The number of claims has a negative binomial distribution with and . Claim sizes are independent of and of each other, and follow a Pareto distribution with and .
Calculate the variance of aggregate claims.
Exam FAM has ten topics. The first six are short-term insurance and the last four long-term insurance. Premiums and policy values carry the most weight, at 15 to 22.5% of the exam.
| Short-Term Insurance and Reinsurance Coverages | 5–10% of the exam |
|---|---|
| Severity, Frequency and Aggregate Models | 12.5–17.5% of the exam |
| Parametric Estimation | 2.5–7.5% of the exam |
| Introduction to Credibility | 2.5–5% of the exam |
| Pricing and Reserving for Short-Term Coverages | 10–15% of the exam |
| Option Pricing Fundamentals | 2.5–7.5% of the exam |
| Long-Term Insurance Coverages and Retirement Programs | 2.5–5% of the exam |
| Mortality Models | 10–15% of the exam |
| Present Value Random Variables for Long-Term Coverages | 12.5–20% of the exam |
| Premium and Policy Value Calculation | 15–22.5% of the exam |
34 multiple-choice questions in 3.5 hours, each with five choices. A few are unscored pilot questions you cannot tell apart. An unanswered question counts as wrong, so answer every one.
SOA provides tables on screen under an Exhibit button: distribution inventories and the Standard Ultimate Life Table at i = 5%, with a normal distribution calculator. You may not bring your own tables.
The split into FAM-L and FAM-S ended in July 2024, and every candidate now sits the full exam.
SOA's syllabus assumes Exam P, Exam FM and VEE Mathematical Statistics. The readings are Loss Models (5th edition), Brown and Lennox (5th edition) and Actuarial Mathematics for Life Contingent Risks (3rd edition).
The number of claims has a negative binomial distribution with and . Claim sizes are independent of and of each other, and follow a Pareto distribution with and .
Calculate the variance of aggregate claims.
For accident year 2025, evaluated at December 31, 2025 (12 months), earned premium is $3,150,000 and reported losses are $1,020,000. The cumulative development factor for reported losses from 12 months to ultimate is 2.35, and the expected loss ratio is 72%.
Using the Bornhuetter-Ferguson method, calculate the estimated ultimate losses for accident year 2025.
Mortality follows the Standard Ultimate Life Table, and . You are given:
| 17.0245 | 0.34824 | 12.0083 |
A 20-year temporary life annuity-due on (50) pays $10,000 at the start of each year.
Calculate the expected present value of the annuity.
Ten: Short-Term Insurance and Reinsurance Coverages (5 to 10%); Severity, Frequency and Aggregate Models (12.5 to 17.5%); Parametric Estimation (2.5 to 7.5%); Introduction to Credibility (2.5 to 5%); Pricing and Reserving for Short-Term Coverages (10 to 15%); Option Pricing Fundamentals (2.5 to 7.5%); Long-Term Insurance Coverages and Retirement Programs (2.5 to 5%); Mortality Models (10 to 15%); Present Value Random Variables for Long-Term Coverages (12.5 to 20%); and Premium and Policy Value Calculation (15 to 22.5%).
34 multiple-choice questions in 3.5 hours, about six minutes each.
No. The split into FAM-L and FAM-S ended in July 2024, and every candidate now sits the full Exam FAM.