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NOVEMBER 2 0 0 4

T HE N EWSMONTHLY OF THE A MERICAN A CADEMY OF A CTUARIES

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S A YOUNG ACTUARY IN SALT LAKE CITY in 1968,

Bob Wilcox couldn’t imagine being president of the Academy like his renowned boss and mentor, Wendell Milliman. But 36 years later, at the Academy’s Oct. 18–20 annual meeting in Hawaii, what once seemed improbable became a reality and it was Wilcox’s turn to take the helm. Wilcox sees an actuarial lesson there, he told Academy members at the annual meeting: “It just proves that our management of future contingent events needs to include events with small probability of occurrence—but large potential impact.” And having a large impact is part of the plan as the former Utah insurance commissioner steers the Academy through its 40th year. Three of the major areas Wilcox intends to focus on: ® Educating members about the practice implications of legislative, regulatory, and judicial developments. ® Enhancing the image of the actuary in order to promote the profession’s growth. ® Strengthening the independence of the Actuarial Standards Board and the Actuarial Board for Counseling and Discipline—as well as raising awareness of their independence from the Academy. It’s unlikely that the Academy will accomplish everything during one year, Wilcox acknowledged, “but we can get started, we can make progress, and we can build a principlebased foundation for our future.” Having President-Elect Peter Perkins on board will be a great help, he added. (To read

Inside Lawson Leaving Academy Search for a successor is underway . . . . . . . . . PAGE 2 ASB News One final standard and three exposure drafts approved . . . . . . . . . . . PAGE 4 Odell Honored Bill Odell is the 2004 recipient of the Jarvis Farley Award . . . . . . . . . PAGE 6 Strategic Alliances An Academy-CCA task force considers the options . . . . . . . . . . PAGE 7

New Academy President Bob Wilcox (left) with his predecessor Barbara Lautzenheiser and Sen. Don Nickles

Wilcox’s complete remarks, which include more detail on his plans for the year, go to www.actuary.org.) Wilcox noted that the Academy has evolved dramatically over the years, thanks to the extensive efforts of its volunteers. Once viewed by the NAIC as just another trade association, today the Academy is recognized as “the primary source of unbiased technical and professional assistance to the NAIC and state insurance regulators,” Wilcox said, and federal policy-makers increasingly see the Academy as a source of unbiased technical assistance. Wilcox also praised Academy staff. He said the organization will miss Executive Director Rick Lawson, who will be joining Principal Financial Group as its vice president of federal government relations (see story, Page 2). See WILCOX, Page 7

Actuaries—It’s a Wonderful Life BY

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BARBARA LAUTZENHEISER F I WERE TO MENTION THE NUMBERS

.00008 and .000006, most everyone, even non-actuaries, would agree that those numbers are “de minimus,” literally of no impact. Yet, that is clearly not the case. Those numbers have a major impact on our nation and the world, because they directly affect the financial security of every individual who is covered by life, health, retirement, auto, homeowners’, or any other kind of insurance. Those tiny numbers dictate whether we can safely enter any building, train, plane, or playground, because of the insurance that supports the assurance of their financial security. What are those numbers? They are the ratio of U.S. actuaries to the U.S. pop-

ulation and the ratio of actuaries in the world to the total world population. As we approach the holiday season we will all be treated with multiple opportunities to see Frank Capra’s classic movie “It’s a Wonderful Life.” In the movie, a suicidal George Bailey (played by Jimmy Stewart) is given a peek at how different the world would be if he didn’t exist. Just imagine what the world would be like without actuaries and the financial leadership that they offer. Actuaries, while “de minimus” in numbers, are astronomical in impact. The actuarial profession has a vision for the year 2020 where the public will recognize actuaries as the architects of financial security. The Academy’s mission within that vision is twofold: See WONDERFUL LIFE, Page 6

Actuarial UPDATE

Wilcox Takes Helm as Academy President


Calendar Mark Your Calendars! Spring Meeting 2005: An Academy Forum May 2–3, 2005 Washington, DC

NOVEMBER 1 ASB introduction revision task force meeting, Washington

2 Academy Life Valuation Subcommittee meeting, Washington

5 Academy Risk Management and Financial Reporting Council meeting, Chicago

7–8 Pension Practice Council meeting, Salt Lake City

8–10 Investment Actuary Symposium and AFIR Colloquium, Boston

9-12 Academy Life and Health Qualifications Seminar, Washington

11–13 IAA council and committee meetings,

Academy NEWS Briefs Lawson Leaving Academy

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HE ACADEMY’S EXECUTIVE DIRECTOR Rick

Lawson has accepted a position as vice president of federal government relations with the Principal Financial Group and will be leaving the Academy by the end of the year. Lawson, who came to the Academy in 1999, will be taking up his new position in Principal’s Washington office in January. “Since Rick joined the Academy, we have made great strides forward in the development of the Academy’s public policy, professionalism, and communications programs,” said Academy President Bob Wilcox. “Much of this progress is directly attributable to Rick’s dedicated leadership on behalf of the Academy.” A search committee to find Lawson’s successor

has been formed, consisting of Wilcox; Barbara Lautzenheiser, the Academy’s immediate past president; Peter Perkins, the Academy’s presidentelect; and former Academy presidents Larry Johansen, Dan McCarthy, and Mavis Walters. In his new position, Lawson will be focusing on issues related to Principal’s retirement and investor services business. Prior to coming to the Academy, Lawson served as vice president of federal affairs for the American Insurance Association and as assistant director of federal affairs with Hoffman-LaRoche. Lawson also served as counsel to the Senate Subcommittee on Labor, chief of staff to Sen. Don Nickles (R-Okla.) and staff director of the Senate Republican Policy Committee.

Washington

14–17 CAS annual meeting, Montreal 14–17 N.Z. Society of Actuaries biennial conference, Napier, N.Z.

15 Academy Stop-Loss Work Group meeting, Chicago

15–16 SOA critical illness seminar, Tampa, Fla. 16 Academy Casualty Practice Council meeting, Montreal

17–19 CAS/CIA joint meeting, Montreal 23 CIA professionalism workshop, Montreal 29 Academy new officer orientation, Washington

DECEMBER 1 Academy Life Financial Reporting Committee meeting, New Orleans

1–2 ABCD meeting, Delray Beach, Fla. 2–3 NAIC LHATF meeting, New Orleans 4–7 NAIC winter meeting, New Orleans 6 ASB Pension Committee meeting, Washington

13–14 ASB meeting, Washington

JANUARY 12–14 SOA longevity symposium, Orlando, Fla.

26 Academy new board member orientation, Washington

27 Academy Board of Directors meeting, Washington

27–28 Los Angeles Benefits Conference (ASPA, Academy), Los Angeles

WEB INTERFACE Links to documents underlined in blue are included in the online version of this issue at www.actuary.org/update/index.htm.

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Hill Reception Some 75 congres-

® Michael Carstens, assistant

sional staff joined the Academy public policy and communications staff on Oct. 6 to toast the impending close of the 108th Congress. The reception was held in the Capitol building, drawing a bipartisan crowd from both the Senate and the House of Representatives. “The event was an informal opportunity for us to talk with congressional staffers about key Academy priorities that are still under consideration in the waning days of Congress,” said Craig Hanna, the Academy’s public policy director. “It also gave us a higher profile as we prepare for continued work on these issues in the next Congress.”

vice president and actuary for Physicians Mutual Insurance Co. in Omaha, Neb., is the new chairperson of the Academy’s Medicare Supplement Work Group. ® Patrick Collins, vice president for American Re HealthCare in Princeton, N.J., is the chairperson of the Academy’s new Medical Reinsurance Work Group. Other members are Rob Bachler, assistant vice president for American Re HealthCare in Princeton; Karen Bender, chairperson of the Academy’s Association Health Plans Work Group and a principal with Mercer Oliver Wyman in Milwaukee; Lina Cheung, vice president for Platinum Underwriters Reinsurance in New York; James Gutterman, director of actuarial services for Horizon Blue Cross Blue Shield of New Jersey in Newark; Michael Kemp, president of ReAct Consulting International in Newbury, Mass.; Bernie Rabinowitz, a senior consultant with Reden & Anders in Chicago; Michael Rieth, an associate actuary with Allianz Life Insurance Co. of

HEALTH NEWS

On Oct. 4, the Academy commented to the Centers for Medicare and Medicaid Services on proposed new regulations governing the new Medicare prescription drug benefit and Medicare Advantage program, both part of the Medicare Modernization Act of 2003. November 2004

North America in Minneapolis; Tim Robinson, a consulting actuary for Niis/Apex Group Holdings in Princeton; Brian Shively, vice president of Summit Reinsurance Services in Fort Wayne, Ind.; Alden Skar, vice president and actuary for ING Re in Minneapolis; Cori Uccello, the Academy’s senior health fellow; Howard Underwood, head of medical informatics and quality metrics for Aetna in Blue Bell, Pa.; and Daniel Wolak, senior vice president group division for GenRe LifeHealth in Stamford, Conn. ® Kelly Munger, vice president, actuary, and controller for Allianz Life Insurance Co. of North America in Minneapolis, is the chairperson of the Academy’s Stop Loss RBC Work Group. Other members are Eric Griffin, assistant actuary for ING Re Group Life, Accident and Health Reinsurance in Minneapolis; James Kaiser, an actuary with ING Employee Benefits in Minneapolis; Jim Mange, chief executive officer of Health Reinsurance Management Partnership in Danvers, Mass.; Michael McLean, president


CASUALTY NEWS

The Academy’s Committee on Property and Liability Financial Reporting published guidance in October on new NAIC data testing requirements for loss reserve opinions. FINANCIAL REPORTING NEWS

Jay Morrow,

vice president and actuary for American International Underwriters in New York, has joined the Academy’s Financial Reporting Committee. LIFE NEWS

Joining the Academy’s Universal Life Work Group are Peter Boyko, NAIC actuary for Manulife Financial in Toronto; Gary Falde, vice president and appointed actuary for Pacific Life Insurance Co. in Newport Beach, Calif.; Carl Friedrich, a consulting actuary with Milliman in Lake Forest, Ill.; Ronald Klein, head of sales and marketing for Swiss Re in Armonk, N.Y.; Michael Palace, vice president and actuary for Transamerica Occidental Life in Los Angeles; Karen Rudolph, a consulting actuary with Milliman in Omaha, Neb.; Lance Schulz, assistant vice president and associate actuary for Jefferson Pilot Financial in Greensboro, N.C.; Steve Strommen, senior actuary for Northwestern Mutual in Milwaukee; Jeff Vipond, managing actuary at Mutual of Omaha Insurance Co. in Omaha, Neb., and John Weum, actuarial director of w w w. a c t u a r y. o r g

American Express Financial Advisors in Minneapolis. ® The Standard Valuation Law 2 Work Group has three new members: Cecil Bykerk, president of CD Bykerk Consulting in Omaha, Neb.; Shirley HweiChung Shao, vice president and actuary for the Prudential Insurance Co. in Newark, N.J.; and Scott Wright, vice president and actuary for Munich American Reassurance in Atlanta. ® Joining the Academy’s Life Valuation Subcommittee are Sheldon Summers, a member of the Life Practice Council and chief actuary for the California Department of Insurance in Los Angeles; and Scott Wright, vice president and actuary with Munich American Reassurance Co. in Atlanta.

Joe Sutliff

of Medical Risk Managers in South Windsor, Conn.; Michael Rieth, an associate actuary with Allianz Life Insurance Co. of North America in Minneapolis; and Eric Smithback, a consulting actuary with Milliman in Chicago.

If you received a check for $10,000 more than billed, no doubt you would contact the client. But what if the check overpaid by $100, or by $10, or by $1? At what point do you deposit the check and hope it won’t be discovered? Precept 1 says you don’t.

chairperson of the Academy’s Medicare Steering Committee and a consultant with the Hay Group in Arlington, Va.; and John Wilkin, a senior actuary with Actuarial Research Corp. in Columbia, Md.

problems at PBGC. ® An article in the Sept. 20 New Orleans City Business referred to the 2001 CSO Mortality Tables developed by the Academy and the SOA. ON THE MOVE

PENSION NEWS

The Academy’s Stock Options Task Force sent comments on Sept. 29 to the Financial Accounting Standards Board about a proposal to use a fair value index-adjusted method for valuing employee stock options. ® Joining the Academy’s Stock Options Task Force are Mark Evans, vice president and actuary at Aegon USA in Louisville, Ky.; and Nicholas Mocciolo, assistant risk manager for Hartford Investment Management Co. in Hartford, Conn., and Alan Perry, an associate actuary and investment consultant with Milliman in Wayne, Pa. ® Bruce Schobel, a former member of the Academy’s Board of Directors and a vice president and actuary with New York Life Insurance Co. in New York, is the chairperson of the Academy’s new Retirement Age Task Force. Other members are Anna Rappaport, a consulting actuary with Mercer Human Resource Consulting in Chicago; Dick Schreitmueller of Kensington, Md.; Thomas Wildsmith,

PROFESSIONALISM NEWS

The Council on Professionalism recently updated its applicability guidelines. Look for details in the December Update. ® Joining the Council on Professionalism are Vincent Amoroso, chairperson of the Academy’s Professional Legal Risk Task Force and president of RS Actuaries in Sarasota, Fla.; Donna Claire, the Academy’s vice president for life issues and president of Claire Thinking Inc. in Fort Salonga, N.Y.; Bruce Schobel, chairperson of the Academy’s Retirement Age Task Force and actuary with New York Life Insurance Co.; and Pat Teufel, a member of the Academy Board of Directors and consulting actuary and principal with KPMG in Hartford, Conn. IN THE NEWS

Ron Gebhardtsbauer, the

Academy’s senior pension fellow, was quoted in an Oct. 8 USA Today column about planning retirement around Social Security and in a Sept. 20 Pittsburgh Post-Gazette column on

Craig Raymond, chief actuary

of Hartford Life since 1994, has been named senior vice president and chief risk officer of The Hartford Financial Services Group and will head a new enterprise risk management function for The Hartford in Hartford, Conn. In related moves, James Trimble, formerly chief actuary of international operations at Hartford Life, will succeed Raymond as vice president and chief actuary, and Greg Mateja, formerly a vice president in the Hartford Life corporate actuarial department, will be moving to the new enterprise risk management unit, reporting to Raymond and focusing on acquisition opportunities. ® Susan Patschak has joined Endurance Specialty Insurance in Pembroke, Bermuda, as head of its property catastrophe reinsurance business unit. She was formerly chief actuary of the ACE Group of Companies. ® Karen MacDonald has been named actuarial manager for Molina Healthcare in Long Beach, Calif. She was formerly vice president and corporate actuary for the Transamerica Life Cos.

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Academy Comments on Revised Regs for EAs

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N SEPT. 28, THE ACADEMY’S Pen-

sion Practice Council, in coordination with members of the Academy’s Council on Professionalism, commented to the Joint Board for the Enrollment of Actuaries on potential revisions to regulations governing services provided by enrolled actuaries under ERISA. The Academy’s comments covered issues about enrollment and the renewal of enrollment; regulations on continuing professional education; types of enrollment statuses; and standards of conduct, performance, and practice. Key issues identified in the Academy’s comment letter include: ® The clarification and expansion of how core and non-core subject matter for continuing education is defined. The Academy suggested that core material include

Internal Revenue Code Sections 419, 419a, and 420, as well as subject matter on pension plan design, investment, finance, risk theory, and pension solvency issues. For non-core subject matter, the Academy recommended an expansion to include work dealing with accounting for retirement benefits other than pensions and consulting skills. ® How EA exams cover the selection of assumptions, specifically for asset rates of return. Given the difficulty of testing the subject with a standard multiple-choice exam, members of the Academy volunteered to assist the joint board’s advisory committee in developing appropriate exam material. ® The modification of regulations to permit the joint board to contract with the Actuarial Board for Counseling and Discipline (ABCD) for the investigation of complaints

ASB News

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against actuaries. Alternatively, the regulations could require each EA to join at least one actuarial organization within a year of enrollment and to maintain that membership—thereby becoming subject to the Code of Professional Conduct. The Academy also suggested that if this alternative is not feasible, the joint board could incorporate aspects of the code into its regulations. In a subsequent attachment, the Academy provided a document comparing joint board regulations with the code. ® The requirement of a minimum number of continuing education credits dedicated to professionalism issues, as a means of ensuring that EAs remain cognizant of professional issues that arise in everyday practice. — HEATHER JERBI

(ASB) was busy at its health filings for state insurance or health departments, the federal September meeting, approving one final revised Actu- government, and other regulatory bodies. The comment deadline arial Standard of Practice (ASOP) and three exposure is March 31, 2005. The second exposure draft is a proposed redrafts, two drafts for first exposure, and another for a vision of ASOP No. 12, Risk Classification for All Practice Areas, second exposure. which applies to actuaries when designing, reviewing, or changing Paper copies of the final standard and the exposure drafts are risk classification systems related to financial or personal security enclosed with this mailing of the Update, along with an updated systems regarding the classification of individuals or entities into version of the ASB’s CD-ROM, containing all standards and related groups to reflect the relative likelihood of expected outcomes. Proprofessionalism documents. fessional services that may fall under the Receiving final approval at the proposed standard include expert testiAn updated version of the September meeting was the revision of mony, regulatory and legislative activiASOP No. 21, Responding to or Assistties, and statements concerning public CD-ROM containing all ing Auditors or Examiners in Connection policy. The comment deadline for this with Financial Statements for All Practice exposure draft is March 15, 2005. standards and related Areas. This standard applies to actuarIn addition, the ASB is also exposprofessionalism documents is ies in all practice areas when providing ing for second comment a proposed professional services as a responding revision of ASOP No. 11, Financial enclosed with this Update. actuary or reviewing actuary in connecStatement Treatment of Reinsurance tion with an audit or examination of a Transactions Involving Life or Health Infinancial statement. The standard doesn’t apply to actuaries when surance. One key change made from the first exposure draft is providing services in connection with filings, such as tax returns the clarification that the proposed standard would apply when or Form 5500 filings, which may contain financial information but property/casualty companies reinsure life or health insurance. do not constitute financial statements as defined in the standard. Also, if a reinsurance transaction involves both life or health The standard becomes effective on April 30, 2005. While this insurance and P/C insurance, the actuary should use professional standard isn’t included in the new CD-ROM, it can be downloaded judgment to determine whether ASOP No. 11, ASOP No. 36 on from the ASB website at www.actuarialstandardsboard.org. P/C reserving, or aspects of both would apply. The second expoNow open for your comments are two new exposure drafts. sure draft will be available for comment until March 31, 2005, The first is a proposed revision of ASOP No. 8, Regulatory Filings and P/C actuaries are encouraged to review the clarification of for Health Plan Entities, which applies to actuaries when perform- the scope and to comment as needed. ing professional services with respect to preparing or reviewing —CAREN CLARK

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HE ACTUARIAL STANDARDS BOARD

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November 2004


BOARD OF DIRECTORS, 2004-2005

Robert Wilcox President

Peter Perkins President-Elect

Barbara Lautzenheiser Immediate Past President

Robert Anker Past President

John Parks Secretary-Treasurer

Michael Abroe VP, Health

Donna Claire VP, Life

Burt Jay VP, Risk Management Financial Reporting

Ken Kent VP, Pension

Mary D. Miller VP, Casualty

Geoffrey Sandler VP, Professionalism

Joseph Applebaum

Robert Beuerlein President-Elect, SOA

Bill Bluhm President, CCA

Paul Braithwaite President-Elect, CAS

Thomas Campbell

Stephen D’Arcy President, CAS

Frederick Kilbourne President-Elect, CCA

Stephen Kellison President, SOA

Ethan Kra

Elise Liebers

Stephen Radcliffe

Stephen Rosen President, ASPPA

David Sandberg

John Schubert

Sarah Simoneaux President-Elect, ASPPA

P.J. Eric Stallard

Andrea Sweeny

Patricia Teufel

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Odell Receives Farley Award

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F YOU ARE A YOUNGER ACTUARY,

fairly new to the profession, you probably don’t know Bill Odell, who received the Jarvis Farley Service Award at the Academy’s Oct. 18 annual meeting luncheon in Hawaii. But it’s a sure bet that Odell has had a huge impact on the way you conduct your professional life. Consider: Those continuing education credits that you pursue each year to keep current in your profession. Or the reason you decided to become an actuary in the first place. Current continuing education requirements for the profession are an outgrowth of recommendations from a Conference of Consulting Actuaries (CCA) Task Force on Professional Education that Odell chaired from 1984 to1986. “When we established the conference’s continuing education program, there were no formal requirements throughout the profession,” Odell recalled in a recent interview with the Update. “A group of us recognized a need. You cannot sit there with your exams completed and pretend nothing is happening in the world.” Similarly, from 1961 to 1968, Odell contributed to and eventually chaired a Society of Actuaries’ career encouragement program that produced the first recruiting brochures for the actuarial profession and

Wonderful Life,

organized a network for contacting college professors who might be able to promote the profession to promising students. Odell, who has been an actuary for 46 years, says he chose the profession in a far more informal fashion: in a frat house bar after a football game. “I was going for a combination of business and math, and it seemed a good fit,” Odell said, although he adds that one of his lecturers at the University of Pennsylvania sealed the deal with classroom anecdotes that made the insurance industry seem vivid and exciting. Odell’s service to the profession dates back to the beginning of his career. “I finished the first set of exams in 1958, and almost immediately I got involved with the profession,” Odell recalled. A charter member of the Academy, Odell has served as a member of the Academy’s Board of Directors, as well as a CCA vice president and member of the CCA Board of Directors. Over the years, Odell also served as a member and chairperson of the Academy’s Committee on Health Insurance, as a member and chairperson of its Planning Committee, as a member and chairperson of its Task Force on Actuary/Auditor Relations, and as a member of the Academy’s Health Practice Council, Committee on Financial Reporting Principles, and Subcommittee on Health and Welfare Plans. Odell continues

continued from Page 1

® Establishing, maintaining, and enforcing high professional stan-

dards of actuarial qualification, practice, and conduct ® Assisting in the formulation of public policy by providing independent and objective information, analysis, and education. Over the past six years, the Academy has made phenomenal progress toward achieving its mission and the profession’s vision. Guiding this effort were Academy officers and volunteers, Rick Lawson (the Academy’s departing executive director, who will be missed), and Academy staff. Just in the past year alone, these efforts have borne fruit in many ways: The Academy is working increasingly closely with entities such as the Public Company Accounting Oversight Board, the Securities and Exchange Commission, the Financial Accounting Standards Board, and the Joint Board for the Enrollment of Actuaries as they develop policy that affects our members. Our program of Capitol Hill visits and briefings continues to stoke demand for actuarial expertise by legislators and policy-makers. And a greatly expanded calendar of Academy-sponsored continuing education in public policy and nation-specific issues drew record numbers

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to serve as chairperson of the General Committee of the Actuarial Standards Board. Although his professional activities allowed him to help shape the profession that he loves, Odell said that his fondest memories are of the people that he worked with on various professional committees and task forces. “There is the intellectual challenge, but where I’ve gotten my kicks in all this work is with the people,” Odell said. “As you get older, one of the real rewards is looking back and seeing all the relationships that you have established.” Odell knew and worked with Jarvis Farley (“one of the great ones”) and other Jarvis Farley award-winners, including Burt Jay, the Academy’s current vice president for financial reporting issues, who he first met as an actuarial student. “If you are a reasonably good actuary, your success is assured, that’s not an issue,” Odell said, modifying advice he heard at a recent college reunion. “But what are you going to do with your life? You need to be helping kids along, helping the community along, and helping the profession along. And the time to start is when you are young.”

November 2004

of participants in our webcasts, seminars, and the inaugural Spring Forum, which elicited rave reviews from attendees. In addition to offering continuing education, the forum was designed to highlight the work of Academy volunteers and to obtain input on issues as the Academy is working on them. The most frequently heard comment during the Spring Forum was “This is leading-edge material.” That’s what the Academy is about—leadership in leading-edge areas of public policy at the international, national, and state levels. Through the efforts of many, we have enhanced and enabled the phenomenal potential of the Academy and of actuaries. But that statement is redundant. What is the Academy? The Academy is its members. Each member is a leader in the profession, possessed of integrity, commitment, preparedness, empathy, and a willingness to stand up for what he or she believes. Each member has phenomenal potential that the Academy is dedicated to enhancing and enabling. Our numbers are small, but our impact is astronomical. Barbara Lautzenheiser became the Academy’s immediate past president on Oct. 18.


Wilcox Takes Helm,

continued from Page 1

The Academy held its annual meeting jointly with the Conference of Consulting Actuaries annual meeting at the Fairmont Orchid, on the big island of Hawaii. Outgoing President Barbara Lautzenheiser noted that the jointly sponsored annual meeting represented a new venture for the Academy (see story below). “This is the beginning of what we hope will be a strong strategic alliance between our two organizations,” she said. And Wilcox said the joint annual meeting was “a small indication of what can result if we work together.” Farley Award Wilcox presented the 2004 Jarvis Farley Service Award to Wilbur Odell, a consulting actuary with MBA Actuaries in Winston-Salem, N.C. In his acceptance remarks, Odell said he’d been speechless when told he would receive the award. “Something like this is not something earned. It is bestowed,” he said. “We stand on the shoulders of those who came before us.” (See profile, Page 6.) Nickles Speech Nickles, who is retiring after 24 years in the Senate, gave an informal speech at the Academy luncheon. One of the first people he

hired as a senator, he said, was Rick Lawson, who did a “fantastic job” as his general counsel and chief of staff. “You had one of the best as executive director,” Nickles told Academy members. Nickles, who introduced the Bush administration’s 2003 tax cut bill in the Senate, spoke at length about various tax laws and tax proposals. He estimated that the federal deficit will shrink from about $414 billion this year to about $250 billion in the next year or so. New Board Members Five new Executive Committee members took office during the annual meeting: Peter Perkins as president-elect, John Parks as secretary-treasurer, Mary D. Miller as vice president for casualty issues, Mike Abroe as vice president for health issues, and Geoff Sandler as vice president for professionalism. Tom Campbell and Elise Liebers were elected as regular Academy directors. The Academy’s new special directors are Bob Beuerlein (president-elect, SOA); Paul Braithwaite (president-elect, Casualty Actuarial Society); Fred Kilbourne (president-elect, CCA); and Sarah Simoneaux (president-elect, American Society of Pension Professionals and Actuaries). —ANNE RICHARDSON

Strategic Alliances Task Force Launched

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CADEMY PRESIDENT BARBARA J. LAUTZENHEISER and Conference

of Consulting Actuaries (CCA) President Margaret Tiller Sherwood announced the creation of a Joint Task Force on Strategic Alliances earlier this year, and provided further discussion during the Academy/CCA Annual Meeting in Hawaii. The task force rose out of the potential synergies between the two organizations that became apparent during the planning of their joint annual meeting. The task force met first in June and most recently at the joint annual meeting. The purpose of the task force is to “explore ways for the Conference and the Academy to maximize these potential synergies in fulfilling our respective visions and missions,” Sherwood announced at the opening session of the meeting. Because both the Academy and the CCA are multidisciplinary, provide continuing education credit, and have overlapping memberships, there appears to be significant potential to build strategic alliances on meetings, publications, and other projects. “Our goal is to better serve the members of the profession by combining the strengths of the Academy and the Conference while w w w. a c t u a r y. o r g

maximizing our resources,” Lautzenheiser said during her opening remarks at the Academy’s annual meeting luncheon. “We are completely open to creative ideas to improve our services to the members of the Academy and the Conference,” said Bob Wilcox, who was installed as the Academy’s new president at the meeting. “We will look at all aspects of our organizations, everything from the joint sponsorship of meetings, shared services, and contracting with each other, all the way to a possible union of the two organizations in the future.” The task force membership includes both current and past leaders of both organizations (see box). Wilcox and Bill Bluhm, the Conference’s new president, will replace Lautzenheiser and Sherwood as co-chairs of the task force. Bluhm noted that the task force has already agreed that “retaining the identity, missions, and credentials of both organizations is an absolute priority.” Once there are solid recommendations from the task force, it plans to solicit comments from the membership of both organizations. “This will be an open process, and we will seek the input of the members

of both the Conference and the Academy before any major proposals become final,” said Wilcox. Regular updates on the task force will be posted on both the Academy and Conference websites.

Task Force Members Bill Bluhm, CCA president (co-chair) Rita DeGraaf, CCA executive director Ken Kent, Academy vice president for pension issues/former CCA president Fred Kilbourne, CCA president-elect Barbara Lautzenheiser, Academy immediate past president Rick Lawson, Academy executive director John Parks, Academy secretary-treasurer/ CCA secretary Peter Perkins, Academy president-elect Bob Rietz, former Academy vice president for professionalism issues/former CCA president Tom Terry, CCA treasurer Margaret Tiller Sherwood, CCA immediate past president Bob Wilcox, Academy president (co-chair)

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The Actuarial Update ASSOCIATE EDITORS

William Carroll Andrew Erman Ronald Gebhardtsbauer Rade Musulin Adam Reese Geoffrey Sandler

2005 Life & Health Valuation Law Manual The 2005 edition of the Academy’s Life and Health Valuation Manual, designed to help appointed actuaries comply with NAIC model standard valuation law and the model actuarial opinion and memorandum regulation, can be ordered now for delivery in late January.

EDITOR

Linda Mallon (editor@actuary.org) DESIGN AND PRODUCTION

BonoTom Studio Inc. MARKETING AND PUBLICATION PRODUCTION MANAGER

Joseph Vallina

American Academy of Actuaries PRESIDENT

Robert Wilcox PRESIDENT-ELECT

Peter Perkins SECRETARY-TREASURER

John Parks VICE PRESIDENTS

Michael Abroe Donna Claire Burt Jay Ken Kent Mary D. Miller Geoffrey Sandler EXECUTIVE DIRECTOR

Richard Lawson DIRECTOR OF COMMUNICATIONS

Noel Card ASSISTANT DIRECTOR FOR PUBLICATIONS

The manual contains a summary of the valuation laws of all 50 states, the District of Columbia, and Puerto Rico, as well as copies of the NAIC’s model laws and regulations that may have an effect on reserve calculations. It includes a discussion of generally distributed interpretations and copies of the current actuarial guidelines from the NAIC Examiners Handbook. The manual is available through the following: ® A single-user-access license subscription, providing a sole user unlimited web access to the manual until Dec. 31, 2005 (subscribers receive a user name and password granting access to a restricted area of the Academy’s website) ® A group-access license subscription, permitting a com-

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Actuarial_Update_November_2004  

T HE N EWSMONTHLY OF THE A MERICAN A CADEMY OF A CTUARIES BY B ARBARA L AUTZENHEISER ASB News One final standard and three exposure drafts a...

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