DOCSLIB.ORG

Guide to SOA Written Exams

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Guide to SOA Written Exams Guide to SOA Written Exams GUIDE TO SOA EXAMS Updated November 2020 Guide to SOA Exams Table of Contents 1. INTRODUCTION ............................................................................................. 1 1.1. Purpose of this Document ................................................................................................... 1 1.2. Education Principles ............................................................................................................ 1 1.2.1. Assessment Methods Principle .......................................................................... 2 1.2.2. International Organizations Principle ................................................................. 3 1.3. Organizational Structure of Education ............................................................................... 3 2. OVERVIEW AND DEFINITIONS ..................................................................... 3 2.1. Designations/Credentials .................................................................................................... 3 2.1.1. Meaning of the ASA ........................................................................................... 3 2.1.2. Meaning of the FSA ........................................................................................... 4 2.1.3. Meaning of the CERA ........................................................................................ 4 2.2. Component Groupings ........................................................................................................ 4 3. DISCIPLINE .................................................................................................... 4 3.1. Introduction .......................................................................................................................... 4 3.2. Code of Conduct for Candidates ........................................................................................ 5 3.2.1. The Candidate Code .......................................................................................... 5 3.2.2. Enforcement of the Candidate Code .................................................................. 6 3.3. Exam-related Discipline ....................................................................................................... 6 3.3.1. Confidentiality of Questions ............................................................................... 6 3.3.2. Computer-based Tests ....................................................................................... 7 3.3.3. Proctored Examinations ..................................................................................... 7 3.3.4. E-Learning Assessments ................................................................................... 7 3.3.5. Discipline Processes and Procedures ............................................................... 8 4. CURRICULUM DEVELOPMENT .................................................................... 9 4.1. Definition ............................................................................................................................... 9 4.2. Committee Structure ............................................................................................................ 9 4.3. Timing of Changes ............................................................................................................. 10 4.3.1. Associateship Examinations ............................................................................ 10 4.3.2. Fellowship Examinations .................................................................................. 10 4.4. Learning Objectives and Outcomes ................................................................................. 11 4.4.1. Definitions......................................................................................................... 11 4.4.2. Translation to Exam Questions ........................................................................ 11 © Society of Actuaries 2019 ii Guide to SOA Exams 5. EXAMINATION DEVELOPMENT ................................................................. 14 5.1. Committee Structure .......................................................................................................... 14 5.2. Steps In Exam Preparation ................................................................................................ 14 5.3. Written Answer ................................................................................................................... 15 5.3.1. Case Study ....................................................................................................... 15 5.3.2. Cognitive Levels ............................................................................................... 15 5.3.3. Verb List ........................................................................................................... 16 5.3.4. Examples of Verb Use ..................................................................................... 17 5.3.5. Integrated Questions ........................................................................................ 22 5.3.6. Point Values ..................................................................................................... 22 5.4. Multiple Choice Questions ................................................................................................ 22 5.4.1. Use of Pilot Questions ...................................................................................... 22 5.4.2. Instant Results ................................................................................................. 22 6. GRADING AND PASS MARK SETTING ...................................................... 23 6.1. Guiding Principles .............................................................................................................. 23 6.2. Written Answer ................................................................................................................... 23 6.2.1. Process ............................................................................................................ 23 6.2.2. Setting the Pass Mark ...................................................................................... 23 6.3. Multiple-Choice Exams ...................................................................................................... 24 6.3.1. New Topics or Exams – First Administration ................................................... 24 6.3.2. New Topics or Exams – Next Several Administrations .................................... 24 6.3.3. Mature Topics or Exams .................................................................................. 24 6.4. E-Learning Assessments .................................................................................................. 25 6.4.1. End of Module Exercises ................................................................................. 25 6.4.2. Decision Making and Communication .............................................................. 25 6.4.3. FAP End-of-Module Assessments. .................................................................. 25 6.4.4. FAP Final Assessment ..................................................................................... 25 7. MODEL SOLUTIONS .................................................................................... 25 7.1. Model Solution Overview ................................................................................................... 25 7.2. Additional Components of a Model Solution ................................................................... 26 8. AFTER THE EXAM ....................................................................................... 26 8.1. Unusual Circumstances .................................................................................................... 26 8.2. Lost Examinations ............................................................................................................. 26 8.3. Defective Questions ........................................................................................................... 26 8.3.1. Changing the Grading Guide ........................................................................... 26 © Society of Actuaries 2019 iii Guide to SOA Exams 8.3.2. Truly Defective Questions ................................................................................ 27 8.4. Hand Scoring ...................................................................................................................... 27 8.5. Grade Release Timing ........................................................................................................ 27 8.6. Transcripts .......................................................................................................................... 27 8.7. Confidentiality of Exam Records ...................................................................................... 27 8.8. Interpreting Grades ............................................................................................................ 28 8.9. Feedback for Failing Candidates ...................................................................................... 28 8.9.1. Written Answer Exams ..................................................................................... 28 8.9.2. CBT Multiple Choice Exams ............................................................................ 28 8.9.3. E-Learning Assessments ................................................................................
Load more

Recommended publications
  • Actuaries Abroad
    Actuaries Abroad California Actuarial Student Summit 2019 UC Santa Barbara Andrew Peterson, FSA, EA, MAAA Senior Director, International, SOA May 25, 2019 Discussion topics ▪ Global actuarial profession ▪ Becoming an actuary & SOA pathway ▪ Working internationally: qualifications & job market 2 Around the Globe – Snapshot Global Actuarial Profession (Total ~80,000) 2% 0% 3% 4% North America 8% Europe Asia 44% Oceania Latin America Africa 38% Middle East Estimated results based on 2018 Intl. Actuarial Association (IAA) data; distributions are approximate due to potential overlap in membership in different regions. 3 Around the Globe – Snapshot SOA Global Footprint (2018) SOA Members + Candidates in Asia (2018) 2% 1% 1% 1,261 22 China 4% Hong Kong 4% 1,221 3,048 United States Malaysia 5% 30% Canada Korea, Republic of China Taiwan 11% 5,213 Asia-Pacific Thailand 20,560 Singapore Latin America 11% Philippines Rest of the World 20% Vietnam 11% Japan Members : 31,325 Indonesia CAS Global Footprint (2018) IFoA Global Footprint (2017/18) 135 186 79 105 UK 538 4,765 US 903 India 559 Canada Ireland 1185 Bermuda South Africa 1636 China/HK/Singapore China 16253 6,944 UK/Switzerland ROW ROW 6064 Members : 8,352 Includes both Actuaries (~15,000) + Students (~16,000) = ~31,000 4 Becoming an actuary & SOA pathway Becoming an Actuary – 4 Primary Intl. Credentials SOA (US)—ASA, FSA • Practice Areas: All covered • Choose specialty track after obtaining ASA • Self-study or university curriculum to master actuarial concepts • Advance through series of exams to earn credential • Complete/attend certain modules/courses https://www.soa.org/education/general-info/default/ CAS (USA)– ACAS, FCAS • Practice Area: Property & Casualty • Self-study or university curriculum to master concepts • University and exam pathways • Advance through a series of exams to earn credential • Complete/attend certain modules/courses https://www.casact.org/admissions/process/ 6 Becoming an Actuary – 4 Primary Intl.
    [Show full text]
  • Exam FM: Financial Mathematics
    Welcome! The Actuarial Science program prepares student for careers as actuaries. It helps them learn material that is included in processional examinations administered by the Society of Actuaries and Casualty Actuary Society, which actuarial students must pass in order to achieve professional status. Thank you for your interest in our Actuarial Science Program at the University of Iowa. The Actuarial Science program prepares students for careers as actuaries. It helps them learn material that is included in professional examinations administered by the Society of Actuaries, which actuarial students must pass in order to achieve professional status. In addition to actuarial science courses, students can take courses in preparation for business aspects of the actuarial profession such as accounting, law, finance, insurance, and economics. The Society of Actuaries (SOA) has recognized University of Iowa’s actuarial science program as a Center of Actuarial Excellence (CAE). There are eight criteria for the designation, including curriculum, faculty composition, graduate quality, connection to industry, and research/scholarship. We are a small department in a large University and graduate between 20-15 students each year. We do have SELECTIVE admission due to the difficulty of the professional examinations. Students interested in becoming actuaries should declare an Interest in Actuarial Science as their major when they ENTER the university. Ordinarily, students apply for admission to the Actuarial Science major in the fall semester of their sophomore year, after they have taken Math:2850 (22M:028) Calculus III or MATH:3770 (22M:055) Fundamental Properties of Spaces and Functions I and STAT:3100 (22S:130) Introduction to Mathematical Statistics I.
    [Show full text]
  • Actuarial Studies Within the Biometry and Statistics and Statistical Science Majors
    Actuarial Studies within the Biometry and Statistics and Statistical Science majors An actuary is a business professional who analyzes the financial consequences of risk. Actuaries use mathematics, statistics and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. They evaluate the likelihood of those events, design creative ways to reduce the likelihood and decrease the impact of adverse events that actually do occur. To be more specific, actuaries improve financial decision making by developing models to evaluate the current financial implications of uncertain future events. Actuaries are an important part of the management team of the companies that employ them. Their work requires a combination of strong analytical skills, business knowledge and understanding of human behavior to design and manage programs that control risk. No matter the source, actuary is consistently rated as one of the best jobs in America. US News and World Report, the Jobs Rated Almanac, CNN Money, and others all agree: few other occupations offer the combination of benefits that an actuarial career can offer. In almost every job satisfaction category, such as work environment, employment outlook, job security, growth opportunity, and salary (especially starting salary), a career as an actuary is hard to beat. Required courses for the Biometry and Statistics and Statistical Science majors Calculus I and II: MATH 1110 & 1120 Multivariable Calculus and Linear Algebra: MATH 2210 & 2220 or 2230 & 2240
    [Show full text]
  • Actuary Brochure
    Our actuarial professionals play a critical role in society and enjoy benefits available to members of the SOA: • Advanced actuarial and risk management education and knowledge-sharing opportunities • Extensive professional development/ continuing education programs • Access to a variety of publications and the most research activity on a wide range of current pertinent topics that will help in their roles as actuarial professionals • Social and professional networking communities • Members-only pricing on widest array Educating actuaries. Advancing a profession. Impacting society. of extensive professional development opportunities • The ability to take part in professional interest groups—20 from which to choose Take a closer look at the SOA at soa.org soa.org I asia.soa.org I [email protected] I +1 847.706.3500 475 North Martingale Road, Suite 600 I Schaumburg, Illinois 60173, USA From the current state of public pensions to the changing role of big data in business, we see the potential impact of risk—and the growing need to better mitigate it—around the world. That’s why we’re here. We are the Society of Actuaries (SOA), the largest global professional actuarial organization in the world. Every day, our more than 26,000 members in 78 countries take a closer look at the bigger picture of risk. Asking the questions that dig deeper. Mining data for solutions that Risk is everywhere. have a positive impact on business and society. A pioneering organization with unmatched research and education resources, we foster innovative thinking on real-world challenges. Together, we cultivate the well-rounded professionals trusted to bring better decisions into focus.
    [Show full text]
  • 070 Valuation of Life Insurance and Annuity Reserves
    806 KAR 6:070. Valuation of life insurance and annuity reserves. RELATES TO: KRS 304.1-050, 304.2-290, 304.3-240, 304.6, 304.15-410 STATUTORY AUTHORITY: KRS 304.2-110, 304.6-140 NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110 authorizes the commis- sioner to promulgate reasonable administrative regulations necessary for or as an aid to the ef- fectuation of the Kentucky Insurance Code as defined in KRS 304.1-010. KRS 304.6-140 au- thorizes the commissioner to promulgate administrative regulations approving any mortality ta- ble "adopted by the National Association of Insurance Commissioners after 1980" for use in determining the minimum standard for valuation of policies. This administrative regulation es- tablishes the framework for valuation standards acceptable to the department, and establishes the conditions under which the department actuary will verify the valuation of a company’s re- serves without cost to the insurer. Section 1. Definitions. (1) "1983 GAM Table" means that mortality table developed by the Society of Actuaries Committee on Annuities and adopted as a recognized mortality table for annuities in December, 1983 by the National Association of Insurance Commissioners. (2) "1983 Table ‘a’" means that mortality table developed by the Society of Actuaries Com- mittee to Recommend a New Mortality Basis for Individual Annuity Valuation and adopted as a recognized mortality table for annuities in June, 1982 by the National Association of Insurance Commissioners. (3) "1994 GAR Table" means that mortality table developed by the Society of Actuaries Group Annuity Valuation Table Task Force. (4) "2012 Individual Annuity Mortality Period (2012 IAM Period) Table" means the period ta- ble, developed by the Society of Actuaries Committee on Life Insurance Research, containing loaded mortality rates for calendar year 2012 and containing rates, qx2012.
    [Show full text]
  • Actuarial Education – Alternative Routes for New Associations
    Actuarial Education – alternative routes for new associations Different routes to become an actuary Around the world actuarial associations recognize a number of different routes to becoming an actuary; many of them recognize more than one route. The main alternatives can be summarized as follows: − passing a recognized set of professional examinations (exams set and marked by an actuarial association); − obtaining a waiver from some of the actuarial profession’s exams by means of an accredited university course, followed by further professional examinations; − completing a university degree in actuarial science, usually at Masters level, followed by work experience; − completing a degree and then passing some exams controlled by the government or another official body, such as a regulator; − completing a degree and then taking some practice-specific exams organized by the profession; − admission on the basis of mutual recognition of qualifications from another actuarial association. University education In most actuarially developing countries, there are no universities with an established capacity to teach actuarial science. Most universities are able to offer courses in mathematics, statistics and economics, which are basic building blocks for actuarial programmes, but few are able to go beyond this, partly through lack of lecturers with appropriate knowledge and skills and partly, in many cases, through lack of awareness of actuarial science and the actuarial profession. One aspect of developing actuarial education in a new situation may be to encourage the involvement of one or more high quality universities, working with the mathematics, statistics, economics or finance faculties to develop some elements of actuarial education at the university. Professional examinations There are a number of actuarial associations which have traditionally offered their professional examinations not only in their own country but also more widely, in some cases in very many locations around the world.
    [Show full text]
  • Principles of Actuarial Science
    TRANSACTIONS OF SOCIETY OF ACTUARIES 1992 VOL. 44 PRINCIPLES OF ACTUARIAL SCIENCE SOCIETY OF ACIRJARIES COMMITI'EE ON ACTUARIAL PRINICPLES* ABSTRACT The Committee on Actuarial Principles is charged with identifying, cir- culating and organizing actuarial principles (as distinct from standards) and recommending the resulting statements of principles to the Board of Gov- ernors for review and adoption. In October 1991, the Board accepted the Committee's statement entitled "Principles of Actuarial Science." This statement, which constitutes the following paper, is an expression of opinion by the Committee on Actuarial Principles and has been authorized by the Board of Governors. It has not been submitted to the vote of the membership and thus should not be construed as an expression of opinion by the Society of Actuaries. Editor's note: The Committee believes that continued publication of dis- cussions of Principles of Actuarial Science is appropriate and may prove beneficial. Therefore, written discussions of this paper will continue to be considered for publication. For publication in Volume XLV of the Trans- actions, discussions must be received by March I, 1994. PREAMBLE Actuarial science, the foundation for the actuarial profession, is an applied science. As an applied science, its theory is grounded in certain observations about the real world. The practice of any profession is shaped by the experience of its members, as well as by accumulated scientific knowledge. The practice of the actuarial profession is based on: • Principles--Statements grounded in observation and experience. Prin- ciples will be subject to change only if fundamental changes occur in our understanding of the observed world.
    [Show full text]
  • Modeling of Economic Series Coordinated with Interest Rate Scenarios
    Report on Modeling of Economic Series Coordinated with Interest Rate Scenarios Research Sponsored by the Casualty Actuarial Society and the Society of Actuaries Researchers: Kevin C. Ahlgrim, ASA, MAAA, Ph.D. Illinois State University Stephen P. D’Arcy, FCAS, MAAA, Ph.D. University of Illinois at Urbana-Champaign Richard W. Gorvett, FCAS, MAAA, ARM, FRM, Ph.D. University of Illinois at Urbana-Champaign July, 2004 Section 1: Introduction and Overview Introduction In May, 2001, the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA) jointly issued a request for proposals on the research topic “Modeling of Economic Series Coordinated with Interest Rate Scenarios.” The objectives of this request were to develop a research relationship with selected persons to investigate this topic; produce a literature review of work previously done in the area of economic scenario modeling; determine appropriate data sources and methodologies to enhance economic modeling efforts relevant to the actuarial profession; and produce a working model of economic series, coordinated with interest rates, that could be made public and used by actuaries via the CAS / SOA websites to project future economic scenarios. Categories of economic series to be modeled included interest rates, equity price levels, inflation rates, unemployment rates, and real estate price levels. This topic is of considerable value and importance to the actuarial profession and the broader insurance community, for several reasons. For example, a key aspect of the dynamic financial analysis (DFA) process, which continues to be an area of substantial development and interest in the actuarial community, is the generation of economic and financial scenarios.
    [Show full text]
  • Murshid Kuttihassan Mortality Improvement
    Mortality Improvement Murshid Kuttihassan VP and Actuary, MetLife Noida March 2019 Supercentenarian (age>110) Approximately 1 in 1000 Centenarians become Supercentenarians Emma Morano 29 November 1899 – 15 April 2017 • Before her death at 117, Emma was the last living person born in the 1800s. She remains the oldest Italian ever. • Emma credited her longevity success in part to eating raw eggs, cookies, staying single, and positive thinking. https://en.wikipedia.org/wiki/Emma_Morano Mortality Improvement Overview 1 Life, Annuity, & Health Blocks 2 Understanding the Past & Present 3 Framing the Future – Current Trends 4 Modeling Approaches Changing Life Expectancy Three Different Country Experiences Life Expectancy (Males, 1960 -2016) 80 75 70 65 60 55 50 Chile Russia United States 1960 1970 1980 1990 2000 2010 2016 https://data.worldbank.org/indicator/SP.DYN.LE00.MA.IN?name_desc=false Life Insurance Mortality Considerations 1 Underwriting for Mortality Risk is Changing in Life Insurance Quicker, Paperless, & Less Invasive Underwriting 2 Alternative Sources for Health Information 3 Net Amount at Risk Is Significant (e.g. Pandemic PV impact) Annuity & Pension Mortality Considerations High-Level Risk Assessment on Group & Pension Business 1 No Underwriting for Retail Annuities 2 Pension Transfer Market - Large Blocks of Liability Being Transferred In Single Transactions Longevity Risk is a “Slow Bleed” Risk that Can Emerge Over Time 3 Perpetuity Value is an Upper Bound on PV (interest-rate sensitive) 4 Longevity Risk & Mortality Risk Can
    [Show full text]
  • Associate Members of The
    Associate Members of the IAA Region of the World Country Name of Association A&A Subcommittee 1 Africa Benin Association des Actuaires Beninois Africa 2 Africa Ghana Actuarial Society of Ghana Africa Interested in progressing to FMA for many years; is now considering IFRS training module from SOA 3 Africa Namibia Society of Actuaries of Namibia Africa No recent news. 4 Africa Nigeria Nigeria Actuarial Society Africa No recent news. 5 Africa Senegal Institut National des Actuaires Au Sénégal Africa The Training the Trainers project started in Lyon in January 2013. The first stage of training has been completed in Lyon and Barcelona. There were 15 participants from seven different countries. The next session will begin in January at the University of Senegal. 6 Africa Tanzania Actuarial Society of Tanzania (AST) Africa No recent news. 7 Africa Uganda The Actuarial Association of Uganda ( T A Africa AWB volunteers taught a three-day course including an introduction to social security plans in the context of current and future social security A U) and pension systems in Uganda, in January 2014. 8 Africa Zambia Actuarial Society of Zambia Africa Approved as Associate Member at the Council meeting in Singapore. 9 Africa Zimbabwe Actuarial Society of Zimbabwe Africa The actuarial society asked support from AWB, but it was mainly financial support for students allowing to write exams. Beside financial support, also mentorship greatly needed and requested. 10 Asia Bangladesh Actuarial Society of Bangladesh Asia Darryl Wagner along with Liyaquat Khan, Asia Subcommittee nodal person for Bangladesh met with Mahfuz Ibn Mannan, Hon. Secretary of the Actuarial Society of Bangladesh, and other actuarial students in February, 2013 in Mumbai, India to discuss the actuarial profession in Bangladesh.
    [Show full text]
  • Society of Actuaries Archived 2000 Yearbook REQUIREMENTS for ADMISSION Page 1 of 3
    Society of Actuaries Archived 2000 Yearbook REQUIREMENTS FOR ADMISSION Page 1 of 3 Requirements for Admission to the Society of Actuaries This overview of actuarial education is written for Fellows and other interested audiences who are not taking exams. It is edited to be informative, not definitive. Detailed information on courses, syllabus, study materials, fees, and examination dates, times, and locations is given in the Fall Associateship and Fellowship Catalog and in the Spring Associateship and Fellowship Catalog, which are available from the Society office. 1. Requirements for Admission to the Society of Actuaries as an Associate Anyone pursuing actuarial studies may apply for admission to the Society. If the Board of Governors approves the Application for Admission as Associate, the candidate will be enrolled as an Associate of the Society of Actuaries (A.S.A.) after completing the Associateship education and examination requirements prescribed by the Board of Governors, subject to any further requirements that the Board may prescribe. A candidate must complete Courses 1-6 as well as the Associateship Professionalism Course to satisfy the Associateship requirements. ASA Course Description 2. Requirements for Associateship a. Required Courses The following list shows the required courses needed to become an Associate under the new requirements. Course 1 Mathematical Foundations of Actuarial Science Course 2 Interest Theory, Economics and Finance Course 3 Actuarial Models Course 4 Actuarial Modeling Course 5 Application of Basic Actuarial Principles Course 6 Finance and Investments b. Associateship Professionalism Course The Associateship Professionalism Course is an additional requirement for the A.S.A. designation and may be taken after completing Courses 1-4.
    [Show full text]
  • Metlife Guaranteed Income Program®
    MetLife Guaranteed Income Program® LINE UP WITH BAND AT TRIM Putting an Immediate Fixed Income Annuity to Work for You You’ve saved for retirement and now you’re thinking of converting a portion of your retirement assets into a stream of income that you cannot outlive. With the MetLife Guaranteed Income Program offered to you through your employer-sponsored defined contribution plan, you can receive payments that start immediately and last for a lifetime. Plus, the MetLife Guaranteed Income Program works well as part of an overall retirement strategy and can be purchased with only a portion of your plan assets. MetLife Guaranteed Income THE METLIFE GUARANTEED INCOME PROGRAM IN ACTION Program may be appropriate Mike, age 65, is about to retire and wants to secure for you if you are looking for: an immediate stream of income to help cover some fixed monthly expenses. Mike decides to use a portion • Security of lifetime income – Income of his defined contribution plan balance to purchase payments begin immediately and are a MetLife Guaranteed Income Program annuity for guaranteed to last as long as you or you $100,000. Mike chooses Lifelong Income for You, a payment option that guarantees a monthly payment and a second person live.1 of $655 for life, regardless of how long he lives. • Dependability of income payments – The below chart shows how the MetLife Guaranteed Income Income is not affected by the financial Program protects Mike from running out of money in retirement. Taking the same $655 monthly withdrawal from traditional investments such as mutual funds, could mean running out of money markets so the income you receive will between the ages of 82 and 88, depending on the fund’s assumed annual earnings rate.
    [Show full text]