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

Nisha is explaining to a trainee why the IAI's examinations and membership matter. Which statement about the Institute's role in qualifying actuaries is correct?

The IAI itself prescribes the educational qualifications and conducts the examinations, including the Core Principles subjects, that lead to membership. Membership is not granted through employment tenure, a commerce degree, insurer decisions or the insurance regulator's examinations.

  1. AThe Institute prescribes the educational qualifications and conducts the examinations that lead to membership, such as the Core Principles subjectsCorrect
  2. BMembership is granted automatically to anyone employed by an insurer for five years
  3. CQualification is decided entirely by individual insurance companies
  4. DExaminations are conducted only by the insurance regulator
  5. Membership requires no examinations if the person holds a commerce degree

Explanation

The Institute prescribes the qualifications and conducts the examinations, including the Core Principles subjects such as CS1, CM1 and CB3, that lead to membership. Employment length, a commerce degree or a company's decision does not confer membership. The insurance regulator does not run the examinations.

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