1.
Prerequisite. MATHS 452
2.
Course Description. Mathematics of multiple life functions,
multiple decrement models, valuation theory for pension plans, insurance models
including expenses, nonforfeiture benefits, and dividends.
3.
Course Objectives. Students will be able to extend the topics
from Life Contingencies 1 to models involving more than one life or more than
one decrement. They will learn how to
apply multiple decrement models to pension plans and various other
benefits. They will also learn how to
incorporate expenses into the calculation of premiums and reserves.
4.
Course Rationale. The topics discussed in this course are
important to the application of actuarial science to life insurance. Therefore, the course is recommended for the
actuarial science major.
Some
of the material covered in this course is directly tested on the third of the
professional examinations given by the Society of Actuaries and the Casualty
Actuary Society. The remaining material
is important background material for later actuarial exams.
5. Course
Content. Topics will include
joint distributions of future lifetimes, the joint-life and last-survivor
statuses, multiple life insurance and annuities, multiple decrement tables,
valuation theory for pension plans, and insurance models that provide for
expenses. Topics may also include
nonforfeiture benefits and dividends, modified reserve methods, asset shares,
special insurance and annuity benefits, advanced multiple life theory, and
other actuarial topics of current interest.
6.
Course Format. This course will be taught using lectures
and discussion. Projects will be
assigned, individual and/or group.
Knowledge of spreadsheet computer software will be helpful. Many examples will be presented, including
problems from past actuarial exams.
7.
Methods of Evaluating
Student Performance. Student
evaluation will be based on in-class exams and individual or group
projects. Assessment may also involve
take-home exams, other types of homework, quizzes, and presentations. The evaluation and weight of these
components are at the discretion of the individual instructor.
8.
Evaluation of the Course. The instructor of the course is evaluated by
departmental student evaluations and peer evaluation. The course is reviewed and revised periodically by the
Departmental Undergraduate Programs Committee.