100+ Free CAA Fellow Actuary (China) Practice Questions

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CAA Associate Actuary (中国准精算师, China)

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Key Facts: CAA Fellow Actuary (China) Exam

Administering Body

Regulatory Charter

Credential Level

Professional Tracks

Examination Structure

Passing Standard

Exam Fee

The CAA holds actuarial qualification examinations twice a year, and the 2026 first-half sitting was staged in Beijing, Shanghai and Shenzhen. Candidates complete five subject papers for their chosen professional category, and the CAA's 2026 first-half results notice set the pass standard at 60% of the 100-point paper total, that is 60 marks, with passed subjects retained. Certificate issuance additionally requires the Associate certificate, five years of relevant experience, and ethics education. This bank provides 100 English single-answer MCQ study questions — a study adaptation, not an official translation, format simulation, or computer-exam replica.

Sample CAA Fellow Actuary (China) Practice Questions

Try these sample questions to test your CAA Fellow Actuary (China) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the China Association of Actuaries (CAA) framework and NFRA regulatory guidelines, what is the fundamental objective of an insurer's Asset-Liability Management (ALM)?

A.Coordinating asset allocation and liability profiles to maximize enterprise economic surplus within defined risk tolerance, while satisfying regulatory solvency, liquidity, and duration constraints

B.Maximizing total investment yields on admitted assets unconstrained by liability duration or liquidity commitments

C.Minimizing statutory policy reserves by selecting the highest permissible valuation discount rates

D.Eliminating all underwriting risk by investing exclusively in short-term central bank treasury bills

Explanation: The core objective of insurance ALM is the holistic coordination of assets and liabilities to optimize long-term economic value and surplus while strictly managing duration mismatches, liquidity requirements, and regulatory solvency under C-ROSS Phase II.

2Which of the following statements correctly contrasts the liability risk profiles of non-life property insurance and traditional whole life insurance from an ALM perspective?

A.Non-life liabilities are typically short-tailed, highly liquid, and inflation-sensitive, whereas whole life liabilities are long-duration, mortality-driven, and subject to reinvestment risk

B.Non-life liabilities have longer Macaulay durations than whole life policies due to multi-decade claim payout delays

C.Traditional whole life insurance liabilities are primarily driven by severe catastrophe volatility with no guaranteed surrender values

D.Non-life insurance requires extensive multi-decade asset duration matching, whereas life insurers primarily hold 90-day liquid securities

Explanation: Non-life property insurance contracts typically feature short policy terms (1 year or less), quick settlement horizons, high claim frequency uncertainty, and sensitivity to replacement cost inflation. Traditional whole life insurance features multi-decade guaranteed benefit streams requiring long-duration bond matching to mitigate reinvestment risk.

3Under the Enterprise Accounting Standard No. 22 (CAS 22) and No. 25 (CAS 25, China's IFRS 17 equivalent), why does holding debt securities at Fair Value through Profit or Loss (FVTPL) while measuring insurance liabilities under the General Model (BBA) with Other Comprehensive Income (OCI) option create an accounting mismatch?

A.Asset fair value fluctuations flow directly into profit or loss, whereas insurance finance income or expenses from interest rate changes are recognized in OCI, causing net income volatility

B.FVTPL debt securities cannot be counted toward C-ROSS Phase II Actual Capital

C.CAS 25 strictly prohibits insurers from investing in any fixed-income instruments classified under FVTPL

D.Insurance liabilities under the BBA model must always be discounted at historic lock-in rates with zero market adjustments

Explanation: If an insurer designates supporting debt securities as FVTPL, market interest rate fluctuations immediately hit profit or loss. However, if the insurer applies the OCI disaggregation option under CAS 25 for insurance contracts, the liability interest rate variance is parked in other comprehensive income, leading to artificial earnings volatility.

4A life insurance company issues a block of single premium immediate annuities that will pay guaranteed annual cash flows of ¥100 million at the end of year 1, ¥100 million at the end of year 2, and ¥100 million at the end of year 3. At a flat annual discount rate of 4.0%, what is the Macaulay duration of this liability block?

A.1.94 years

B.2.00 years

C.2.88 years

D.1.45 years

Explanation: Cash flows at t=1, 2, 3 are ¥100M each. Present values at i=4%: PV1 = 100 / 1.04 = 96.154M; PV2 = 100 / (1.04)^2 = 92.456M; PV3 = 100 / (1.04)^3 = 88.899M. Total PV = 96.154 + 92.456 + 88.899 = 277.509M. Weighted time: 1(96.154) + 2(92.456) + 3(88.899) = 96.154 + 184.912 + 266.697 = 537.763M. Macaulay Duration = 537.763 / 277.509 = 1.9378 ≈ 1.94 years.

5During a macroeconomic scenario where market interest rates rise sharply by 250 basis points over six months, universal life insurance products face which primary ALM risk in the Chinese market?

A.Disintermediation and policyholder surrender surge, as market yields exceed credited policy rates and insurers are forced to liquidate depressed fixed-income assets at a loss

B.A widening negative interest spread (利差损), because the declared crediting rate falls below the contractual minimum guaranteed rate

C.A sharp rise in the solvency value of guaranteed liabilities, because the prescribed discount curve rises alongside market rates

D.A higher time value of options and guarantees (TVOG) charge, because the minimum guaranteed crediting rate becomes more likely to bind

Explanation: When prevailing market interest rates surge rapidly, policyholders can achieve superior returns elsewhere, sparking a wave of policy surrenders (disintermediation). Insurers unable to raise credited rates quickly must sell underwater bonds at market discounts to fund surrender cash outflows, crystallizing severe capital losses.

6Under China's C-ROSS Phase II (偿二代二期) solvency regulatory framework, how is an insurance company's Actual Capital (实际资本) defined?

A.Admitted Assets minus Admitted Liabilities on the solvency balance sheet, classified into Core Capital and Supplement Capital based on loss-absorption capability

B.Total statutory book value of equity under PRC GAAP without any regulatory asset deductions or liability revaluations

C.The sum of registered paid-in capital and retained earnings, excluding subordinated debt instruments

D.The gross actuarial present value of future cash inflows from all in-force life policies

Explanation: In C-ROSS Phase II, Actual Capital is the excess of Admitted Assets over Admitted Liabilities on the regulatory solvency balance sheet. It is stratified into Core Tier 1, Core Tier 2, Supplement Tier 1, and Supplement Tier 2 based on permanence and subordination.

7What are the three core regulatory solvency criteria that an insurer in China must satisfy simultaneously to be classified as fully compliant by the NFRA?

A.Core Solvency Ratio ≥ 50%, Comprehensive Solvency Ratio ≥ 100%, and Integrated Risk Rating (IRR) Category B or above

B.Core Solvency Ratio ≥ 100%, Comprehensive Solvency Ratio ≥ 150%, and SARMRA score ≥ 90

C.Comprehensive Solvency Ratio ≥ 80%, Return on Equity ≥ 10%, and Loss Ratio ≤ 65%

D.Core Solvency Ratio ≥ 60%, Capital Adequacy Ratio ≥ 105%, and Zero SARMRA penalties

Explanation: Article 10 of the Insurance Company Solvency Management Provisions (2021 No. 1) requires all three tests to be met at once: (1) Core Solvency Ratio (Core Capital / Minimum Capital) ≥ 50%; (2) Comprehensive Solvency Ratio (Actual Capital / Minimum Capital) ≥ 100%; and (3) an Integrated Risk Rating of Class B or above. Phase II subdivides the top classes into AAA, AA, A, BBB, BB and B, all of which clear the hurdle.

8In C-ROSS Phase II, what components constitute an insurer's total Minimum Capital (最低资本)?

A.Quantifiable Risk Minimum Capital ($MC_{quant}$), Control Risk Minimum Capital ($MC_{control}$ based on SARMRA), and Additional Capital ($MC_{add}$ for systemically important or special risks)

B.Only the sum of Market Risk Capital and Underwriting Risk Capital with zero diversification adjustments

C.5% of total mathematical reserves plus 1% of sum at risk across all life policies

D.The unweighted aggregate of credit risk, operational risk, and asset concentration penalties

Explanation: C-ROSS Phase II computes Minimum Capital as $MC = MC_{quant} + MC_{control} + MC_{add}$. $MC_{quant}$ aggregates market, credit, and insurance risks with correlation matrices; $MC_{control}$ adjusts for risk governance (SARMRA); and $MC_{add}$ covers counter-cyclical or D-SII capital.

9A Chinese life insurer reports Core Capital of ¥15.0 billion, Supplement Capital of ¥9.0 billion, and a calculated Minimum Capital requirement of ¥12.0 billion under C-ROSS Phase II. What are its Core Solvency Ratio and Comprehensive Solvency Ratio?

A.Core Solvency Ratio = 125.0%; Comprehensive Solvency Ratio = 200.0%

B.Core Solvency Ratio = 62.5%; Comprehensive Solvency Ratio = 150.0%

C.Core Solvency Ratio = 100.0%; Comprehensive Solvency Ratio = 160.0%

D.Core Solvency Ratio = 80.0%; Comprehensive Solvency Ratio = 120.0%

Explanation: Core Solvency Ratio = Core Capital / Minimum Capital = 15.0 / 12.0 = 125.0%. Actual Capital = Core Capital + Supplement Capital = 15.0 + 9.0 = 24.0 billion. Comprehensive Solvency Ratio = Actual Capital / Minimum Capital = 24.0 / 12.0 = 200.0%.

10Under C-ROSS Phase II, how is an insurer's Control Risk Minimum Capital (控制风险最低资本) derived from its SARMRA (Solvency Aligned Risk Management Requirements and Assessment) result?

A.It equals quantifiable risk minimum capital multiplied by a control risk characteristic coefficient; Phase II sets that coefficient from the insurer's SARMRA score measured against the industry average rather than from the raw score alone, so relatively strong risk management produces a capital deduction and weak risk management a surcharge

B.It is a flat surcharge on quantifiable risk minimum capital that every insurer pays at the same rate, because SARMRA is scored out of 100 and no insurer reaches 100

C.It is calculated independently of quantifiable risk minimum capital, as a fixed percentage of the insurer's gross written premium for the preceding financial year

D.It has no capital effect: the SARMRA score feeds only the Pillar 2 Integrated Risk Rating and the public solvency disclosure

Explanation: Minimum Capital under C-ROSS Phase II is the sum of quantifiable risk minimum capital, control risk minimum capital and additional capital. Control risk minimum capital is quantifiable risk minimum capital multiplied by a control risk characteristic coefficient. Phase II deliberately changed how that coefficient is set: rather than reading it off the raw SARMRA score alone, it uses the score relative to the industry average, so the control risk line can be negative for a well-managed insurer and positive for a weak one.

About the CAA Fellow Actuary (China) Exam

The China Fellow Actuary Qualification Examination (中国正精算师职业资格考试) is the highest tier of China's national level-evaluation actuarial professional qualification (水平评价类职业资格) governed by NFRA and MOHRSS under 金规〔2023〕3号. Seven professional categories are established: Life, Non-Life, Health, Social Insurance and Pensions, Financial Risk Management, Asset Management, and Data Science. Each category requires five papers: one common subject (《资产负债管理与价值评估》), three specialty subjects (such as 《财务管理》, product development, ratemaking, valuation, health practice, or investment), and one elective subject from another category. To sit, candidates need a recognized bachelor's degree or current undergraduate enrollment. Earning the Fellow certificate requires holding the Associate certificate, passing all five category papers, accumulating five years of actuarial or financial work experience, and completing CAA ethics education.

Assessment

Computer-delivered examination at designated test centres. The Fellow level is organised into 7 professional categories (Life, Non-Life, Health, Social Insurance & Pensions, Financial Risk Management, Asset Management, Data Science), and each requires 5 papers: 1 common subject (《资产负债管理与价值评估》), 3 specialty subjects for the track, and 1 elective subject that is a non-identical specialty subject drawn from another category. Papers are marked out of 100. Ethics education is a separate certificate condition, not an examination.

Time Limit

Not published on public CAA notices; per-paper duration is not publicly fixed across all Fellow modules.

Passing Score

The CAA's 2026 first-half results notice set the single-subject pass standard at 60% of the 100-point paper total, i.e. 60 marks; candidates may request a score review within 5 working days of publication.

Exam Fee

The CAA's 2025 public fee consultation proposed continuing ¥200 RMB per Fellow paper (发改价格〔2005〕366号); the public 2026 registration notice does not restate the fee, so confirm the live amount during registration. (China Association of Actuaries (中国精算师协会 / CAA), under the qualification framework issued by NFRA and MOHRSS)

CAA Fellow Actuary (China) Exam Content Outline

28%

Asset-Liability Management & Value Assessment (资产负债管理与价值评估)

The universal common subject required across all seven professional tracks: ALM foundations and principles, liability risk profiles across insurance product lines, solvency balance sheet valuation under C-ROSS Phase II, Actual Capital and Minimum Capital measurement, Embedded Value (EV) foundations, Value of New Business (VNB), EV movement analysis, duration and convexity matching, and regulatory ALM compliance ratios.

24%

Corporate Financial Management & Insurance Accounting (财务管理与保险会计)

Specialty subject common to four professional tracks (Life, Non-Life, Health, Social Insurance & Pensions): financial management objectives, capital structure theory, long-term financing instruments (capital replenishment bonds, perpetual bonds), regulatory Actual Capital criteria, working capital management, liquidity risk monitoring, cost management and expense allocation, comprehensive budgeting, CAS 25 (IFRS 17) insurance contract accounting, and performance evaluation metrics.

18%

Life Insurance Product Development & Actuarial Valuation (寿险产品开发与精算评估实务)

Specialty track coverage for life actuaries: NFRA life insurance product filing and approval rules, product design for participating, universal, and unit-linked contracts, actuarial pricing and profit testing, asset share projections, statutory policy reserve valuation (prospective reserves, modified reserves, FPT), surrender value regulations, and CAS 25 fulfillment cash flow and CSM modeling for long-term life liabilities.

16%

Non-Life Insurance Ratemaking & Reserving (非寿险定价与精算评估实务)

Specialty track coverage for property and casualty actuaries: non-life ratemaking principles, exposure bases, pure premium and loss ratio ratemaking methods, Generalized Linear Models (GLMs) for classification pricing, individual risk experience rating, bonus-malus systems, deductible and policy limit pricing, catastrophe risk modeling, reinsurance pricing (excess of loss), claims reserving (Chain Ladder, Bornhuetter-Ferguson, Cape Cod), and unearned premium reserves.

14%

Health Insurance Actuarial Practice & Investment Management (健康保险精算与投资资产管理)

Specialty track coverage: commercial health insurance products, critical illness morbidity tables and pricing, medical expense loss distributions, disability income and long-term care multi-state models, group health insurance, urban custom commercial medical insurance (Huiminbao), health risk control and anti-fraud, institutional portfolio management, asset pricing models, and NFRA insurer investment supervision rules.

How to Pass the CAA Fellow Actuary (China) Exam

What You Need to Know

Passing score: The CAA's 2026 first-half results notice set the single-subject pass standard at 60% of the 100-point paper total, i.e. 60 marks; candidates may request a score review within 5 working days of publication.
Assessment: Computer-delivered examination at designated test centres. The Fellow level is organised into 7 professional categories (Life, Non-Life, Health, Social Insurance & Pensions, Financial Risk Management, Asset Management, Data Science), and each requires 5 papers: 1 common subject (《资产负债管理与价值评估》), 3 specialty subjects for the track, and 1 elective subject that is a non-identical specialty subject drawn from another category. Papers are marked out of 100. Ethics education is a separate certificate condition, not an examination.
Time limit: Not published on public CAA notices; per-paper duration is not publicly fixed across all Fellow modules.
Exam fee: The CAA's 2025 public fee consultation proposed continuing ¥200 RMB per Fellow paper (发改价格〔2005〕366号); the public 2026 registration notice does not restate the fee, so confirm the live amount during registration.

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

CAA Fellow Actuary (China) Study Tips from Top Performers

1Master C-ROSS Phase II Capital Formulas: Be fluent in computing Core and Comprehensive Solvency Ratios, breaking down Actual Capital into Core Tier 1/2 and Supplement Tier 1/2, and calculating Minimum Capital diversification benefits.

2Understand Embedded Value Movement: Memorize the formula EV = Adjusted Net Worth (ANW) + Value of In-Force (VIF) - Cost of Capital (CoC), and practice decomposing year-over-year EV changes into expected return, new business value (VNB), operating variance, and assumption changes.

3Apply CAS 25 / IFRS 17 Liability Components: Distinguish Fulfillment Cash Flows (present value of future cash flows plus Risk Adjustment) from the Contractual Service Margin (CSM), and know how loss components are recognized immediately in profit or loss for onerous contracts.

4Drill Non-Life Claims Reserving Algorithms: Practice computing development factors, cumulative factors, and ultimate claims step-by-step under the Chain Ladder and Bornhuetter-Ferguson methods.

5Master Immunization and Duration Gap: In ALM, understand Redington immunization conditions (equal present values, equal Macaulay durations, and asset convexity exceeding liability convexity) and compute the effective duration gap.

6Learn the Current NFRA Investment Ceilings: The equity-asset proportion limit was reset by 金规〔2025〕12号 in April 2025 to five solvency bands running 10%, 20%, 30%, 40% and 50% of prior-quarter-end total assets — study the current schedule, not the eight-band 45% ceiling it replaced.

Frequently Asked Questions

What is the China Association of Actuaries Fellow Actuary Examination (中国正精算师职业资格考试)?

The CAA Fellow Actuary Examination is the highest tier of China's national level-evaluation professional actuarial qualification (水平评价类职业资格), established under NFRA and MOHRSS guidelines in 金规〔2023〕3号. The qualification is organized across seven professional categories: Life Insurance, Non-Life Insurance, Health Insurance, Social Insurance and Pensions, Financial Risk Management, Asset Management, and Data Science.

What is the examination structure and curriculum for the Fellow tier?

Each candidate chooses one of the seven professional categories and must pass five subject papers: one common compulsory subject (《资产负债管理与价值评估》), three specialty subjects for the chosen track, and one elective subject taken from a different category. The elective must be a specialty subject that is not identical to one already required by the candidate's own track. Papers are marked out of 100, and the CAA's 2026 first-half results notice set the pass standard at 60 marks.

What are the eligibility requirements to sit for Fellow papers versus obtaining the Fellow certificate?

To sit for the examinations, candidates need only meet general conduct standards and hold a recognized bachelor's degree or be currently enrolled as an undergraduate (大学本科在读及以上学历或学位). However, actually obtaining the Fellow certificate (正精算师职业资格证书) requires holding the Associate certificate, passing all five required category papers, completing five years of cumulative actuarial or financial work experience, and finishing CAA ethics education.

Where and when are the Fellow examinations administered?

The implementing measures under 金规〔2023〕3号 place sittings in the second and fourth quarters of each year, in line with the annual MOHRSS examination calendar (人社厅函〔2026〕6号). Venues are set sitting by sitting: the CAA's 2026 first-half examination announcement placed that sitting in Beijing, Shanghai and Shenzhen, with registration running 13 April to 8 May 2026 and admission tickets available from 20 May 2026. Check the current announcement on e-caa.org.cn rather than assuming a fixed venue list.

How does this OpenExamPrep question bank cover the Fellow syllabus?

This 100-question practice bank concentrates on the core subjects with live official outlines published by the CAA: the universal common core 《资产负债管理与价值评估》 (28%), the multi-track core 《财务管理》 (24%), Life specialty practice (18%), Non-Life specialty practice (16%), and Health/Investment practice (14%). It incorporates current C-ROSS Phase II rules and CAS 25 (IFRS 17) accounting.

Why is this OpenExamPrep question bank presented in English?

The qualification is set on a single national syllabus with nationally set papers, and the CAA's syllabuses, reference materials and examination announcements are published in Chinese; the association does not publish a statement of permitted delivery languages, so we do not claim one. This bank is an English-language single-answer MCQ study adaptation for people who research and prepare in English. It preserves the exact official Chinese subject titles and regulatory terms alongside English stems, worked calculations and distractor rationales. It is not an official translation, and it does not reproduce the official examination format.