Free CAS Exam 5 (Basic Ratemaking and Reserving) Diagnostic Quiz
Take this free 12-question Exam 5 sample quiz to benchmark your readiness. You get an instant readiness score and a weak-topic breakdown, like a mini practice test, every question with a full solution. No signup to start, no credit card.
In implementing a rating plan, what is the primary purpose of a minimum premium?
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Correct Answer: B
Solution
B is correct. A minimum premium is a floor applied when the premium produced by the rating algorithm is very small. It ensures that every policy contributes enough to cover the fixed expenses and the basic cost of providing coverage, which do not scale down proportionally with a tiny exposure.
Frequently Asked Questions
Is the Exam 5 diagnostic quiz free?
Yes. The Exam 5 diagnostic is a free 12-question sample quiz with instant scoring. You can take it with no signup and no credit card. Creating a free account saves your result and unlocks a personalized weak-topic study plan.
How long is the Exam 5 diagnostic quiz?
The diagnostic is 12 questions and takes about 5 to 10 minutes. You get instant feedback on each question, then a readiness score with a topic-by-topic breakdown at the end.
Does the Exam 5 diagnostic predict whether I will pass?
It gives you a starting readiness estimate and shows your weakest topics. It is a benchmark to focus your studying, not a pass guarantee. The readiness score sharpens as you practice more of the free Exam 5 question bank.
What is the difference between the diagnostic quiz and a full practice test?
The diagnostic is a short 12-question sample quiz that maps your strengths and weaknesses quickly. For full-length practice, FreeFellow has the entire Exam 5 question bank free, plus timed mock exams in the Fellow tier.
About FreeFellow
FreeFellow is a free exam prep library for actuarial (SOA & CAS), CFA, CFP, CPA, CAIA, GARP FRM, IRS Enrolled Agent, IMA CMA, and FINRA / NASAA securities licensing candidates. The entire question bank, written solutions, and lessons are free for every candidate, with no trial period and no credit card. Every constructed-response item has a copy-to-AI prompt builder so candidates can paste their answer into their own ChatGPT or Claude for self-graded feedback; Fellow members get instant AI grading on essays against the official rubric (currently CFA Level III, expanding to other essay-bearing sections).
The 70% you need to pass (question bank, written solutions, lessons, formula sheet, mixed practice, readiness tracking) is free forever, with no trial period and no credit card. Become a Fellow ($59/quarter or $149/year per track) to unlock mock exams, flashcards with spaced repetition, performance analytics, AI essay grading, and a personalized study plan.