Doesn’t appear to be a material violation
involves a dispute but not a material
involves a possible material violation
inform subject actuary and complainant
Subject actuary and complainant are
offered the opportunity to mediate the
Subject actuary has the opportunity to
respond, and an investigator is appointed
There are four levels of discipline that the ABCD may recommend, and—as you might expect—the varying levels reflect the
seriousness of the charge and its effect on the public. Potential
disciplinary action includes:
■ ■ Private reprimand,
■ ■ Public reprimand,
■ ■ Suspension,
■ ■ Expulsion.
For any of those recommended disciplinary actions, a written
report is prepared and sent to each participating organization of
which the subject actuary is a member. The precepts in the Code
of Professional Conduct that were deemed to have been violated
and the nature of the violation are discussed in the report. In addition, the participating organization receives a transcript of the
hearing along with all other documents that were used by the
ABCD in making its disciplinary decision. The subject actuary
also receives this information.
Keep in mind that the ABCD doesn’t make the final decision on
what happens after it recommends discipline. Each participating organization currently comes to its own conclusion after
receiving the ABCD’s recommendation for discipline. If the
subject actuary belongs to several organizations, this can be expensive and time-consuming for all concerned.
The U.S. actuarial profession is in the process of considering potential revisions to the current practice. These include
establishing a single body, with representation from each of the
participating organizations to which a subject actuary belongs,
to determine the appropriate level of discipline. All participating
organizations involved in the matter would abide by that body’s
decision. In cases in which the recommendations for discipline
involve long suspensions or expulsions, however, the member
organizations still would make their own final decisions.
As our work increasingly depends on actuarial judgment, it’s
imperative that we understand our responsibilities and the im-
pact of our work. Since joining the ABCD earlier this year, I have
been impressed with the measures the ABCD takes to ensure that
all cases are reviewed thoroughly, that all parties are treated fairly,
and that all information is handled confidentially by members of
the ABCD at every phase in the process. In this way, the ABCD
protects the public as well as the profession’s reputation.
NANCY BEHRENS is vice president of operations for
State Farm Life insurance, overseeing the product
management function for life, health, and annuities,
including actuarial, research, compliance, and alliances.
She is a fellow of the Society of Actuaries, a member of
the Academy, and a member of the ABCD.
Do you have a clear view of your risk exposure?
New thinking for risk management decisions