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Actuaries Trivia Quiz

The actuarial profession is little known but very important to the financial security of many people. Actuaries are very active in Quizzyland so I made this easy quiz just for them and anybody else that wants to play. (Questions relate to US actuaries)

A multiple-choice quiz by jmoskow. Estimated time: 5 mins.

Author
jmoskow

Time
5 mins

Type
Multiple Choice

Quiz #
132,851

Updated
Dec 03 21

# Qns
10

Difficulty
Tough

Avg Score
6 / 10

Plays
749

Last 3 plays: Guest 157 (0/10), Guest 165 (1/10), Guest 136 (3/10).

One at a Time - Single Page - Timed Game

Question 1 of 10

1. According to the web site www.beanactuary.org, an actuary would be an expert in which of the following? Hint

Evaluating the likelihood of future events

Decreasing the impact of undesirable events that do occur

Designing creative ways to reduce the likelihood of undesirable events

All of these

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Question 2 of 10

2. In what 2002 hit movie was the main character an actuary? Hint

Ray Liotta in "Identity"

Jack Nicholson in "About Schmidt"

Richard Gere in "Chicago"

Nicholas Cage in "Adaptation"

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Question 3 of 10

3. What actuary was known as the "Father of insurance" and did the RIGHT thing and compelled life insurance companies to offer cash values and hold reserves in the 1800's? Hint

Wallace Jordan

James Aetna

Frank Lloyd

Elizur Wright

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Question 4 of 10

4. Which of the following statements is false? Hint

Membership in the American Academy of Actuaries along with experience is required to certify Insurance Company reserves.

Actuaries obtain the FSA designation by passing exams sponsored by the Society of Actuaries.

Actuaries must be certified by state boards like doctors and lawyers in order to practice.

To certify a pension plan, the actuary must qualify by exam and experience as an Enrolled Actuary.

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Question 5 of 10

5. What is the actuarial notation designating the probability of death? Hint

lower case p

lower case q

lower case d

upper case D

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Question 6 of 10

6. Approximately how many actuaries are there in the United States (defined as members of the Society of Actuaries)? Hint

17,500

150,000

1,500

1,000,000

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Question 7 of 10

7. Which of the following tasks would an actuary perform? Hint

All of them

Establish appropriate reserves for earthquakes, hurricanes and other disaster losses.

Determine appropriate premiums to charge for an insurance policy.

Determine the adequacy of the Social Security Trust Fund.

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Question 8 of 10

8. What is the premium for an insurance policy called that funds benefits and reserves? Hint

Single Premium

Net Premium

Gross Premium

Required Premium

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Question 9 of 10

9. Which of the following is not a professional actuarial designation? Hint

F.S.A.

F.C.A.S.

M.A.A.A.

C.L.U.

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Question 10 of 10

10. If you tell an actuary your vital statistics and health condition, he/she can tell you when you will die within an accuracy of 5 years?

True

False

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Nov 05 2024 : Guest 157: 0/10
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Quiz Answer Key and Fun Facts

1. According to the web site www.beanactuary.org, an actuary would be an expert in which of the following?

Answer: All of these

If you are interested in an actuarial career, this is an excellent web site to learn all about the profession.

2. In what 2002 hit movie was the main character an actuary?

Answer: Jack Nicholson in "About Schmidt"

Many actuaries were offended that an individual in the profession was portrayed as a calculating introvert. Do you know the difference between an introverted and extroverted actuary? The extrovert looks at YOUR shoes when he talks to you.

3. What actuary was known as the "Father of insurance" and did the RIGHT thing and compelled life insurance companies to offer cash values and hold reserves in the 1800's?

Answer: Elizur Wright

Wright (1804-1885) graduated from Yale and served as the Massachusetts' insurance commissioner from 1858-1866. Reserves are important liabilities to assure the solvency of Insurance Companies and the payment of guaranteed benefits. Cash values are an important and equitable benefit resulting from the prepayment of future benefits.

4. Which of the following statements is false?

Answer: Actuaries must be certified by state boards like doctors and lawyers in order to practice.

The Society exams are a long and arduous experience taking 4+ years. Interestingly, an actuary does not have to have a university degree, although it does help in passing the exams. The exams cover basic topics like math, finance, probability and statistics. They also cover advanced topics specific to the many fields in risk management such as insurance, pensions, investments, etc.

5. What is the actuarial notation designating the probability of death?

Answer: lower case q

The lower case d is used to represent the number of deaths in a population for a defined period of time. The lower case p is the probability of living for a period of time. The lower case q designated the probability of death. The upper case D was used as a calculation tool, but is rarely used today.

6. Approximately how many actuaries are there in the United States (defined as members of the Society of Actuaries)?

Answer: 17,500

There are many actuarial organizations and the "official" number of actuaries like our work is hard to calculate. The Society of Actuaries is considered by most employers as the most important designation for qualified actuaries in the life, health, and pension fields.

However many competent actuaries successfully engage in actuarial work without belonging to the Society. For example there are 3,400 members of the Casualty Actuarial Society that work in the property and casualty field.

7. Which of the following tasks would an actuary perform?

Answer: All of them

The Social Security System is a major employer of actuaries. Next time you read about the Social Security or Medicare systems going broke, think about an actuary. (But don't blame the actuary, blame Congress.)

8. What is the premium for an insurance policy called that funds benefits and reserves?

Answer: Net Premium

The premium paid by the policyowner is called the Gross Premium. After loads for expenses and profits, the residual (or net) amount is used to fund benefits.

9. Which of the following is not a professional actuarial designation?

Answer: C.L.U.

F.S.A. is the designation for Fellow of the Society of Actuaries. F.C.A.S. is a Fellow of the Casualty Society of Actuaries. These designation denote successful educational training sponsored by these organization. M.A.A.A. is a member of the American Academy of Actuaries attained by experience and other qualifications.

This organization deals primarily with matters of public policy such as regulation and standard of conduct. C.L.U. is a designation for individuals involved in marketing and underwriting insurance.

10. If you tell an actuary your vital statistics and health condition, he/she can tell you when you will die within an accuracy of 5 years?

Answer: False

I wish this were true, we would make a lot more money. Actuaries can tell you with great accuracy when a particular number of people in a homogeneous group will die, but not individuals. You could get hit by a bus tomorrow or smoke and live to 100. I hope you enjoyed my quiz.

Source: Author jmoskow

This quiz was reviewed by FunTrivia editor ozzz2002 before going online.
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