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Group & Health Core Exam Old Group & Health Design & Pricing Forum

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Old 04-16-2019, 07:56 AM
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Default 2018 Fall #6c - ASOP 8 vs ASOP 26

The exam question says
"List and describe the recommended practices for a filing actuary to demonstrate compliance with the applicable laws for Small Group Rate Filing."

The sample solution is from ASOP 8, and specifically says "Many candidates identified the incorrect ASOP" - which isn't surprising because the wording of the question sure sounds to me like they want ASOP 26. In fact, ASOP 8 specifically says "The filings covered by this standard do not include filings to certify compliance with rating methods and other actuarial practices applicable to carriers for small employer health plans".

My question is - what key words in the question did I miss that should have pointed me to ASOP 8 rather than 26?
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Old 04-16-2019, 11:40 AM
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This thread from a few years ago might be helpful: http://www.actuarialoutpost.com/actu...d.php?t=275137
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Old 04-16-2019, 12:19 PM
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Quote:
Originally Posted by Bassooner View Post
This thread from a few years ago might be helpful: http://www.actuarialoutpost.com/actu...d.php?t=275137
Thank you, this was perfect! Some key notes (for those following along at home) from that 2014 thread:

Quote:
Originally Posted by Kmc View Post
ASOP 8 applies to regulatory filings that require the projection of contingent events.
Rate filings are "Projections of contingent events" which is why the exam question I was asking about relates to this ASOP.

How ASOP 26 is different:

Quote:
Originally Posted by Kmc View Post
ASOP 26 is not so much related to rate filings but rather to a separate requirement for an Actuary to certify that the small group rates have been tested for compliance with applicable small group regulations such as a maximum range between the highest and lowest rates, adjusted for allowed rating variables. The compliance testing does not directly involve the projection of contingent events and this is why ASOP 8 does not apply to the certification.
Quote:
Originally Posted by Sir Deicide View Post
The certification has to state that groups comply with allowable characteristics, rating bands, class rules, 15% renewal rule, and such. Starting next year, the certifications will be for grandfathered business, since ACA overrides much of the laws of the early 90s for non-GF business.
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