The Future Actuary Volume 13, Number 4, Winter 2004

COVER story
   Validation by educational experience: What is it and why do I need it?

A CANDIDATE's perspective
   No need to go it alone: Group study has its benefits

STUDENT matters
   University life vs. college life

CAREER focus
   Dress to impress for an interview

IN THE news
   Computer-based testing for the Probability Exam available in September 2005

Be An Actuary web site
   Other Issues of the Future Actuary

Validation by educational experience: What is it and why do I need it?

Validation by educational experience (VEE) was added to the associateship requirements because beginning in 2005, the topics of economics, corporate finance and applied statistics will no longer be tested on the four preliminary exams. These topics will only be validated through the new VEE process. It was determined that validation by educational experience is appropriate for topics that are either best learned in a classroom environment (applied statistics) or are considered important, but not core to actuarial work (economics and corporate finance).

Applied statistics requires the analysis of data and the ability to draw appropriate conclusions from those analyses. These skills are extremely difficult to verify with a traditional multiple-choice examination. Economics and corporate finance are not directly tested, but these subjects are sufficiently important building blocks to require some verification of learning.

Read the Q&A below for more answers to your VEE questions.

How does the VEE process work?
Beginning in 2005, candidates seeking to attain membership with the CAS, CIA and/or SOA will be required to complete the VEE requirements for economics, corporate finance and applied statistics. This is in addition to passing the required exams and other membership requirements. Candidates who do not have credit for Course/Exam 2 or Course/Exam 4 after the fall 2004 exam session will need to complete some or all of the VEE topic requirements. Candidates with credit for Course/Exam 2 in the current system will receive credit for VEE-Economics and VEE-Corporate Finance automatically. Candidates with credit for Course/Exam 4 in the current system will receive credit for VEE-Applied Statistics automatically.
Educational institutions and other organizations will submit university/college courses as well as other types of experiences (e.g., standardized exams, CAS transitional exams, online courses) for VEE approval. If approved, they will be listed in a Directory of Approved VEE Courses and posted online. If after Jan.1, 2005 a candidate sees his or her course(s) listed in the directory and he or she has already passed at least two actuarial exams, applications for individual VEE credit may be submitted. More information on the process and the applications may be found online and in the SOA Basic Education Catalog and the CAS Syllabus of Basic Education.
If my university courses do not appear in the Directory of Approved VEE Courses, can I submit them for approval myself?
During the rest of 2004, only educational institutions/organizations may submit applications for VEE course approval. The VEE Administration Committee (VEEAC) will be reviewing submissions and adding them to the approved directory, which will be updated frequently. If after Jan.1, 2005 a candidate does not see a particular course(s) on the list, the candidate should contact the course provider to see if the course(s) has been submitted for approval. If the provider has not submitted for approval, the candidate may submit the course(s) for approval.

Is there a backwards age limit for VEE coursework?
The Directory of Approved VEE Courses will show the dates for which courses are approved (e.g., 1991-2007). If you took an approved course during the time frame listed in the directory, then you may use it to apply for your individual VEE credit. If the course is not on the approved list and you are submitting it for approval yourself, it might still be approved if you or your school/organization is able to provide documentation (catalog description and syllabus) attesting to the level of the course at the time frame in question. There is no specific backwards age limit for VEE approved courses other than that listed in the directory.

Will my course be approved?
The VEEAC will be reviewing course submissions and determining approvals based on the VEE guidelines for course approval. If approved, submissions will be added to the Directory of Approved VEE Courses. To compare your course to the guidelines, you may refer to the guidelines document prepared and posted online at http://www.soa.org/ccm/content/exams-education-jobs/education-redesign/process-for-validation-by-educational-experience/
(Scroll to the right or to the bottom of page and click on VEE Guidelines.)

If I pass SOA Exam FM (CAS Exam 2) or SOA Exam C (CAS Exam 4) in the 2005 system, will I automatically receive VEE credit just as I would if I had credit for Course/Exam 2 or Course/Exam 4 under the current system?
No. Course/Exams 1-4 will be offered in their current form for the last time in the fall of 2004. This will be the last opportunity to gain VEE credit by passing either Course/Exam 2 or 4. The preliminary exams in the new system (P/1, FM/2, M/3, C/4) will not include the needed elements of economics, corporate finance and applied statistics to satisfy the VEE requirements.

Can courses from the pre-2000 system be used for VEE?
In spring 2005 candidates will be provided with transcripts to advise them of the credit they will have going into the redesigned education system. If you have credit for Course/Exam 2 or Course/Exam 4, the 2000 rules will apply. Also, if you have unused PD credits earned from passing the pre-2000 Course 120/CAS 3A they will be applied as VEE credit for applied statistics. These credits may not be used to satisfy PD or any other requirements. CAS transition rules for unused pre-2000 credits are available online at http://www.casact.org/admissions/reports/PErevisions.htm

What score on standardized exams will be required for VEE credit?
The required score for each approved exam will be included in the Directory of Approved VEE Courses. The required scores for the AP and CLEP exams for micro and macroeconomics will be included in the initial version of the directory.

Do I need to fulfill the VEE requirements before taking the preliminary exams?
No. A candidate may not submit an application for VEE until at least two exams have been passed.

Can I get credit for any of the exams by VEE?
No, only the requirements for economics, corporate finance and applied statistics may be fulfilled through validation by educational experience.

Why do I have to wait until I have credit for two exams before I can submit my application for VEE credits?
Many candidates pass only one actuarial exam and then decide not to pursue an actuarial
career. Reducing the volume of requests by limiting the process to those with credit for two or more exams will help keep the review and response time at a reasonable level. Candidates who wish to have their intended courses approved for VEE credit may apply for a course review anytime after Jan.1, 2005. However, requests for individual credit may not be submitted until the candidate has passed at least two exams.

After I submit my application for VEE credit, how long will it take to get a response?
It is anticipated that a response will be sent within six weeks. In the first few months of 2005, there may be a longer processing time because of the potentially large number of applications.

Do I have to go back to school to get VEE credits?
No, other options such as standardized exams are available. It is anticipated that independent vendors or individuals will develop seminars or online courses specifically to meet the VEE requirements (subject to approval by the VEEAC). In addition, the CAS will offer exams on the VEE topics during a transitional period of 2005 and 2006, a period when options may not yet be available. The CIA and SOA will recognize the CAS VEE exams. Details about the CAS VEE transitional exams can be found at http://www.casact.org/admissions/news/vffexams.htm. The VEEAC will also continue to identify other options for VEE credit.

I live outside North America and my university has a different grading structure. Can I use my classes for VEE credit?
Courses from universities outside of North America will be considered for VEE approval. The application form for the approval of courses/experiences includes a section about translating other grading structures to the A, B, C format. To receive credit for an approved course, a candidate must receive a grade of B- or better (or the equivalent of a B- or better for another grading structure).

What kind of documentation will candidates need to provide to receive individual credit for a VEE topic?
Candidates will submit a completed "Application for Validation by Educational Experience Credit" to the VEE administrator at the SOA office along with the required fee. The candidate also will be required to arrange for authenticated documentation of the course/experience credit and grade (e.g., an official transcript or other document of proof) to be submitted to the VEE administrator. After the application and documentation have been reviewed, the candidate will be sent a written response.

I have credit for Courses/Exams 1 through 4 in the current education system. Do I have to worry about VEE?
No. Candidates with credit for Course/Exam 2 in the current system will receive credit for VEE-Economics and VEE-Corporate Finance automatically. Candidates with credit for Course/Exam 4 in the current system will receive credit for VEE-Applied Statistics automatically.

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No need to go it alone: Group study has its benefits
by Erik Summers

Your mission if you choose to accept it: Pass the upcoming actuarial exam.

Probable obstacles: Apathy, intimidation, limited time, dense texts and proofs, enigmatic practice problems and well-meaning friends beckoning one away from the books and out on the town.

Although modern advances have affected the challenges of an FSA designation, thousands of years ago early humans developed a method that still works quite well. In fact, this primitive system, known as “groups,” has survived to the present day. While on the surface a mastodon hunt may differ greatly from a four-hour examination, groups can overcome obstacles that would stifle the individual in many an endeavor. Thankfully, the marketplace and academia have also recognized the value of teamwork in recent years. As a result, utilizing a study group to pass an actuarial exam should not be an entirely foreign concept.

Undoubtedly, each of us has experienced that group at some point in our academic or professional career—the group that never stayed on task, accomplished nothing, took a molehill and created the Himalayas. And actuarial exams are no molehill! More importantly, one or more bad group experiences should not deny one from leveraging the potential benefits of group study. But what benefits can one expect?

Know the game
Strange as it may seem, even aspiring actuaries seldom understand everything perfectly the first time. Nonetheless, probabilities are high that some group members will understand concepts that the others could swear were written in another language. For the perplexed, the benefit is clear; he will understand a previously bewildering subject. For the comprehending, the benefit is less obvious but no less important. Studies indicate that the very process of explaining a concept allows the speaker to better understand it himself.

In addition, groups offer discipline. After all, it’s much easier to hit the snooze Saturday morning if no accountability exists. Though it’s no party, group interaction as an inherently social activity can enliven even the most tedious material. Moreover, the encouragement of a fellow actuarial warrior when the battle becomes wearisome can be an invaluable asset.

Recruit the best
Before a study group can perform, it must exist. In most cases, selection of group members is severely limited by location and exam progress. If options are available, choose wisely and opt for diversity. While different backgrounds and perspectives may create additional conflicts, the synergy created will prevail almost exclusively. For example, quantitative, expressive and theoretical skills all are necessary for success, and the balancing of such skills can spell success for the actuarial study team. Members of an effective group must be homogeneous in at least two aspects: commitment to one another and to exam day success. Little is more frustrating than a group with incompatible objectives.

Unlike the size of your exam score, bigger groups are not always better. Opinions may differ, but I have experienced diminishing returns from each group member above four. Larger groups offer more perspectives and encouragement; smaller groups offer easier scheduling and more focused interaction. While a friend or the attractive coworker/classmate may be a desirable teammate, the underlying question remains: will he or she help me pass the exam? Though such a philosophy may appear a bit too utilitarian, the distinction is necessary. Free time is for relationship building. Study time is for exam passing.

Write the rulebook
After reviewing the syllabus, creating ground rules should be group objective number one. Who will coordinate meetings? How often will the group meet? What are the expectations? How will conflict be dealt with? While these questions may seem mundane when all is well, the absence of these answers can prove detrimental.

Maintain independence
Regardless of the finely tuned machine your study group becomes, on exam day you will be alone. Sally, the integration-by-parts whiz, will be three seats behind you wrestling her own exam. A bottle of water, a sweatshirt, a calculator and those lucky number two pencils are the only friends allowed.

Hence, employ the group as a tool, not a crutch. Learn from group members, but avoid depending on their encouragement or expertise. Determine a healthy mix between group and individual study. No substitute exists for the fortitude and proficiency built by struggling solo through difficult practice problems.

Know, appreciate, teach and learn from your teammates. When the brain is fried and the exam is over, only you will be responsible for your performance. Clearly, the mission is not for the undisciplined, but a group can complement well an individual’s desire. Empowered by a study group, may “pass” echo in your touch-tone phone for years to come.

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University life vs. college life
by Donna Chiu

The majority of the American population considers Canada to be the 51st state, probably due to the similarities in popular culture. However, there are vast differences between life as a Canadian university student and life as an American college student. One obvious difference is the emphasis on college sports teams that is lacking in Canadian schools.

Nevertheless, behind the highly regarded college basketball and football teams, some schools have growing actuarial programs. Drake University in Des Moines, Iowa has one of the most recognized undergraduate actuarial programs in the United States and some universities, such as Temple University in Philadelphia, Pa., have programs that are rumored to focus heavily on passing exams. University of Wisconsin’s actuarial program is producing an increasing number of actuarial students, while programs at Penn State University in Pennsylvania and Butler University in Maryland have a smaller piece of the pie.

Canadian universities, such as Université de Montréal, Laval and University of Waterloo, have programs of significant size, and each of these schools has a well-established cooperative program in its own respect. Due to the size of these programs, Canadian students tend to develop an appetite for competition in order to acquire the top jobs. Students are bred to mature faster because they gain early experience in the workplace before graduation; they tend to adapt quickly to the cycle of changing environments.

Competitiveness, maturity and experience are a few of the characteristics developed in these students and these traits will translate well into the workplace. Colleges are increasingly emphasizing internships for their students in order to take advantage of this early development in character and in professionalism as well. The path to becoming an actuary is full of entry barriers, including the long list of exams that must be written to obtain the fellowship designation. Every actuarial student has his or her story of why he or she chose this field, and most people will have an outside interest they feel equally passionate about. Here is a look at three actuarial students and their reflections on student life.

Profile
Name: Jonathan Hobbs
School: Drake University, Des Moines, Iowa
Major: Actuarial Science/Finance
Minor: Mathematics
Hometown: Tucson, Arizona

Profile
Name: Bobby Tucker
School: Penn State University, University Park, Pa.
Major: Actuarial Science
Minor: Mathematics
Hometown: Barnesville, Ohio

Profile
Name: Wendy Yu
School: University of Waterloo, Waterloo, Ontario, Canada
Major: Actuarial Science
Minor: Computer Science
Hometown: Shanghai & Beijing, China; Wollongong, Australia; Toronto, Ontario, Canada

Why did you choose actuarial field?
JH: I wanted to work with smart people in a challenging field. I've always been good at math, so it was a natural progression.
BT: I was in engineering, but I didn't like it. My advisors suggested the actuarial field and it suited me.
WY: From math seminars, I knew that I wanted to study mathematics at Waterloo. When I flipped through the handbook, I spotted actuarial science. Since none of my friends knew what it was, I thought it would be a good choice.

What internships have you done?
JH: My first internship was at SALT Solutions in Des Moines, Iowa. I spent the next summer in Chicago at Mercer HR Consulting on the retirement side. My final summer was spent at Ernst & Young in New York City in the life practice.
BT: I had an internship at Ernst & Young LLP, New York, New York on the Global Actuarial Leadership Team.
WY: Canadian individual life valuation with Sun Life; U.S. individual life pricing with Manulife; retirement consulting with Towers Perrin; investment and retirement consulting with Mercer. Currently, I am a research assistant at Waterloo.

How did you find your internships?
JH: My school has a very strong recruiting program. Many companies visit our campus and interview internship candidates.
BT: I applied through my school's internship program.
WY: The co-op program at Waterloo as well as the Manulife Scholar Program.

What is your school community like?
JH: My school is small. My first year, I had a few classes with up to 45 students; later on, most of my classes had only 20-25 students. School spirit at Drake is very limited. We don't have a big sports emphasis to rally behind, although our basketball programs are getting better.
BT: There were some business classes that had 300-400 people, but the actuarial classes had about 30-40. Class sizes go as small as 20 people. My community is heavily focused on the school's football program. Our football stadium holds 110,000 spectators. Every weekend, thousands of people attend the Nittany Lions football games. I was on the swim team at school and I swam breaststroke.
WY: Because so many students are competing for co-op positions, there is tremendous pressure to pass exams. Social lives are pretty much put on hold twice a year, but there are definitely people who do well in school and party hard.

How big is your graduating class on average?
JH: There are about 25-30 actuarial major graduates per year.
BT: About 35 graduates in my actuarial program.
WY: 80 graduated in 2004. 130 expected in 2005. Job market, here we come!

Do you have an actuarial science club?
JH: I was the vice president.
BT: I was the president.
WY: Our actuarial science club is quite active these days, and it provides a playground for students who are fanatic about volunteering.

How many people joined?
JH: When I was on leadership, our dues were $30 a year. There were 60-90 students.
BT: There were about 80 members in the club.
WY: About 175 in fall and winter terms.

Did you find the atmosphere competitive?
JH: The atmosphere among actuarial students is not competitive at all. There is a great sense of camaraderie. Everyone wants everyone else to do well. There is a lot of cooperation which starts with our alumni and runs down to the freshman class. I can't wait to come back to recruit Drake students.
BT: The atmosphere was more collaborative than competitive. Everyone helps each other.
WY: Because the recruiting process is so streamlined, some students are very conscious of where they stand along the bell curve. Indeed, competition is motivating. But most people realize that life is not a bell curve and that we do better when we work together.

Did you choose to specialize in any particular practice?
JH: I've always been interested in finance and investments, so I chose to go into the life practice.
BT: I haven't had much exposure to the other fields, and since most of my classes and the first few exams had a heavier emphasis on life topics, that is where I ended up.
WY: I have had a taste of life and retirement, and I find both fascinating, especially the social issues surrounding financial security.

Have you ever considered working overseas?
JH: I definitely want a chance to work overseas. I'd go anywhere.
BT: Probably not. I'd hate to leave home, my family, my friends and my dog.
WY: Of course, especially in less developed markets.

What would you be if you weren't an actuary?
JH: If I weren't pursuing actuarial science, then I would want to be a professional tennis player.
BT: Definitely a NASCAR driver.
WY: A scholar of ee cummings: in time of daffodils …

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Dress to impress for an interview
by Jen Abbatacola

Congratulations! You've landed an interview with a potential employer. Some aspect of your resume has intrigued them enough to call you in. Now, as you prepare for your interview, it is essential to keep in mind the importance of a first impression.

How you are dressed sends the interviewer conscious and unconscious signals about what sort of employee you would be. Are you neat? Do you appear successful, put together? Attention to detail is a character trait easily demonstrated by a well-thought-out physical appearance.

Here are some tips to ensure you're sending the right signals in your dress and creating a good first impression.

Appropriate Attire for Males
Obviously, a suit is the standard attire for an interview. Wear a suit in charcoal gray, medium gray, pinstripes or navy. The best material to choose is wool because it is a natural fabric that breathes and hangs on the frame better, but if your budget will not allow it, choose a wool and synthetic blend. A single-breasted, three-button style is preferable, projecting a modern, yet conservative look.

Select a classic dress shirt in a solid, pale color that suits your complexion. A pale blue works well for most people and is part of the classically conservative “power look” when paired with a red tie.

Be sure the suit fits properly—no matter how much you spend, the suit won't look right if the fit isn't good. Here are some pointers on fit:

· The hem of the pants should just graze the top of your shoes.
· The sleeves of the jacket should reach to the point where your hand meets your wrist.
· Your shirt cuff may extend ¼” past the sleeve of your suit coat.

Now that you have the perfect suit, remember that the attention is in the details. In this case, it is accessories. If necessary, wear simple, understated cuff links. Choose a conservative, all-silk tie with no more than three colors and a simple pattern. Dots, checks or stripes are all acceptable. An interview is not the place for a sports-themed or cartoon character tie. Once you have a job and have properly assessed the work environment, you will know if such ties are acceptable dress, but for the interview, it is always best to err on the side of conservatism.

Shoes are another crucially important aspect of your appearance. Classic, traditional loafers in black, with or without wing tips, are perfectly appropriate. Don't skimp on quality—one nice pair will last you longer than several cheaper ones. Also, be sure to polish your shoes as well! Even a very nice pair will undermine the rest of your outfit if they lack a good shine. Wear dark, solid-colored socks that match your suit and shoes, and be sure that they stay up and over the calf. You do not want to cross your legs during and interview and show a bare leg. Be sure your belt is the same color as your shoes and is made of good-quality leather. Avoid all jewelry apart from a sophisticated watch and a wedding band or class ring (if appropriate).

Lastly for men, be sure to have a recent, short, conservative haircut. It is best to be clean-shaven, but if you do have a beard or mustache, make sure it is neatly trimmed and make sure your nails are clean and trimmed as well.

Appropriate Dress for Females
Women should wear a suit to an interview as well. A pants suit is widely considered to be appropriate dress, but a skirt suit works well too. Women have slightly more freedom than men in suit color, but dark colors are best. Black, pinstripes, navy, charcoal, burgundy and dark green are all appropriate choices. If wearing a skirt suit, make sure the skirt is no higher than two inches above the knee. Choose a jacket that fits well, that isn't too tight or too big, and a single-breasted jacket is the best choice. A good tailor can help you to achieve the proper fit. Again, natural materials are preferable, but remember that linen wrinkles easily.

Choose a shirt that complements your complexion to go under your suit. Be sure it fits properly and is not low cut. Keep jewelry to a minimum, wearing no more than one ring per hand. If you're wearing earrings, keep it to earring one per ear. Studs exhibit a more professional appearance than dangling earrings. A watch or single bracelet and/or necklace are acceptable, provided they are not large or distracting.

Shoes should again be very conservative and polished. If you wear heels, opt for a classic look—don't choose platform or chunky shoes. In addition, do not wear an open-toed or sling-backed shoe to an interview! Closed-toe shoes with thin soles and heels are considered to be more professional. Make certain that your hose are of a natural, flesh-toned color—and consider carrying an extra pair with you in case you get a run.

Make sure hair is freshly cut (and colored if necessary). If you have bangs or layers that hang in your face, pin them back, since hair hanging in your face can be a distraction to an interviewer. Keep your nails short and clean, and if you wear polish, a French manicure is preferred, but a pale neutral color is acceptable as well. Makeup should be light and natural as well.

Items to Bring to an Interview
Being prepared for the unexpected and being well organized are also attractive traits to your potential employer. For this reason, it is necessary to bring some important items with you to your interview.

Carry a good-quality leather briefcase. In it include a leather notebook and/or binder with several copies of your resume and references on resume paper. Also make sure to have at least two working, quality pens that are easily accessible.

When you arrive, stop in the restroom to double-check your appearance. If your hands are cold or sweaty, run them under tap water till they are a normal temperature. Take a deep breath and go to the interview site 15 minutes early and with the confidence that you are looking your personal best.

***

Details matter in the appearance department. Here are some other things you'll wish people told you before your first interview:

Bring
· Tissues
· Breath mints (not gum)
· Comb or hairbrush
· Lint brush
· Map
· Umbrella

Avoid
· Men: out-of-date, tapered-cut trousers
· Women: Shoulder pads
· Home ironing jobs—have your shirts professionally starched
· Smoking in your interview attire
· Wearing cologne or perfume

A note for women: Is your skirt too short?
When your arms are placed at your sides, make certain your skirt extends beyond your fingertips.

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Computer-based testing for the Probability Exam available in September 2005

May 2005 will mark the first administration of the Probability Exam (SOA Exam P/CAS Exam 1). Although the May 2005 exam will be administered in the traditional pencil-and-paper format, the SOA, CAS and CIA are pleased to announce that the exam will be administered in computer-based testing (CBT) format in September 2005*. The benefits of CBT include more frequent administrations, capability for immediate scoring and increased security.

The CBT task force representing the CAS, CIA and SOA was formed in August 2003 to explore the implementation of CBT for the Probability Examination. The task force and the respective boards believe that CBT will contribute to better meeting candidate and membership needs while maintaining rigorous standards and examination integrity. Providing candidates with increased opportunities to take the examination (and with quicker results in the longer term) will help reduce the time it takes for a candidate to progress through the education and examination system and become an associate or fellow.

For the September 2005 exam, candidates will register to take the exam during a testing “window” of a few days at CBT centers in the majority of localities where the exam is currently administered. Other administration options are being explored for the few areas where CBT is not available. Grades will be released in the traditional manner—passing candidate numbers will be posted online and an official grade report will be mailed to each candidate.

The CBT format will continue in early 2006 and several other times during the year at which time immediate but unofficial scoring will be available to candidates at the testing center.

Additional details about the CBT administration of SOA Exam P/CAS Exam 1 will be released over the next several months in various CAS, CIA and SOA publications, and on their Web sites.

*Note: The exam will not be offered in November 2005.

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From The Future Actuary, Vol. 13, No. 4, Winter 2004
Copyright 2004 Society of Actuaries
and Casualty Actuarial Society

Validation by educational experience: What is it and why do I need it? Validation by educational experience (VEE) was added to the associateship requirements because beginning in 2005, the topics of economics, corporate finance and applied statistics will no longer be tested on the four preliminary exams. These topics will only be validated through the new VEE process. It was determined that validation by educational experience is appropriate for topics that are either best learned in a classroom environment (applied statistics) or are considered important, but not core to actuarial work (economics and corporate finance). Applied statistics requires the analysis of data and the ability to draw appropriate conclusions from those analyses. These skills are extremely difficult to verify with a traditional multiple-choice examination. Economics and corporate finance are not directly tested, but these subjects are sufficiently important building blocks to require some verification of learning. Read the Q&A below for more answers to your VEE questions. How does the VEE process work? Beginning in 2005, candidates seeking to attain membership with the CAS, CIA and/or SOA will be required to complete the VEE requirements for economics, corporate finance and applied statistics. This is in addition to passing the required exams and other membership requirements. Candidates who do not have credit for Course/Exam 2 or Course/Exam 4 after the fall 2004 exam session will need to complete some or all of the VEE topic requirements. Candidates with credit for Course/Exam 2 in the current system will receive credit for VEE-Economics and VEE-Corporate Finance automatically. Candidates with credit for Course/Exam 4 in the current system will receive credit for VEE-Applied Statistics automatically. Educational institutions and other organizations will submit university/college courses as well as other types of experiences (e.g., standardized exams, CAS transitional exams, online courses) for VEE approval. If approved, they will be listed in a Directory of Approved VEE Courses and posted online. If after Jan.1, 2005 a candidate sees his or her course(s) listed in the directory and he or she has already passed at least two actuarial exams, applications for individual VEE credit may be submitted. More information on the process and the applications may be found online and in the SOA Basic Education Catalog and the CAS Syllabus of Basic Education. If my university courses do not appear in the Directory of Approved VEE Courses, can I submit them for approval myself? During the rest of 2004, only educational institutions/organizations may submit applications for VEE course approval. The VEE Administration Committee (VEEAC) will be reviewing submissions and adding them to the approved directory, which will be updated frequently. If after Jan.1, 2005 a candidate does not see a particular course(s) on the list, the candidate should contact the course provider to see if the course(s) has been submitted for approval. If the provider has not submitted for approval, the candidate may submit the course(s) for approval. Is there a backwards age limit for VEE coursework? The Directory of Approved VEE Courses will show the dates for which courses are approved (e.g., 1991-2007). If you took an approved course during the time frame listed in the directory, then you may use it to apply for your individual VEE credit. If the course is not on the approved list and you are submitting it for approval yourself, it might still be approved if you or your school/organization is able to provide documentation (catalog description and syllabus) attesting to the level of the course at the time frame in question. There is no specific backwards age limit for VEE approved courses other than that listed in the directory. Will my course be approved? The VEEAC will be reviewing course submissions and determining approvals based on the VEE guidelines for course approval. If approved, submissions will be added to the Directory of Approved VEE Courses. To compare your course to the guidelines, you may refer to the guidelines document prepared and posted online at http://www.soa.org/ccm/content/exams-education-jobs/education-redesign/process-for-validation-by-educational-experience/ (Scroll to the right or to the bottom of page and click on VEE Guidelines.) If I pass SOA Exam FM (CAS Exam 2) or SOA Exam C (CAS Exam 4) in the 2005 system, will I automatically receive VEE credit just as I would if I had credit for Course/Exam 2 or Course/Exam 4 under the current system? No. Course/Exams 1-4 will be offered in their current form for the last time in the fall of 2004. This will be the last opportunity to gain VEE credit by passing either Course/Exam 2 or 4. The preliminary exams in the new system (P/1, FM/2, M/3, C/4) will not include the needed elements of economics, corporate finance and applied statistics to satisfy the VEE requirements. Can courses from the pre-2000 system be used for VEE? In spring 2005 candidates will be provided with transcripts to advise them of the credit they will have going into the redesigned education system. If you have credit for Course/Exam 2 or Course/Exam 4, the 2000 rules will apply. Also, if you have unused PD credits earned from passing the pre-2000 Course 120/CAS 3A they will be applied as VEE credit for applied statistics. These credits may not be used to satisfy PD or any other requirements. CAS transition rules for unused pre-2000 credits are available online at http://www.casact.org/admissions/reports/PErevisions.htm What score on standardized exams will be required for VEE credit? The required score for each approved exam will be included in the Directory of Approved VEE Courses. The required scores for the AP and CLEP exams for micro and macroeconomics will be included in the initial version of the directory. Do I need to fulfill the VEE requirements before taking the preliminary exams? No. A candidate may not submit an application for VEE until at least two exams have been passed. Can I get credit for any of the exams by VEE? No, only the requirements for economics, corporate finance and applied statistics may be fulfilled through validation by educational experience. Why do I have to wait until I have credit for two exams before I can submit my application for VEE credits? Many candidates pass only one actuarial exam and then decide not to pursue an actuarial career. Reducing the volume of requests by limiting the process to those with credit for two or more exams will help keep the review and response time at a reasonable level. Candidates who wish to have their intended courses approved for VEE credit may apply for a course review anytime after Jan.1, 2005. However, requests for individual credit may not be submitted until the candidate has passed at least two exams. After I submit my application for VEE credit, how long will it take to get a response? It is anticipated that a response will be sent within six weeks. In the first few months of 2005, there may be a longer processing time because of the potentially large number of applications. Do I have to go back to school to get VEE credits? No, other options such as standardized exams are available. It is anticipated that independent vendors or individuals will develop seminars or online courses specifically to meet the VEE requirements (subject to approval by the VEEAC). In addition, the CAS will offer exams on the VEE topics during a transitional period of 2005 and 2006, a period when options may not yet be available. The CIA and SOA will recognize the CAS VEE exams. Details about the CAS VEE transitional exams can be found at http://www.casact.org/admissions/news/vffexams.htm. The VEEAC will also continue to identify other options for VEE credit. I live outside North America and my university has a different grading structure. Can I use my classes for VEE credit? Courses from universities outside of North America will be considered for VEE approval. The application form for the approval of courses/experiences includes a section about translating other grading structures to the A, B, C format. To receive credit for an approved course, a candidate must receive a grade of B- or better (or the equivalent of a B- or better for another grading structure). What kind of documentation will candidates need to provide to receive individual credit for a VEE topic? Candidates will submit a completed "Application for Validation by Educational Experience Credit" to the VEE administrator at the SOA office along with the required fee. The candidate also will be required to arrange for authenticated documentation of the course/experience credit and grade (e.g., an official transcript or other document of proof) to be submitted to the VEE administrator. After the application and documentation have been reviewed, the candidate will be sent a written response. I have credit for Courses/Exams 1 through 4 in the current education system. Do I have to worry about VEE? No. Candidates with credit for Course/Exam 2 in the current system will receive credit for VEE-Economics and VEE-Corporate Finance automatically. Candidates with credit for Course/Exam 4 in the current system will receive credit for VEE-Applied Statistics automatically.

No need to go it alone: Group study has its benefits by Erik Summers Your mission if you choose to accept it: Pass the upcoming actuarial exam. Probable obstacles: Apathy, intimidation, limited time, dense texts and proofs, enigmatic practice problems and well-meaning friends beckoning one away from the books and out on the town. Although modern advances have affected the challenges of an FSA designation, thousands of years ago early humans developed a method that still works quite well. In fact, this primitive system, known as “groups,” has survived to the present day. While on the surface a mastodon hunt may differ greatly from a four-hour examination, groups can overcome obstacles that would stifle the individual in many an endeavor. Thankfully, the marketplace and academia have also recognized the value of teamwork in recent years. As a result, utilizing a study group to pass an actuarial exam should not be an entirely foreign concept. Undoubtedly, each of us has experienced that group at some point in our academic or professional career—the group that never stayed on task, accomplished nothing, took a molehill and created the Himalayas. And actuarial exams are no molehill! More importantly, one or more bad group experiences should not deny one from leveraging the potential benefits of group study. But what benefits can one expect? Know the game Strange as it may seem, even aspiring actuaries seldom understand everything perfectly the first time. Nonetheless, probabilities are high that some group members will understand concepts that the others could swear were written in another language. For the perplexed, the benefit is clear; he will understand a previously bewildering subject. For the comprehending, the benefit is less obvious but no less important. Studies indicate that the very process of explaining a concept allows the speaker to better understand it himself. In addition, groups offer discipline. After all, it’s much easier to hit the snooze Saturday morning if no accountability exists. Though it’s no party, group interaction as an inherently social activity can enliven even the most tedious material. Moreover, the encouragement of a fellow actuarial warrior when the battle becomes wearisome can be an invaluable asset. Recruit the best Before a study group can perform, it must exist. In most cases, selection of group members is severely limited by location and exam progress. If options are available, choose wisely and opt for diversity. While different backgrounds and perspectives may create additional conflicts, the synergy created will prevail almost exclusively. For example, quantitative, expressive and theoretical skills all are necessary for success, and the balancing of such skills can spell success for the actuarial study team. Members of an effective group must be homogeneous in at least two aspects: commitment to one another and to exam day success. Little is more frustrating than a group with incompatible objectives. Unlike the size of your exam score, bigger groups are not always better. Opinions may differ, but I have experienced diminishing returns from each group member above four. Larger groups offer more perspectives and encouragement; smaller groups offer easier scheduling and more focused interaction. While a friend or the attractive coworker/classmate may be a desirable teammate, the underlying question remains: will he or she help me pass the exam? Though such a philosophy may appear a bit too utilitarian, the distinction is necessary. Free time is for relationship building. Study time is for exam passing. Write the rulebook After reviewing the syllabus, creating ground rules should be group objective number one. Who will coordinate meetings? How often will the group meet? What are the expectations? How will conflict be dealt with? While these questions may seem mundane when all is well, the absence of these answers can prove detrimental. Maintain independence Regardless of the finely tuned machine your study group becomes, on exam day you will be alone. Sally, the integration-by-parts whiz, will be three seats behind you wrestling her own exam. A bottle of water, a sweatshirt, a calculator and those lucky number two pencils are the only friends allowed. Hence, employ the group as a tool, not a crutch. Learn from group members, but avoid depending on their encouragement or expertise. Determine a healthy mix between group and individual study. No substitute exists for the fortitude and proficiency built by struggling solo through difficult practice problems. Know, appreciate, teach and learn from your teammates. When the brain is fried and the exam is over, only you will be responsible for your performance. Clearly, the mission is not for the undisciplined, but a group can complement well an individual’s desire. Empowered by a study group, may “pass” echo in your touch-tone phone for years to come.

Dress to impress for an interview by Jen Abbatacola Congratulations! You've landed an interview with a potential employer. Some aspect of your resume has intrigued them enough to call you in. Now, as you prepare for your interview, it is essential to keep in mind the importance of a first impression. How you are dressed sends the interviewer conscious and unconscious signals about what sort of employee you would be. Are you neat? Do you appear successful, put together? Attention to detail is a character trait easily demonstrated by a well-thought-out physical appearance. Here are some tips to ensure you're sending the right signals in your dress and creating a good first impression. Appropriate Attire for Males Obviously, a suit is the standard attire for an interview. Wear a suit in charcoal gray, medium gray, pinstripes or navy. The best material to choose is wool because it is a natural fabric that breathes and hangs on the frame better, but if your budget will not allow it, choose a wool and synthetic blend. A single-breasted, three-button style is preferable, projecting a modern, yet conservative look. Select a classic dress shirt in a solid, pale color that suits your complexion. A pale blue works well for most people and is part of the classically conservative “power look” when paired with a red tie. Be sure the suit fits properly—no matter how much you spend, the suit won't look right if the fit isn't good. Here are some pointers on fit: · The hem of the pants should just graze the top of your shoes. · The sleeves of the jacket should reach to the point where your hand meets your wrist. · Your shirt cuff may extend ¼” past the sleeve of your suit coat. Now that you have the perfect suit, remember that the attention is in the details. In this case, it is accessories. If necessary, wear simple, understated cuff links. Choose a conservative, all-silk tie with no more than three colors and a simple pattern. Dots, checks or stripes are all acceptable. An interview is not the place for a sports-themed or cartoon character tie. Once you have a job and have properly assessed the work environment, you will know if such ties are acceptable dress, but for the interview, it is always best to err on the side of conservatism. Shoes are another crucially important aspect of your appearance. Classic, traditional loafers in black, with or without wing tips, are perfectly appropriate. Don't skimp on quality—one nice pair will last you longer than several cheaper ones. Also, be sure to polish your shoes as well! Even a very nice pair will undermine the rest of your outfit if they lack a good shine. Wear dark, solid-colored socks that match your suit and shoes, and be sure that they stay up and over the calf. You do not want to cross your legs during and interview and show a bare leg. Be sure your belt is the same color as your shoes and is made of good-quality leather. Avoid all jewelry apart from a sophisticated watch and a wedding band or class ring (if appropriate). Lastly for men, be sure to have a recent, short, conservative haircut. It is best to be clean-shaven, but if you do have a beard or mustache, make sure it is neatly trimmed and make sure your nails are clean and trimmed as well. Appropriate Dress for Females Women should wear a suit to an interview as well. A pants suit is widely considered to be appropriate dress, but a skirt suit works well too. Women have slightly more freedom than men in suit color, but dark colors are best. Black, pinstripes, navy, charcoal, burgundy and dark green are all appropriate choices. If wearing a skirt suit, make sure the skirt is no higher than two inches above the knee. Choose a jacket that fits well, that isn't too tight or too big, and a single-breasted jacket is the best choice. A good tailor can help you to achieve the proper fit. Again, natural materials are preferable, but remember that linen wrinkles easily. Choose a shirt that complements your complexion to go under your suit. Be sure it fits properly and is not low cut. Keep jewelry to a minimum, wearing no more than one ring per hand. If you're wearing earrings, keep it to earring one per ear. Studs exhibit a more professional appearance than dangling earrings. A watch or single bracelet and/or necklace are acceptable, provided they are not large or distracting. Shoes should again be very conservative and polished. If you wear heels, opt for a classic look—don't choose platform or chunky shoes. In addition, do not wear an open-toed or sling-backed shoe to an interview! Closed-toe shoes with thin soles and heels are considered to be more professional. Make certain that your hose are of a natural, flesh-toned color—and consider carrying an extra pair with you in case you get a run. Make sure hair is freshly cut (and colored if necessary). If you have bangs or layers that hang in your face, pin them back, since hair hanging in your face can be a distraction to an interviewer. Keep your nails short and clean, and if you wear polish, a French manicure is preferred, but a pale neutral color is acceptable as well. Makeup should be light and natural as well. Items to Bring to an Interview Being prepared for the unexpected and being well organized are also attractive traits to your potential employer. For this reason, it is necessary to bring some important items with you to your interview. Carry a good-quality leather briefcase. In it include a leather notebook and/or binder with several copies of your resume and references on resume paper. Also make sure to have at least two working, quality pens that are easily accessible. When you arrive, stop in the restroom to double-check your appearance. If your hands are cold or sweaty, run them under tap water till they are a normal temperature. Take a deep breath and go to the interview site 15 minutes early and with the confidence that you are looking your personal best. ***** Details matter in the appearance department. Here are some other things you'll wish people told you before your first interview: Bring · Tissues · Breath mints (not gum) · Comb or hairbrush · Lint brush · Map · Umbrella Avoid** · Men: out-of-date, tapered-cut trousers · Women: Shoulder pads · Home ironing jobs—have your shirts professionally starched · Smoking in your interview attire · Wearing cologne or perfume A note for women: Is your skirt too short? When your arms are placed at your sides, make certain your skirt extends beyond your fingertips.