SOA Exam FAM Questions and Answers 2024

SOA Exam FAM Questions and Answers 2024

SOA Exam FAM Questions and Answers 1. annuity certain: (1 - v^n )/ d 2. Structured Settlement top down vs bottom up: Two approaches can be used to determine the annuity payments in a structured settlement: Top-down approach: Determine an appropriate lump sum amount, then convert that amount to an annuity Bottom-up approach: Determine an appropriate income stream, then calculate the EPV of the payments The bottom-up approach is more suitable for structured settlements as their objective is to match the pre- injury income of the IP. 3. coinsurance on homeowners insurance (Formula): if coinsurance requirement isn't met (amount that needs to be covered ) then the benefit is = L*(amount covered/(coinsurance * value at time of loss)) |f the factor applied to loss is greater than 1 then it's just L 4. If you have a short "death benefit is policy value" whats a trick you can use: if you have premium by equivalence you should know the policy value at beginning and end so you can use the recursive formula to get two formulas for P 5. u|t q x means what: the u year deferred probability a life aged x dies in time (u,u+t) 6. expense policy value: EPV(expenses) - EPV(expense loading) (where expense loading is G-P or just Pe if you need to find that for the solution) 7. On Level premium when you have rating factors in addition to trend like age and risk class: Base level premium * trend ^ number of years * current rating factors 8. what to do with censored data in KM or NA estimators of survival: Include them in the risk pool r and then take them out at the value specified (so if it's at least 50 include it in r but when you get a d>50 it's removed from r and isn't included in the ds) 9. mean excess loss function: e(d)= E[X-d | X>d] = (E[X] -E[X^d])/(1-F(d)) 10. What is covered by marine insurance: The following risks are eligible for coverage under inland marine insurance: Domestic shipments made by railroad, motor vehicle, or ship on inland waterways. Provision is made for insuring goods transported by air, mail, parcel post, express, armored car, or messenger. Instrumentalities of transportation and communication, such as bridges, tunnels, piers, wharves, docks, communication equipment, and movable property.