ASOP 1
(INTRODUCTORY ACTUARIAL STANDARD OF PRACTICE)
SECTION 4
(COMPLIANCE WITH ASOPS)

Section 4
Communications and Disclosures

ASOP 1 | §4.1 | ASOPS ARE BINDING

ASOPs are binding upon actuaries.

Failure to comply with an applicable ASOP results in a breach of the Code. Such breaches subject the actuary to the profession’s counseling and discipline processes.

ASOP 1 | §4.2 | GOOD FAITH APPROACH

Actuaries should take a good faith approach in complying with ASOPs, exercising good judgment and professional integrity.

It is not appropriate for users of ASOPs to make a strained interpretation of the provisions of an ASOP.

ASOP 1 | §4.3 | APPLICATION

Actuaries should comply with those ASOPs that are applicable to the task at hand.

However, not all ASOPs will apply. An ASOP should not be interpreted as having applicability beyond its stated scope and purpose. Actuaries are responsible for determining which ASOPs apply to the task at hand. If no ASOPs specific to the task are applicable, the actuary may, but is not required to, consider the guidance in related ASOPs. Most, but not all, ASOPs are task-specific, dealing with particular kinds of actuarial services. A few ASOPs, however, deal more broadly with particular aspects of many types of actuarial services (such as ASOP Nos. 23 and 41, and this Introductory ASOP).

ASOP 1 | §4.4 | CONFLICTING PROVISIONS

When an actuary believes that multiple ASOPs have conflicting provisions when applied to a specific situation and none provide explicit guidance concerning which governs, the actuary should apply professional judgment and may wish to contact the ABCD for confidential guidance on appropriate practice.

ASOP 1 | §4.5 | PROVISIONS FOR DEVIATION

The ASOPs make specific provision for those situations where the actuary is required to or deems it appropriate to deviate from one or more provisions of an ASOP. It is not a breach of an ASOP to deviate from one or more of its provisions if the actuary does so in the manner described in the ASOP, including making the disclosures related to the deviation as required in such ASOP and in ASOP No. 41.