Exceptions to Definition of Qualified Actuary

The following information on the definition of qualified actuary is very detailed but it's new for the 2020.Fall exam. I would recommend learning it because it's an important definition.

Anyway, an actuary normally has to satisfy conditions (i), (ii), (iii) to be considered a qualified actuary. In my own mind, I remember these 3 items as follows:

(i) SAO education & experience

(ii) AAD (Accepted Actuarial Designation)

(iii) member of professional actuarial body

But there is an exception to (i) & (ii). Even if you don't satisfy (i) & (ii), you can still be a qualified actuary if:

you are evaluated by the Academy’s CPC (Casualty Practice Council) and determined to be a Qualified Actuary for particular lines of business

But there's more (sorry, blame the NAIC.) The exception above falls into the category of Special Situations, of which there are two:

1. The AA (Appointed Actuary) is a qualified actuary by the exception above
2. The AA (Appointed Actuary) is not a qualified actuary but is approved by the domiciliary commissioner.

Then for both of these special situations:

the company must attach, each year, the approval letter and reference such in the Identification paragraph of the SAO

In conclusion, you should know:

→ what are the 2 special situations

→ when is an approval letter required (required in the "special situations")

→ where in the SAO this letter be referenced (must appear in Identification section.)