Free practice test

Actuary Practice Test

Check what you know about the actuary job with 15 free questions and instant explanations.

Updated By the Career Education Institute Curriculum Team
About this practice test

15 multiple-choice questions on actuary knowledge, safety and vocabulary. Submit to see your score and explanations, or open any question’s answer as you go. Nothing is saved or shared.

Question 1 of 15IBNR stands for:
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Answer: Incurred but not reported. Claims.

Question 2 of 15A reserve is:
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Answer: Money set aside for claims. Liability.

Question 3 of 15Exam P covers:
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Answer: Probability. First exam.

Question 4 of 15Severity is:
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Answer: Size of claims. Measure.

Question 5 of 15Show executives:
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Answer: A range. Uncertainty.

Question 6 of 15Which term matches this definition: “Casualty Actuarial Society.”
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Answer: CAS. CAS: Casualty Actuarial Society.

Question 7 of 15What does “Premium” mean?
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Answer: Price of insurance.. Premium: Price of insurance.

Question 8 of 15Which term matches this definition: “Units of risk.”
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Answer: Exposure. Exposure: Units of risk.

Question 9 of 15What does “Credibility” mean?
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Answer: Weight given to data.. Credibility: Weight given to data.

Question 10 of 15Which term matches this definition: “Death rates by age.”
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Answer: Mortality table. Mortality table: Death rates by age.

Question 11 of 15What does “Assumption” mean?
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Answer: Estimate used in models.. Assumption: Estimate used in models.

Question 12 of 15Which term matches this definition: “Setting rates.”
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Answer: Pricing. Pricing: Setting rates.

Question 13 of 15What does “Frequency” mean?
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Answer: How often claims occur.. Frequency: How often claims occur.

Question 14 of 15Which term matches this definition: “Measuring pension obligations.”
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Answer: Pension valuation. Pension valuation: Measuring pension obligations.

Question 15 of 15What does “Severity” mean?
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Answer: Size of claims.. Severity: Size of claims.

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