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IAI Actuarial Core Principles · Business Management · Actuaries Act, 2006 and IAI governance

A policy think-tank is comparing three instruments: the Actuaries Act, 2006, the Actuaries' Code and an insurer's internal underwriting manual. Which statement correctly distinguishes the Act's role within this framework?

The Actuaries Act is primary legislation creating the statutory Institute and its regulatory powers. The Actuaries' Code is a professional conduct standard operating within that framework. An insurer's manual is merely a private document and cannot override statute or the Code.

  1. AThe Act is a statute creating the statutory Institute and its regulatory powers, while the Code is a professional standard of conduct issued under the Institute's framework, and the manual is only a private business documentCorrect
  2. BThe Act and the Code are identical documents issued by the insurance regulator
  3. CThe underwriting manual overrides the Act where they conflict
  4. DThe Code is a statute passed by Parliament and the Act is a voluntary guideline
  5. The Act sets detailed actuarial standards for each product line, replacing the need for a Code

Explanation

The Act is primary legislation that establishes the Institute and its powers. The Code sets conduct expectations for members within that framework. A private manual cannot override statute, and the Act does not replace professional standards.

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