Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) Lessons

All 48 SOA Exam FAM (Fundamentals of Actuarial Mathematics) lessons are free to read, each with worked examples. Just a free account, no card.

Free Exam FAM practice questions →

Premium and Policy Value Calculation for Long-Term Insurance Coverages

Future Loss Random Variables for Life Insurance and Annuities (16 min)
Premium Calculation Principles (14 min)
Net Premium and Gross Premium Policy Values (19 min)
Effect of Changes in Underlying Assumptions on Reserves and Premiums (11 min)
Modelling Extra Risk (14 min)

Short-Term Insurance and Reinsurance Coverages

Types of Coverage Modifications (18 min)
Calculating the Impact of Coverage Modifications (18 min)
Loss Elimination Ratio and the Effect of Inflation (11 min)
Proportional and Excess of Loss Reinsurance (12 min)
Allocation of Claims Under Reinsurance (12 min)

Severity, Frequency, and Aggregate Models

Moments and Percentiles of Severity Distributions (13 min)
Scale and Shape Parameters in Continuous Models (11 min)
Classes of Distributions and Their Relationships (10 min)
Characterizing Distributions by Moment Existence and Tail Behavior (11 min)
Parameters of the (a,b,0) and (a,b,1) Classes (11 min)
Recognizing (a,b,0) and (a,b,1) Distributions (10 min)
Calculations for the (a,b,0) and (a,b,1) Classes (12 min)
Identifying Appropriate Frequency Distributions (8 min)
Collective and Individual Risk Models (13 min)
Normal and Lognormal Approximations for Aggregate Distributions (11 min)
The Convolution Method (9 min)
Stop-Loss Insurance (16 min)
Value at Risk and Tail Value at Risk (13 min)
Properties of Risk Measures (13 min)

Parametric Estimation

Maximum Likelihood Estimation (17 min)

Introduction to Credibility

The Concept of Credibility (11 min)
Limited Fluctuation Credibility Calculations (14 min)

Pricing and Reserving for Short-Term Insurance Coverages

Estimating Outstanding Claims (14 min)
Ratemaking Objectives and Data (9 min)
Adjustments to Ratemaking Data (14 min)
Expenses and Profit Loading in Ratemaking (10 min)
Overall Average Rates and Rate Changes (13 min)

Option Pricing Fundamentals

Cash Flows and Characteristics of Puts and Calls (11 min)
Binomial Option Pricing Model (10 min)
Black-Scholes Formula and Delta Hedging (12 min)
Put-Call Parity (13 min)

Long-Term Insurance Coverages and Retirement Financial Security Programs

Insurable Interest (9 min)
Long-Term Insurance Coverages, Annuities, and Pension Plans (16 min)

Mortality Models

Parametric Survival Models, Life Tables, and Their Relationships (22 min)
Parametric Survival Model Calculations (16 min)
Standard Actuarial Notation for Future Lifetime Distributions (11 min)
Life Table Calculations with Fractional Age Assumptions (15 min)
Select Life Tables (12 min)

Present Value Random Variables for Long-Term Insurance Coverages