IAI Actuarial Core Principles · Business Management · Professional negligence
Meera, a consulting actuary in Pune, is engaged by a mid-sized insurer to value its reserves. Her client later alleges she was negligent. Which of the following best describes the standard of care a court would expect from Meera in performing this work?
Meera is judged by the standard of a reasonably competent actuary working in that field. The law does not demand the skill of the most eminent practitioner, nor the care of a layperson, because the duty is measured against ordinary professional competence.
- AThe care and skill of a reasonably competent actuary practising in that fieldCorrect
- BThe highest level of skill attainable by the most eminent actuary in India
- CThe level of care an ordinary layperson would take with their own affairs
- DWhatever standard Meera personally promised in conversation, regardless of professional norms
- A standard fixed solely by the fee she charged the insurer
Explanation
A professional is judged against the ordinary skill of a reasonably competent member of the same profession in the same field. It is neither the best expert nor a layperson. Fees and casual promises do not set the legal baseline.
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