The CAS Exam 5 seminar is 4½ days (8 am to 5 pm the first four days, ending at noon the last day), taught by S. Feldblum (2 days) and Howard Mahler (2½ days). Tuition for the seminar is $485, payable to New England Actuarial Seminars. The seminar will be held twice:

• At the Crowne Plaza in Rosemont, IL, March 4 - 8, 2010
• At the Renaissance Woodbridge Hotel (formerly the Woodbridge Hotel and Conference Center), in Iselin, New Jersey, March 25 - 29, 2010

Exam 5 is a broad examination, covering ratemaking and policy forms for all lines of business. Candidates without work experience in the more complex lines, such as workers’ compensation and general liability, find the readings difficult to master. The seminar covers the full syllabus, emphasizing the recent additions and complex papers. Seminar participants receive extensive study material from both instructors, with 1,650+ pages and 1,050+ practice problems.

Sholom Feldblum has taught Exam 5 (ratemaking) and Exam 9 (advanced ratemaking) to more than 2,125 candidates over the past 14 years. He has served on the CAS Syllabus Committee for 12 years and recently completed a second term on the CAS Board of Directors. He is the author of Personal Automobile Premiums and Workers’ Compensation Ratemaking.

Howard Mahler is the former Vice President and Actuary at the Workers’ Compensation Rating and Inspection Bureau of Massachusetts, and he is a past Chairman of the CAS Examination Committee. He has published extensively in actuarial journals, including over a dozen papers in the Proceedings of the Casualty Actuarial Society, and he was the recipient of the 1987 CAS Dorweiler prize. He has papers on the Joint Course 4 syllabus and the CAS Exam 9 syllabus.

The Recommended Study Schedule gives you an efficient study order, based on the benefit per hour of study time for each reading. It distills years of teaching experience into an efficient guide through the syllabus, with dozens of study recommendations to optimally prepare you for the examination. The study schedule saves you weeks of wasteful wandering – of slowly getting acquainted with the syllabus – and enables you to focus on study with the maximum benefit.

The step-by-step guides to the mathematical procedures provide clear instructions for solving almost all the likely 2008 exam problems on the difficult topics. Mastering the step-by-step guides makes your exam solutions brief and exact, optimizing your chances of passing the exam.

Mahler’s extensive Students’ Guides and the comprehensive study aids by Feldblum cover the entire syllabus, explaining each topic that may be tested on the exam and giving hundreds of practice problems to ensure you are prepared.

For optimal exam preparation, participate in the on-line Exam 5 seminar (on the NEAS discussion forums) from its inception in November 2008 through the final week of study in April 2009. For full information, see the section on the on-line seminars in this brochure and on the NEAS web site.

The outline of the seminar sessions is shown below. Session 1 through 4 are taught by Mr Sholom Feldblum; sessions 5 through 9 are taught by Mr. Howard Mahler

Mr. Feldblum's sessions:

1. Multivariate classification ratemaking techniques. Basic systems; generalized linear models (GLMs); data mining techniques.
2. CPCU on workers’ compensation: employers’ liability; common law defenses; coverages and exclusions; financing; administration; third-party claims; the federal laws; LHWCA; the WC&EL policy; other states insurance; foreign coverage

Session III: Basic Ratemaking, Chapter 11; CPCU on Professional Liability Coverages

1. Classification ratemaking techniques: increased limits factors, size of risk for workers compensation insurance.
2. CPCU on general liability: sources of legal liability; negligence and defenses; types of torts; contracts and statutes; CGL policy; occurrence definition and triggers; dual capacity; third-party-over; contractual liability; fire legal liability; products and completed operations; pollution
3. CPCU on umbrella policies: excess vs umbrella; layering; following form; specific vs aggregate excess; uses of umbrella policies; SIR’s
4. Professional Liability: contractual duties and tort liabilities; covered acts; defenses; triggers; medical malpractice; allegations and defenses; insuring agreements and provisions

Session IV: Basic Ratemaking, Chapter 12; CPCU on Insurance Contract Analysis

1. Credibility procedures methods for incorporating credibility in an actuarial estimate, desirable qualities for the complement of credibility, methods for determining the complement of credibility.

2. CPCU on Insurance Contracts: void vs voidable contract; offer, counteroffer, and acceptance; genuine assent; legal consideration; unilateral contracts; contracts of adhesion; conditional contracts; utmost good faith; concealment and misrepresentation; valued policies; insurable interest; subrogation

3. CPCU on Policy Structure: self-contained, modular, and manuscript policies; ambiguities; collateral documents; insuring agreement; coverage extensions; supplementary payments; exclusions; moral hazard; morale hazard

4. CPCU on Policy Provisions: assignment; benefit to bailee; separation of interests; concealment, misrepresentation, and fraud

5. CPCU on Coverage Disputes: reservation of rights; declaratory judgment action; nonwaiver agreement; unconscionable advantage; reasonable expectations; substantial performance; waiver and estoppel; collateral and judicial estoppel

Mr Howard Mahler's sessions:

Session V: Introduction to Ratemaking, Rating Manuals, Basic Insurance Terms, Fundamental Insurance Equation, Basic Insurance Ratios; Rating Manuals, Rules, Rate Pages, Rating Algorithms, Underwriting Guidelines, Examples; Ratemaking Data, Internal Data, Data Aggregation, External Data; Exposures, Criteria for Exposure Bases, Large Commercial Risks, Aggregation, Trend; Premiums, Aggregation, Adjustments

Session VI: Losses and LAE, Definitions, Aggregation, Common Ratios, Adjustments, Loss Adjustment Expenses; Other Expenses and Profit; Expense Categories, All Variable Expense Method, Premium-Based Projection Method, Exposure/Policy-Based Projection Method, Trending Expenses, Reinsurance Costs, Underwriting Profit Provision, Permissible Loss Ratios; Overall Rate Indications, Pure Premium Method, Loss Ratio Method

Session VII: Overall Rate Indications, Examples.

Session VIII: Traditional Risk Classification, Importance of Equitable Rates, Criteria for Evaluating Rating Variables, Typical Variables, Indicated Rate Differentials, Example;                                    Special Classification, Territory Ratemaking, Deductible Pricing, Insurance to Value;                        Other Considerations, Regulatory Constraints, Operational Constraints, Marketing Considerations; Implementation, Example of Imbalance, Non-Pricing Solutions, Pricing Solutions, New Rates for an Existing Product, New Rates Based on Bureau or Competitors Rates, Communicating and Monitoring.

Session IX: Commercial Lines Rating Mechanisms, Manual Rate Modification, Rating for Large Commercial Risks; Claims-Made Ratemaking, Report Year, Principles, Determining Rates, Coordinating Policies.                                                                                                                             Boor, "A Macroeconomic View of the Insurance Market Place." Boor, "The Impact of the Insurance Economic Cycle on Insurance Pricing."                                                                                                "Statement of Principles Regarding P&C Insurance Ratemaking."                                                    "Standard of Practice: Trending Procedures in Property/Casualty Insurance Ratemaking."

Samples

Study Aids