Overview and Study Materials
Overview and Study Materials
As part of the SOA's Education Redesign, more than 150 volunteers have participated in the development of the web-based Fundamentals of Actuarial Practice (FAP) course.
What is FAP?
FAP is a self-paced, e-Learning course where candidates acquire and use knowledge that is distributed and facilitated by electronic means. This course teaches candidates about the business environment and exposes them to real-world situations before reaching the ASA level by using the Control Cycle as a framework. Simply stated, the Control Cycle is a practical problem-solving framework that an actuary uses to perform work.
FAP is a body of knowledge (concepts and problems) in an actuarial context-blending actuarial areas of practice and functional areas. FAP includes online and offline readings and activities, practical examples, case studies, embedded activities, search functions, a glossary, resource library, a discussion forum, end-of-module tests, and end-of-module exercises. The online environment is intended to make the material more engaging and interactive for candidates.
FAP also includes a computer-based Interim Assessment* at the end of Module 5 covering Modules 1-5, and a computer-based Final Assessment at the end of Module 8 covering Modules 6-8.
Who is FAP for?
Individuals who desire to be admitted as Associates of the Society of Actuaries represent the primary FAP target audience. However, the FAP course is appropriate for any individual engaged in the actuarial profession at some level.
What are the prerequisites?
Candidates starting FAP may have passed one or more of the Preliminary Education examinations (P, FM, MLC, MFE, C), but this is not a requirement. We expect however, that many candidates will have passed the four Preliminary Education exams prior to beginning FAP Module 5.
What are the eight FAP modules?
FAP is comprised of eight modules:
Module 1: Introduction/The Role of the Professional Actuary
The focus of this module is to provide an overview of the basic framework for actuarial work and functions using the Control Cycle as the model. Additionally, the module provides candidates with an overview of the actuarial profession, the major areas of practice, and the skills required of actuaries.
Module 2: Core External Forces
The focus of this module is to describe and demonstrate how external forces (outside of the actuarial sphere) effect and integrate into actuarial work; how they interrelate and change.
Module 3: Risk in Actuarial Problems
The focus of this module is to enable candidates to learn how to identify and define problems in various practice areas. This module creates the foundation for understanding risk in actuarial problems and the commonalities that exist among problems so that they can be effectively addressed regardless of area of actuarial practice.
Module 4: Actuarial Solutions
This module builds upon Module 3. The primary goal of the module is to create a foundation for candidates to understand actuarial problems across practice areas and demonstrate how the entire Control Cycle is applied. Candidates will gain practical experience with key concepts related to traditional actuarial solutions and understand how actuaries provide value to their employers and/or clients.
Module 5: Design and Pricing of an Actuarial Solution
The focus of this module is to introduce fundamental concepts behind the tools used to solve common actuarial problems. Using various models, the module introduces candidates to coverages and benefit/policy design components of several actuarial solutions.
Module 6: Model Selection and Solution Design
The focus of Module 6 is to provide candidates with an overview of model selection and model building and how these processes fit within the context of the Control Cycle. The module creates the foundation for candidates to understand how to select an appropriate model for a given problem and design a solution.
Module 7: Selection of Initial Assumptions
This module builds upon previous modules focused on helping you learn how to identify and define problems and design solutions. The goal of this module is to introduce the methods and tools actuaries use to identify, select and quantify assumptions. Candidates will understand how the identification, selection and quantification of assumptions finalizes the 'design solution' element of the Control Cycle and transitions actuarial work to that of monitoring results.
Module 8: Monitoring Results Control Cycle
The final module of the FAP course focuses on the purposes of monitoring experience and the techniques used by actuaries. The 'monitor experience' element of the Control Cycle is dependent upon the objectives and definition of the problem addressed and the solution designed by the actuary. Candidates learn how monitoring results provides feedback to the other Control Cycle elements and how the feedback loop, in context with the work of the actuary, completes the Control Cycle.
Candidates will complete the modules in sequence, as content in later modules builds upon the content of earlier modules.
How long will it take to complete a module?
The estimate is that each module will require approximately 30-50 hours to complete. Many candidates will maintain a pace to complete approximately one module per month. Candidates are encouraged to continue to progress through the modules and complete the course within a timely basis, as the FAP course is designed to be completed in 24 months.
Candidates may stop and start their work on a module at any time. Candidates may resume study at any time after entering their login ID and password.
How much does the FAP course cost?
FAP includes Modules 1-8, the Interim Assessment and the Final Assessment. Effective March 31st, 2008 FAP course fees are as follows:
Candidates may register for one FAP component at a time.
Beginning March 31, 2008, interested parties may register for the FAP course on a noncredit basis for a one-year subscription fee of $100. Interested parties might include college students, academics, FSAs who mentor and coach FAP candidates, pre-2006 ASAs and others in the actuarial or nonactuarial community. Access is provided to all modules and functionality with the exception of the end-of-module exercises and the FAP discussion forums. Click here for registration information.
Candidates currently in progress who have not yet purchased each of the three components of the total course (Modules, Interim Assessment and Final Assessment) are subject to a different fee schedule. A detailed fee structure can be found in the FAP FAQs. Questions about fees may be directed to firstname.lastname@example.org. Candidates will complete their application and submit the appropriate fee to receive access to the modules. Applications may be faxed to the number indicated on the application form. Candidates retaking either the Interim Assessment or Final Assessment must submit an application in order to receive the $500 retake rate. This rate is not available through online registration.
Note to candidates with credit for current Course 5 or Course 7: Candidates with credit for Course 5 will receive credit for Modules 1 through 5 and the Interim Assessment. Candidates with credit for Course 7 will receive credit for Modules 6 through 8, the FAP Final Assessment and the FSA capstone module. Conversion candidates pay $300 for Modules 1-5 or 6-8, but will receive access to all 8 modules.
How do candidates register for the FAP Modules?
There is no FAP registration deadline-registration is ongoing. Candidates registering for the FAP Modules will receive their login and password information via e-mail within 10 working days of receipt of their applications and fees. It is recommended that candidates provide a valid e-mail address that is clearly indicated on the FAP Modules application in order to ensure registration materials are received.
What happens after candidates submit their applications and fees?
What is the format of the Interim Assessment?
The FAP Interim Assessment is in the format of a comprehensive exercise available at the end of Module 5 to candidates who complete all required modules. The assessment covers material in Modules 1-5. Candidates will have access to the Interim Assessment once they complete Module 5 and download the assessment to their computer.
he Interim Assessment will assess candidates understanding of content, achievement of learning outcomes and ability to apply key concepts presented in Modules 1-5. The Interim Assessment will be designed to build upon the End-of-Module Exercises in Modules 1-4 and will help candidates prepare successfully for the Final Assessment.
Candidates will complete the Interim Assessment under controlled conditions with formal grading (i.e., every Interim Assessment will be formally graded). Candidates will have one month to complete the Interim Assessment. A one-month personal assessment clock will start when candidates download the Interim Assessment. Candidates must submit (upload) assessment files before the clock expires. If the clock expires, the assessment will receive an automatic grade of "does not meet minimum requirements" and the SOA will be unable to reverse the decision. NO exceptions will be made.
While a supervisor is required, candidates will NOT need to identify a supervisor for purposes of the Interim Assessment.
Grading will be completed within approximately seven weeks of submission. Grade notification will be sent via e-mail. If a candidate does not meet minimum requirements on the Interim Assessment, the candidate will receive feedback in the "grade" e-mail. Such candidates will need to reregister to take the Interim Assessment.
The Interim Assessment MUST be successfully completed (meets minimum requirements) in order to be eligible to take the Final Assessment. Read the official announcement regarding the Interim Assessment.
What is the format of the Final Assessment?
The FAP Final Assessment is in the format of a comprehensive exercise available at the end of Module 8 to candidates who complete all required modules. The Assessment covers material in Modules 6-8. Candidates will have access to the Final Assessment once they complete Module 8 and download the Assessment to their computer. The Final Assessment is available on-demand. There is no registration deadline; candidates may take it at their own discretion once qualifications have been met. Candidates will have access to it after completing the required modules and exercises.
Any candidate registering for the Final Assessment must secure his/her own supervisor. Preferably, the supervisor must be an FSA (in good standing). If an FSA is not available, other acceptable designations would be: FCAS, FCIA, FFA, FIA, FIAA, FSPA. Supervisor change requests may be submitted to email@example.com. In order to access the FAP Final Assessment, you will need a login ID and Password. This unique ID/Password (different from your course login) will be sent to you via e-mail. You should expect to receive your e-mail within ten days of submitting your registration form and payment. Please contact firstname.lastname@example.org if you do not receive your information within that time frame.
Candidates have 96 hours to complete and submit their Assessment. The 96-hour timeframe will begin as soon as candidates click and download Final Assessment materials. Candidates may login to the Final Assessment and read the instructions and FAQs without starting their assessment clock. The assessment clock will not begin until a candidates reaches the download page, and candidates will be warned several times in advance of this happening. The Final Assessment is designed for a level of candidate effort of approximately 25 hours.
Each candidate's submissions will be formally graded against predefined grading criteria for "meets minimum expectations" and "does not meet minimum expectations." If the grader determines the submission meet minimum requirements, the candidate will pass the assessment. If the grader determines the submission does not meet minimum requirements, the submission will be graded independently by an additional grader (i.e., the additional grader will be unaware that the previous grader assigned a grade of "does not meet minimum requirements"). If the additional grader determines that the submission meets minimum requirements (i.e., different grader than the initial grader), the submission will go to one more grader for final resolution.
The Interim Assessment must be taken before sitting for or passing the Final Assessment. Modules 1-8 must be completed prior to accessing the Final Assessment.
Who do I contact if I have questions about FAP?
Send an e-mail to email@example.com.