Froogle | ASOP 4 | Section 3.8

ASOP 4 | §3.8 | ASSUMPTIONS

The actuary should refer to ASOP Nos. 27 and 35 for guidance on the selection and assessment of assumptions.

In addition, the actuary should assess whether the combined effect of assumptions is expected to have no significant bias (i.e., it is not significantly optimistic or pessimistic) except when provisions for adverse deviation are included or when alternative assumptions are used for the assessment of risk, in accordance with ASOP No. 51. For this purpose, the actuary should assess assumptions other than

1) prescribed assumptions or methods set by law and

2) assumptions that the actuary has not selected and is unable to assess for reasonableness for the purpose of the measurement.

ASOP 4 | Commentary Section 3.8 | COMMENT ON SECTION 3.8

Section 3.8, Assumptions
Comment	Response
One commentator suggested the term “assess” in section 3.8 should be clarified to determine whether the combined effect of assumptions significantly conflicts with what would be reasonable.	The reviewers believe the guidance is sufficiently clear and made no change.

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ASOP 4 | §3.8 | ASSUMPTIONS

ASOP 4 | Commentary Section 3.8 | COMMENT ON SECTION 3.8

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