Appointed Actuary

Appointed Actuary

An actuary employed by an insurance company to ensure compliance with all required reserve statutes. In the United States, insurance companies are required to have a certain percentage of their assets set aside to pay claims should the need arise. The NAIC requires insurance companies to employ appointed actuaries to make certain they are able to pay unexpected liabilities.
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In addition to serving as an appointed actuary for purposes of defining liability reserves, actuaries have taken active roles in assessing solvency, corporate planning, developing enterprise risk management systems, measuring solvency, valuing portfolios and assets, determining embedded and other forms of value, financial reporting, determining pricing and profits, and developing loss evaluations.
The group will be sending work requests to other NAIC working groups and task forces to add, for example, an existing corrective powers supervisory element of the Hazardous Financial Condition Model Regulation into the accreditation standard for corrective action, add requirements for regulators to ask pointed questions about an insurers or reinsurers governance practices and the suitability of offices and directors and allow a state commissioner wide enough authority to deem an appointed actuary unsuitable for a property/casualty insurer, as is available now to regulators for life insurance actuaries.
Before becoming a non-executive director in 2004, David Rutter was the society's appointed actuary and later became finance director.
Keith Nicholson, former head of KPMG's financial services practice, will be named deputy chairman while David Rutter, the society's former appointed actuary and later finance director, stays on as vice-chairman.
The notification must also include a certification signed by the appointed actuary of the company stating what the company's reserve methodology is for the preneed insurances policies issued after January 1, 2009, but before January 1, 2012, as well as the 2001 CSO Mortality Tables' minimum standards that generate adequate reserves for the insured person(s).
State insurance commissioners are coming closer to developing a system of principles-based reserving that would allow a company's appointed actuary greater discretion in assessing a company's risks and the reserving that is needed to keep a company financially healthy.
The Financial Services Authority said Christopher Headdon, also Equitable's appointed actuary, was not "fit and proper" to hold such a position.
The Financial Services Authority said Christopher Headdon, who was also Equitable's appointed actuary, was not 'fit and proper' to hold such a position.
Lord Penrose was also critical of Roy Ranson, who for a time was both chief executive and appointed actuary at Equitable.
He added that non-executive directors were wholly dependent on actuarial input from Roy Ranson, who was for a time both chief executive and appointed actuary, and they were largely incapable of exercising any influence on the actuarial management of the society.
David Belsham, appointed actuary of Prudential Assurance, said: ``Although claim values have fallen this year the returns on policies will, in general, still exceed those achieved on deposit-based products and will be significantly in excess of those achieved on alternative exposed investment products.