Associate of the Canadian
Institute of
Actuaries (ACIA) Certification
Exam
Practice Questions And
Correct Answers
(Verified Answers) Plus
Rationales 2026
Q&A | Instant Download Pdf
1. Which of the following best describes the primary role of
an actuary?
a)Marketing insurance products
b)Managing customer complaints
c) Assessing and managing financial risk
d)Conducting sales audits
3
6
, Rationale: The primary role of an actuary is to
assess and manage financial risk using
mathematics, statistics, and financial theory.
2. In mortality tables, the symbol q_x represents:
a)Probability of surviving age x
b)Probability of dying at age x
c) Number of people alive at age x
d)Number of deaths at age x
Rationale: q_x denotes the probability that an
individual aged x will die before reaching age x+1.
3. Which of the following is a key assumption in the
classical life insurance model?
a)Claim amounts are normally distributed
b)Future mortality rates are known or can be
estimated
c) All policyholders have identical financial needs
d)Expenses are negligible
Rationale: Actuarial models rely on assumptions
about mortality, interest rates, and other factors
to estimate future obligations.
4. The force of mortality μ_x is defined as:
a)q_x / (1 − q_x)
b)The instantaneous rate of mortality at age x
c) 1 − q_x
3
6
, d)The cumulative probability of death by age x
Rationale: μ_x represents the instantaneous rate
at which individuals of age x are expected to die.
5. The present value of a future payment of $1 in n
years at an effective annual interest rate i is: a) 1 +
i
b)n / (1 + i)
c) 1 / (1 + i)^n
d)(1 + i)^n
Rationale: Present value discounts future
payments back to the present using the interest
rate.
6. A benefit paid continuously over a lifetime is known
as:
a)Deferred annuity
b)Term insurance
c) Continuous life annuity
d)Endowment insurance
Rationale: Continuous life annuities provide
payments continuously for the lifetime of the
insured.
7. In survival models, the survival function S(x) is
defined as:
a)1 − q_x
3
6
, b)Probability of dying at age x
c) Probability of surviving to at least age x
d)Cumulative mortality rate
Rationale: The survival function S(x) gives the
probability that an individual survives to age x or
beyond.
8. If v = 1/(1+i), then the present value of $1 received
n years from now is:
a)v^n
b)1 − v^n
c) n × v
d)n / v
Rationale: v^n represents discounting a future
payment $1 n periods into the present.
9. A life insurance policy with a death benefit payable
at the end of the year of death is called:
a)Continuous life insurance
b)Term life insurance
c) Discrete (or annual) life insurance
d)Endowment insurance
Rationale: Discrete life insurance assumes
payments occur at fixed intervals, typically
annually.
3
6
Institute of
Actuaries (ACIA) Certification
Exam
Practice Questions And
Correct Answers
(Verified Answers) Plus
Rationales 2026
Q&A | Instant Download Pdf
1. Which of the following best describes the primary role of
an actuary?
a)Marketing insurance products
b)Managing customer complaints
c) Assessing and managing financial risk
d)Conducting sales audits
3
6
, Rationale: The primary role of an actuary is to
assess and manage financial risk using
mathematics, statistics, and financial theory.
2. In mortality tables, the symbol q_x represents:
a)Probability of surviving age x
b)Probability of dying at age x
c) Number of people alive at age x
d)Number of deaths at age x
Rationale: q_x denotes the probability that an
individual aged x will die before reaching age x+1.
3. Which of the following is a key assumption in the
classical life insurance model?
a)Claim amounts are normally distributed
b)Future mortality rates are known or can be
estimated
c) All policyholders have identical financial needs
d)Expenses are negligible
Rationale: Actuarial models rely on assumptions
about mortality, interest rates, and other factors
to estimate future obligations.
4. The force of mortality μ_x is defined as:
a)q_x / (1 − q_x)
b)The instantaneous rate of mortality at age x
c) 1 − q_x
3
6
, d)The cumulative probability of death by age x
Rationale: μ_x represents the instantaneous rate
at which individuals of age x are expected to die.
5. The present value of a future payment of $1 in n
years at an effective annual interest rate i is: a) 1 +
i
b)n / (1 + i)
c) 1 / (1 + i)^n
d)(1 + i)^n
Rationale: Present value discounts future
payments back to the present using the interest
rate.
6. A benefit paid continuously over a lifetime is known
as:
a)Deferred annuity
b)Term insurance
c) Continuous life annuity
d)Endowment insurance
Rationale: Continuous life annuities provide
payments continuously for the lifetime of the
insured.
7. In survival models, the survival function S(x) is
defined as:
a)1 − q_x
3
6
, b)Probability of dying at age x
c) Probability of surviving to at least age x
d)Cumulative mortality rate
Rationale: The survival function S(x) gives the
probability that an individual survives to age x or
beyond.
8. If v = 1/(1+i), then the present value of $1 received
n years from now is:
a)v^n
b)1 − v^n
c) n × v
d)n / v
Rationale: v^n represents discounting a future
payment $1 n periods into the present.
9. A life insurance policy with a death benefit payable
at the end of the year of death is called:
a)Continuous life insurance
b)Term life insurance
c) Discrete (or annual) life insurance
d)Endowment insurance
Rationale: Discrete life insurance assumes
payments occur at fixed intervals, typically
annually.
3
6
