Evaluation Criteria of the Society of Actuaries
As of 1/1/05, the Society of Actuaries (SOA), the major actuarial society in the USA, established a new system for evaluation of
students wishing to gain entrance into the actuarial profession.
The new system stipulated that prospective actuaries be evaluated by
a series of examinations, and
an undergraduate educational component known as
Validation by Educational Experience (VEE).
The Society of Actuary Exams
The examinations given by the Society of Actuaries are described in the Basic Education Catalog of the Society of Actuaries. It is
very important that a college level student wishing to gain access into the Actuarial profession focus on taking courses which
will enable him/her to pass at least one of the international exams given by the Society of Actuaries. It would be very desirable
if he/she were to achieve this prior to having graduated from college. Students intending to take the Society of Actuaries
examinations should take through Math. 201, and, in addition, Math. 241 (or 611). In addition, other courses mentioned below would
be helpful for the first two exams.
- For Exam P (Probability): Math 633, 242, 621, 271, 272. Of the first three courses, Math 633 is probably the most
efficient.
- For Exam FM (Financial Mathematics): Math 116 and Business 241. Also recommended is self study of the textbook: Mathematics of
Investment and Credit, by S. Broverman, Actex Publications. (In addition, there are many Exam FM Study Manuals (Guides), a DVD,
and another textbook. These are available through Actex Publications, call 1-800-282-2839 for the Actex Catalog.)
Validation by Educational Experience
There are three VEE subject categories
- Applied Statistical Methods, covered by Econ 249 and 382.
- Corporate Finance, covered by BUS 241 and BUS 341W.
- Economics, covered by Econ 101 and 102.
Please note:
- As of July, 2005, the SOA approved the above mentioned courses for the last two categories.
- For the Applied Statistical Methods category, the SOA approved Econ 382, with the stipulation that it is approved for the
regression component only; it must be paired with an approved time series course.
- Observe that Econ 249 is a pre-requisite for Econ 382.
- It is anticipated that the stipulation about time series will no doubt be dealt with by the Queens College
Economics (Business Administration) Deptartment in the near future.
- As of late 2005, the Actex organization announced that they are giving an on-line Course in VEE Applied Statistics; it has been approved for VEE Credit.
- Two important points with respect to VEE are: (a) The requires at least B- in each VEE course, and (b) a candidate
seeking VEE approval may not submit his application to gain VEE approval until at least two exams have been passed
(Source: The Future Actuary, Winter 2004, pp. 1 and 5).
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