Society of Actuaries Fundamentals of Actuarial
Mathematics (FAM) Practice Test Exam
1. What is the primary focus of the Society of Actuaries
Fundamentals of Actuarial Mathematics exam?
A. Short-term and long-term actuarial mathematics
B. Surgical procedures
C. Hospital administration
D. Nursing education
Answer: A
Rationale: The SOA Fundamentals of Actuarial Mathematics
exam focuses on short-term and long-term actuarial
mathematics.
2. What is the definition of a survival model?
A. A model that describes the probability of survival over time
B. A model that describes the probability of failure
C. A model that describes the cost of a product
D. A model that describes the weight of a product
Answer: A
,Rationale: A survival model describes the probability of survival
over time.
3. What is the definition of a life table?
A. A table showing mortality rates
B. A table showing interest rates
C. A table showing discount rates
D. A table showing inflation rates
Answer: A
Rationale: A life table shows mortality rates.
4. What is the purpose of a life table?
A. To calculate survival probabilities
B. To perform surgery
C. To order laboratory tests
D. To prescribe medication
Answer: A
Rationale: A life table is used to calculate survival probabilities.
,5. What is the definition of a force of mortality?
A. The instantaneous rate of mortality
B. The annual rate of mortality
C. The simple rate of mortality
D. The compound rate of mortality
Answer: A
Rationale: The force of mortality is the instantaneous rate of
mortality.
6. What is the definition of a curtate future lifetime?
A. The number of complete years lived after age x
B. The number of complete months lived after age x
C. The number of complete days lived after age x
D. The number of complete hours lived after age x
Answer: A
Rationale: Curtate future lifetime is the number of complete
years lived after age x.
7. What is the definition of a complete future lifetime?
A. The exact time lived after age x
, B. The number of complete years lived after age x
C. The number of complete months lived after age x
D. The number of complete days lived after age x
Answer: A
Rationale: Complete future lifetime is the exact time lived after
age x.
8. What is the definition of an expected future lifetime?
A. The average time lived after age x
B. The maximum time lived after age x
C. The minimum time lived after age x
D. The median time lived after age x
Answer: A
Rationale: Expected future lifetime is the average time lived
after age x.
9. What is the definition of a life insurance?
A. A contract that pays a benefit upon death
B. A contract that pays a benefit upon survival
C. A contract that pays a benefit upon disability
Mathematics (FAM) Practice Test Exam
1. What is the primary focus of the Society of Actuaries
Fundamentals of Actuarial Mathematics exam?
A. Short-term and long-term actuarial mathematics
B. Surgical procedures
C. Hospital administration
D. Nursing education
Answer: A
Rationale: The SOA Fundamentals of Actuarial Mathematics
exam focuses on short-term and long-term actuarial
mathematics.
2. What is the definition of a survival model?
A. A model that describes the probability of survival over time
B. A model that describes the probability of failure
C. A model that describes the cost of a product
D. A model that describes the weight of a product
Answer: A
,Rationale: A survival model describes the probability of survival
over time.
3. What is the definition of a life table?
A. A table showing mortality rates
B. A table showing interest rates
C. A table showing discount rates
D. A table showing inflation rates
Answer: A
Rationale: A life table shows mortality rates.
4. What is the purpose of a life table?
A. To calculate survival probabilities
B. To perform surgery
C. To order laboratory tests
D. To prescribe medication
Answer: A
Rationale: A life table is used to calculate survival probabilities.
,5. What is the definition of a force of mortality?
A. The instantaneous rate of mortality
B. The annual rate of mortality
C. The simple rate of mortality
D. The compound rate of mortality
Answer: A
Rationale: The force of mortality is the instantaneous rate of
mortality.
6. What is the definition of a curtate future lifetime?
A. The number of complete years lived after age x
B. The number of complete months lived after age x
C. The number of complete days lived after age x
D. The number of complete hours lived after age x
Answer: A
Rationale: Curtate future lifetime is the number of complete
years lived after age x.
7. What is the definition of a complete future lifetime?
A. The exact time lived after age x
, B. The number of complete years lived after age x
C. The number of complete months lived after age x
D. The number of complete days lived after age x
Answer: A
Rationale: Complete future lifetime is the exact time lived after
age x.
8. What is the definition of an expected future lifetime?
A. The average time lived after age x
B. The maximum time lived after age x
C. The minimum time lived after age x
D. The median time lived after age x
Answer: A
Rationale: Expected future lifetime is the average time lived
after age x.
9. What is the definition of a life insurance?
A. A contract that pays a benefit upon death
B. A contract that pays a benefit upon survival
C. A contract that pays a benefit upon disability
