The preliminary exams are the common foundation for becoming an actuary. No matter which actuarial practice area a person decides to enter, future actuarial education will depend on mastery of the preliminary exams.
Probability Exam (SOA Exam P): May be used to obtain Exam 1 credit with the CAS. The exam consists of three hours of multiple-choice questions. The purpose of this exam is to develop knowledge of probability. The application of these tools to problems encountered by actuaries is emphasized. A thorough command of calculus and probability topics is assumed. Additionally, a very basic knowledge of insurance and risk management is assumed.
Financial Mathematics Exam (SOA Exam FM): May be used to obtain Exam 2 credit with the CAS. The exam consists of three hours of multiple-choice questions. This exam covers interest theory (discrete and continuous) and an introduction to derivative securities. It assumes a basic knowledge of calculus and probability.
Investment and Financial Markets (SOA Exam IFM): May be used to obtain Exam 3F credit with the CAS. The exam consists of three hours of multiple-choice questions. The syllabus for Exam IFM develops the candidate’s knowledge of the theoretical basis of corporate finance and financial models and the application of those models to insurance and other financial risks. A thorough knowledge of calculus, probability (as covered in Exam P), basic corporate finance (as covered in VEE Accounting and Corporate Finance) and interest theory (as covered in Exam FM) is assumed.
Long-Term Actuarial Mathematics Exam (SOA Exam LTAM): The syllabus for Exam LTAM develops the candidate’s knowledge of the theoretical basis of contingent payment models and the application of those models to insurance and other financial risks. A thorough knowledge of calculus, probability (as covered in Exam P), mathematical statistics (as covered in VEE Mathematical Statistics) and interest theory (as covered in Exam FM) is assumed.
Modern Actuarial Statistics I Exam (CAS Exam MAS-I): This exam is administered by the CAS. There is not a waiver or SOA equivalent for this exam. MAS-I is a four-hour exam. This examination covers Probability Models (Stochastic Processes and Survival Models), Statistics, Extended Linear Models, and Time series with Constant Variance.
Modern Actuarial Statistic II Exam (CAS Exam MAS-II): This exam is administered by the CAS. There is not a waiver or SOA equivalent for this exam. MAS-II is a four-hour exam. This examination covers Introduction to Credibility, Linear Mixed Models, Bayesian Analysis and Markov Chain Monte Carlo, and Statistical Learning.