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New Version of FAP to Launch in January

Announcement date: September 2, 2011

On January 30, 2012 important updates to the Fundamentals of Actuarial Practice (FAP) Course will become effective. These include, but may not be limited to, the following:

  • The replacement of four of the currently required textbooks by a single textbook written specifically to match the FAP learning objectives. The four books that will be removed from the book list are:
    1. Bluhm, W. F., 2007. Group Insurance (Fifth Edition), ACTEX Publications, Inc.
    2. Easton, A. E. and Harris, T. F., 2007. Actuarial Aspects of Individual Life Insurance and Annuity Contracts (Second Edition), ACTEX Publications, Inc.
    3. Luenberger, D. G., 1998. Investment Science. Oxford University Press.
    4. McGill, D. M., Brown, K. N., Haley, J. J., and Schieber, S. J., 2010. Fundamentals of Private Pensions. (Ninth Edition), Oxford University Press.

     

  • A new Enterprise Risk Management (ERM) textbook, Corporate Value of Enterprise Risk Management: The Next Step in Business Management, by Sim Segal (and possibly one other ERM text) will replace Lam, J., 2003. Enterprise Risk Management: From Incentives to Controls. John Wiley & Sons.
  • Changes to the ERM material in the course will be made due to the addition of FAP as a requirement for the Chartered Enterprise Risk Analyst (CERA) credential (effective July 1, 2012).

The books that will remain from the current book list are:

  • Bellis, C., Klugman, S., Shepherd, J., and Lyon, R., 2010 (Second Edition). Understanding Actuarial Management: The Actuarial Control Cycle. Institute of Actuaries of Australia.
  • Brown, R. L. and Gottlieb, L. R., 2007. Introduction to Ratemaking and Loss Reserving for Property and Casualty Insurance (Third Edition), ACTEX Publications, Inc.

Candidates registering for FAP after the January launch will automatically be registered for the updated version of the course. Candidates who register for FAP prior to the release of the updated course will continue with the current version.

Deciding if you should register now or wait until the updated FAP course is available

The updated FAP course will be significantly enhanced. Many of the readings have been updated and the flow of material improved. The most noteworthy change is the use of a single book for the subjects of investments, life insurance and annuities, retirement benefits and health insurance. In addition to the cost savings, the material will now be even more closely integrated with the topics presented within each module.

Another important update is the inclusion of a new ERM textbook written by Sim Segal, FSA. While not taking a strictly actuarial approach, the textbook is well suited for the FAP audience and is more up to date than the current text. Those considering the revised CERA pathway (effective July 1, 2012), should be aware that this book and the FAP module revisions will blend seamlessly into the syllabus for the new ERM fellowship exam. The current FAP course will meet the requirements for the revised CERA pathway. However, candidates should be aware that the updated FAP is designed to provide even better preparation for that pathway.

Access to Updated FAP Content

The current version of FAP will remain available to candidates who register prior to the release of the updated FAP course in January 2012. Candidates will continue under the previously agreed upon terms and conditions. These candidates will not have the option of transferring to the new FAP course due to the complex nature of the grading system.

The new FAP course will be made available as an e-Course for professional development beginning in February 2012. Candidates who are registered for the current FAP course when the updated version is released on January 30, 2012 will be eligible to receive the updated FAP e-Course for professional development free of charge. This will allow candidates the opportunity to take advantage of the new ERM material on modules 3 and 4, of particular importance if they will be following an ERM track or seeking the CERA credential.

Candidates who are registered for the current FAP after the January launch of the new version may cancel their current FAP and register for the new FAP. However, any previously submitted exercises will need to be resubmitted. Candidates must pay the full fee to start over with the new course.

Additional inquiries: education@soa.org