Preliminary Computer Based Exams
The preliminary exams are the common foundation for becoming an actuary. No matter which actuarial practice area a person decides to enter, future actuarial education will depend on mastery of the preliminary exams.
Probability Exam (SOA Exam P): May be used to obtain Exam 1 credit with the CAS. The exam consists of three hours of multiple-choice questions. The purpose of this exam is to develop knowledge of probability. The application of these tools to problems encountered by actuaries is emphasized. A thorough command of calculus and probability topics is assumed. Additionally, a very basic knowledge of insurance and risk management is assumed.
Financial Mathematics Exam (SOA Exam FM): May be used to obtain Exam 2 credit with the CAS. The exam consists of three hours of multiple-choice questions. This exam covers interest theory (discrete and continuous) and an introduction to derivative securities. It assumes a basic knowledge of calculus and probability.
Models for Financial Economics Exam (SOA Exam MFE): May be used to obtain Exam 3F credit with the CAS. The exam consists of three hours of multiple-choice questions. This exam covers interest rate models, rational valuation of derivative securities, simulation, and financial risk management techniques.
SOA Models for Life Contingencies Exam (SOA Exam MLC): May be used to obtain Exam LC credit with the CAS. This exam is a four-hour multiple choice and written-answer exam. The syllabus develops the candidate's knowledge of the theoretical basis of contingent payment models and the application of those models to insurance and other financial risks. A thorough knowledge of calculus, probability and interest theory is assumed. Knowledge of risk management at the level of Exam P is also assumed.
CAS Models for Life Contingencies (CAS Exam LC): is a one-and-a-half-hour, multiple-choice exam. This examination develops the candidate's knowledge of the theoretical basis of contingent payment models and the application of those models to insurance risks.
CAS Models for Stochastic Processes and Statistics (CAS Exam ST): is a two-and-a-half-hour multiple-choice exam. The syllabus covers Stochastic Processes and Statistics. A thorough knowledge of calculus and probability is assumed as is familiarity with discounting cash flows.
CAS Statistics and Probabilistic Models Exam (CAS Exam S): is a new exam that will be administered by the CAS beginning in the Fall of 2015. It will replace Exam ST, Exam LC, and VEE Statistics as requirements for candidates to achieve the ACAS designation. The CAS will grant credit for CAS Exam S to those who have fulfilled the requirements outlined in the transition rules. Please refer to the complete transition rules for more details. There is not a waiver or SOA equivalent for this exam.
Exam S will be a four hour multiple choice exam. This examination covers Stochastic Processes, Survival Models (including limited Life Contingencies concepts), Statistics, General Linear Models (including Ordinary Least Squares) and Time Series. The syllabus is defined in the form of learning objectives, knowledge statements, and readings. A thorough knowledge of calculus, probability, and interest theory is assumed.
Construction and Evaluation of Actuarial Models Exam (SOA Exam C): May be used to obtain Exam 4 credit with the CAS. The exam consists of three and a half hours of multiple choice questions. The syllabus provides an introduction to modeling and covers important actuarial methods that are useful in modeling. A thorough knowledge of calculus and probability is assumed. The candidate will be introduced to useful frequency and severity models beyond those covered in Financial Economics and Life Contingencies Exams.