfallsRequiring employers to treat em-ployee compensatory time as hoursworked for benefit purposes couldincrease the administrative burdenon benefit-plan sponsors, AcademySenior Pension Fellow RanGebhardtsbauer informed Congressin a May 8 letter.

Sen. James Jeffords (R-Vt .),chairman of the Senate Labor andHuman Resources Committee, re-quested Gebhardtsbauer's com-ments on the proposal, introducedby Sen. Paul Wellstone (D-Minn .) .While noting that the Academydoes not take positions on publicpolicy matters, Gebhardtsbauerurged Jeffords and his committeeto consider the following issues :An equity problem would arise be-cause under theWellstone amend-ment employees who elected totake compensatory time would re-

11

Academy Pension Vice President Vince Amoroso (center ) welcomes formerCanadian Institute of Actuaries President Paul McCrossan (left) and U.K. ChiefGovernment Actuary Chris Boykin to the May 2 seminar on alternate regulatorystructures.

ceive more hours-of-service cred-its than those who chose to workovertime. In addition, calculating achange in the hours-of-service dueto compensatory time could be anadministrative burden for somecompanies, especially those inheavily seasonal industries. The

Academy letter also noted that theWellstone amendment could dis-rupt existing compensatory-timeregulations and that additional ad-ministrative complexity could re-sult for plans that use an elapsed-time method of calculating service .

LHENRY KNOWLTON

The ABCD Learns from Experiences chairperson of the Actuarial Board

for Counseling and Discipline

(ABCD), I would like to point out

two publications included with this

month's Actuarial Update that -deserve--the- atteii

tion of al, .cademy members.

First, the 1996 Annual Report of the ABCD is packaged a little differently this year . The ABCD reportis published together with the annual reports of the Actuarial Standards Board and the Academy Committeeon Qualifications . These three organizations remain distinct, each with its own authority and governance .However, by publishing our reports in one volume, we emphasize the interrelatedness of our missions and theimportance of each organization to the advancement of actuarial professionalism . A total understanding ofour responsibilities as professionals requires us to be familiar with the standards of qualification, practice,and professionalism, and with the activities ofthe organizations that work to uphold these standards . Our com-bined report is intended to bring to all members a comprehensive overview of actuarial professionalism .

Second, this Update mailing also includes for your comments proposed revisions to the Academy bylawsthat would change certain aspects of the ABCD's operating procedures .

The ABCD came into existence in 1992, under the authority ofArticle X of the Academy bylaws, and sincethat time has reviewed more than two hundred cases . Like any five-year-old, the ABCD has learned from ex-perience, and the proposed changes are intended to implement some of the lessons that we have learned .

The revised Article X would authorize the ABCD to spell out its detailed procedures in its own rules ofprocedure, rather than in the Academy's bylaws, which would continue to set out the fundamental respon-sibilities and authority of the ABCD. This change will create a structure that more closely resembles theActuarial Standards Board . The ABCD intends to include in its rules of procedure most of the procedures cur-rently set forth in Article X, Section 5 .

The proposed revisions would permit the ABCD more flexibility to deal effectively with actuaries who apparentlyhave violated the Code of Profr, sional Conduct . By fine-tuning our procedures to allow more options, these changesshould benefit both the profession as a whole and individual actuaries whose practices are in question .

New Section 5 .F and Section 6 would authorize the ABCD, where appropriate, to both recommend pub-lic discipline and counsel an actuary. Currently, Article X does not authorize the ABCD to counsel an actuaryfor whom it recommends discipline, even though the practitioner's misconduct is serious and merits guidance .New Section 5.F permits the ABCD in certain circumstances to obtain from a subject actuary a written agree-ment to take certain corrective measures instead of recommending public discipline . Such corrective measurescould include meeting continuing education requirements or documenting the resolution of a dispute with aclient . This section could apply to situations where counseling is insufficient to address the problem, but arecommendation of public discipline would be inappropriate if the problems can otherwise be resolved .

New Section 5.B.1 would relieve ABCD investigators from the responsibility of recommending disposi-tion of a case to the ABCD. This will permit the ABCD members themselves, who typically have more ex-perience in handling questions of professional practice, to better decide on the appropriate course of action .A complete summary of these revisions is included with the text of the bylaws .

All members of the five participating organizations have a stake in an effective professionalism program,and should take the time to read and understand these changes in procedure . As chairperson of the ABCD, I wel-come your comments. Please send comment letters to my attention at the Actuarial Board for Counselingand Discipline, 1100 17th Street NW, 7th Floor, Washington, DC 20036-4601 . Or send me an a-mail athknow@aus-south .net:. All comments will be considered and appropriate changes made before the proposed re-vision is submitted to the Academy membership for a bylaws amendment vote . Comment deadline is August 1 .

KNOWLTON IS CHAIRPERSON OF THE Acru Rm Bo.ARn FOR COUNSELING AND DISCIPLINE .

Q

The Profession'sInternational Outlook

F ew actuaries have as broad experience

in the profession as Curtis Huntington .

After a long career with New EnglandLife, in 1993 Huntington began a sec-

ond career as professor of mathemat-and director of the actuarial program at the Univeics

Tax Changes CouldHit Employee BenefitsEmployer sponsored retirement and health plans could be endangeredif their tax-exempt status is eliminated under tax reform, the Academytold the congressional joint Committee on Taxation in a report re-leased at a May 13 press briefing at Washington's National Press Club .

Also released at the briefing were the results of an Academy -spon--sored survey of the American peo-ple's attitudes toward tax reform.The survey found that 74 percentof respondents favored sweepingtax reform, but that 74 percent alsowere unaware of any potential im-pact on employee benefits .

Some proposals now beforeCongress include the so-called flattax and value-added tax, whichwould alter the tax-deductible sta-tus of employer-sponsored healthinsurance and end the tax advan-tage of pension contributions .Capitol Hill hearings on tax reformare expected for later this summer .

"The Academy report and thepoll show the possible consequencesof eliminating the current tax in-centives for employer-sponsoredhealth insurance and pensions," said

rsity of Michigan .

An inveterate traveler, he also has been very active in establishing close

links between U.S. actuaries and the actuarial profession in other coun-

tries through his work as the Academy and Society ofActuaries repre-

sentative to the International Actuarial Association . Huntington re-

cently answered a few questions for the managing editor of the Actuarial

Update on current international issues and the state of actuarial science

in academia.

What is the status of the profession'sapplication far transuotienal practice inCanada, Mexico. and the United Statesunder the North American Free TradeAgreement?The Acade , the Canadian

Institute of es, and the ColegioNadonal de as ofMexico havedone the work necessary for a suc-cessful application. The actuarial,profession continues to be first inline among £essions to qualifyfor transnapractice, but real--world politi considerations keeparising in all three countries to pre-vent final approval for all profes-sions. Right now the United StatesTrade Representative is holding upthe process . It will be nice to bedone with it, and I'm hopeful thatwill happen soon.

You are one of the U. S . representativesto the International Forum of ActuarialAssociations (IFAAI, which was foundedin 1994 to promote worldwide prefes-sinnalism . How is that organizationworking out?Quite successfully. Organizationsrepresenting 95% of the world's ac-tuaries are members. Actuaries whobelong to an [FAA member orga-nization must meet minimum

stan-, dards, based on the European UnionCode or the Code of ProfessionalConduct of the North American

actuarial organizations .However, in 2005 the bar will

probably be raised on educationalstandards, and unfortunately, IFAArecognition of the Academy couldbe endangered .

How sa?Academy members who are en-rolled actuaries without meeting thequalifications of the learned soci-eties may not satisfy the broad-basededucational standards .

Would that have harmful consequences?Certainly. It could undermine ac-ceptance of U.S. public statements ofactuarial opinion by Academy

members. This problem can beavoided, perhaps by creating an as-sociate membership category with-in the Academy.

You have participated in the recentWksan the International Pension AccountingStandard. What is the status of thatproject?The actuarial profession is oppos-ing the portions of the proposedstandard as unreasonable, and we arehopeful of obtaining modifications .The IFAA's concern is that the pro-posed method for determining the

amount of the accounting liabilitydoes not conform to actuarial prin-ciples.

Wilt the actuarial profession expand in-ternatianally?Yes, especially in the emergingmarkets of Asia . The UnitedKingdom and the North Americanactuarial bodies are competing toget involved in the training of ac-tuaries.

And wilt it expand beyond the tradition-al areas of employment?I am afraid that it might not. Weare not doing enough to maintainourselves in areas where we shoulddominate. Look at demographyfor instance. Thirty years ago, ac-tuaries were the recognized expertson demographic questions, butwe've lost that superiority.The newsyllabus of the Society of Actuarieshas the potential to expand our ed-ucational efforts and maintain ourrelevancy.

It is always important to educatepotential employers about ourskills . I recently had a conversa-tion with an investment bankerwho told me that his firm was re-luctant to hire MBAs for researchareas, but preferred to hire nontra-ditional types, like PhDs in physicswho could transfer expertise in flu-id dynamics to cash-flow testing.I told him about the range of skillsthat actuaries could bring to his

business, and he seemed surprisedbut interested. We need to domore to inform business about ourskills .

Would it help the profession if mere ac-tuaries worked ivarsity setting?The lack o* ang academicbranch of the profession is a realweakness. In the actuarial Directory,until three years ago, the categoryof actuaries in academic employ-ment was list tar "retired" and"unknown." Wrms of compen-sation, it is not an attractive field,and that is regrettable. It is impor-tant that the profession keep upwith the advances in knowledgethat come from the caldron of theuniversity. It produces a healthyprofession and ensures that we stayup to date. I hope that we will beable to establish a stronger presencein academia and create centers ofactuarial excellence.

Should the North American professionmove to a university- based educationalsystem?No. We have over 100 years of ex-perience in training actuaries inemployment-based situations, andthat can't be thrown out. However,I think that it is becoming increas-ingly recognized that the univer-sity is the best place to acquire thebasic knowledge needed to enterthe profession.

You serve as executive director of theActuarial Education and Research Fund .What is the future role of that argeni-zation?We are now in the process of ne-gotiating a 5 -year trial affiliationwith the Society of ActuariesFoundation, which in January willbe renamed The ActuarialFoundation . I hope that this rela-tionship will ensure funding forour research work, while main-taining the AERF's identity as anorganization that serves the entireprofession .

Ron Gebhardtsbauer, Academy se-nior pension fellow. "Tax reformand the impact on health care cov-erage and retirement savings shouldbe the subject of major scrutiny be-

Tom Wildsmith responds to a reporter'squestion at the May 2 press briefing.

Withthe results of the Academy surreyposted behind them, Ron Gehhsrdtshauer(left) and Larry Zimpleman discuss theimpact of tax reform on private pensions .

fore elected officials determine to support or oppose any of the tax reformmeasures."

Ifpension contributions have no tax advantage over personal savings,employers are likely to drop pension plans, accordin bhardtsbauer."Why should employers comply with the 10,000 Sent regula-tions that govern employer plans, when the same benefit can be obtainedby allowing employees to save for themselves," he asked .

Gebhardtsbauer noted that current tax incentives allow contributionsto employer-sponsored plans to accrue at twice the rate of individual sav-ings. Other drawbacks to ending tax advantages: Yo ancozne em-ployees may not save enough and may not keep man individ-uals tend to be overcautious investors and therefore obtain low returns ;and loss of capital from invested pension funds would have a serious impacton the American economy

"These reasons alone make it essential that elected officials studythe impact on employee benefits of any sweeping tax reform mea-sures," said Gebhardtsbauer .

Said Academy President Larry Zimpleman, "Employers might con-tinue to offer payroll savings plans if a sufficient number of workerswanted them, but employees would be less likely to use them withoutspecial tax benefits ." According to the report, $5 trillion is currently heldby tax qualified pension plans . "If employers terminate their pensionplans, large amounts could be withdrawn and spent just as the babyboom generation approaches retirement," added Zimpleman.

The Academy report is a follow-up to its January 1996 report tothe congressional commission chaired by former Rep.Jack Kemp on theeffects on pensions of the flat tax, consumption tax, wage tax, and val-ue-added tax.

Tom Wildsmith, health actuary and member of the Academy taskforce that produced the report, noted that by cutting the link betweenhealth insurance and employment, tax reform could encourage moreefficient use of health care dollars. However, taxation of benefits could

have serious negative consequences as well . "A good way to get less of

something is to tax it," Wildsmith said . "Removing the tax incentives

for employer-sponsored plans would result in more uninsured individu-als, especially among the younger, healthier population, and could in-crease premium costs for the older individuals who would remain cov-ere ] '~iL~%C

On average, employer-sponsored health insurance costs about $2,000a year for an individual and $5,000 for a family. According to theAcademy report, many workers, especially younger ones and those withbelow-average wages, would consider foregoing the insurance rather thanpay taxes on its full cost, according to the report .

At the May 13 briefing, Zimpleman detailed findings of the sur-vey, which the Academy undertook to ascertain public awareness ofimpact of tax reform. Sixty-seven percent of survey respondents receiveemployer-sponsored benefits, and 46 percent would be less likely tosupport tax reform if employee benefits were affected . "The surveyshows that the American public still lacks a thorough understandingof the implications of tax reform," said Zimpleman . "We hope that ourreport is a good first step in educating the public," he added.

Health. Standard, New Social Insurance Draft OK'dA t its April 16-17 meeting, the Actuarial Standards Board

(ASB) adopted a final health-related standard and voted toexpose for comment standards drafted by the AcademyCommittee on Social Insurance and by the ASB Life

Committee .Actuarial Standard of Practice (ASOP) No . 28, Compliance with

Statutory Statement ofActuarial Opinion Requirements for Hospital, Medual,and Dental Service or Indemnity Corporations, and for Health MaintenanceOrganizations, is actually a revised and reformatted version of FinancialReporting Recommendation (MR) 10, Statement ofActuarial Opinionfor Health Service Corporation Annual Statements . Ted Lyle, chairper-son of the ASB Health Committee, answered questions from theboard during its review of the committee's draft . Although the ex-posure of this draft last August resulted in only two comment letters,one issue did stir up considerable discussion . In exposure form,Section 4.3, "Opinions of Other Actuaries," prohibited the signing ac-tuary from expressing reliance on another actuary. The final standardas adopted by the board eliminated this prohibition when the sign-ing actuary is forming an overall opinion . Note that the standardentirely replaces FRR 10.

The ASB also approved a third exposure of a proposed standardon social insurance.The draft was presented to the ASB by commit-tee members Steve Goss, Dave Gustafson, and Ron Solomon . Themost difficult issue, which the committee deliberated on for severalyears, concerns the scope of the standard. Which actuaries should be"covered" by the standard? Which programs fit under the standard'sdefinition of social insurance? The committee is requesting com-ments on the proposed standard's scope, and on whether the standardshould include a definition of financial adequacy . (The current draftdoes include such.) The deadline for comments on the third exposuredraft is October 2 .

A proposed first amendment to ASOP No. 15, DividendDetermination and Illustration for Participating Individual Life InsurancePolicies and Annuity Contracts, also was approved for exposure by the

board. As currently written, ASOP No. 15 provides some generalguidance on the illustration of dividends . With the adoption inDecember 1995 of ASOP No. 24, Compliance with the NAIC LifeInsurance Illustrations Model Regulation, it was clear that some revisionof ASOP No. 15 would be necessary to resolve any internal incon-sistencies that might have been created by the existence of two dif-ferent ASOPs on the same subject.The Life Committee is not open-ing the entire standard for comment, but only those sections relatingto illustrations. The changes to the scope make up the biggest changeto the still-current standard .The deadline for comments on this pro-posed first amendment is October 2 .

In addition to reviewing the above three proposed standards,the ASB devoted time to reviewing the progress of its committees,subcommittees, and task forces, as well as discussing future projects .One such future project, which is apparently gaining speed in reach-ing the initial drafting stage, is development of a standard relating tononforfeiture issues. Academy Life Practice Council member WaltRugland updated the board on the current state of this project .Basically, the NAIC is considering changes to its nonforfeitur law, andis interested in the development of a compliance standard to helpactuaries apply the new law. Although the NAIC project is noplete, the Life Committee will be discussing the board's thoand concerns in a meeting early this summer.

The next board meeting is July 15-16 at the Academy office inWashington, D.C. Two casualty texts will be reviewed as proposedfinal standards: Tleeatment of Pros and Contingency Provisions and the Costof Capital in PropertylCasualty Insurance Ratemaking, and ExpenseProvisions in PropertylCasualty Insurance Ratemaking. Another casual-ty draft, which addresses statements of actuarial opinion regardingloss and loss adjustment expense reserves, may be reviewed by theboard for possible exposure. A more definite agenda will be avail-able by mid June .

-AicNe M. KarciuxK is ASB STANDARDS EDITOR .

Your Ideas Needed for Casualty Opinion SymposiumThe Academy, in conjunction with the National Association of Insurance Commissioners (NAIC), is sponsoring a symposium on state-ments of actuarial opinion for property and casualty insurers . This symposium, to be held on September 20 at the NAIC meeting inWashington, D.C., will provide a forum for interaction between preparers and readers of statements of actuarial opinion. The Academyand NAIC's first symposium on statements of actuarial opinion in December 1995 was well attended by consulting and insurance com-pany actuaries, as well as regulatory actuaries from several states.

Anyone interested in this subject is encouraged to attend . The Academy also welcomes your suggestions for topics that are impstatements of actuarial opinion. For information on attending the symposium, either as an audience member or panelist, or to suggest discussttopics, contact Stephen Rentner at the Academy's Washington office by e-mail (rentner@actuary .org) or by fax (202-872-1948) . Please sub-mit suggestions by August 15 .

EXECUTIVE DmECTOR

Wilson W. Wyatt Jr.

PRESIDENT

Larry Zimpleman"

PRESIDENT-ELECTAllan M. Kaufinan

Vice PRESmErrrsVince AmorosoWilliam E BluhmArnold A. DickeKen W. HartwellBarbara L. SnyderMichael L.Toothman

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CDMMrrrna ON PUBLICATIONS

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AssocIATE EDITORSWilliam CarrollRonald GebhardtsbauerPatrick J . Grarrnan

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CoNrRIBLG EDITOR

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Statements-of-fact and opinion in this publica-eluding editorials and letters to the ed-e made on the responsibility of the au-

thors alone and do not necessarily imply or,-represent,the position -of the American Academy -ofActuaries, the editors , or the members oftheAcademy.

0 1997 The American Academy of Actuaries . AllRight Reserved

THE ACTUARIAL

I Al E

e aUn o#a y lptinns

NAIC Hears Academy Underwriting Concerns

Tax Reform Could Hit Health Insurance, Pensions

Academy Seeks Ideas on Casualty Opinions

In Search Of * Actuarial Professionalism Annual_Reparts ∎ Womm Draft

l

en Proposed Revision of Article X of the Bylaws a Academy Handbook Tableof Contents and Introduction •_ASOP Ne, 28 a ASH pusure lrafts_an SocialInsurance and Proposed Amendment to ASUP No . 15 ∎`NAIC Announcement