What is the SOA Exam FAM exam?
Exam FAM is the SOA preliminary exam that follows P and FM, and it is the first one that is genuinely about insurance rather than the mathematics underneath it. It covers short-term coverages (severity and frequency models, aggregate losses, credibility, ratemaking and reserving) and long-term coverages (mortality models, present-value random variables, premiums and policy values), plus a short introduction to option pricing.
FAM replaced the older Exams LTAM and STAM in 2022, combining the long-term and short-term material into one exam. For a transitional period it could be sat as two halves, FAM-L and FAM-S, by candidates carrying credit for the old exams. That window has closed, and everyone now sits the full combined exam.
It is a significant step up from P and FM in both volume and conceptual load. Candidates routinely describe it as the point where the ASA pathway starts to feel like a professional qualification rather than an extension of a university course.
Who sits it
- Actuarial students who have passed Exams P and FM and are working toward the ASA designation
- Analysts in life, health or general insurance pricing and reserving teams
- Candidates who have completed VEE Mathematical Statistics, which the syllabus assumes
Exam format at a glance
- Questions
- 34 multiple-choice
- Duration
- 3.5 hours
- Delivery
- Computer-based at test centres, with a paper option where no centre is available
- Exam windows
- Three sittings a year; the 2027 sittings are February, July and October
- Fee (USD)
- $408 per attempt
- Assumed knowledge
- Exam P, Exam FM and VEE Mathematical Statistics
- Passing standard
- Scored by item response theory against a pass mark fixed in advance; the July 2026 exam required an average of 60% correct
- Recent pass rate
- 57% of candidates writing in July 2026, or 61% of effective candidates
Exam-body facts last checked September 2026. Fees, dates and formats change; confirm the current details with Society of Actuaries (SOA) before registering.
SOA Exam FAM pass rates by sitting
| Sitting | Pass rate |
|---|---|
| November 2023 | 59.9% |
| March 2024 | 54.7% |
| March 2025 | 56.7% |
| July 2026 | 57.0% |
The SOA publishes the percentage passing and the pass mark for each sitting, but its results page shows only the most recent one, so the history here is limited to the sittings whose figures are still published. These are the percentage of everyone who wrote; the effective pass rate, which excludes candidates scoring too low to count as genuine attempts, runs about four points higher.
Syllabus and topic weights
Weights from the SOA's 2026 Exam FAM syllabus.
1.Short-Term Insurance and Reinsurance Coverages5–10% · 10 lessons · 22 questions · 82 cards5–10%102282
- Types of Coverage Modifications
- Calculating the Impact of Coverage Modifications
- Loss Elimination Ratio and the Effect of Inflation
- Proportional and Excess of Loss Reinsurance
- Allocation of Claims Under Reinsurance
2.Severity, Frequency, and Aggregate Models12.5–17.5% · 28 lessons · 31 questions · 228 cards12.5–17.5%2831228
- Moments and Percentiles of Severity Distributions
- Scale and Shape Parameters in Continuous Models
- Classes of Distributions and Their Relationships
- Characterizing Distributions by Moment Existence
- Parameters of the (a,b,0) and (a,b,1) Classes
- Recognizing (a,b,0) and (a,b,1) Distributions
- Calculations for the (a,b,0) and (a,b,1) Classes
- Identifying Appropriate Frequency Distributions
- Collective and Individual Risk Models
- Normal and Lognormal Approximations for Aggregate Distributions
- The Convolution Method
- Stop-Loss Insurance
- Value at Risk and Tail Value at Risk
- Properties of Risk Measures
3.Parametric Estimation2.5–7.5% · 4 lessons · 18 questions · 20 cards2.5–7.5%41820
- Maximum Likelihood Estimation
4.Introduction to Credibility2.5–5% · 4 lessons · 9 questions · 30 cards2.5–5%4930
- The Concept of Credibility
- Limited Fluctuation Credibility Calculations
5.Pricing and Reserving for Short-Term Insurance Coverages10–15% · 10 lessons · 16 questions · 78 cards10–15%101678
- Estimating Outstanding Claims
- Ratemaking Objectives and Data
- Adjustments to Ratemaking Data
- Expenses and Profit Loading in Ratemaking
- Overall Average Rates and Rate Changes
6.Option Pricing Fundamentals2.5–7.5% · 8 lessons · 7 questions · 71 cards2.5–7.5%8771
- Cash Flows and Characteristics of Puts and Calls
- Binomial Option Pricing Model
- Black-Scholes Formula and Delta Hedging
- Put-Call Parity
7.Long-Term Insurance Coverages and Retirement Financial Security Programs2.5–5% · 4 lessons · 4 questions · 33 cards2.5–5%4433
- Insurable Interest
- Long-Term Insurance Coverages, Annuities, and Pension Plans
8.Mortality Models10–15% · 10 lessons · 29 questions · 82 cards10–15%102982
- Parametric Survival Models, Life Tables, and Their Relationships
- Parametric Survival Model Calculations
- Standard Actuarial Notation for Future Lifetime Distributions
- Life Table Calculations with Fractional Age Assumptions
- Select Life Tables
9.Present Value Random Variables for Long-Term Insurance Coverages12.5–20% · 10 lessons · 33 questions · 79 cards12.5–20%103379
- Present Value Random Variables for Life Insurance, Endowment, and Annuity Payments
- Means, Variances, and Covariances of Present Value Random Variables
- Relationships Between Insurance, Endowment, and Annuity Present Values
- Effect of Changes in Underlying Assumptions
- Standard Actuarial Notation (International Actuarial Notation)
10.Premium and Policy Value Calculation for Long-Term Insurance Coverages15–22.5% · 10 lessons · 99 questions · 73 cards15–22.5%109973
- Future Loss Random Variables for Life Insurance and Annuities
- Premium Calculation Principles
- Net Premium and Gross Premium Policy Values
- Effect of Changes in Underlying Assumptions on Reserves and Premiums
- Modelling Extra Risk
Lesson, question and flashcard counts are StudyOptima's content written so far for each topic. Expand a topic to see its subtopics.
How to prepare for SOA Exam FAM
- 1
Treat the long-term half as the priority. Mortality models, present-value random variables and premium and policy value calculation together run to as much as 57 percent of the exam, and policy values in particular reward drilling.
- 2
Learn the FAM tables before exam day. They are supplied on screen, and candidates lose real time hunting through them for the first time under pressure.
- 3
Short-term coverages are formula-dense but mechanical: deductibles, limits, coinsurance, aggregate models and credibility all reduce to a manageable set of standard results.
- 4
Do not over-invest in option pricing. It is at most 7.5 percent and is a brief introduction rather than a full derivatives treatment.
- 5
Practise at pace. Six minutes per question sounds generous until you meet a multi-decrement policy value question.
SOA Exam FAM on StudyOptima
We have written lessons, flashcards and practice questions across all ten FAM syllabus topics, but have not released them yet. Our Exam P and Exam FM material is live now, and since FAM assumes both of them, working through those is the right preparation in the meantime. Exam P's study lessons are free with any account.
SOA Exam FAM FAQ
Is FAM still split into FAM-L and FAM-S?
No. The split existed only as a transition for candidates carrying credit for the old LTAM and STAM exams, and that period has ended. FAM is now a single combined exam.
Do I need Exams P and FM before sitting FAM?
They are not enforced as prerequisites, but the syllabus assumes them along with VEE Mathematical Statistics. Sitting FAM without them is not realistic.
Why do published pass rates for FAM differ between sources?
The SOA reports both the percentage of everyone who wrote and the percentage of effective candidates, which excludes those who scored too low to be counted as genuine attempts. In July 2026 those were 57% and 61%. Aggregator sites usually quote the second figure.
When will StudyOptima cover Exam FAM?
Lessons, flashcards and a question bank are written across all ten syllabus topics but are not released yet. Email support@studyoptima.com if you would like to be told when they are.
Related exams
Statistics for Risk Modeling: regression, time series, trees and clustering, and the statistical foundation for the SOA's predictive analytics exam.
How to become an actuary through the SOA: every exam, module and course on the route to ASA, CERA and FSA.
The Probability exam: the usual first step toward the ASA designation and one of the two exams most actuarial employers expect from new hires.