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ASP Fellowship Exam I — Actuarial Society of the Philippines

Practice Questions100 questions

2026 Statistics

Key Facts: ASP Fellowship II Exam

6 hours

Exam Duration

ASP

Grade 6+

Passing Mark

0-10 Scale

PHP 12,000

Exam Fee

Registration

150-200 hrs

Study Time

Recommended

6 Domains

Syllabus Areas

ASP Syllabus

100 Qs

Free Practice

OpenExamPrep

The ASP Integrated Exam II is a six-hour written fellowship exam administered by the Actuarial Society of the Philippines. It is a critical requirement for qualifying as a Fellow of the ASP (FASP). The exam tests local actuarial practice across group insurance, social insurance (SSS, GSIS), health systems (PhilHealth, HMOs), taxation (NIRC), pre-need (RA 9829), and employee benefits (RA 7641, PAS 19). The exam registration fee is PHP 12,000, and passing requires a score of 6 or higher on a 0-10 scale. This 100-question practice bank covers all six domains with detailed actuarial explanations.

Sample ASP Fellowship II Practice Questions

Try these sample questions to test your ASP Fellowship II exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In group term life insurance underwriting, what is the primary purpose of establishing a Free Cover Limit (also known as the Non-Medical Limit)?

A.To allow members to opt out of the group plan without a penalty fee.

B.To define the maximum amount of insurance that can be issued to any single member without individual evidence of insurability.

C.To set the minimum level of coverage that must be paid for entirely by the employer's contributions.

D.To specify the age threshold at which members must submit to annual medical examinations to retain coverage.

Explanation: The Free Cover Limit (or Non-Medical Limit) is a fundamental group underwriting concept. It allows members of a group to receive automatic coverage up to a specified amount without having to undergo medical examinations or provide evidence of good health, thereby reducing administrative costs and facilitating rapid enrollment.

2Under the Insurance Commission rules for group insurance in the Philippines, what is the standard minimum participation requirement for non-contributory group life insurance plans?

A.50% of all eligible employees

B.75% of all eligible employees

C.85% of all eligible employees

D.100% of all eligible employees

Explanation: In non-contributory group life insurance plans, where the employer pays 100% of the premiums, the participation of all eligible employees (100%) is required. This rule is designed to eliminate anti-selection and ensure that the insured group represents a random and fair distribution of risk.

3An actuary is designing an experience rating scheme for a large group medical plan in the Philippines. Which of the following credibility formulas is most commonly applied to determine the experienced-rated premium?

A.Premium = Z * (Claims + Expenses) + (1 - Z) * Manual Premium

B.Premium = Z * (Claims) + (1 - Z) * (Expenses + Net Worth)

C.Premium = Z * (Manual Premium) + (1 - Z) * (Claims * Expenses)

D.Premium = Z * (Paid Claims / Paid Premiums) + (1 - Z) * Margin

Explanation: The standard credibility formula used in experience rating is Premium = Z * (Claims + Expenses) + (1 - Z) * Manual Premium. Here, Z represents the credibility factor (ranging from 0 to 1) assigned to the group's historical claim experience, while the remainder of the premium is based on the manual (standard) rate.

4In the actuarial valuation of group term life insurance, how is the Unearned Premium Reserve (UPR) typically computed under the standard 24ths method?

A.By assuming that premiums are written in the middle of each month and allocating a proportional fraction of the premium to the future risk period.

B.By taking exactly 50% of the total written premium of the current calendar year regardless of execution dates.

C.By calculating the present value of future claims using the discount rate set by the Insurance Commission.

D.By matching the premium earned exactly with the incidence of claim payments in the preceding twelve months.

Explanation: The 24ths method is a monthly distribution method used to calculate unearned premiums. It assumes that policies are issued on average in the middle of each month, resulting in a fractional allocation of unearned premiums (e.g., a policy written in January has 23/24ths earned and 1/24th unearned at the end of December).

5For a group term life policy with a credibility factor (Z) of 0.60, a manual premium of PHP 1,500,000, and a calculated experience premium (claims + administrative loading) of PHP 1,200,000, what is the experience-rated premium?

A.PHP 1,200,000

B.PHP 1,320,000

C.PHP 1,380,000

D.PHP 1,500,000

Explanation: Using the credibility rating formula: Premium = Z * (Experience Premium) + (1 - Z) * (Manual Premium). Substituting the given values: Premium = 0.60 * 1,200,000 + 0.40 * 1,500,000 = 720,000 + 600,000 = PHP 1,320,000.

6Which of the following describes the actuarial concept of 'Incurred But Not Reported' (IBNR) reserves in group health insurance?

A.Reserves set aside for claims that have been reported and approved but are waiting for check disbursement.

B.Reserves for claims that occurred before the valuation date but have not yet been reported to the insurer.

C.The portion of the gross written premium that corresponds to the unexpired risk period of the policy.

D.A contingency reserve funded by the employer to cover potential premium increases in the subsequent policy year.

Explanation: IBNR reserves are established to cover the insurer's liability for claims resulting from events that occurred during the coverage period but have not yet been reported to the insurer as of the valuation date. This is critical in group health insurance due to high claim frequencies and processing lags.

7When applying the Chain Ladder (loss development) method to estimate IBNR reserves for group medical insurance in the Philippines, what is the primary assumption regarding claim development factors?

A.The historical patterns of claim reporting and processing lags will remain relatively stable in future periods.

B.The discount rate applied to health claims will track the Philippine government treasury bill yields.

C.Claim severity will increase exponentially while claim frequency remains completely constant.

D.The insurer will transition all group plans from fully-insured to self-funded administrative services contracts.

Explanation: The Chain Ladder method relies on the fundamental assumption that historical patterns of claim reporting, recording, and payment lags are stable and will continue in the future. If claim processing speed or policyholder reporting behavior changes, the development factors must be adjusted manually.

8Which of the following factors increases the risk of anti-selection (adverse selection) in a group life insurance scheme?

A.Mandatory enrollment of all employees with 100% employer-paid premiums.

B.Allowing employees to voluntarily purchase additional coverage units without medical underwriting.

C.Applying a strictly enforced Free Cover Limit with standard age-based entry caps.

D.Basing coverage amounts on a strict multiple of each employee's basic monthly salary.

Explanation: Anti-selection occurs when individuals with higher expected risk are more likely to buy or increase insurance coverage. Allowing voluntary top-ups or optional coverage without medical underwriting allows employees who know they are in poor health to select higher coverage limits, driving up overall group claims.

9In group insurance, how is the 'actively-at-work' provision typically utilized by underwriters?

A.To verify that all employees have been working at least 40 hours per week for the last 5 years.

B.To ensure that coverage is only active on days when an employee is physically inside the employer's premises.

C.To postpone the effective date of coverage for any employee who is absent from work due to injury or illness on the policy's start date.

D.To limit the insurer's liability to only accidents that occur during official working hours.

Explanation: The 'actively-at-work' provision is a standard underwriting safeguard. It stipulates that an employee must be actively performing their normal duties on the date coverage would otherwise take effect. If the employee is absent due to illness or injury, coverage is deferred until they return to active work, protecting the insurer from immediate death claims.

10Which of the following group insurance funding arrangements exposes the employer to the highest amount of claim volatility risk?

A.Fully-insured premium plan

B.Experience-rated premium plan with a premium refund cap

C.Administrative Services Only (ASO) contract

D.Minimum Premium plan with stop-loss insurance

Explanation: Under an Administrative Services Only (ASO) contract, the employer is completely self-insured. The insurance company only administers the claims, while the employer pays the actual claim amounts directly. This exposes the employer to 100% of the claim volatility risk.

About the ASP Fellowship II Exam

The ASP Integrated Exam II (Fellowship Exam II) is a core component of the Fellowship requirements administered by the Actuarial Society of the Philippines (ASP). It is designed to test a candidate's comprehensive understanding and practical application of actuarial principles, regulations, and practices within the Philippine context. The syllabus spans six major domains: Group Insurance (pricing, valuation, experience rating), Social Insurance and Microinsurance (SSS, GSIS, Pag-IBIG, microinsurance Circulars), Healthcare Systems (PhilHealth, HMO guidelines under EO 192), Taxation (premium tax, retirement tax exemptions under Section 32/60 of the NIRC), Pre-Need (RA 9829 Pre-Need Code, trust fund rules), and Pension Fund Management (RA 7641 Retirement Pay Law, PAS 19 valuation standards). The exam is a demanding six-hour written paper requiring deep technical knowledge and familiarity with local statutes and standards of actuarial practice.

Assessment

A six-hour written examination covering six primary domains: group insurance, social insurance, health care systems, pre-need, employee benefits, and local actuarial taxation.

Time Limit

6 hours

Passing Score

A numerical grade of 6 or higher on a 0-10 scale (where 6 represents the minimum passing standard set by the committee)

Exam Fee

PHP 12,000 for regular registration (excluding PHP 3,500 accreditation fee) (Actuarial Society of the Philippines (ASP))

ASP Fellowship II Exam Content Outline

15%

Group Insurance

Actuarial pricing, underwriting, valuation, credibility-weighted experience rating, and claims reserving (IBNR) for group life and medical schemes.

20%

Social Insurance & Microinsurance

Benefits, contribution schedules, and actuarial structures of SSS (including WISP), GSIS, Pag-IBIG, and the microinsurance regulatory framework under the Insurance Commission.

15%

Healthcare Systems & HMOs

The national health insurance system (PhilHealth under the UHC Act) and the regulation and financial supervision of Health Maintenance Organizations (HMOs) under EO 192.

15%

Taxation

Taxation of life insurance companies, premium tax, and tax treatment of retirement plans, employee benefits, and pension trust funds under Sections 32 and 60 of the NIRC.

20%

Pre-Need Plans

The Pre-Need Code of the Philippines (RA 9829), actuarial valuation of pre-need liabilities, trust fund deposit ratios, liquidity reserves, and investment limit guidelines.

15%

Pension Fund Management & Employee Benefits

Design and valuation of private retirement benefits, the Retirement Pay Law (RA 7641), and financial accounting for employee benefits under PAS 19 / PFRS 19.

How to Pass the ASP Fellowship II Exam

What You Need to Know

Passing score: A numerical grade of 6 or higher on a 0-10 scale (where 6 represents the minimum passing standard set by the committee)
Assessment: A six-hour written examination covering six primary domains: group insurance, social insurance, health care systems, pre-need, employee benefits, and local actuarial taxation.
Time limit: 6 hours
Exam fee: PHP 12,000 for regular registration (excluding PHP 3,500 accreditation fee)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

ASP Fellowship II Study Tips from Top Performers

1Study the Pre-Need Code (RA 9829) in detail, focusing on trust fund limits, liquidity reserves, and investment guidelines.

2Master the 22.5-day retirement pay calculation under RA 7641 and the actuarial valuation principles of PAS 19.

3Understand the contribution rules and benefits of SSS, GSIS, PhilHealth, and Pag-IBIG, including 2025/2026 updates.

4Learn the premium tax rules and retirement benefit tax exemption conditions under the NIRC (Sections 32 and 60).

5Practice calculating credibility-weighted premiums and IBNR claims reserves under group insurance.

Frequently Asked Questions

What is the ASP Fellowship Exam II?

The ASP Fellowship Exam II (Integrated Exam II) is an advanced professional examination administered by the Actuarial Society of the Philippines (ASP). It tests a candidate's ability to apply actuarial science principles within the specific statutory, regulatory, and financial context of the Philippines.

What does the ASP Fellowship Exam II cover?

The syllabus covers six main domains: Group Insurance (pricing and reserves), Social Insurance and Microinsurance (SSS, GSIS, Pag-IBIG, microinsurance rules), Healthcare Systems (PhilHealth, HMOs), Taxation (local corporate and premium tax), Pre-Need Plans (RA 9829 guidelines), and Pension Fund Management (RA 7641, PAS 19).

What is the passing score for the exam?

The exam is graded on a 0-10 scale. A grade of 6 or higher represents a passing score. The passing mark (the raw score required to achieve a grade of 6) is determined by the Education and Examination Committee prior to grading.

How much does it cost to register for the exam?

The standard registration fee is PHP 12,000 per sitting. In addition, there is an accreditation fee of PHP 3,500 for the fellowship exam sitting. Fees are subject to periodic adjustments by the ASP Board.

How long should I study for the ASP Integrated Exam II?

Most candidates dedicate 150 to 200 hours of intensive study over 3 to 6 months. It is critical to study the specific Republic Acts (such as RA 9829, RA 7641, RA 8291, RA 11199, RA 11223) and local actuarial standards of practice.

Can I take this exam online?

No. The ASP Fellowship examinations are traditionally administered in-person as written papers (essay and mathematical problem solving) at designated examination centers in Manila, Philippines.