2. 15 $1 Million
14 $500,000
13 $250,000
12 $100,000
11 $50,000
10 $25,000
9 $16,000
8 $8,000
7 $4,000
6 $2,000
5 $1,000
4 $500
3 $300
2 $200
1 $100

3. Precept 2 states that An Actuary shall perform Actuarial Services only when the Actuary is qualified to do so on the basis of basic and continuing education and experience and only when the Actuary satisfies applicable qualification standards. These standards must be promulgated by a Recognized Actuarial Organization. Which of the following is NOT a Recognized Actuarial Organization?
CAS
CIA A. B.
AAA
ABC C. D.

4. Which of the following is NOT a professionalism document for an actuary?
Actuary's Guide to Insurance
Code of Professional Conduct A. B.
Actuarial Standards of Practice
Statement of Principles C. D.

5. According to ASOP 17: Expert Testimony by Actuaries, “One who is qualified by knowledge, skill, experience, training, or education to render an opinion or otherwise testify concerning the matter at hand” is the definition of what?
Principal
Expert A. B.
Advocate
Scholar C. D.

6. According to Code of Conduct Precept 9, an Actuary shall not disclose to another party any Confidential Information unless authorized to do so by whom?
Manager
Principal A. B.
Attorney
CAS President C. D.

7. Insurance Commissioner Prescribed assumptions accordance with the law
According to ASOP 41, if any material assumption or methods are prescribed by applicable law, the actuary should disclose the following EXCEPT for?
Applicable Law
Name of the
Insurance Commissioner A. B.
Prescribed assumptions
or methods
Report prepared in
accordance with the law C. D.

8. Risk of Misinterpretation
According to Precept 8 of the Code of Professional Conduct, an Actuary who performs Actuarial Services shall take reasonable steps to assure that such services are not used to mislead others. Which of the following risks are NOT mentioned in Precept 8?
Risk of Misquotation
Risk of Misinterpretation A. B.
Risk of Other Misuse
Risk of Misreading C. D.

9. According to ASOP 29: Expense Provisions in Property/Casualty Insurance Ratemaking, which of the following are included in taxes, licenses and fees?
State premium taxes
Federal income taxes A. B.
Foreign income taxes
Residual market
provisions C. D.

10. Which of the following is NOT an actuarial consideration when establishing risk classes?
Credibility
Adverse selection/
homogeneity A. B.
Industry practices
Practicality C. D.

11. ASOP 29, Expense Provisions in Property/Casualty Insurance Ratemaking, contains a reference to which of the following ASOPs?
ASOP 13, Trending Procedures
In P/C Insurance Ratemaking
ASOP 7, Analysis of Life, Health,
or P/C Insurer Cash Flows A. B.
ASOP 23, Data Quality
ASOP 39, Treatment of
Catastrophe Losses
in P/C Ratemaking C. D.

12. According to ASOP 36: Statements of Actuarial Opinion, the actuary should only make use of another’s analyses or opinions when, in the actuary’s professional judgment, it is reasonable to do so. In making this determination, the actuary should consider all of the following EXCEPT:
The credentials of the
individual(s) that prepared
the analyses or opinions.
The nature of the
exposure and coverage. A. B.
Actuary’s opinion of the quality
of the work in the other
analyses or opinions.
Reserves covered by another’s
analyses or opinions in
comparison to total reserves. C. D.

13. Homogeneity to historic Specific weather perils
According to ASOP 39, Treatment of Catastrophe Losses in P/C Insurance Ratemaking, identification of catastrophic events includes which characteristic?
Potential to display
contagion
Homogeneity to historic
catastrophe losses A. B.
Impact to multiple
geographic regions
Specific weather perils C. D.

14. According to ASOP 30- Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, "Cost of Capital" is also known as:
Operations risk
Opportunity cost A. B.
Insurance risk
Capital risk C. D.

15. According to ASOP 30 - Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, “Operating Profit” includes the following, EXCEPT:
Underwriting Profit
Miscellaneous (non-investment)
income from Insurance Operations A. B.
Investment income
from Insurance Operations
Net Real Estate Income C. D.

16. Which of the following terms is not defined in ASOP 1 (Intro to ASOPs
Must
Should A. B.
May
Could C. D.

17. When issuing actuarial communications incorporating catastrophe modeling (ASOP 38), disclose each of the following EXCEPT:
User Input
Actuary's
Qualifications A. B.
Adjustments to
Results
Reliance on
Another Actuary C. D.

18. Instructions & answer slides follow
End of Game
Instructions & answer slides follow

19. Precept 2 states that An Actuary shall perform Actuarial Services only when the Actuary is qualified to do so on the basis of basic and continuing education and experience and only when the Actuary satisfies applicable qualification standards. These standards must be promulgated by a Recognized Actuarial Organization. Which of the following is NOT a Recognized Actuarial Organization?
CAS
CIA A. B.
AAA
ABC C. D.

20. Which of the following is NOT a professionalism document for an actuary?
Actuary's guide to insurance
Code of Professional Conduct A. B.
Actuarial Standards of Practice
Statement of Principles C. D.

21. According to ASOP 17: Expert Testimony by Actuaries, “One who is qualified by knowledge, skill, experience, training, or education to render an opinion or otherwise testify concerning the matter at hand” is the definition of what?
Principal
Expert A. B.
Advocate
Scholar C. D.

22. According to Code of Conduct Precept 9, an Actuary shall not disclose to another party any Confidential Information unless authorized to do so by whom?
Manager
Principal A. B.
Attorney
CAS President C. D.

23. Insurance Commissioner Prescribed assumptions accordance with the law
According to ASOP 41, if any material assumption or methods are prescribed by applicable law, the actuary should disclose the following EXCEPT for?
Applicable Law
Name of the
Insurance Commissioner A. B.
Prescribed assumptions
or methods
Report prepared in
accordance with the law C. D.

24. Risk of Misinterpretation
According to Precept 8 of the Code of Professional Conduct, an Actuary who performs Actuarial Services shall take reasonable steps to assure that such services are not used to mislead others. Which of the following risks are NOT mentioned in Precept 8?
Risk of Misquotation
Risk of Misinterpretation A. B.
Risk of Other Misuse
Risk of Misreading C. D.

25. According to ASOP 29: Expense Provisions in Property/Casualty Insurance Ratemaking, which of the following are included in taxes, licenses and fees?
State premium taxes
Federal income taxes A. B.
Foreign income taxes
Residual market
provisions C. D.

26. Which of the following is NOT an actuarial consideration when establishing risk classes?
Credibility
Adverse selection/
homogeneity A. B.
Industry practices
Practicality C. D.

27. ASOP 29, Expense Provisions in Property/Casualty Insurance Ratemaking, contains a reference to which of the following ASOPs?
ASOP 13, Trending Procedures
In P/C Insurance Ratemaking
ASOP 7, Analysis of Life, Health,
or P/C Insurer Cash Flows A. B.
ASOP 23, Data Quality
ASOP 39, Treatment of
Catastrophe Losses
in P/C Ratemaking C. D.

28. According to ASOP 36: Statements of Actuarial Opinion, the actuary should only make use of another’s analyses or opinions when, in the actuary’s professional judgment, it is reasonable to do so. In making this determination, the actuary should consider all of the following EXCEPT:
The credentials of the
individual(s) that prepared
the analyses or opinions.
The nature of the
exposure and coverage. A. B.
Actuary’s opinion of the quality
of the work in the other
analyses or opinions.
Reserves covered by another’s
analyses or opinions in
comparison to total reserves. C. D.

29. Homogeneity to historic Specific weather perils
According to ASOP 39, Treatment of Catastrophe Losses in P/C Insurance Ratemaking, identification of catastrophic events includes which characteristic?
Potential to display
contagion
Homogeneity to historic
catastrophe losses A. B.
Impact to multiple
geographic regions
Specific weather perils C. D.

30. According to ASOP 30- Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, "Cost of Capital" is also known as:
Operations risk
Opportunity cost A. B.
Insurance risk
Capital risk C. D.

31. According to ASOP 30 - Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, “Operating Profit” includes the following, EXCEPT:
Underwriting Profit
Miscellaneous (non-investment)
income from Insurance Operations A. B.
Investment income
from Insurance Operations
Net Real Estate Income C. D.

32. Which of the following terms is not defined in ASOP 1 (Intro to ASOPs
Must
Should A. B.
May
Could C. D.

33. When issuing actuarial communications incorporating catastrophe modeling (ASOP 38), disclose each of the following EXCEPT:
User Input
Actuary's
Qualifications A. B.
Adjustments to
Results
Reliance on
Another Actuary C. D.

34. 50-50 Lifeline Slides

35. Precept 2 states that An Actuary shall perform Actuarial Services only when the Actuary is qualified to do so on the basis of basic and continuing education and experience and only when the Actuary satisfies applicable qualification standards. These standards must be promulgated by a Recognized Actuarial Organization. Which of the following is NOT a Recognized Actuarial Organization? A. B.
AAA
ABC C. D.

36. Actuary's guide to insurance Code of Professional Conduct
Which of the following is NOT a professionalism document for an actuary?
Actuary's guide to insurance
Code of Professional Conduct A. B. C. D.

37. According to ASOP 17: Expert Testimony by Actuaries, “One who is qualified by knowledge, skill, experience, training, or education to render an opinion or otherwise testify concerning the matter at hand” is the definition of what?
Expert A. B.
Advocate C. D.

38. According to Code of Conduct Precept 9, an Actuary shall not disclose to another party any Confidential Information unless authorized to do so by whom?
Principal A. B.
Attorney C. D.

39. Insurance Commissioner Prescribed assumptions
According to ASOP 41, if any material assumption or methods are prescribed by applicable law, the actuary should disclose the following EXCEPT for?
Name of the
Insurance Commissioner A. B.
Prescribed assumptions
or methods C. D.

40. According to Precept 8 of the Code of Professional Conduct, an Actuary who performs Actuarial Services shall take reasonable steps to assure that such services are not used to mislead others. Which of the following risks are NOT mentioned in Precept 8?
Risk of Misquotation A. B.
Risk of Misreading C. D.

41. According to ASOP 29: Expense Provisions in Property/Casualty Insurance Ratemaking, which of the following are included in taxes, licenses and fees?
State premium taxes A. B.
Residual market
provisions C. D.

42. Which of the following is NOT an actuarial consideration when establishing risk classes?
Credibility A. B.
Industry practices C. D.

43. ASOP 13, Trending Procedures In P/C Insurance Ratemaking
ASOP 29, Expense Provisions in Property/Casualty Insurance Ratemaking, contains a reference to which of the following ASOPs?
ASOP 13, Trending Procedures
In P/C Insurance Ratemaking A. B.
ASOP 23, Data Quality C. D.

44. Actuary’s opinion of the quality
According to ASOP 36: Statements of Actuarial Opinion, the actuary should only make use of another’s analyses or opinions when, in the actuary’s professional judgment, it is reasonable to do so. In making this determination, the actuary should consider all of the following EXCEPT:
The nature of the
exposure and coverage. A. B.
Actuary’s opinion of the quality
of the work in the other
analyses or opinions. C. D.

45. Specific weather perils
According to ASOP 39, Treatment of Catastrophe Losses in P/C Insurance Ratemaking, identification of catastrophic events includes which characteristic?
Potential to display
contagion A. B.
Specific weather perils C. D.

46. According to ASOP 30- Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, "Cost of Capital" is also known as:
Operations risk
Opportunity cost A. B. C. D.

47. According to ASOP 30 - Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking, “Operating Profit” includes the following, EXCEPT:
Underwriting Profit A. B.
Net Real Estate Income C. D.

48. Which of the following terms is not defined in ASOP 1 (Intro to ASOPs
Should A. B.
Could C. D.

49. When issuing actuarial communications incorporating catastrophe modeling (ASOP 38), disclose each of the following EXCEPT:
User Input
Actuary's
Qualifications A. B. C. D.

50. $100

51. $200
Radon Reduction Level

52. $300
Radon Reduction Level

53. $500
Radon Reduction Level

54. $1,000
Radon Reduction Level

55. $2,000
Radon Reduction Level

56. $4,000
Radon Reduction Level

57. $8,000
Radon Reduction Level

58. $16,000
Radon Reduction Level

59. $25,000
Radon Reduction Level

60. $50,000
Radon Reduction Level

61. $100,000
Radon Reduction Level

62. $250,000
Radon Reduction Level

63. $500,000

64. $1 Million
Radon Reduction Level

65. 1 29 2 28 3 27 4 26 5 25 7 8 6 9 10 11 12 15 21 20 22 23 24 19 18 14 13 16 17 30

66. Professional Guidance
Precept 2 of the Code of Conduct:
An Actuary shall perform Actuarial Services only when the Actuary is qualified to do so on the basis of basic and continuing education and experience and only when the Actuary satisfies applicable qualification standards.
The continuing education and qualification standards outline what is required of an actuary.
One issue that is of recent debate is what happens when an actuary moves to a new area
(pricing to reserving or Life to P&C or one specialized product to another.)
Recognized Actuarial Organization – an organization that has been accepted for full
membership in the International Actuarial Association or a standards setting, counseling
or discipline body to which authority has been delegated by such an organization.

67. Professional Guidance
Code of Professional Conduct
Identifies the professional and ethical standards required of actuaries who practice in the United States.
Actuarial Standards of Practice (ASOP)
Provide guidance on the techniques, applications, procedures, and methods that reflect appropriate actuarial practices in the United States
Statements of Principle (SOP)
Provide a conceptual foundation for common actuarial applications and assist where actuarial concepts are evolving, adapting to practical needs, or incorporating advances in actuarial practice, actuarial science or in other disciplines relevant to the work of actuaries.

68. Professional Guidance
ASOP 17 – Expert Testimony by Actuaries
Focus is on preparation and delivery of sound expert testimony by actuaries
Applies to actuaries testifying as actuarial experts or communicating an actuarial opinion in a public forum
2.5 Expert—One who is qualified by knowledge, skill, experience, training, or education to render an opinion or otherwise testify concerning the matter at hand.
2.7 Principal—A client or employer of the actuary.
Section 1 of the standard discusses its purpose and scope. Its focus is
on the preparation and delivery of sound expert testimony by actuaries.
It is meant to provide guidance to the actuary. It applies to actuaries testifying
as experts or communicating an actuarial opinion in a public forum.
Some examples of these public forums might include administrative hearings,
arbitrations, committee hearings, and court proceedings such as depositions,
declarations, and affidavits. Nothing in this standard is intended to discourage
reasonable differences of actuarial opinion, or to inhibit responsible creativity
in advancing the practice of actuarial science.
This standard became effective April 15, 1991.

69. Professional Guidance
Precept 9 of the Code of Conduct:
An Actuary shall not disclose to another party any Confidential Information unless authorized to do so by the Principal or required to do so by Law.
Definition: Confidential Information
Information not in the public domain of which an Actuary becomes aware as a result of providing Actuarial Services to a Principal.

70. Professional Guidance
ASOP 41 – Actuarial Communications
4.2 Certain Assumptions or Methods Prescribed by Law—Where any material assumption or method was prescribed by applicable law, the actuary should disclose the following in the actuarial
the applicable law under which the report was prepared;
the assumptions or methods that are prescribed by the applicable law; and
that the report was prepared in accordance with the applicable law
If the actuarial report is in a prescribed form that does not accommodate
these disclosures, the actuary should make these disclosures in a separate
communication (such as a cover letter to the principal), requesting that both
communications be disseminated together where practicable.
This section of ASOP 41 is referenced in many other ASOPs which may be
impacted by methods or assumptions prescribed by law.

71. Professional Guidance
Code of Conduct Precept 8: Control of Work Product
An Actuary who performs Actuarial Services shall take reasonable steps to ensure that such services are not used to mislead other parties.
An Actuarial Communication may be used by another party in a way that may influence the actions of a third party.
The Actuary should recognize the risks of
Misquotation
Misinterpretation
Other Misuse
The Actuary should therefore take reasonable steps to present the Actuarial Communication clearly and fairly
As appropriate include limitations on distribution and utilization
This precept ties to a number of others, such as Precept 1 (actuary shall not
engage in deceit or misrepresentation that reflects adversely on the actuarial
profession) and ASOP 41 (which lists a number of disclosures the
communication should contain to make sure it is present clearly and fairly.)
It seems a little unreasonable to make an actuary avoid a risk of misreading
(which is clearly different than misinterpretation!)

72. Professional Guidance
ASOP 29: Expense Provisions in Property/Casualty Insurance Ratemaking
Section 2.9: Residual Market Provision Defined:
A provision for the entity’s costs that represents its share of residual market profits.
Section 2.11: Taxes, Licenses and Fees Defined:
All taxes and miscellaneous fees except federal and foreign income taxes.
Section 3.7: The actuary should include a provision in the rate for any residual market costs or statutory assess­ments expected to occur during the period of time the rates are expected to be in effect.

73. Professional Guidance
ASOP 12: Risk Classification
3.3.2 Actuarial Considerations ⎯ When establishing risk classes, the actuary should consider the following, which are often interrelated:
a. Adverse Selection
b. Credibility
c. Practicality

74. Professional Guidance
ASOP 29 Expense Provisions in P/C Ratemaking
3.4 Expense Trending—In determining the future expense components of the rate, the actuary should be guided by Actuarial Standard of Practice (ASOP) No. 13, Trending Procedures in Property/Casualty Insurance Ratemaking.
Also includes a reference to ASOP 41 as do all other ASOPs.

75. Professional Guidance
ASOP 36 – Statement of Actuarial Opinion
3.7.2 The actuary should only make use of another’s analyses or opinions when reasonable to do so. The actuary should consider the following:
a. the amount of the reserves covered by another’s analyses or opinions in comparison to the total reserves subject to the actuary’s opinion;
b. the nature of the exposure and coverage;
c. the way in which reasonably likely variations in estimates covered by another’s analyses or opinions may affect the actuary’s opinion on the total reserves subject to the actuary’s opinion; and
d. the credentials of the individual(s) that prepared the analyses or opinions. .
Evaluation Based on Actuary’s Use of Another’s Unpaid Claims Estimate Analysis or
Opinion—In the course of conducting a reserve evaluation, the actuary may make use of
another’s supporting analyses or opinions. The actuary should understand the intended
purpose of the analyses or opinions, and assess whether the analyses or opinions are
consistent with the stated basis of presentation of the reserves.
The ASOP does not directly indicate the actuary should consider the quality of the analysis.
However it does speak to the following: Where, in the opinion of the actuary, the analyses
or opinions of another need to be modified or expanded, the actuary should perform such
\analyses as necessary to issue an opinion on the total reserves.
If in using the analyses or opinions of another the actuary reaches conclusions materially
different from those in the analyses or opinions used, the actuary should, when practical,
contact the appropriate parties to discuss the differences.
Where material differences exist, the issues underlying the differences should be understood
by the actuary. Materiality in this situation should be measured relative to the actuary’s
opinion, not relative to the analyses or opinions used.

76. Professional Guidance
ASOP 39: Treatment of Catastrophe Losses in Property/Casualty Insurance Ratemaking
2.3 Contagion—A lack of independence between the occurrence of losses among different entities.
The actuary should take reasonable steps to identify the perils or events that have
the potential to generate catastrophe losses that differ materially from the
expected aggregate losses or the expected distribution of losses.

77. Professional Guidance
ASOP 39: Treatment of Catastrophe Losses in Property/Casualty Insurance Ratemaking
Section 3.1 Identification of Catastrophe Perils or Events These perils or events have at least one of the following characteristics:
a. The Potential to Display Contagion—Examples of perils that display contagion include windstorms, earth movement, and freezing.
b. Infrequent Occurrence
The actuary should take reasonable steps to identify the perils or events that
have the potential to generate catastrophe losses that differ materially from
the expected aggregate losses or the expected distribution of losses.
Some events that occur infrequently have the potential to
produce losses that can significantly distort the historical experience.
An example of such an event is an explosion that results in the release
of toxic material. If the experience data contain such events, using this
experience data without adjustment may overstate the catastrophe provision
in the rates. If the experience data do not contain such events, using this
experience data without adjustment may understate the catastrophe
provision in the rates.

78. Professional Guidance
ASOP 30 Treatment of Profit and Contingency
2.1 Capital - The funds intended to assure payment of obligations from insurance contracts, over and above those funds backing the liabilities.
2.3 Cost of Capital - The rate of return that capital could be expected to earn in alternative investments of equivalent risk; also known as opportunity cost.
2.5 Insurance Risk - The extent to which the level or timing of actual insurance cash flows is likely to differ from expected insurance cash flows.
2.10 Operating Profit - The sum of underwriting profit, miscellaneous (non-investment) income from insurance operations, and investment income from insurance operations. Associated income taxes are recognized when the analysis is on a post-tax basis.

79. Professional Guidance
ASOP 30 Treatment of Profit and Contingency
2.10 Operating Profit—The sum of underwriting profit, miscellaneous (non-investment) income from insurance operations, and investment income from insurance operations. Associated income taxes are recognized when the analysis is on a post-tax basis.
2.13 Underwriting Expenses—All expenses except losses, loss adjustment expenses, investment expenses, policyholder dividends, and income taxes.
2.14 Underwriting Profit—Premiums less losses, loss adjustment expenses, underwriting expenses, and policyholder dividends.
If the variation in expected outcomes within a risk class is too great, adverse
selection is likely to occur.
It is desirable that risk classes in a risk classification system be large enough
to allow credible statistical inferences regarding expected outcomes. When
the available data are not sufficient for this purpose, the actuary should balance
considerations of predictability with considerations of homogeneity.
The actuary should use professional judgment in achieving this balance.
The actuary should use professional judgment in balancing the potentially
conflicting objectives of accuracy and efficiency, as well as in minimizing
the potential effects of adverse selection. The cost, time, and effort needed
to assign risks to risk classes will increase with the number of risk classes.

80. Professional Guidance
ASOP 1: Introductory ASOP
May
“May” as used in the ASOPs means that the course of action described is one that would be considered reasonable and appropriate in many circumstances.
Must/Should
“Must” as used in the ASOPs means that the ASB does not anticipate that the actuary will have any reasonable alternative but to follow a particular course of action.
In contrast, the word “should” indicates what is normally the appropriate practice for an actuary to follow when rendering actuarial services.
“May” is not intended to indicate that a course of action is reasonable and
appropriate in all circumstances, nor to imply that alternative courses of action
are impermissible.

81. Professional Guidance
ASOP 38 Using Models Outside Actuary’s Area of Expertise
When issuing actuarial communications incorporating catastrophe modeling within the scope of this ASOP, the actuary should disclose the following, as appropriate:
the model used and the project’s objective;
a description of the user input that was incorporated into the model;
a description of adjustments made to the model results;
the extent of any reliance placed upon the work of another actuary.

82. “Who Wants To Be A Millionaire” Powerpoint (Advanced) Template
Designed and Created by
Jeff White
Copyright © 2000
Version Last updated 20 June, 2001
The graphics and sounds used in this template are recorded from the television show “Who Wants To Be A Millionaire,” and were obtained from both the
ABC “WWTBAM” website and the
ITV “WWTBAM” website.
ABC is the American Broadcasting Corporation;
ITV is the Channel 3 (UK) broadcasting company.
Visit for updated versions!