How To Attempt The Exam On Actuarial Science -Foundations Of Casualty Actuarial Science-Part I

Insurance and finance industry is always exposed to high magnitude risk and as a result it becomes very important to utilize a proper method to assess the risk related to these sectors. Actuarial science is one such discipline which contributes largely in this endeavor. Using mathematical and statistical method, this particular subject teaches a person to ascertain the risk involved primarily using tables, charts and data comprehension. Pension, healthcare and long term insurance plans are the highest bidder of this method to ascertain future risk. The profession has reached new heights due to super fast computers and due to blending of the modern financial theory with the stochastic actuarial models.

Description of the Paper

The subjects that are mainly undertaken in this area are mathematics, statistics, finance, economics, probability, financial economics and computer programming. For the purpose of valuation of jobs, this particular disciple follows the heads like environmental, income, physical demand, employment outlook and stress.

Paper Pattern

There are two sections in the Foundation of casualty Actuarial Science, Part 1 namely section A and section B. There are seven to eight questions in section A from which a student need to attend five questions compulsorily. These questions may be inclusive of sub part or not. There are five long answer type questions in section B. Three such questions need to be attempted by a person.

Time Duration For The paper

Three hours are given to attempt the paper.

Marks Allotted

Each question of section A is for 8 marks which make the total value of the section to be 40. Each question of section B bear 20 marks each, making the section worth to be 60 marks. The total paper is of 100 marks.

Frequently Asked Questions

Questions that are commonly asked can be divided under the following themes as derivations of continuous premium and formula of fully discrete benefit reserves. Gompertz-Makeham’s laws; state the mortality assumptions under this law are also amongst favorite to be asked.

You can also be asked to derive and explain retrospective formula and for fully discrete benefit reserves. Questions can be also found on detail paid-up insurance and benefit reserves at fractional durations.

Recommended Books

• Charles L. Trowbridge written Fundamental Concept of Actuarial Science and
• Actuarial Science: an elementary manual by Glen, Ninian