• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

ST1 FAQ (updated 11 April 2011)

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Steve McIntosh

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This thread contains the Subject ST1 questions asked most frequently by students, with answers written by ActEd's tutors. Each year, we'll incorporate these questions and solutions into the study material.

This thread was last updated on 11 April 2011.

Question

Which recent old era subject questions are relevant to Subject ST1?

Answer

Some of the old Subject 302 and Subject 105 questions are relevant. It is particularly useful to look at past Subject 302 questions that specifically mention health insurance products.

Questions from the old series subjects that may be considered at least partially relevant to Subject ST1 are given below. You must bear in mind that often the products involved will be specific to life insurance, and so for Subject ST1 a different (health insurance) product would have to be envisaged.

April 1999 exam – Subject 302: Q2, 4, 5
September 1999 exam – Subject 302: Q1, 4, 6, 7, 8, 9
April 2000 exam – Subject 302: Q1, 2, 3, 6, 7, 8; Subject 105: Q15
September 2000 exam – Subject 302: Q2, 4, 6, 7; Subject 105: Q12, 13
April 2001 exam – Subject 302: Q1, 3, 5, 8; Subject 105: Q6
September 2001 exam – Subject 302: All questions except Q4, 5(ii); Subject 105: Q12
April 2002 exam – Subject 302: Q2, 3, 5, 6, 8
September 2002 exam – Subject 302: Q1, 2, 5, 7, 8; Subject 105: Q12
April 2003 exams – Subject 302: Q3, 6, 7; Subject 105: Q6, 8
September 2003 exams – Subject 302: Q4, 5, 6; Subject 105: Q3, 7, 10, 14
April 2004 exams – Subject 302: Q1(i), 2, 4, 5, 7, 8(i); Subject 105: Q3
September 2004 exams – Subject 302: Q2, 3(i), 4, 6, 7; Subject 105: Q3, 8

Question

Are the pricing and reserving methods covered by Subject ST1 more like life insurance or are they more like general insurance (ie statistical)?

Answer

Generally more like life insurance. Reserving for both types of business are covered in Subject ST1. However, detailed calculations of general insurance reserves using statistical methods, such as chain ladder, are not in Subject ST1.

Similarly, pricing for all health products is covered. However, pricing sickness benefits under income protection is covered in more detail compared to the others.

Question

When a PMI policy is renewed, is it re-underwritten?

Answer

Your question first presumes that initial underwriting is used, rather than moratorium underwriting – with the latter there is no underwriting at all until (and if) a claim occurs.

Assuming initial underwriting applies (when the policy is first taken out), then no, there would not be any further underwriting on renewal.
 
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