What protects the confidentiality of the material in both the report and the summary, and provides legal protection to the appointed actuary except in cases of fraud or willful misconduct by the…

Question

Options

• AActuarial law
• BActuarial opinion summary
• Cmodel law
• Dassessment procedure

• A
  6% (1)
• B
  11% (2)
• C
  78% (14)
• D
  6% (1)

Explanation

Model law - typically referencing an NAIC model law such as the Actuarial Opinion and Memorandum Regulation - is the mechanism that simultaneously shields the actuarial memorandum and opinion summary from public disclosure and grants the appointed actuary qualified legal immunity, with the carved-out exception of fraud or willful misconduct on the actuary's part.

Why the distractors are wrong:

• A (Actuarial law): Not a defined legal instrument; there is no single statute called "actuarial law" that confers these specific protections.
• B (Actuarial opinion summary): This is the document being protected, not the legal framework doing the protecting.
• D (Assessment procedure): Relates to how insurers are financially assessed/examined, not to confidentiality or actuary liability protections.

Memory tip: Think "Model = Mold for protection" - model laws are NAIC templates that states adopt to create uniform rules; when something needs both confidentiality and actuary liability coverage in one package, it's the model law doing the work.

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