CAS Exam 7C 2009

Exam 7C is the pre-associateship exam for the Casualty Actuarial Society and the Canadian Institute of Actuaries. The Exam is designated 7C for Canadian specific content. It consists of 4 major sections: Law, Regulation, Government and Industry Insurance Programs, and Financial Reporting.

This page summarizes the main concepts of the exam by using publicly available information. It is intended to serve as a secondary source of understanding for exam materials, as well as a summary of topics for people not in the actuarial profession. As the exam is graded by an examination committee using a number of materials that are not publicly available, it should be stressed that the information here may not always be what the exam committee would consider correct.

For more information, please visit the Casualty Actuarial Society website.

Section A: Background Law and Insurance

Learning Objective A1: Identify and describe the key components of tort law.

Knowledge Statement A1a: Functions of Tort Law

According to Kerr et al., there are 5 functions of tort law.
1. Compensation: To compensate the victim for the harm done by restoring them to the position they were in before the tortious act.
2. Specific Deterrence: Damage awards and court costs serve to deter the wrongdoer from committing the same act again.
3. Punitive Damages: Serve to punish the defendant (not used very often in Canada).
4. General Deterrence: Damage awards and court costs serve to deter anyone else from committing the same act in the future.
5. Civil Rights: Tort law can be used to uphold civil rights through the court system.

Section B: Regulation of Insurance

Learning Objective B5: Describe the structure of the insurance industry in Canada

Knowledge Statement B5a: Types of insurance carriers

There are 4 corporate structures of property-casualty insurance:
1. Individual underwriters
2. Joint STOCK companies
3. Mutual insurance compaines
4. Reciprocal or interinsurance exchanges

Section C: Government and Industry Insurance Programs

Summary in ProgresS.

Section D: Financial Reporting

Summary in progress.

Notes

Bibliography

  • Kerr, et al. Canadian Tort Law in a Nutshell. Toronto: Carswell, 2005. ISBN 0-459-24248-2.