Mathematics 480, Spring 2024

Illinois State University Mathematics Department
This is a hybrid class, taught live and online through Canvas

Instructors

Classes Meet

Tuesdays and Thursdays 4:00-5:50 p.m., Stevenson Hall room 310.

Office Hours

By appointment with Dr. Ostaszewski, make an appointment at http://smartURL.it/appointment.

Textbooks

There will be complete study notes provided online through Canvas.

Supplementary textbooks (not required):
Statutory Valuation of Individual Life and Annuity Contracts, by Claire, D., Lombardi, L., and Summers, S., Fifth Edition, Volume I, 2018, Actex Learning, ISBN: 978-1-63588-494-4.
Financial Risk Management for Pension Plans by Leslaw Gajek and Krzysztof Ostaszewski, Elsevier, 2004, ISBN 0444516743.
A Problem Solving Approach to Pension Funding and Valuation, (Second Edition), 1996, by Aitken, W.H., Actex Learning ISBN 1-56698-200-6.
Actuarial Aspects of Individual Life Insurance and Annuity Contracts, by Timothy F. Harris and Albert E. Easton, Actex Learning, ISBN 1-56698-346-0.
Group Insurance, by Skwire, Seventh Edition, 2016, Actex Learning, ISBN: 978-1-62542-682-6.
These supplementary books should be available at The Actuarial Bookstore.

The following textbooks are available as free downloads from the Casualty Actuarial Society:
Basic Ratemaking, Fourth Edition, by Geoff Werner and Claudine Modlin.
Estimating Unpaid Claims Using Basic Techniques, by Jacqueline Friedland.
Stochastic Loss Reserving using MCMC Methods by Glenn Meyers.

Objective

The objective of this class is to help you learn about applications of actuarial models in practice. The main emphasis of the class in the practical methodology of calculation of actuarial liabilities, as well as pricing of insurance products, in all key lines of business of insurance, including defined benefit pensions.

Grading

There will be six tests and any of the last three comprehensive examinations can count as the final examination. The final will count as 40% of your grade, and the best two of the remaining five tests will count as 30% of your grade each. You will also get up to 10% extra credit for the best two (each) of the remaining tests. The grading scale will be as follows: 90% or better — A, 80% to 90% — B, 70% to 80% — C, 60% to 70% — D, below 60% — F. Students can also earn extra credit by making presentations of readings (readings from advanced actuarial examinations will be proposed by Dr. Ostaszewski, but students can also propose advanced readings on topics of the class, and if approved by Dr. Ostaszewski, they can be presented, as well). Because there will be opportunity for extra credit, no make up tests will be allowed. This is a graduate level class, and therefore active student participation in the class, through presentations and discussions, is expected. All tests will be quantitative, and while we will study variety of specific regulations for life insurance, life annuities, pensions, property-casualty, health or group insurance, you will be tested on principles and mathematics of those regulations, not detailed specifics of laws and regulations.

Student Access and Accommodation Services

Illinois State University provides a welcoming atmosphere for individuals with disabilities by assisting each in functioning independently within the University community and providing equal access and opportunity in accomplishing educational, professional and personal goals. Student Access and Accommodation Services is the designated office to provide approved accommodation services for students, faculty, staff, and guests with disabilities. Student Access and Accommodation Service obtains and maintains documentation of disability, certifies eligibility for services, determines reasonable accommodations, and develops plans for providing such accommodations. This is accomplished in a confidential manner to ensure equal opportunity for participation in all courses, programs, activities and employment offered by Illinois State University. Please contact the Student Access and Accommodation Services in Fell Hall room 350, tel.  309-438-5853 (Voice), 309-438-8620 (TTY), web site: www.studentaccess.ilstu.edu if you have needs that can be accommodated by that office.

No recording of this class is allowed

Students may not photograph or use audio or video devices to record classroom lectures or discussions or visual materials that accompany them (e.g., lecture slides, whiteboard notes/equations). Students with disabilities who need to record classroom lectures or discussions must contact Student Access and Accommodation Services to register, request and be approved for an accommodation. Students who violate this policy may be subject to both legal sanctions for violations of copyright law and disciplinary action under the University’s Code of Student Conduct.

Important dates

Illinois State University important dates information for the Spring 2024 semester are given at the web site of the University Registrar.

Schedule of classes

• Tuesday, January 16, 2024. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
• Thursday, January 18, 2024. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
• Tuesday, January 23, 2024. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams. 
• Thursday, January 25, 2024. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
• Tuesday, January 30, 2024. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
• Thursday, February 1, 2024. Special presentation on property/casualty reserving by Mr. Patrick Newell, ACAS, ASA,Consulting Actuary at Pinnacle Actuarial Resources.
• Tuesday, February 6, 2024. Current issues in actuarial practice. Insurance regulation. Dodd-Frank Act of 2010. Systemic risk.
• Thursday, February 8, 2024. Universal life insurance. 
• Tuesday, February 13, 2024. Life insurance valuation.
• Thursday, February 15, 2024. Life insurance valuation.
• Tuesday, February 20, 2024.  Life annuity valuation.
• Thursday, February 22, 2024. Life annuity valuation.
• Tuesday, February 27, 2024. Test No. 1, on material covered through February 23, 2023.
• Thursday, February 29, 2024. Principles-based reserving. Special presentation by Ms. Magdalena Diedrich, FSA, Senior Pricing Actuary at Legal & General.
• Tuesday, March 5, 2024. Principles-based reserving. Special presentation by Ms. Magdalena Diedrich, FSA, Senior Pricing Actuary at Legal & General.
• Thursday, March 7, 2024. Reinsurance. Special presentation by Ms. Magdalena Diedrich, FSA, Senior Pricing Actuary at Legal & General.
• Tuesday, March 19, 2024. Test No. 2, on material covered through March 7, 2024.
• Thursday, March 21, 2024. Special presentation on Workers Compensation by Mr. Erich Brandt, FCAS, Consulting Actuary at Pinnacle Actuarial Resources and Mr. Jabari Washington, also from Pinnacle Actuarial Resources.
• Tuesday, March 26, 2024. Special presentation on health insurance reserving by a State Farm actuarial team.
• Thursday, March 28, 2024. Optimal funding of a liability.
• Tuesday, April 2, 2024. Overview of the U.S. retirement system.
• Thursday, April 4, 2024. Test No. 3,  on material covered through April 2, 2024.
• Tuesday, April 9, 2024. Pension funding and valuation. Class taught by Mr. Yufeng Guo.
• Thursday, April 11, 2024. Pension funding and valuation. Class taught by Mr. Yufeng Guo.
• Tuesday, April 16, 2024. Pension funding and valuation. Class taught by Mr. Yufeng Guo.
• Thursday, April 18, 2024.  Pension funding and valuation. Class taught by Mr. Yufeng Guo.
• Tuesday, April 23, 2024. Pension funding and valuation. Class taught by Mr. Yufeng Guo.
• Thursday, April 25, 2024. Pension funding and valuation. Class taught by Mr. Yufeng Guo.
• Tuesday, April 30, 2024. Test No. 4, comprehensive.
• Thursday, May 2, 2024, Test No. 5, comprehensive.
• Monday, May 6 , 2024, 10:00 a.m. — 12:40 p.m., Test No. 6, comprehensive.

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All information contained here is, to our best knowledge, correct, but it is merely a representation, and should not be considered to be any form of professional advice. This electronic publication should not be misconstrued as the official position of Illinois State University, or its Department of Mathematics. We are glad to provide as much information as possible here, but we kindly ask that in any decision related to matters listed here you seek additional counsel and information. Comments on this Home Page are welcome and should be sent to Dr. Krzysztof Ostaszewski  at his e-mail address: krzysio@ilstu.edu.