1. CAS Basic Education Initiatives Tom Myers, CAS VP-Admissions June 28, 2005

2. What is VEE? Validation by Educational Experience (VEE) is a process that allows candidates to demonstrate verified educational accomplishments through means other than mandatory exams administered by the CAS/SOA/CIA. Validation by Educational Experience (VEE) is a process that allows candidates to demonstrate verified educational accomplishments through means other than mandatory exams administered by the CAS/SOA/CIA.

3. Why use VEE? Some subjects are important enough to require verification but not necessarily at the level of an actuarial exam. Some subjects are important enough to require verification but not necessarily at the level of an actuarial exam. Some subjects are not amenable to standardized testing. Some subjects are not amenable to standardized testing. Opportunity to increase cooperation between the actuarial profession and academia. Opportunity to increase cooperation between the actuarial profession and academia.

4. What topics are included in VEE? Economics (micro and macro) Economics (micro and macro) Corporate Finance Corporate Finance Applied Statistics Applied Statistics

5. How can candidates obtain VEE credits? B- grade or better on approved university course(s). B- grade or better on approved university course(s). Sufficient grade on approved standardized test(s). Sufficient grade on approved standardized test(s). Pass an exam administered by the CAS, SOA or CIA. Pass an exam administered by the CAS, SOA or CIA. Sufficient grade from some other form of approved educational experience. Sufficient grade from some other form of approved educational experience.

6. VEE Course Approval Process Candidates or course/test sponsors may submit applications to have a course or other educational experience approved. Candidates or course/test sponsors may submit applications to have a course or other educational experience approved. Application form is available under “VEE Information” in the “Admissions” section of the CAS Web Site (www.casact.org). Application form is available under “VEE Information” in the “Admissions” section of the CAS Web Site (www.casact.org).www.casact.org Courses and educational experiences must substantially meet published guidelines on course content. Courses and educational experiences must substantially meet published guidelines on course content.

7. VEE Course Approval Process Cont’d. Joint VEE Administration Committee reviews applications vs. guidelines and determines acceptability. Joint VEE Administration Committee reviews applications vs. guidelines and determines acceptability. List of approved courses/tests/experiences published on CAS/SOA/CIA websites and updated regularly. List of approved courses/tests/experiences published on CAS/SOA/CIA websites and updated regularly. Reasons/suggestions provided on disapproved courses. Reasons/suggestions provided on disapproved courses.

8. VEE Credit Approval Process Candidates who have passed at least two actuarial exams may submit applications for individual VEE credit(s). Candidates who have passed at least two actuarial exams may submit applications for individual VEE credit(s). Applications must be based on completion of approved courses/tests/experiences. Applications must be based on completion of approved courses/tests/experiences. Application form is available under “VEE Information” in the “Admissions” section of the CAS Web Site (www.casact.org). Application form is available under “VEE Information” in the “Admissions” section of the CAS Web Site (www.casact.org).

9. VEE Credit Approval Process Cont’d. Approval is generally routine if the required grade is achieved and documented. Approval is generally routine if the required grade is achieved and documented. Credit is automatic (no application required) for CAS/SOA/CIA-administered exams. Credit is automatic (no application required) for CAS/SOA/CIA-administered exams. If multiple tests/courses required, must achieve required standard on each piece. If multiple tests/courses required, must achieve required standard on each piece.

10. CAS-Administered VEE Exams CAS will administer separate exams for all three VEE subjects. CAS will administer separate exams for all three VEE subjects. 15-20 multiple-choice questions in 1 ½ hours 15-20 multiple-choice questions in 1 ½ hours Available in August 2005, February 2006, and August 2006. Available in August 2005, February 2006, and August 2006. Continuation beyond 2006 dependent on need/demand. Continuation beyond 2006 dependent on need/demand.

11. New Preliminary Exams Exam 1- Probability Exam 1- Probability Exam 2- Financial Mathematics (Interest Theory) Exam 2- Financial Mathematics (Interest Theory) Exam 3- Statistics and Actuarial Models Exam 3- Statistics and Actuarial Models Exam 4- Construction and Evaluation of Actuarial Models Exam 4- Construction and Evaluation of Actuarial Models Offered beginning Spring 2005 Offered beginning Spring 2005

12. Computer Based Testing Candidates take exam at a standardized testing center. Candidates take exam at a standardized testing center. Can schedule exam any time during a specified period (e.g., three days). Can schedule exam any time during a specified period (e.g., three days). Software tutorial provided online and before exam begins. Software tutorial provided online and before exam begins. User friendly software with easy navigation. User friendly software with easy navigation. Potential for immediate grading. Potential for immediate grading.

13. CBT Implementation for Exam 1 May 2005 - standard paper and pencil exam. May 2005 - standard paper and pencil exam. September 2005 - CBT (paper and pencil backup for areas without CBT centers). September 2005 - CBT (paper and pencil backup for areas without CBT centers). November 2005 - no exam. November 2005 - no exam. 2006 - 4 to 6 CBT administrations. 2006 - 4 to 6 CBT administrations. Immediate release of grades beginning some time in 2006. Immediate release of grades beginning some time in 2006. Rollout to other exams in future years. Rollout to other exams in future years.

14. Code of Professional Conduct Beginning in 2006, candidates taking CAS Exams 3, and 5-9 will be required to agree to abide by the terms and conditions of the CAS Code of Professional Conduct. Beginning in 2006, candidates taking CAS Exams 3, and 5-9 will be required to agree to abide by the terms and conditions of the CAS Code of Professional Conduct. Recognizes that candidates who have not yet achieved Associateship perform responsible actuarial work and that this work should be done within the framework of the Code. Recognizes that candidates who have not yet achieved Associateship perform responsible actuarial work and that this work should be done within the framework of the Code.

15. Modeling Workshop Education in risk integration techniques is consistent with Centennial Goal. Education in risk integration techniques is consistent with Centennial Goal. DFA added to Syllabus in 2000. DFA added to Syllabus in 2000. DFA taken off Exam 8 in 2003 due to inability to test in a paper-and-pencil environment. DFA taken off Exam 8 in 2003 due to inability to test in a paper-and-pencil environment. Modeling Workshop Task Force established. Modeling Workshop Task Force established. Piloting a hands-on workshop experience, with the final pilot conducted with new Fellows in May 2005. Piloting a hands-on workshop experience, with the final pilot conducted with new Fellows in May 2005. Consider adding this as a future FCAS requirement and/or continuing education opportunity. Consider adding this as a future FCAS requirement and/or continuing education opportunity.

16. FCAS Education Task force established in late 2004 to review Exams 5-9 Task force established in late 2004 to review Exams 5-9 Goal is to reduce total number of exams by one (i.e., 8 exams plus VEE). Goal is to reduce total number of exams by one (i.e., 8 exams plus VEE). May include a mandatory workshop (e.g., case studies on risk integration modeling) May include a mandatory workshop (e.g., case studies on risk integration modeling) Recommendations due to CAS Board in September 2005 Recommendations due to CAS Board in September 2005

17. Questions and Answers To ask a question, press *1 on your telephone keypad Casualty Actuarial Society 1100 North Glebe Road, Suite 600 Arlington, Virginia 22201 www.casact.org