An actuary is a professional who works with insurance companies to determine levels of risk management and other financial issues related to insurance coverage.Most actuaries in the United States are licensed by either the SOA or the Casualty Actuarial Society.The licensing is administered by the national actuarial societies in other countries.A rigorous system of tests is required for the path to actuarial licensing.From one country to the next, learning the material for these tests is the same.An outline for successful preparation is presented in this article.
Step 1: You need to register in time for the test.
It's up to you to know which test you need next.When the exams are offered and what you need to do to register can be found on the actuarial society website.You will be able to get in if you register in plenty of time.
Step 2: You should arrive early for your testing session.
To register and check in, you need to allow yourself time to park.The anxiety of rushing in for the test is not good and you want to allow yourself to be in a good frame of mind.If the test location is far from your home, you may want to find a nearby hotel for the night before the exam.It will allow you to get to the area and get a good night's sleep before the test.
Step 3: Just before the test, take a break from studying.
It's not going to be productive to push through to the test day.One more night is not going to make a difference if you allow yourself enough study time in the months before the test.It will be better to get some good rest on the final night.
Step 4: You have to pace yourself during the test.
If you've used practice tests as part of your study plan, you should know how fast you need to work through the test.If you try to avoid this, there may be a natural inclination to move quickly.You will be able to complete the test with the time provided if you work through it at a fast pace.
Step 5: Carefully read the questions.
Then read it again.You don't want to get an answer wrong if you misinterpreted the question.If you can't understand the question, try using sample numbers to make sense of it.As you read the question, you may be able to mark important parts of it.Key terms or numbers should be highlighted.If appropriate, break the question down into separate parts.You have to answer all parts of the question.
Step 6: Try every question.
Make notes, read the question, and try to understand what is being asked.Make sure you answer every question with an answer.You can only improve your score by filling in something, because there is no penalty for giving incorrect answers.You can get lucky and guess correctly.
Step 7: If necessary, skip the questions.
Some questions will pose too much trouble if you don't allow enough time to answer them.If you can't seem to find an answer to a question, be prepared to move on.There are questions that are based on a single fact scenario.It would make sense to skip the entire cluster if you find that you have difficulty understanding the scenario.There is no adjustment to your score for incorrect answers.Quickly make your best guess.If you have time after the test, you can come back to the ones you missed.
Step 8: Copies of past exams were released.
Past exams are released by many actuarial societies.You can use the past tests as a study guide if you understand the subject material.If you visit the website of the actuarial society, you should find a link to the exams that have been released.The test administrators understand the value of studying from the actual tests, even though they are careful to keep some material confidential.
Step 9: Simulate the environment.
When you are ready to take a practice test, do it in a way that mimics the actual testing environment.There won't be a television in the background or children running around the house when you take the test.There is no distraction to find a quiet place to test.
Step 10: It's time for your testing session.
The tests will be timed.Give yourself enough time for your practice test if you don't know what the time limit is on the test.You may not be able to complete the practice test in that time.Try to work faster if this is the case.Slow down and read the questions more carefully if you find that you have too much time left over.Use the full amount of time to your advantage.If you get interrupted during a practice test session, make a note of your stopping point and the amount of time left.Pick up where you left off later.
Step 11: Grades your results.
You have to check your results against the answers given on the test.Determine the number of questions that you were unable to complete.Do not worry about low scores in the beginning.If you continue to study, you will improve your scores.Track your scores from one test to the next.Take a look at your improvement.
Step 12: You can study and learn from your answers.
The released tests usually provide explanations for the answers.For all your responses, read those materials very carefully.You need to learn why you answered the questions wrong and how to improve for next time.Make sure that your reasoning is the same as the explanation for the questions you answered correctly.Getting the right answers is the most important thing on the final test.You need to know that you are getting the right answers so you can duplicate your success.
Step 13: Take into account the types of questions you get right and wrong.
The practice test can be used to measure your strengths and weaknesses.Patterns in the questions are what you should look for.After completing a few practice tests, focus on the topics that seem to be your weaknesses.The impact of your study time will be maximized by this.
Step 14: Good study materials should be obtained.
You will need textbooks if you enroll in an organized program of study for the actuarial exams.Supplemental study materials should be found for each course.There are study guides, practice tests, and outlines.You can find study materials online or in a bookstore recommended by the actuarial society.The Actuarial Bookstore is recommended by the SOA.You can find textbooks, flash cards, and access to online seminars and workshops at this online site.There is a book called Mad River Books.References to actuarial societies outside of the U.S. are included in the site's available study materials.
Step 15: Prepare enough time to study for each exam.
It's not a good idea to cram at the last minute because you don't have enough time to study, practice, restudy, and learn the material.You should be able to take the first exam for at least eight weeks.
Step 16: Use study time in a productive way.
Plan at least an hour of study time.Longer study times of two to three hours would be better.Setting a goal or objective for each study session can help you get the most out of your study time.This could be to finish a chapter or take a test.Don't cut yourself short if you want to go beyond the goal.Limit the number of interruptions.You should have all the materials you need.Getting up and down to get materials is not something you want to do.If you find yourself getting tired, take occasional short breaks.
Step 17: Constantly study.
Make notes as you read.Key topics should be highlighted.If you don't fully understand something, underline or mark it so you can return to it.Don't accept what you read.Understand each concept by studying fully.
Step 18: Before moving on, master each concept.
If you are learning about a topic, you want to learn and practice the concepts first.You won't have the base of knowledge that you will need later on if you try to advance too quickly.Study each topic, practice it with sample problems and practice tests, and then move on to the next topic.
Step 19: You can learn the tests that will be required.
Each actuarial society has its own set of tests that you must pass to become a member.You will need to read about testing and admission on the society's website.The Casualty Actuarial Society in the United States requires a set of nine exams, ranging from Probability in Exam 1 to Financial Risk and Rate of Return.The exams are administered by the Institute of Actuaries of India.Each stage consists of exams that cover from three to nine different subject areas.The stages are outlined on the website.
Step 20: If the tests must be taken in a particular order.
In some cases, the tests will build in difficulty.Before you can move from one exam to the next, you must have a certain level of work experience.You should learn the order of the tests and find out if you can substitute work experience for testing from the actuarial society.The map provided by the CAS in the United States shows the order of the tests, with a timetable for work experience that you should accumulate along the way.The tests should be taken in the prescribed order according to the Society of Actuaries.If you want to study for the next exam, they recommend that you get a passing score on one exam or be certain of getting a good score.
Step 21: Can you modify the course of study?
A general outline that will apply to most people is what is presented on an actuarial society's website.If your background includes work experience or college courses in finance, accounting, or mathematics, you may be able to demonstrate your skills on certain tests and save yourself some time and money.The Canadian Institute of Actuaries accepts credentials from the United States.The CIA website identifies certain exams that may be exempt if you have adequate work experience.The CAS in the United States will honor credits from candidates who have passed exams in other countries.The Actuaries Institute from Australia, the Actuarial Society of South Africa, and the Institute of Actuary of India are all mentioned.If you have passed exams from any of those organizations, you may want to consider this alternative.