Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Tuesday, September 24, 2013

Actuaries Aren't Fiduciaries


In Chua v. Shippee, the U.S. District Court for the Northern District of Illinois dismissed breach of fiduciary duty claims brought against an actuary.

The taxpayers in this case sued an actuary who gave “bad” advice about a 412(i) life insurance plan.  The court found the actuary’s advice was not enough to establish a fiduciary relationship because the clients always retained final decision-making authority.

This decision is good news for actuaries who wouldn’t want the higher duty of care that comes with being a fiduciary as well as the added liability for breaches of co-fiduciaries.  

See Timothy Muth, United States: Actuaries Are Not Fiduciaries (And That’s a Good Thing), Mondaq, Sept. 23, 2013.


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