CAS OC2Online Course 2 — Insurance Accounting, Coverage Analysis, Insurance Law
Syllabus learning objectives
Paraphrased from the CAS syllabus so the study-plan builder and practice sets track the topics you will actually be examined on. Weights are the official topic ranges.
Insurance accounting basics
- Distinguish statutory accounting from GAAP for insurance company financial statements.
- Compute unearned premium reserves and loss reserves for basic accounting purposes.
- Interpret the components of an insurer's balance sheet and income statement.
- Describe how reinsurance transactions are reflected in an insurer's financial statements.
Coverage analysis
- Interpret the insuring agreement, exclusions, and conditions of a standard property-casualty policy.
- Apply policy limits, deductibles, and other-insurance clauses to a coverage determination.
- Distinguish first-party from third-party coverage and occurrence from claims-made triggers.
- Analyze a coverage dispute scenario using standard policy language.
Insurance law & regulation
- Describe the legal foundations of insurance contracts, including insurable interest and utmost good faith.
- Describe the state-based regulatory framework governing rates, forms, and solvency.
- Identify legal doctrines (adhesion, reasonable expectations, subrogation) relevant to claims and coverage.
- Assess the interaction between tort law and insurance liability coverage.
Overview
OC2 introduces statutory and GAAP accounting for insurers, policy coverage analysis (declarations, insuring agreements, exclusions, conditions), and the legal framework of insurance contracts.
- Duration
- 2 hours
- Questions
- 75 multiple-choice
- Style
- Computer-based
- Credit
- Required for ACAS
Syllabus map
Key formulas
Unearned premium (pro rata)
Combined ratio (statutory basis).
Study strategy
Learn the structure of a policy (DICE: declarations, insuring agreement, conditions, exclusions).
Practice the earned/unearned premium arithmetic with different inception dates.
Common traps
Using earned premium in the statutory expense ratio denominator.
Treating exclusions as the only source of coverage limits — definitions and conditions also restrict coverage.