Actuarial Societies
What is the Society of Actuaries (SOA)?
The actuarial society that focuses on life insurance, health insurance, retirement benefits, and finance
What is the Central Limit Theorem?
A theorem says that the sampling distribution of the mean will always be normally distributed, as long as the sample size is large enough
What is interest?
The monetary charge for the privilege of borrowing money, typically expressed as an annual percentage rate
What is a derivative?
The rate of change of a function with respect to a variable
What is a policy?
A written contract ratifying the legality of an insurance agreement
What is the Casualty Actuarial Society (CAS)?
The actuarial society that focuses on property and casualty insurance, such as auto, homeowners, and commercial liability insurance
What is mutually exclusive?
A statistical term that describes when two or more things cannot occur at the same time
What is present value?
The current value of a future sum of money or stream of cash flows
What is an integral?
The numerical value equal to the area under the graph of a function for some interval
What is a deductible?
The amount of money you pay before your insurance company starts paying for covered expenses
What are Exam Probability (P) and Exam Financial Mathematics (FM)?
The two preliminary exams that count for both the SOA and the CAS exam tracks
What is independence?
A statistical term that describes when the occurrence of one event does not affect the chances of the occurrence of the other event
What is future value?
The value of a current asset at a future date based on an assumed growth rate
What is the derivative of e^x?
e^x
What is a claim?
A formal request for reimbursement from an insurance company for a covered loss
What is an Associate Actuary?
An actuary who has passed a set of initial professional exams and meets basic requirements to practice
What is a discrete distribution?
A probability distribution where the data can only take on a finite, countable number of distinct values
What is an annuity?
A contract providing income for a specified period of time, or duration of life for a person or persons
What is a geometric series?
A sequence where each term is found by multiplying the previous term by a fixed number
What is a premium?
Money charged for the insurance coverage reflecting expectation of loss
What is a Fellow Actuary?
An actuary who has passed all of the professional exams and meets the higher level requirements to practice
What is a continuous distribution?
A probability distribution where a random variable can take on any value
What is a perpetuity?
A continuous stream of identical cash flows with no end, such as payments from an annuity
What is the Fundamental Theorem of Calculus?
An extremely powerful theorem that establishes the relationship between differentiation and integration
What is an actuary?
A business professional who analyzes probabilities of risk and risk management including calculation of premiums, dividends and other applicable insurance industry standards