| Grades and Accreditation |
Examination Processing Examination papers are sent to the CAS Office upon completion of the final examination. The CAS office prepares the examinations for the grading process. Approximately one week after all examinations have been completed, a preliminary list of multiple-choice and true/false answers will be posted in the Students’ Corner of the CAS Web Site. This is intended to assist candidates in determining whether they believe a question is ambiguous or defective.
Defective Questions
Occasionally, through error or because of varying interpretations, a question on an examination is found to be ambiguous or defective. If a candidate believes a question is ambiguous or defective, he/she should bring this to the attention of the CAS in writing within two weeks after the examination date; the candidate may fax this letter to the CAS Office. The letter should include detailed reasons why the question is believed to be ambiguous or defective. The CAS Examination Committee will investigate all questions brought to its attention in this manner and may make allowances in the grading process for answers which could be correct under an interpretation other than the one anticipated when the question was written. Any defective question will be eliminated from the grading process. Correspondence that does not reach the CAS Office within two weeks is unlikely to be able to be considered in the grading process.
Grading of Examinations
Answers to multiple-choice questions are read by optical scanning equipment and scored by computer. As a check, several papers are scored by hand. A statistical analysis is prepared for each question; if this information indicates there might be a problem, the question is carefully examined.
Any multiple-choice question found to be defective is carefully examined to determine the most reasonable way to correct the situation. In some cases, the question is discarded, leaving scores and rankings as they would have been if the defective question had not been asked; when this happens, the scores of individual candidates immediately below the pass mark are reviewed to determine if credit should be granted for the defective question. In other cases, more than one answer is given credit for being correct.
Every effort is made to grade answers to essay questions according to completely objective standards. The anonymity of the candidates is fully preserved; committee members see only candidate numbers when grading an examination, not candidate names.
A model answer is developed for each question prior to grading, including the recommended numerical value for each sub-point in the answer. Each question is assigned to two graders who separately and independently grade the candidates’ answers using the model answer as a guide. After grading a sufficient number of papers, each grader evaluates the model answer in light of the responses. If either grader believes that the model answer or the values assigned for sub-points should be revised, the two graders confer and revise the model answer, if necessary. Then both graders restart the grading process. After all papers have been graded, the two graders compare the scores assigned to each candidate for that question and reconcile differences.
After all questions have been graded, the multiple-choice scores and essay scores are combined, and candidates are ranked in order by score. A preliminary pass mark is established, and the answers given by candidates near the mark are re-graded. The candidates are re-ranked after the re-grading, and a final pass mark is determined.
Determination of the Pass Mark
The goal when determining the pass mark is to maintain consistent standards of qualification for membership. Because the level of difficulty for each exam varies from year to year, each Part Committee collects extensive data to ascertain the level of difficulty of its examination. The Part Committee compares the performance of the present year’s candidates to the performance of candidates from prior years. Appropriate recognition is given to any peculiarities that may appear in connection with the answers to any question on an examination despite all the care taken in setting the examination questions. After this, the pass mark is set to achieve the desired consistency. The examination part chairperson presents the recommended pass mark with the supporting data to the vice chairperson who oversees that examination part, the Examination Committee chairperson, and the Vice President-Admissions. The final decision on the pass mark is the responsibility of the Vice President-Admissions. Raw scores and the pass mark are not provided to candidates.
The percentage of candidates passing will vary from year to year; however, those candidates demonstrating the required level of competence with the material will pass.
After the passing mark is finalized, each candidate is assigned a score. Scores of 0 to 5 are assigned to candidates who do not pass. On this scale, each interval is 10 percent of the pass mark. For example, a grade of 5 means failing with a mark of at least 90 percent, but less than 100 percent, of the pass mark. A grade of 0 means that the candidate’s score is less than 50 percent of the pass mark. Candidates at or above the passing mark receive a Pass.
Examination Results
Examination results are available approximately eight weeks after the examination date. After examination results are received at the CAS Office, a list of passing candidate ID numbers will be posted in the Students’ Corner of the CAS Web Site.
Individual statements of examination results are mailed to candidates on the day that they are posted on the CAS Web Site. Passing candidates are informed that they passed the examination, but they are not given a numeric score. Candidates with scores of 0 to 5 are informed of the score. Several weeks later, a list of the names of all passing candidates is distributed.
Analysis
Candidates receiving a grade of 4 or 5 on an examination will automatically receive an analysis of their examination upon grade notification. Other unsuccessful candidates for Parts 3B, 4-10 may obtain an analysis of their examination by writing to the CAS Office before the stated deadline. The deadline is July 30, 1999 for Spring Examinations, and January 31, 2000 for Fall Examinations. The analysis of an examination is computer-generated. Actual points received for multiple-choice and true/false questions will be displayed. For essay questions, ranges will be given for both the actual score and how the actual score relates to the mean of all candidates. This information is intended to provide the educational guidance that most candidates desire.
Appeals
Once candidates have received an analysis of their exam, they may appeal their grade. Only candidates with valid appeals will be considered. In order to aid the candidate when appealing, answer keys for multiple-choice and true/false questions and sample answers to essay questions will be available not later than July 30, 1999 for Spring Examinations, and January 31, 2000 for Fall Examinations. The sample essay answers are actual responses that have received credit and are illustrative of successful answers, although they may not be considered perfect answers.
There are two types of valid appeals. The first type is an administrative check of the candidate’s short answer card to verify that the card reader scanned the card correctly and that the output file reflected this data. The second type of appeal is for an incorrect answer key or sample essay answer. If the candidate believes that the answer key or sample answer is incorrect or there is an alternative correct solution, the candidate must provide specific information on why his or her solution is correct. An example of a non-valid appeal would be the following: "I am appealing my score of 5 on Part 10, please re-check my examination." Another example of a non-valid appeal would be: "On question number 2, I believe I should get full credit because I answered the following . . ."
Appeals must reach the CAS Office not later than August 31, 1999 for Spring Examinations and March 1, 2000 for Fall Examinations. When a valid appeal is received, it is reviewed by the part chair and a recommendation is made to the Examination Committee chair. The Examination Committee chair will respond based on the recommendation by the part chair.
Confidentiality of Examination Records
The fact that any candidate has passed a particular examination is considered public knowledge. Any further information as to examinations taken by candidates and scores received by candidates is available only to the candidates themselves, to Examination Committee officials if required for committee purposes, and to the CAS Office, unless the candidate requests in writing that such information be provided to someone else.
Transition Programs
The CAS generally reviews and makes revisions in the study material on an annual basis. Occasionally, a major topic will be added to or deleted from the study material. A major topic is defined as a series of readings comprising a segment of an examination. When a major topic is deleted from the recommended study material, the Syllabus Committee will determine if a transition program is appropriate. A transition program generally will be appropriate when candidates are in a position to lose credit for a segment of an examination.
A transition program usually will provide candidates with at least two opportunities to complete the requirements for that examination part. The completion of the requirements will result in the achievement of credit for that entire examination part. The failure to fulfill the requirements for that complete examination part could result in the expiration of credit for that deleted topic at the end of the transition period. The CAS Board of Directors must approve any transition program.
Transition Rules for the 2000 Syllabus The CAS Board of Directors has approved the following transition rules for the new CAS education and examination system that will be implemented with the Spring 2000 Examinations. Exams 1, 2, 3, and 4 will be jointly sponsored with the Society of Actuaries (SoA).
CAS Exam 1/SoA Course 1
Mathematical Foundations of Actuarial Science—Calculus and Probability
Credit will be given if candidate has passed Part 1 (Calculus & Linear Algebra) or Part 2 (Probability & Statistics). No credit will be given for Graduate Record Examinations once the new system is effective in 2000. The CAS transition rule is the same as the SoA conversion rule for Exam 1.
CAS Exam 2/SoA Course 2
Interest Theory, Economics, and Finance
Credit will be given if candidate has passed Parts 1 (Calculus & Linear Algebra), 2 (Probability & Statistics), and 5B (Finance); OR if candidate has passed Parts 5A (Principles of Economics, Theory of Risk and Insurance) and 5B (Finance). The CAS will recognize the SoA conversion rule for Exam 2 (contact the SoA for details). The SoA will recognize the CAS transition rule.
CAS Exam 3/SoA Course 3
Actuarial Models
Credit will be given if candidate has passed Parts 2 (Probability and Statistics), 3A (Applied Statistical Methods), and 4A (Interest and Life Contingencies); OR if candidate has passed Parts 2, 4A, and 5A (Principles of Economics, Theory of Risk and Insurance). The CAS will recognize the SoA conversion rule for Exam 3 (contact the SoA for details). The SoA will not recognize the CAS transition rule.
CAS Exam 4/SoA Course 4
Actuarial Modeling
Credit will be given if candidate has passed Parts 4B (Credibility Theory and Loss Distributions) and 5A (Principles of Economics, Theory of Risk and Insurance); OR if candidate has passed Parts 3C (Numerical Methods—if it was passed in or prior to the Fall 1997 Examinations) and 4B; OR if candidate has passed Parts 3A (Applied Statistical Methods) and 4B. The CAS will recognize the SoA conversion rule for Exam 4 (contact the SoA for details). The SoA will not recognize the CAS transition rule.
CAS Exam 5
Introduction to Property/Casualty Insurance and Ratemaking
Credit will be given if candidate has passed Parts 3B (Introduction to Property and Casualty Insurance) and 6 (Ratemaking).
CAS Exam 6
Reserving, Insurance Accounting Principles, and Reinsurance
Credit will be given if candidate has passed Part 7C or Part 7US (Reserving and Accounting).
CAS Exam 7
Nation-Specific: Annual Statement, Taxation, and Regulation
Credit will be given if candidate has passed corresponding nation-specific (Canadian/US) Parts 7 (Reserving and Accounting) and 8 (Law and Regulation). If candidate has passed both Parts 7 and 8, candidate receives credit for Exams 6 and corresponding Canadian/US 7. If an Associate does not have credit for both Parts 7 and 8, he/she will continue to be an Associate, but will have to pass Exam 7 in order to become a Fellow.
CAS Exam 8
Investments, Valuation, and Solvency
Credit will be given if candidate has passed Part 10.
CAS Exam 9
Advanced Ratemaking, Rating Plans, and Rate of Return
Credit will be given if candidate has passed Part 9.
Transition Rules Calculator for the CAS 2000 Education and Examination System
CAS Membership Requirements
The current requirements for membership will be in effect through the CAS Fall 1999 Examinations. Beginning in 2000, the requirements will be updated to reflect the new CAS examination and education system.
Associateship
Candidates for Associateship in the Casualty Actuarial Society must fulfill the examination requirements by successful completion of, or credit for, Parts 1 through 7. Parts 1 and 2 are the same as the Society of Actuaries’ Course Exam numbers 100 and 110, respectively. Part 3 is administered as three separate examinations corresponding to each sub-part. Sub-parts 3A and 3C are the same as the Society of Actuaries’ Course Exam numbers 120 and 135, respectively. Each sub-part may be taken on separate examination dates so that partial credits may be earned until all sections are passed. Information for receiving credit or waivers is provided below.
After completing the prescribed examination requirements, all prospective Associate members must make formal application to the Casualty Actuarial Society. The CAS Office will mail application materials to these candidates, including instructions for obtaining letters of reference from two CAS members. Obtaining the two letters of reference is the prospective Associate’s responsibility. If no members of the CAS are familiar with the prospective Associate and his/her work history, references from members of the American Academy of Actuaries, the Canadian Institute of Actuaries, the Society of Actuaries, or senior executives where the candidate is employed may be substituted. For further information on alternative, acceptable references, please contact the CAS Office. An application for membership will not be processed without these references.
Candidates must attend the CAS Course on Professionalism prior to admission to the CAS. After all requirements are met and application is made, each candidate is voted on by the CAS Executive Council. Upon approval of the CAS Executive Council, the candidate will be admitted as an Associate of the Casualty Actuarial Society (ACAS). Candidates approved by the Executive Council will be notified by letter from the CAS President.
Fellowship
In addition to fulfilling all the requirements of Associateship, successful completion of, or credit for, all 10 examination parts (including their sub-parts) is required to fulfill the examination requirements for Fellowship and to be designated as a Fellow of the Casualty Actuarial Society (FCAS). Parts 7 and 8 now have two sub-divisions covering United States or Canadian-specific material, and passage of either of the two tracks fulfills the completion requirements.
CAS Course on Professionalism The
CAS Course on Professionalism is designed to present candidates with real situations that contain ethical and professional issues for the actuary. Volunteer Fellows of the CAS facilitate small group discussions of four actual case studies. Due to the nature of this course, business attire is expected.
Although grades are not given for the Course on Professionalism, candidates must actively participate in order to receive credit. Successful completion of this course is required before a candidate can become a member of the Casualty Actuarial Society. Candidates are urged to register for this course when they have passed five or more CAS Examinations. [Eligibility for attendance is defined as having successfully completed five Associateship examinations (Parts 3A, 3B, and 3C comprise one examination, as do Parts 4A and 4B, and 5A and 5B).]
Dates for the CAS Course on Professionalism will be published in the newsletter
Future Fellows. Registered candidates will receive a study book of required readings before the start of the course. Each course is limited to 60 participants; early registration is recommended. Facility information and course times will be provided upon registration.
Waiver of Examinations for Associateship
Waiver of individual examination requirements will be granted by the CAS Board of Directors in instances where an applicant has passed or received credit for examinations sponsored by another recognized actuarial organization that cover equivalent material in both subject and depth. The granting of waivers by the Board will be based on the recommendation of the Vice President-Admissions. The Vice President-Admissions’ recommendation will be guided by the policy established by the CAS Education Policy Committee.
The CAS generally will not grant waiver of all or any portion of its examination requirements for either work experience, contribution to actuarial literature, academic courses of study, or examinations of non-actuarial organizations. Individuals who claim competence in the areas covered by the examinations should not have difficulty demonstrating their competence by participating in the examination process.
The Education Policy Committee has established the specific program outlined below that covers the most common requests for waiver of examination requirements.
The CAS will not grant credit for examinations waived by the aforementioned organizations on account of academic records achieved in North American universities, nor for credit granted by the aforementioned organizations to candidates not qualifying directly in obtaining membership through the normal qualification/examination process applicable to residents of those countries.
In the above instances, (except item 4), candidates requesting a waiver of an examination requirement should present their request and applicable fee, if any, to the Vice President-Admissions with appropriate evidence that demonstrates the passing of (or score on) the actuarial examinations for which a waiver is requested. The Vice President-Admissions will review all such requests and recommend action to the CAS Board of Directors.
Please address all waiver requests to:
Vice President-Admissions Credits for examination equivalents of other actuarial organizations are considered on a case-by-case basis where the candidate has provided documentation pertaining to the equivalence of subject matter in both scope and depth. In such instances, candidates should present their requests to the Vice President-Admissions and include with their applications evidence that demonstrates the asserted equivalence of the actuarial examinations passed to those for which a waiver is requested via a list of topics covered, or other relevant material. If such evidence is not included, the Vice President-Admissions will request it from the candidate. The Vice President-Admissions will forward the request to the Education Policy Committee; its members will then review the request.
For those recognized actuarial organizations outside of the U.S. and Canada that have formal education requirements, but whose only means of qualification are through academic achievement, requests for waivers will be reviewed on a case-by-case basis. Each review will determine if any credit should be given based on the equivalence of the subject matter to any CAS Examinations or parts thereof.
In such instances, candidates should present their requests to the Vice President-Admissions and include with their applications evidence that demonstrates the asserted equivalence, as well as the appropriate educational policy material of their local actuarial organizations. If such material is not included, the Vice President-Admissions will request it from the candidates. In those instances, the Education Policy Committee will be asked to determine whether sufficient equivalence exists to permit granting any examination waiver.
Casualty Actuarial Society
P.O. Box 425
Merrifield, VA 22116-0425