CANADIAN INSITITUE OF ACTUARIES2007 Annual Meeting

Vancouver

Peter E. Manderville, PartnerGowling Lafleur Henderson LLP

June 29, 2007

Legal Issues for Actuaries vis-à-vis Insurers

• Pro Act Professional Liability Insurance Program

• Insurers’ duty to defend/right to associate in the defence    • Defence costs      • Insurers’ indemnity obligation

     Policy Exclusions

     What is a “claim”?

     Disclosure issues

     Insurance coverage issues/coverage actions

Legal Issues for Actuaries vis-à-vis Insurers (continued)

Legal Issues/Risk Issues for Actuaries vis-à-vis Clients

      Do actuaries have fiduciary obligations to pension beneficiaries?

      Derosa v. Savasta and Company

      Ruddell v. B.C. Rail

      Retainer agreements with clients

Legal Issues/Risk Issues for Actuaries vis-a-vis Clients (continued)

      Full disclosure of assumptions

      Solvency valuations versus going concern/experience

Risk issues for clients and actuaries      Long-term assumptions versus current investment volatility

      Fluctuating interest rates

      Corporate restructuring/insolvencies

      Mergers/acquisitions

Discipline Issues for Actuaries

      Impact on civil liability

Criminal Charges Against Actuaries

      In what circumstances could they possibly be justified?

      R. v. Norton

      Impact of criminal charges upon civil liability

Thank you.

Peter E. Manderville, Partner Gowling Lafleur Henderson LLPT (416) 369-4580Peter.Manderville@gowlings.co