Contingencies Online - January/February 2013

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how do I know if a particular educational event will be considered “relevant”? Actuaries should make a “reasonable, good-faith determination” of what constitutes “relevant.” A couple of guidelines are given: Does it broaden your knowledge of the work you do? Does it expand your knowledge in a related area of practice? Or does it help build your knowledge of a new area of practice?

Are only technical subjects considered relevant? Business and consulting topics such as communication skills or presentation skills may be considered relevant, along with professionalism topics such as attending a session on the Code of Professional Conduct. Note again that a minimum of three hours of professionalism topics is required each year, while there is a maximum of three hours allowed for general business topics.

I am issuing a joint opinion with another actuary that covers
both health and pension subjects . Do we each need to meet
the requirements for both pension and health?

No, but together you must have the required basic education, experience, and CE related to all of the areas of practice covered in the opinion.

CE requirements for specific Qualification Standards are met
when the actuary completes 15 hours per calendar year in topics
that are directly related to the issuance of an SAO. Note that six
of the 15 hours must involve interactions with outside actuar-
ies or other professionals. Also, the 15 hours earned to meet the
specific standard can be used toward satisfying the requirements
of the general standard.

Beyond Minimum Requirements

While the U.S. Qualifications Standards provide some requirements, the actuary must still be able to say that he or she is qualified to do the work in the true sense of the term, under Precept 2 of the Code of Professional Conduct. Qualification Standards should be viewed as a minimum. In order to be qualified, actuaries often will exceed them. This is especially true when you have experienced a job change (or are anticipating one) or there have been substantial changes to your current area of practice.

Armed with this information, I wish all of you a great new year, meaningful professional development, and perhaps at least one successful New Year’s resolution.

NANCY BEHRENS, a fellow of the society of actuaries, a member of the academy, and a member of the actuarial board for Counseling and Discipline, is vice president–life/health and mutual funds for state Farm Insurance Cos.