F. George McDuffee wrote:
On Tue, 27 Apr 2010 05:38:26 -0700, "John R. Carroll"
wrote:

In most states, annuity and insurance companies do not have
this option as their actuarial assumptions and calculations
are continually monitored/checked/verified and their
accounts audited by the regulatory agencies. Play fast and
loose in these areas and the regulators will seize the
company.

All that means is that voters have got to step up for a change and
hold up their end of the bargain that is America.
Crappy politicians are the result of crappy voters.
==============
Public -- private -- makes no difference. For one example
of what happens when the actuaries tell the boss what s/he
wants to hear:


http://www.sacbee.com/2010/04/30/271...advertent.html

Anthem Blue Cross admits 'inadvertent miscalculations' in
rate hikes
By Bobby Caina Calvan
Published: Friday, Apr. 30, 2010 - 12:00 am | Page 1A

Anthem Blue Cross used deeply flawed math and assumptions
when it announced plans to hike premiums by as much as 39
percent for thousands of California subscribers, the
Department of Insurance announced Thursday.

Acknowledging that it had made "inadvertent
miscalculations," the state's largest for-profit health
insurer said it would withdraw its controversial rate
filing. The company said it is considering re-submitting its
filing as soon as next month but did not disclose specifics.

The decision to withdraw its original proposal brings relief
to more than 700,000 Blue Cross subscribers in California
who buy health policies on their own.
snip
Insurance Commissioner Steve Poizner, a Republican running
for governor, hired an outside actuary in February to
investigate the proposed rate hike.

"We found substantial mistakes," Poizner said, adding that
the errors "would have led to massive and unjustified rate
increases. We notified Anthem of these errors, and they
admitted to the mistakes.
snip
=========


I think you've got it backwards George.
The boss told their regulatory committee to go ahead and monkey around with
the numbers so an increase in rates would be justified.
They got caught.

--
John R. Carroll