[[Actuarial Notes Wiki|Wiki]] / **6U (CAS)** ## 6U (CAS) The **United States Regulation and Financial Reporting Exam 6U** is a 4-hour computer-based exam testing knowledge of [[Insurance Regulation]], [[Statutory Accounting]], and the professional responsibilities of the [[Appointed Actuary]] in the context of U.S. property and casualty insurance. <div class="callout-cols-2"> > [!answer]- 📅 Exam Schedule 2026 > > <div class="highlight-upcoming" data-date-col="0"></div> > > Dates | Exam | Registration Deadline > -|-|- > Apr. 14 – Apr. 21, 2026 | 6U | ~~Mar. 25, 2026~~ (closed) > Oct. 19 – Oct. 27, 2026 | 6U | TBD > > - [Register](https://www.casact.org/exams-admissions/exam-registration) ($850 registration fee; $680 full-time student) > [!answer]- 📄 Download Resources 2 PDFs > > - [Content Outline (Fall 2025)](https://www.casact.org/exam/exam-6u-regulation-and-financial-reporting-us) — Domains, tasks, and full reading list > - [CAS Exam Registration & Fees](https://www.casact.org/exams-admissions/exam-fees) — Deadlines, fees, and refund policy </div> > [!answer]- 📕 Source Material {46 Readings} > > | Reading | Domains/Tasks | > |---|---| > | [[Actuarial Standard of Practice No. 20 Discounting of Property Casualty Claim Estimates (ASB - 2023)]] | C6, C7 | > | [[Actuarial Standard of Practice No. 36 Statements of Actuarial Opinion on P&C Loss Reserves (ASB - 2024)]] | C7 | > | [[Actuarial Standard of Practice No. 41 Actuarial Communications (ASB - 2010)]] | C6 | > | [[Actuarial Standard of Practice No. 43 Property Casualty Unpaid Claim Estimates (ASB - 2007)]] | C6 | > | [[Estimating the Uncollectible Reinsurance Reserve for PC Companies New GAAP Requirements (AAA - 2019)]] | D1, D3–D4 | > | [[Retained Property Casualty Insurance Related Risk Interaction of Actuarial Analysis and Accounting (AAA - 2018)]] | C4, C7 | > | [[Materiality Concepts on Professionalism (AAA - 2006)]] | C7 | > | [[Risk of Material Adverse Deviation Study Note (Brandt & Maxwell - 2023)]] | C7 | > | [[Regulatory Review of Predictive Models White Paper (CASTF - 2020)]] | A5 | > | [[Reinsurance Accounting and Strategy for the Actuary (Cedar & Thompson - 2020)]] | D1, D4 | > | [[Nuclear Verdicts Tort Liability and Legislative Responses (Cole & Marzen - 2023)]] | A3, A6–A7 | > | [[Statements of Actuarial Opinion on Property and Casualty Loss Reserves Practice Note (COPLFR - 2024)]] | C5–C9 | > | [[Personal Insurance (Cook - 2013)]] | B1–B3 | > | [[2024 Excess and Surplus Lines Laws Manual (Emmanuel & Lerner - 2024)]] | A3 | > | [[Annual Report on the Insurance Industry Dodd-Frank (FIO - 2024)]] | A3 | > | [[Rating Agencies (Feldblum - 2011)]] | A2 | > | [[Statutory Surplus Computation Pricing and Valuation (Feldblum - 2003)]] | C1–C2 | > | [[Accounting Standards Codification 944 Financial Guarantee Insurance Contracts (FASB - 2011)]] | D2 | > | [[FHCF 2024 Annual Report (SBA Florida - 2024)]] | B1–B3 | > | [[Common Pitfalls and Practical Considerations in Risk Transfer Analysis (Freihaut & Vendetti - 2009)]] | D2 | > | [[Government Insurers Study Note (Germani et al. - 2017)]] | B1–B3 | > | [[Private Flood Insurance and the National Flood Insurance Program (Horn & Webel - 2023)]] | B1–B3 | > | [[Reinsurance Commutation (Klann - 2013)]] | D3 | > | [[NAIC Public Hearing on Credit-Based Insurance Scores (Kucera - 2009)]] | A3 | > | [[Testimony on the Impact of Credit-Based Insurance Scoring (McCarty - 2008)]] | A3 | > | [[2025 Annual Statement Instructions Insurance Expense Exhibit (NAIC - 2025)]] | C3 | > | [[The U.S. National State-Based System of Insurance Regulation and the Solvency Modernization Initiative (NAIC - 2013)]] | A2, A4, C3 | > | [[Accounting Practices and Procedures Manual Preamble (NAIC - 2025)]] | A2, C2, C4 | > | [[SSAP 5R Liabilities Contingencies and Impairment of Assets (NAIC - 2024)]] | C1–C2 | > | [[SSAP 9 Subsequent Events (NAIC - 2024)]] | C5 | > | [[SSAP 53 Property Casualty Contracts Premiums (NAIC - 2024)]] | C1–C7 | > | [[SSAP 55 Unpaid Claims Losses and Loss Adjustment Expenses (NAIC - 2024)]] | C1–C2 | > | [[SSAP 62R Property and Casualty Reinsurance (NAIC - 2024)]] | C1–C2, D2–D3, D5 | > | [[SSAP 63 Underwriting Pools (NAIC - 2024)]] | C1–C2 | > | [[SSAP 65 Property and Casualty Contracts (NAIC - 2024)]] | C1–C2 | > | [[SSAP 66 Retrospectively Rated Contracts (NAIC - 2024)]] | D2 | > | [[NAIC Insurance Regulatory Information System IRIS Ratios Manual (NAIC - 2024)]] | A2, C3, C7 | > | [[Official 2024 NAIC Annual Statement Blanks Property and Casualty (NAIC - 2024)]] | C1–C2 | > | [[NAIC Annual Statement Examples Allstate Liberty Mutual (NAIC - 2024)]] | C1 | > | [[Price Optimization White Paper (NAIC - 2015)]] | A5 | > | [[Risk Retention Groups (NAIC - 2023)]] | A3 | > | [[Financial Reporting Through the Lens of a Property Casualty Actuary (Odomirok et al. - 2020)]] | A2, C1–C7, C9–C10 | > | [[Insurance Regulation Chapters 2-8 (Porter - 2008)]] | A1–A2 | > | [[Insurance Regulation Chapter 12 (Porter - 2008)]] | A2, B1 | > | [[The Economic Crisis and Lessons from U.S. Insurance Regulation (Vaughn - 2009)]] | A2, A4 | > | [[Terrorism Risk Insurance Overview and Issue Analysis (Webel - 2019)]] | B1–B2 | ### Learning Objectives > [!example]- A. United States Laws and Regulations 10–20% > ### A. United States Laws and Regulations > Candidates navigate [[Insurance Regulation]] required by governmental agencies overseeing insurers, including the dual U.S. state and federal regulatory system, [[Rate Regulation]], [[Solvency Regulation]], [[Antitrust Law]], [[Risk-Based Capital]], and [[Tort Law]]. > > 1. Describe the historic development and the current state of [[Insurance Regulation]] and governance. > 2. Discuss the historic development of [[Solvency Regulation]]; describe current programs used to monitor solvency. > 3. Describe the current state of insurance regulation (e.g., [[Sarbanes-Oxley]], [[Dodd-Frank]]) and how current regulations address specialized insurance topics (e.g., [[Excess and Surplus Lines]], [[Credit-Based Insurance Scoring]], [[Risk Retention Groups]]). > 4. Discuss current programs used to monitor solvency ([[Risk-Based Capital|RBC]]). > 5. Describe regulation related to emerging issues (e.g., [[Price Optimization]] models, [[Predictive Analytics]]). > 6. Discuss trends in [[Tort Litigation]] (e.g., [[Tort Reform]], [[Nuclear Verdicts]], class action suits) and types of litigation costs. > 7. Describe ways in which [[Latent Liability]] (e.g., mass torts like [[Asbestos]]) can affect P/C insurance companies. > > **Readings:** CASTF Predictive Models · CAS Financial Reporting · Cole and Marzen · Emmanuel · Feldblum (Rating Agencies) · FIO Report · Kucera · McCarty · NAIC IRIS · NAIC Price · NAIC RRG · NAIC Solvency Regulatory Framework · Porter 1 · Porter 2 · Vaughn > [!example]- B. Government Programs 5–15% > ### B. Government Programs > Candidates identify major U.S. insurance programs administered by government agencies and industry organizations, understanding objectives, operations, and effectiveness of programs such as [[Automobile Plans]], [[Crop Insurance]], [[Flood Insurance]], [[TRIA]], [[Florida Hurricane Catastrophe Fund|FHCF]], [[Guaranty Funds]], [[Residual Markets]], and [[Workers Compensation]]. > > 8. Describe the purpose of government and industry insurance programs. > 9. Describe the operations and [[Risk Transfer]] process for government/industry programs and their interaction with voluntary private insurance sector. > 10. Evaluate the effectiveness of a government/industry program. > > **Readings:** Cook · FHCF Annual Report · Government Insurers Study Note · Horn & Webel · Porter 2 · Webel > [!example]- C. Financial Reporting and Professional Responsibilities of the Actuary 60–75% > ### C. Financial Reporting and Professional Responsibilities of the Actuary > Candidates apply detailed knowledge of the [[NAIC Annual Statement]], [[Insurance Expense Exhibit]], [[Statutory Accounting Principles|SAP]], [[GAAP]], and [[IFRS]], as well as the statutory requirements of the [[Appointed Actuary]] and professional standards issued by the [[American Academy of Actuaries]]. > > 11. Describe the primary financial statements (i.e., [[Balance Sheet]], [[Income Statement]], [[Cash Flow Statement]], [[Capital and Surplus]], notes to financial statements). > 12. Differentiate the primary financial statements under [[SAP]], [[GAAP]], and [[IFRS]]. > 13. Use the annual statement schedules, [[Insurance Expense Exhibit]], [[Risk-Based Capital|RBC]], [[IRIS Ratios]], and [[Statement of Actuarial Opinion|SAO]] to evaluate the financial health of an insurance entity. > 14. Differentiate between various accounting reporting principles and standards (e.g., [[SAP]], [[GAAP]]). > 15. Explain the responsibilities of an actuary as defined by the [[Actuarial Standards of Practice]], regulators, and insurance laws for financial reporting. > 16. Explain the responsibilities of the [[Appointed Actuary]] in regard to a [[Statement of Actuarial Opinion]], [[Actuarial Opinion Summary]], and actuarial report. > 17. Identify and propose language for sections of the [[Statement of Actuarial Opinion]]. > 18. Use [[Schedule P]] data in support of a [[Statement of Actuarial Opinion|SAO]]. > 19. Create an [[Actuarial Opinion Summary]]. > 20. Discuss and calculate specific elements of income tax and evaluate their implications for a property/casualty insurer ([[Loss Reserve Discounting|discounting]]). > > **Readings:** 2025 IEE · AAA Materiality · AAA Retained Risk · ASOP 20 · ASOP 36 · ASOP 41 · ASOP 43 · Brandt & Maxwell · CAS Financial Reporting · COPLFR P&C Practice Note · Feldblum (Surplus) · NAIC Annual Statement · NAIC Annual Statement Examples · NAIC APPM Preamble · NAIC IRIS · NAIC Solvency Regulatory Framework · NAIC SSAP 5R · SSAP 9 · SSAP 53 · SSAP 55 · SSAP 62R · SSAP 63 · SSAP 65 > [!example]- D. Reinsurance Accounting Principles 5–10% > ### D. Reinsurance Accounting Principles > Candidates use [[Reinsurance Accounting]] terminology and practice, including evaluating risk transfer, [[Commutations]], and the financial statement impact of [[Reinsurance]] strategies. > > 21. Describe [[Reinsurance Accounting]] and its impact on financial statements. > 22. Evaluate whether a contract qualifies for [[Insurance Accounting]] treatment or [[Deposit Accounting|deposit treatment]]. > 23. Describe the accounting and tax treatments of [[Commutations]]. > 24. Evaluate the effectiveness of reinsurance strategies based on the impact to the financial statements and key financial metrics. > 25. Evaluate the health of an insurance entity using [[Schedule F]]. > > **Readings:** AAA CECL · ASC 944-020-15 · Cedar & Thompson · Freihaut & Vendetti · Klann · NAIC SSAP 62R · NAIC SSAP 66