CAS CAS Exam Structure and Designations 2 — Questions and Answers
Question 1: CAS Exam 2 (Financial Mathematics) primarily covers which topic area?
- Loss development factors
- Theory of interest and time value of money (Correct answer)
- Credibility theory
- IBNR reserves
Correct answer: Theory of interest and time value of money
Exam 2 covers financial mathematics including the theory of interest, annuities, bonds, and time value of money, and is jointly administered with the SOA.
Question 2: Which statistical topics are primarily covered in CAS Exam MAS-II?
- Financial economics
- Advanced statistics including time series and credibility (Correct answer)
- Insurance regulation
- Ratemaking fundamentals
Correct answer: Advanced statistics including time series and credibility
MAS-II covers advanced statistical modeling including time series analysis, credibility theory, and simulation methods used in actuarial practice.
Question 3: CAS Exam 3F (Financial Economics) covers which key concept?
- Loss triangles
- Option pricing models including Black-Scholes (Correct answer)
- Insurance accounting standards
- Workers compensation classification
Correct answer: Option pricing models including Black-Scholes
Exam 3F covers financial economics including derivative securities, the Black-Scholes option pricing model, and related financial instruments.
Question 4: Which preliminary CAS exam covers construction and evaluation of actuarial models?
- Exam 1
- Exam 2
- Exam MAS-I
- Exam 4/C (Correct answer)
Correct answer: Exam 4/C
Exam 4/C covers construction and evaluation of actuarial models including frequency, severity, and aggregate loss distributions.
Question 5: CAS Exam 6 has separate versions for candidates in which two jurisdictions?
- US and UK
- US and Canada (Correct answer)
- Canada and Europe
- US and Australia
Correct answer: US and Canada
CAS Exam 6 has a US version and a Canadian version, each focusing on the insurance regulation and financial reporting standards of the respective country.
Question 6: What must CAS candidates complete before sitting for Exam 5, in addition to prior exams?
- Programming in R course
- CAS Online Courses 1 and 2 covering P&C topics (Correct answer)
- Professionalism seminar only
- No additional requirements before Exam 5
Correct answer: CAS Online Courses 1 and 2 covering P&C topics
Candidates must complete CAS Online Course 1 and Online Course 2, which introduce property-casualty insurance fundamentals, before sitting for Exam 5.
CAS CAS Exam Structure and Designations 2
CAS Exam 2 (Financial Mathematics) primarily covers which topic area?