> As Matt pointed out, I think it is important to distinguish Proofing LOA
> from Authentication LOA.

These really aren't two separate concerns.  Matt noted that proofing
and inherent credential strength are inputs to LOA.  There are other
concerns as well that are involved for certain types of credentials:

 - Security of communication channel
 - Revocation policy

I share this to point out that there are a number of considerations
that impinge upon LOA.  It seems to me that attempting to convey all
of these between client and server is practically impossible for all
conceivable credential types; moreover it's information that in most
environments would be shared knowledge.  The relying parties would
simply need to agree on a vocabulary to describe a particular
credential; the resulting LOA would naturally be derived from it.  It
seems to me conveying the server's sense of LOA along with descriptive
authentication method identifiers (e.g. authentication context URNs
defined in 
http://docs.oasis-open.org/security/saml/v2.0/saml-authn-context-2.0-os.pdf)
would be sufficient to allow clients to make authorization decisions.

M

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