Mathematics 480, Spring 2009

Illinois State University Mathematics Department

Instructors

Classes Meet

Tuesdays and Thursdays 4:00-5:50 p.m., in Williams Hall, room 308, with a ten minute break in the middle of the time period.

Office Hours

Tuesdays and Thursdays 3:00-3:50 p.m., held by Dr. Ostaszewski. Please ask for an appointment at other times.

Textbooks

There will also be study notes provided online by Dr. Krzysztof Ostaszewski, as well as materials provided by Mr. Dale Hall. Study notes by Dr. Ostaszewski can be downloaded by clicking on links next to dates of classes.
Supplementary textbooks:

Valuation of Life Insurance Liabilities, 4th Edition, by Louis Lombardi, Actex Publications, 2006, ISBN 156698560-9.

Financial Risk Management for Pension Plans by Leslaw Gajek and Krzysztof Ostaszewski, Elsevier, 2004.
A Problem Solving Approach to Pension Funding and Valuation, (Second Edition), 1996, by Aitken, W.H., Actex Publications, ISBN 1-56698-200-6.
Actuarial Aspects of Individual Life Insurance and Annuity Contracts, by Timothy F. Harris and Albert E. Easton, Actex Publications, ISBN 1-56698-346-0.
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, Actex Publications, or The Actuarial Bookstore.

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.

Grading

There will be six tests and anyy of the last four comprehensive examinations can count as the final examination. No make up tests will be given. All regular tests will be only quantitative in nature and will only contain actuarial calculations. 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 20% extra credit for the best 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 listed below. Because there will be such extensive opportunity for extra credit, tests will be difficult and active student participation in the class is expected.

Disability concerns

Any student needing a special accommodation for a documented disability should contact Disability Concerns at Fell Hall, Room 350.

Important dates

Illinois State University withdrawal information for the Spring 2009 semester is given at this web site: http://www.registrar.ilstu.edu/crd/withdrawal/withdrawspring.shtml.

Schedule of classes

• Tuesday, January 13, 2009. Current Issues in Actuarial Practice.
• Thursday, January 15, 2009. Life insurance valuation.
• Tuesday, January 20, 2009. Life insurance valuation.
• Thursday, January 22, 2009. Life annuity valuation.
• Tuesday, January 27, 2009. Life annuity valuation.
• Thursday, January 29, 2009. Cash flow testing.
• Tuesday, February 3, 2009. Exercises in life insurance and life annuity valuation.
• Thursday, February 5, 2009. Review.
• Tuesday, February 10, 2009. Pension funding and valuation. Class taught by Mr. Dale Hall.
  • Pension funding materials from Dale: Part 1, and Part 2.
• Thursday, February 12, 2009. Pension funding and valuation. Class taught by Mr. Dale Hall.
• Tuesday, February 17, 2009. Pension funding and valuation. Class taught by Mr. Dale Hall. 
• Thursday, February 19, 2009. Pension funding and valuation. Class taught by Mr. Dale Hall.
• Tuesday, February 24, 2009. Pension funding and valuation. Class taught by Mr. Dale Hall.
• Thursday, February 26, 2009. Pension funding and valuation. Class taught by Mr. Dale Hall.
• Tuesday, March 3, 2009. Pension Benefits Act of 2006.
• Thursday, March 5, 2009. Optimal funding of a liability.
• Tuesday, March 17, 2009. Test No. 1, on material covered through March 3.
• Thursday, March 19, 2009. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Dale Hall. 
• Tuesday, March 24, 2009. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Dale Hall.
• Thursday, March 26, 2009. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Dale Hall.
• Tuesday, March 31, 2009. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Dale Hall. 
• Thursday, April 2, 2009. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Dale Hall. 
• Tuesday, April 7, 2009.  Test No. 2, covering material taught through April 2.Thursday, April 9, 2009.  Group and health insurance.
• Tuesday, April 14, 2009. Group and health insurance.
• Thursday, April 16, 2009. Group and health insurance.
• Tuesday, April 21, 2009. Test No. 3, comprehensive.
• Thursday, April 23, 2009. Review.
• Tuesday, April 28, 2009. Test No. 4, comprehensive.
• Thursday, April 30, 2009. Test No. 5, comprehensive.
• Friday, May 8, 2009, 10:00 a.m. — 12:00 noon in STV 308. 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.