Question 1
Losses follow an exponential distribution with mean 1,000. A policy has an ordinary deductible of 250 and a maximum covered loss of 2,250.
Calculate the expected payment per payment.
Learn Exam FAM one topic at a time.
Find your weakest topic in a free 92-minute diagnostic, fix it with a short lesson, then sit full 34-question practice exams.
The only interactive course with a tutor that finds your weak spots and fixes them.
One payment in US dollars. Full refund within 14 days, for any reason.
The ten topics of SOA Exam FAM
34 multiple-choice questions in 3.5 hours, with five choices each.
Coverages and reinsurance
Deductibles, limits, coinsurance, inflation, the loss elimination ratio, and proportional and excess of loss reinsurance.
5–10% of the exam
Loss models
Severity and frequency distributions, the (a, b, 0) and (a, b, 1) classes, aggregate losses, stop-loss, VaR and TVaR.
12.5–17.5% of the exam
Estimation
Maximum likelihood for complete, grouped, truncated and censored data.
2.5–7.5% of the exam
Credibility
Limited fluctuation credibility: full standards for frequency, severity and aggregate losses, and partial credibility.
2.5–5% of the exam
Pricing and reserving
Expected loss ratio, chain-ladder and Bornhuetter-Ferguson reserves, trend, on-level premium and rate changes.
10–15% of the exam
Options
Calls and puts, put-call parity, binomial trees, Black-Scholes and delta hedging.
2.5–7.5% of the exam
Long-term coverages
Life, health and annuity products, insurable interest, and defined benefit and defined contribution plans.
2.5–5% of the exam
Mortality
Survival models, the force of mortality, life tables, fractional ages and select tables.
10–15% of the exam
Present values
Insurance and annuity present values, their moments, and the Standard Ultimate Life Table.
12.5–20% of the exam
Premiums and policy values
Net and gross premiums by the equivalence principle, policy values and their recursion.
15–22.5% of the exam
Start with a free 92-minute diagnostic
15 questions across every topic, no account. You get your score by topic and a short lesson on the one to fix first.
Try five questions from the course
Question 2
Losses follow an exponential distribution with mean 500.
Calculate .
Question 3
Selected age-to-age factors for paid losses are:
| 12-24 | 24-36 | 36-48 | 48-60 | 60-ultimate |
|---|---|---|---|---|
| 1.85 | 1.24 | 1.09 | 1.04 | 1.015 |
Calculate the cumulative development factor from 24 months to ultimate.
Question 4
You are given the following values from the Standard Ultimate Life Table:
| 50 | 98,576.4 |
| 60 | 96,634.1 |
| 70 | 91,082.4 |
Calculate .
Question 5
Mortality follows the Standard Ultimate Life Table, and . You are given:
| | |---| | 17.0245 |A fully discrete whole life insurance on (50) pays $150,000 at the end of the year of death. Net premiums are payable annually in advance for life.
Calculate the annual net premium.
In the course
- 15 interactive lessons
- 271 practice questions, every answer worked
- 2 full 34-question practice exams
Free tools
Guides
Still to sit Exam P or Exam FM?
SOA's Exam FAM syllabus assumes Exam P and Exam FM. Each has its own free diagnostic, lessons and practice exams.
Actuarial Math Genius Pro
US$349one payment
- 15 interactive lessons
- 271 practice questions
- 2 full 34-question practice exams
Full refund within 14 days. Ask within 14 days of paying, for any reason. Our refund promise still applies after you start the course. The note under the pay button is about the separate legal right to cancel. Terms
By paying you agree to our Terms. Email us within 14 days for a full refund.
Take the free diagnostic firstApple Pay, Google Pay or card. Charged in USD.
One payment. No sales tax is added. Access until October 31, 2027.
Questions? support@unigenius.co.uk