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

A student claims the Actuaries Act, 2006 gives the Institute only an examination role and nothing about the public interest. Which response best reflects the Act's overall objective?

The Act aims at regulation and development of the actuarial profession in India, covering membership and disciplinary matters that support public confidence. It is not limited to examinations, and it neither sets premium rates nor makes members government employees.

  1. ACorrect, because the Act is silent on professional conduct
  2. BIncorrect, because the Act is meant to ensure the profession is regulated and developed in India, including matters of membership and discipline that support public confidenceCorrect
  3. CCorrect, because discipline is handled solely by courts
  4. DIncorrect, because the Act makes the Institute responsible for setting insurance premium rates
  5. Incorrect, because the Act makes every member a government employee

Explanation

The Act covers regulation and development of the profession, including membership and disciplinary matters, which supports public confidence. It does not give the Institute premium-setting power or make members government employees.

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