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Mathematics 480, Applications of Actuarial Principles, Spring 2003

Illinois State University Mathematics Department

Instructors

Dr. Krzysztof Ostaszewski, FSA, CFA, MAAA
Actuarial Program Director
Office: Stevenson Hall, room 313G.
Telephone: 309-438-7226, Fax: 309-438-5866 or 928-244-1757.
E-mail: krzysio@ilstu.edu

Classes Meet

Tuesdays and Thursdays 4:30-6:20 (with a ten minute break), in Stevenson Hall, room 131.

Office Hours

Tuesdays and Thursdays 3:30-4:30 p.m. Please ask for an appointment at other times.

Textbooks

Main textbooks:
A Problem Solving Approach to Pension Funding and Valuation, (Second Edition), 1996, by Aitken, W.H., Actex Publications. ISBN 1-56698-200-6.
Life Insurance Products and Finance, by David Atkinson and James Dallas, 2000, Society of Actuaries. ISBN 0938959670.
Supplementary textbooks:
Actex Study Manual for the Society of Actuaries Course 5 examination. by Robert Brown and Keith Sharp. ISBN 1-56698-417-3.
Introduction to Ratemaking and Loss Reserving for Property and Casualty Insurance, (Second Edition), 2001, by Brown, R.L., Chapters 1-5.
Group Insurance, (Third Edition), 2000, edited by Bluhm, Chapters 1, 5-10, 14-15, 19-21, 23, 30-31, and 36.
The books should be available at the ISU Bookstore. If not, please try Alamo II, or The Actuarial Bookstore.
Study notes:
The instructor will be giving you some study notes.
 

Objective

The objective of this class is to help you learn about applications of actuarial models in practice. The class will cover a major portion (the mathematical part) of the material tested on the Society of Actuaries Course 5 examination, but not all of it.

Grading

There will be three tests and a final examination. You can have a make-up test, but a make-up will be made intentionally at least 20% more difficult. The final will count as 40% of your grade, and the best two of the three tests will count as 30% of your grade each. 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. You will also receive up to 10% extra credit for your worst test, and up to 5% for each presentation made in class. You can make presentations of the following items for the Society of Actuaries Course 5 examination:
November 2002 Course 5 Examination (morning part)
November 2002 Course 5 Examination (afternoon part)
November 2001 Course 5 Examination (morning part)
November 2001 Course 5 Examination (afternoon part)
November 2000 Course 5 Examination (morning part)
November 2000 Course 5 Examination (afternoon part)
Study Note 5-21-02: Introduction to Retirement Income Security Systems
Study Note 5-22-00: The Purpose of Regulation
Study Note 5-23-00: Principles of Taxation
Study Note 5-24-00: Introduction to Financial Security Systems
Fundamentals of Private Pensions, (Seventh Edition), 1996, by McGill, D.M., Brown, K.N., Healy, J.J., and Schieber, S.J., Chapter 22.
Fundamentals of Private Pensions, (Seventh Edition), 1996, by McGill, D.M., Brown, K.N., Healy, J.J., and Schieber, S.J., Chapter 23.
Fundamentals of Private Pensions, (Seventh Edition), 1996, by McGill, D.M., Brown, K.N., Healy, J.J., and Schieber, S.J., Chapter 24.
Individual Health Insurance, 1988, by O’Grady, F.T., Chapter 1.
Individual Health Insurance, 1988, by O’Grady, F.T., Chapter 2 (sections 2.1.6-2.1.8, and 2.4).
Individual Health Insurance, 1988, by O’Grady, F.T., Chapter 3.
Individual Health Insurance, 1988, by O’Grady, F.T., Chapter 4 (sections 4.6-4.7).

Schedule of classes

  • Tuesday, January 14, 2002. Life insurance and annuity valuation.
  • Thursday, January 16, 2002. Life insurance and annuity valuation.
  • Tuesday, January 21, 2002. Life insurance and annuity valuation.
  • Thursday, January 23, 2002. Life insurance and annuity valuation.
  • Tuesday, January 28, 2002. Life insurance and annuity valuation.
  • Thursday, January 30, 2002. Life insurance and annuity valuation.
  • Tuesday, February 4, 2002. Life insurance and annuity valuation.
  • Thursday, February 6, 2002. Life insurance and annuity valuation.
  • Tuesday, February 11, 2002. Life insurance and annuity valuation.
  • Thursday, February 13, 2002. Pension funding and valuation.
  • Tuesday, February 18, 2002. Presentations by students.
  • Thursday, February 20, 2002. Test No. 1, covering all topics through February 11.
  • Tuesday, February 25, 2002. Pension funding and valuation.
  • Thursday,February 27, 2002. Pension funding and valuation.
  • Tuesday, March 4, 2002. Pension funding and valuation.
  • Thursday, March 6, 2002. Pension funding and valuation.
  • Tuesday, March 18, 2002. Presentations by students.
  • Thursday, March 20, 2002. Test No. 2, covering all topics through March 6.
  • Tuesday, March 25, 2002. Pension funding and valuation.
  • Thursday, March 27, 2002. Ratemaking and loss reserving for property and casualty insurance.
  • Tuesday, April 1, 2002. Ratemaking and loss reserving for property and casualty insurance.
  • Thursday, April 3, 2002. Ratemaking and loss reserving for property and casualty insurance.
  • Tuesday, April 8, 2002. Ratemaking and loss reserving for property and casualty insurance.
  • Thursday, April 10, 2002. Group insurance valuation.
  • Tuesday, April 15, 2002. Group insurance valuation.
  • Thursday, April 17, 2002. Presentations by students.
  • Tuesday, April 22, 2002. Group insurance valuation.
  • Thursday, April 24, 2002. Group insurance valuation.
  • Tuesday, April 29, 2002. Presentations by students.
  • Thursday, May 1, 2002. Test No. 3, comprehensive.
  • Tuesday, May 6, 2002. Final examination, comprehensive

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.

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