Exam 6 (US) tests Regulation and Financial Reporting in the United States.
High-Level Syllabus Overview
- Section A covers insurance regulation around P&C coverages, ratemaking, pricing, solvency, and U.S. tort law.
- Section B covers markets, coverages, and private/government programs for the US P&C industry.
- Section C covers statutory, GAAP, and International Financial Reporting Standards (IFRS) insurance accounting and taxation.
- Section D covers the professional responsibilities of the appointed actuary according to the NAIC Annual Statement Instructions for Property and Casualty insurers.
- Section E covers general concepts of reinsurance accounting.
Spring 2023 Exam 6 (US) Syllabus Changes
There are no announced changes to the Exam 6 syllabus for Spring 2023.
CAS Exam Syllabus Changes – 2023
Exam 6 (US) Syllabus – Spring 2023
You can download the syllabus here:
CAS Exam 6 (US) Syllabus – Fall 2022 and Spring 2023
Make sure to review the Knowledge Statements for each Learning Objective. They can give you an idea of what kinds of questions you’ll be asked on the exam and whether you’ll be asked more essay or calculation questions for a section.
Below is a breakdown of the learning objectives, syllabus weights, and readings by section for the syllabus:
Section A – Regulation of Insurance and United States Insurance Law
Weight 15% to 20%
| Learning Objectives | Range of Weight |
|---|---|
| 1. Describe the historic development and the current state of insurance regulation | 3% to 7% |
| 2. Discuss the historic development of solvency regulation; describe current programs used to monitor solvency | 3% to 7% |
| 3. Describe current regulation addressing specialized insurance topics | 0% to 5% |
| 4. Discuss the issues, outcome, rationale, and implications of landmark decisions and antitrust laws for the insurance industry including the division of responsibility between federal and state regulators | 3% to 7% |
Readings
- Kucera
- McCarty
- NAIC Price
- NAIC Solvency Regulatory Framework
- NAIC Telematics
- Porter 1 and 2
- CAS Financial Reporting
- NAIC IRIS
- Vaughn
- Baribeau
- Emmanuel
- Feldblum (Rating Agencies)
- NAIC RRG
Section B – Government and Industry Insurance Programs
Weight 10% to 15%
| Learning Objectives | Range of Weight |
|---|---|
| 1. Describe the origin and purpose of government and industry insurance programs | 3% to 5% |
| 2. Describe the operations and risk transfer process for government/industry programs and their interaction with the voluntary private insurance sector | 3% to 5% |
| 3. Evaluate the effectiveness of a government/industry program | 3% to 6% |
Readings
- Cook
- Government Insurers Study Note
- Horr & Webel
- Porter 2
- Webel
Section C – Financial Reporting and Taxation
Weight 35% to 55%
| Learning Objectives | Range of Weight |
|---|---|
| 1. Describe the elements of the Annual Statement. Complete specific schedules and exhibits and use them to evaluate the financial health of an insurance entity | 20% to 25% |
| 2. Using RBC formulas and IRIS rations, evaluate an insurer’s financial health | 10% to 15% |
| 3. Differentiate between various accounting reporting principles and standards | 10% to 15% |
| 4. Discuss and calculate specific elements of income tax and evaluate their implications for a property/casualty insurer | 0% to 5% |
Readings
- 2021 IEE
- CAS Financial Reporting
- Feldblum (surplus)
- NAIC Annual Statement
- NAIC Annual Statement Examples
- NAIC SSAP 5R, 9, 53, 55, 62R, 63, 65, and 66
- NAIC IRIS
- NAIC APPM, Preamble
- NAIC Solvency Regulatory Framework
Section D – Professional Responsibilities of the Actuary in Financial Reporting
Weight 15% to 20%
| Learning Objectives | Range of Weight |
|---|---|
| 1. Describe the users of the Statement of Actuarial Opinion, Actuarial Opinion Summary, and the Actuarial Report, and explain the purpose of these documents from each user’s perspective | 2% to 4% |
| 2. Discuss the financial reporting responsibilities of the appointed actuary and Board of Directors, defined by standards of practice, regulators, and insurance laws | 2% to 4% |
| 3. Construct and discuss the required content of the Statement of Actuarial Opinion, and the Actuarial Opinion Summary | 10% to 13% |
Readings
- AAA Materiality
- ASOPs 20, 36, 41, and 43
- CAS Financial Reporting
- COPLFR P&C Practice Note
Section E – Reinsurance Accounting Principles
Weight 5% to 10%
| Learning Objectives | Range of Weight |
|---|---|
| 1. Describe reinsurance accounting terminology and practice and evaluate considerations such as risk transfer testing and commutations | 5% to 10% |
Readings
- ASC 944-020-15
- Cedar & Thompson
- Freihaut & Vendetti
- Klann
- NAIC SSAP 62R
Source: CAS Exam 6 (US) Syllabus – Fall 2022 and Spring 2023
Syllabus Readings
The syllabus PDF has all the links to the syllabus readings that are available online (OP).
Make you buy the Study Kit which has a number of required readings that aren’t available online. You can buy the study kit from the CAS Online Store. It’s usually not available until after the prior sitting’s results are released.
There is also a book (Porter, Insurance Regulation, 2008) you’ll need to buy. The syllabus PDF has links to sample NAIC annual statements from Allstate and Liberty Mutual as well.
Exam 6 (US) FAQ
How long is the exam?
CAS Exam 6 (US) is a four-hour exam.
What is the exam format?
You’ll take Exam 6 in the computer-based testing format at a Pearson Vue testing center. Calculation-based questions are in a spreadsheet format similar to Excel and essay-based questions are in a text-box format.
Here’s a list of computer-based testing resources and links you can use.
Other Helpful Links
Looking to Start Studying for Exam 6?
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