ASP Integrated Fellowship Examinations (Effective 2014)
ASP Integrated Exam I
ASP Integrated Exam I is a six-hour written exam which covers Philippine practice and regulation of life and non-life products with respect to development, pricing, distribution, measurement of liabilities, investments and reinsurance.
The student is expected to:
- Understand the general principles of business law and legal issues relating to life and non-life insurance companies.
- Be familiar with the pertinent provisions of the Insurance Code and various laws and regulations governing the life and non-life industries.
- Understand regulations and practices for the development and sales of life, non-life and medical plans.
- Understand the regulatory financial statements and reports of insurance companies and be able to analyze the financial data in the context of the Philippine Financial Reporting Standards.
- Understand how the different summary financial statements and the Philippine Annual Statements are prepared. The student must be able to realize how and how much a change in a particular accounting transaction will impact the summary financial statement and the Annual Statement.
- Understand the business of insurance as stated in the Insurance Code and other pertinent regulations/circulars with respect to capitalization requirement, assets, reserves, investments, reinsurance, etc.
- Understand and apply the valuation principles and other standards of actuarial practice issued by regulatory bodies and the Actuarial Society of the Philippines. The student is expected to be familiar with valuation methods and the use of appropriate valuation assumptions used. The student is expected to be familiar with the existing regulation on reserve valuation in the Insurance Code. The student must understand the relationship among valuation, pricing and the profitability of insurance operations.
- Familiarize with the limitations imposed by existing regulation on insurance company investments.
ASP Integrated Exam II
ASP Integrated Exam II is a six-hour written exam which covers social insurance (including Microinsurance), health care systems, pre-need, group insurance and employee benefits practices and regulations in the Philippines. It also covers practice and regulation of life insurance, non-life insurance and pre-need with respect to taxation. As Pre-Need is unique to the Philippines, the course covers Pre-Need practice related to pricing, distribution, and liability measurement.
The student is expected to:
- Understand the various ways the life, non-life and pre-need companies are taxed.
- Know the history of the changes in taxation in the Philippines, especially documentary stamps tax, premium tax and value added tax among others and how they affect packaging and pricing of insurance and pre-need products.
- Know the pertinent provisions in the Insurance Code, the various implementing rules and regulations, and the Actuarial Society of the Philippines’ standards of practice regarding group insurance, social insurance (including Microinsurance) and health care systems in the Philippine setting.
- Know the pension fund management practices in the Philippines as well as valuation methods and ASP standards of practice. Legal and taxation considerations in employee benefits are also covered.
- Understand Pre-Need regulations and practice, in particular, ASP standards of practice, actuarial models, pertinent provisions of the Pre-Need Code, investments and valuation.