Actuarial Soundness (Actuarially Sound)
Mr. Koenig said the area where the working group could make the most impact was to set standards for the actuaries, to determine what is an actuarially sound illustration.
2.3 Actuarial Soundness—The phrase “actuarial soundness” has different meanings in different contexts and might be dictated or imposed by an outside entity. In rendering actuarial services, if the actuary identifies the process or result as “actuarially sound,” the
actuary should define the meaning of “actuarially sound” in that context.
2013 - ACTUARIAL STANDARD OF PRACTICE NO. 1 - Introductory Actuarial Standard of Practice, Actuarial Standards Board (ASB)