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IAI Actuarial Core Principles · Business Management · Activities of the Institute of Actuaries of India

A student asks why the IAI, rather than a university, sets the Core Principles examinations that must be passed to qualify as an Associate or Fellow. Which answer is most accurate?

The IAI sets the Core Principles exams because the Actuaries Act, 2006 makes it responsible for regulating the profession, including prescribing the education and examinations needed to become an Associate or Fellow. Universities are not banned, and the insurance regulator does not set the papers.

  1. ABecause the Act gives the Institute the function of regulating the profession, which includes prescribing the education and examinations needed for membershipCorrect
  2. BBecause universities are legally banned from teaching actuarial subjects
  3. CBecause the exams are set by the insurance regulator and only administered by the IAI
  4. DBecause membership is granted automatically to anyone who attends classes
  5. Because the Institute is a private company and may set any exam it likes without a statutory basis

Explanation

Under the Actuaries Act, 2006 the Institute's functions include regulating the profession, which covers prescribing qualifications, courses and examinations for membership. Universities are not banned, the regulator does not set the exams, and membership is not automatic. The IAI's power is statutory, not merely that of a private company.

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