Actuarial Science Exams

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    Here you will find updated (as of Summer 2018) information about the preliminary actuarial examinations and the corresponding DePaul courses. Exams P, FM, IFM, are sponsored by the Society of Actuaries (SOA) and accepted for credit by the Casualty Actuarial Society (CAS). Exams LTAM, STAM and SRM are administered by the SOA and students pursuing CAS credentials don't need to take them, although quite a few of the topics found in these exams also show up in some CAS exams, such as MAS I-II.

 
 
 
 
 
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    Exam P (Probability)

    This is the first or second exam being attempted by most students. It is offered in a computer-based testing environment around the third week of each odd month (January, March, etc.) and additional information and registration instructions can be found here. The historical pass rate for exam P has been in the low 40%'s.

    The majority of the P exam syllabus is covered in MAT 351 at the undergraduate level, and MAT 451 at the graduate level, which are offered twice a year. More specifically, the following broad topics are usually discussed in detail:

    • General Probability
    • Univariate Random Variables

    The remaining topic of Multivariate Random Variables is then covered in MAT 352 and MAT 452.

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    Exam FM (Financial Mathematics)

    Similarly to exam P, this is usually one of the first two exams attempted by students. It is offered in a computer-based testing environment around the third week of each even month (February, April, etc.) and for more details, you can go here. The historical pass rate for exam FM has been in the high 40%'s.

    Most DePaul actuarial majors will have the opportunity to sit for FM during their sophomore year, after taking MAT 361 in the Autumn quarter. Graduate students are expected to take it during their first year of study, after completing MAT 461. The topics covered in these courses are:

    • Time Value of Money
    • Annuities/cash flows with non-contingent payments
    • Loans
    • Bonds
    • General Cash Flows

    While the topics of Immunization, Interest Rate Swaps, and Determinants of Interest Rates may or may not be covered.

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    Exam IFM (Investments and Financial Markets – Formerly Exam MFE)

    Students who have passed P and FM usually take this exam next. It is offered three times a year (March, July, and November) and it is computer-based. For more details, please refer to this page. There are no statistics available for IFM; the historical pass rate for exam MFE was in the mid 40%'s.

    The combined undergraduate/graduate course MAT 368/468 covers most of the IFM exam syllabus. In particular, it discusses at varying lengths the following topics:

    • Mean-Variance Portfolio Theory
    • Asset Pricing Models
    • Forwards and Futures
    • General Properties of Options
    • Binomial Pricing Models
    • Black-Scholes Option Pricing Model
    • Option Greeks and Risk Management

    It is an evening class that meets once a week and it is offered every Autumn quarter.

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    Exam LTAM (Long-Term Actuarial Mathematics – Formerly Exam MLC)

    This is usually one of the last exams taken, since it is offered only twice a year in a paper-pencil setting and doesn't count toward CAS actuarial credentials. For more information and for registration instructions, follow this link. No statistics yet, but the historical pass rate for exam MLC was in the low 40%'s.

    Most of the syllabus is done in MAT 362-3 at the undergraduate level and in MAT 462-3 at the master's level. These courses are offered once a year and require a good knowledge of probability and interest theory. You can expect to learn the following topics:

    • Long-term Insurance Coverages
    • Survival Models and their Estimation
    • Present Value Random Variables
    • Premium Calculation
    • Reserves
    • Multiple Lives Models
    • Multiple Decrement Models

    While the topic of Pension Plans and Retirement Benefits may or may not be covered.

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    Exam STAM (Short-Term Actuarial Mathematics – Formerly Exam C)

    This exam is often the fourth or fifth exam attempted. It is offered in a computer-based testing environment three times a year (February, June and October). To learn more or to register to take it, you can click here. The historical pass rate for exam C was in the high 40%'s.

    The syllabus is done in MAT 364-5 at the undergraduate level and in MAT 464-5 at the master's level. These courses are offered once a year and require a good knowledge of probability and statistics. You can expect to learn the following topics:

    • Severity Models
    • Frequency Models
    • Aggregate Models
    • Coverage Modifications
    • Risk Measures
    • Construction and Selection of Parametric Models
    • Credibility
    • Pricing and Reserving for Short-Term Insurance Coverages
     
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    Exam SRM (Statistics for Risk Modeling) and Exam PA (Predictive Analytics)

    These are newly developed exams and there is no history to rely on. The syllabus for SRM includes the following topics:

    • Basics of Statistical Learning
    • Linear Models
    • Time Series Models
    • Principal Components Analysis
    • Decision Trees
    • Cluster Analysis

    A combination of Statistics and Data Science courses, such as MAT 356, MAT 358, MAT 360 as well as DSC 323, DSC 324, and DSC 341, cover these topics from both a theoretical and a practical perspective. Graduate-level courses addressing the same topics are MAT 456, MAT 512, MAT 491 or the Applied Statistics sequence MAT 441-3.

    Regarding Exam PA, the skills tested– in particular:

    • Model Building Process
    • Problem Definition and Exploratory Data Analysis
    • Model Selection
    • Model Validation
    • Communication of Results

    – appear across the entire Statistics and Data Science curriculum.

     
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    Exams MAS I-II (Modern Actuarial Statistics)

    These CAS-sponsored exams are also new, for which there are no data. Topics for the two exams include:

    • Probability Models (Stochastic Processes and Survival Models)
    • Estimation Theory and Statistics
    • Extended Linear Models
    • Time Series with Constant Variance
    • Introduction to Credibility
    • Linear Mixed Models
    • Bayesian Analysis and Markov Chain Monte Carlo
    • Statistical Learning

    The above are addressed across multiple Actuarial Statistics courses.

     

Last but not least... the Actuarial Sciences Exam Fee Reimbursement Fund


If you have passed a preliminary actuarial exam this year, you are eligible to receive a reimbursement of $225 for your exam fee! Search for "Actuarial Sciences Exam Fee Reimbursement Fund" on Scholarship Connect. You must log in with your Campus Connect user ID to apply.