qualified privilege
why the AA is not liable in civil action seeking indemnification if AA makes good faith report pertains to report on MAE?
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why the AA is not liable in civil action seeking indemnification if AA makes good faith report pertains to report on MAE?
Comments
Trust in Professional Judgment: The framework is designed so that actuaries can offer their professional judgments without the fear of backlash for every decision or interpretation. This encourages them to be candid and honest.
Good Faith Protection: If an AA makes a decision in "good faith," it means they truly believed they were doing the right thing based on the available information. The system doesn't want to punish someone for an honest mistake or oversight.
Promote Rigorous Analysis: If AA were constantly under threat of litigation, they might be more conservative or even avoid making certain judgments. This could stifle innovation and thorough analysis.
Clarity of Role: The AA’s job is to provide an analysis and opinion. They don’t make the business decisions for the company. So, as long as they've done their part honestly and professionally, holding them liable could blur the line of their responsibility.
Remember, though, even with these protections, actuaries are still bound by professional standards and codes of conduct. If they're found to act with negligence or without professional integrity, there can be professional consequences.