CAS Cheat Sheet 2026

The 30 highest-yield CAS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the primary purpose of actuarial standards of practice (ASOPs)? → To ensure actuaries follow professional guidelines.
2. How is claim frequency defined in actuarial loss modeling? → The number of claims per unit of exposure
3. When presenting reserve estimates to a non-technical board of directors, an actuary should primarily focus on: → The range of reasonable estimates and key assumptions driving uncertainty
4. What is the 'loss development factor' (LDF) used for in casualty actuarial work? → To project reported or paid losses at an interim age to their ultimate settled value
5. What is the ethical obligation regarding continuing education? → Maintaining current knowledge and competence throughout ones career
6. Which CAS body is primarily responsible for investigating and adjudicating alleged violations of the Code of Professional Conduct by CAS members? → The Actuarial Board for Counseling and Discipline (ABCD)
7. Which metric best measures the efficiency of a claims handling process from the insured's perspective? → Claims settlement cycle time
8. Under Precept 1 of the CAS Code of Professional Conduct, an actuary must perform actuarial services with integrity. This primarily means the actuary must: → Be honest and straightforward and not engage in any act of fraud or deceit
9. Which of the following best describes the 'scope' section required in an actuarial report under ASOP No. 41? → A statement of the tasks performed and the extent of the actuary's responsibility
10. How should a professional handle a situation where institutional policy conflicts with ethical standards? → Advocate for policy change while following ethical guidelines
11. The actuarial concept of 'double-counting' in the context of catastrophe model output and historical loss development most commonly refers to: → Including modeled catastrophe losses in both the trend factor and the explicit CAT load
12. In strategic decision-making, 'satisficing' refers to: → Choosing an option that meets a minimum threshold of acceptability
13. When an actuarial report will be used by parties other than the commissioning client, the actuary should: → Identify all intended users and consider their needs in the communication
14. What is 'demand variability' and why is it significant for insurance operations staffing? → Fluctuations in workload volume over time that make capacity planning challenging
15. When is a bar chart most appropriate? → For comparing discrete categories or groups
16. What is scope creep? → Uncontrolled expansion of project scope without corresponding adjustments
17. Which statistical topics are primarily covered in CAS Exam MAS-II? → Advanced statistics including time series and credibility
18. Which ASOP most directly governs an actuary performing a ratemaking analysis for a personal automobile insurer? → ASOP No. 13 (Trending Procedures in Property/Casualty Insurance)
19. In the context of strategic planning, 'blue ocean strategy' would encourage a P&C insurer to: → Create uncontested market space by offering a fundamentally new product or service
20. How is risk typically measured? → By the probability of occurrence multiplied by the potential impact
21. What is the purpose of the CAS Continuing Education (CE) Policy? → To provide a structured learning path for credentialed actuaries.
22. What is 'loss adjustment expense' (LAE) in insurance financial reporting? → The cost of settling and defending claims, both allocated and unallocated
23. A CAS member on an extended leave of absence for 18 months wants to know how this affects their CE obligation. Which statement is most accurate? → The member should contact CAS to discuss leave provisions or extensions
24. What is a key performance indicator (KPI)? → A measurable value that demonstrates effectiveness in achieving objectives
25. In the CAS credentialing process, what does 'credit' refer to when a candidate is said to have 'exam credit'? → Formal recognition by CAS that the candidate has passed a specific exam
26. Which scenario most clearly represents a conflict of interest that an actuary must disclose? → The actuary owns stock in the insurer for which they are opining on reserves
27. What is scope creep? → Uncontrolled expansion of project scope without corresponding adjustments
28. What is the primary purpose of reinsurance for a primary insurer? → To transfer a portion of risk to another insurer to reduce exposure and stabilize results
29. What is the purpose of the CAS Syllabus of Basic Education? → To outline the learning objectives, readings, and structure for each required exam
30. When communicating with a regulator about reserve adequacy, an actuary should: → Be transparent about methodology, assumptions, and any significant limitations