ASOP No. 41, Actuarial Communications, along with Precept 4 of the Code, is one standard that will apply to virtually all actuarial services. “Section 4. Communications and Disclosures” in ASOP No. 41 contains four subsections: 4.1 discusses the disclosures that should be in any actuarial communication; section 4.2 discusses “Certain Assumptions or Methods Prescribed by Law”; section 4.3 is “Responsibility for Assumptions and Methods”; and section 4.4 covers “Deviation from the Guidance of an ASOP.” The Actuarial Standards Board has brought consistency to the format of ASOPs, including a “Communications and Disclosures” section in each ASOP. The “Communications and Disclosures” sections in other ASOPs, in addition to providing guidance specific to that ASOP, refer the Actuary to ASOP No. 41 Section 4, including specific reference to sections 4.2, 4.3, and 4.4 described above. Concerning these three sections, which of the following statements are true?
1. Section 4.2 requires, where assumptions are set by law, that the actuary estimate the impact of using assumptions he or she believes are reasonable, if practicable
2. Section 4.3 describes what must be disclosed, where in situations other than described in section 4.2, the actuary states reliance on other sources for assumptions and/or methods
3. Section 4.4 describes how an actuary can comply with a particular ASOP, even where, in the actuary’s professional judgment, the actuary has deviated materially