To: CAS Members and Candidates
From: Kevin B. Thompson, Vice President-Admissions
Re: Year 2000 Exam System

New Exams 3 & 4

The Casualty Actuarial Society and the Society of Actuaries have agreed to jointly sponsor new Exams 3 and 4 beginning in the Spring 2000. Joint sponsorship means that the education of actuaries in the United States and Canada will be the same for the subjects covered by the first four exams under the new exam structure.

The approval of joint sponsorship was the outgrowth of a meeting convened by the Presidents and Presidents-Elect of both societies in January 1998. This meeting was held to re-evaluate the potential for joint sponsorship in light of favorable developments since the new exam structure was announced. During the meeting, both societies agreed to create a joint task force to recommend a common syllabus for Exams 3 and 4. Harry Panjer, President of the Canadian Institute of Actuaries, was asked to serve as chairperson of the task force and the CAS and SoA each appointed two members.

The task force issued its report and recommendations in March 1998. These recommendations were reviewed by the appropriate education committees, senior leadership and ultimately the Board of each society. Working with the recommendations of the task force a larger group developed the actual syllabus for the joint exams. This group, co-chaired by Nancy Braithwaite (CAS) and Jim Miles (SoA) completed its report in June. This report is available on the CAS Web site. A paper copy may be requested from the CAS office.

The joint sponsorship of the first four exams allows students to defer the need to make a critical career decision regarding the CAS or SoA exams until a time when most will have completed their undergraduate education and be in a better position to make an informed choice. It also results in the more efficient use of volunteer resources rather than each society separately developing exams that cover essentially the same topics. The volunteer resources freed up by jointly sponsoring these exams can be applied by the CAS to developing those other exams that deal with subjects that are specific to the education of casualty actuaries.

Transition Rules

The transition rules described below reflect a change from the information placed on the CAS Web Site on July 9. We were advised on July 13 that the SoA will NOT recognize the CAS transition rules for New Exams 3 and 4. The CAS WILL recognize the SoA transition (conversion) rules. Both societies will continue to recognize the other society’s transition rules for new Exams 1 and 2.

The joint Exams 3 and 4 will cover the same material originally announced for these two exams. However, the assignment of topics to a particular exam has been revised. This change in the assignment of topics has led to a change in the transition rules for each of these exams. There will now be an additional transition option for each exam. The current transition rule is not being changed; additional options are being established.

The transition rule for Exam 3 will now be:

Part 2 (Probability and Statistics), Part 3A (Applied Statistical Methods) and Part 4A (Interest and Life Contingencies).

OR (NEW OPTION)

Part 2, Part 4A and Part 5A (Principles of Economics and Theory of Risk and Insurance).

The CAS will recognize the SoA transition (conversion) rule. The SoA will not recognize the CAS transition rule.

The transition rule for Exam 4 will now be:

Part 4B (Credibility Theory and Loss Distributions) and Part 5A (Principles of Economics and Theory of Risk and Insurance).

OR

Part 4B and Part 3C (Numerical Methods) if passed in Fall 1997 sitting or prior.

OR (NEW OPTION)

Part 3A and Part 4B.

The CAS will recognize the SoA transition (conversion) rule. The SoA will not recognize the CAS transition rule.

With these changes, the transition rules for the new exams can be considered final.

Exam Timing

Joint Exams 1-4 will be administered twice a year.

Exams 5, 7, and 8 will be administered once a year, in the Spring.

Exams 6 and 9 will be administered once a year, in the Fall.