Mathematics 380, Introduction to Life Contingencies, Fall 2001

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.
E-mail: krzysio@ilstu.edu
and
Mr. Kendall Williams , FCAS , MAAA
Senior Associate Actuary
Country Insurance & Financial Services
1701 Towanda Avenue, P.O. Box 2100
Bloomington, IL 61702-2100
Telephone: 309-821-3610, Fax: 309-821-3538.
E-mail: Ken.Williams@countryfinancial.com

Classes Meet
Tuesdays and Thursdays 3:30-5:20 p.m. (with a ten minute break), in Stevenson Hall , room 310.

Office Hours
Tuesdays and Thursdays 2:20-3:20 p.m. Please ask for an appointment at other times.

Textbook
Actuarial Mathematics, 2nd Edition, by Bowers et al., published in 1997 by the Society of Actuaries . This book is on reserve at the Milner Library , and is available at the bookstore. Only the portions of the book covered on the Casualty  Actuarial Society /Society of Actuaries Course 3 examination will be covered in class. It is also recommended that you use Actex Manual for Course 3 , published by Actex Publications , as a supplementary textbook. If you are planning to take Casualty Actuarial Society / Course 3 examination , you are encouraged to obtain both textbooks.

Objective
The objective of this class is to help you learn about actuarial models of life contingencies (i.e., financial random variables dependent on human life, such as life insurance payments, life annuity payments, pension payments, etc.). We will cover topics such as: survival distributions, life tables, mathematics of life insurance, life annuities, premiums, and reserves. These actuarial models are tested on the Casualty Actuarial Society /Society of Actuaries Course 3 examination , and form a key part of modern actuarial science.

Grading
There will be four 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 four tests will count as 30% of your grade each. The grading scale will be as follows: 80% or better -- A, 70% to 80% -- B, 60% to 70% -- C, 50% to 60% -- D, below 50% -- F. You will also receive up to 30% extra credit for the better of the your two worst tests. While the grading scale may appear liberal, it is justified by the level of difficulty of the material.

Other issues
You are expected to be in class, be prepared and able to contribute to the discussion.  The classroom is a place of learning and showing respect for others at all times.

Schedule of classes
  • Tuesday, August 21, 2001. Chapter 3 (Survival distributions and life tables).
  • Thursday, August 23, 2001. Chapter 3 (Survival distributions and life tables).
  • Tuesday, August 28, 2001. Chapter 3 (Survival distributions and life tables).
  • Thursday, August 30, 2001. Chapter 3 (Survival distributions and life tables).
  • Tuesday, September 4, 2001. Chapter 4 (Life insurance).
  • Thursday, September 6, 2001. Chapter 4 (Life insurance).
  • Tuesday, September 11, 2001. Chapter 4 (Life insurance).
  • Thursday, September 13, 2001. Chapter 4 (Life insurance).
  • Tuesday, September 18, 2001. Chapter 5, Sections 5.1-5.4 (Life annuities). Class taught by Mr. Williams.
  • Thursday, September 20, 2001. Chapter 5, Sections 5.1-5.4 (Life annuities). Class taught by Mr. Williams.
  • Tuesday, September 25, 2001. Chapter 5, Sections 5.1-5.4 (Life annuities). Class taught by Mr. Williams.
  • Thursday, September 27, 2001. Chapter 6, Sections 6.1-6.4 (Benefit premiums). Class taught by Mr. Williams.
  • Tuesday, October 2, 2001. Chapter 6, Sections 6.1-6.4 (Benefit premiums). Class taught by Mr. Williams
  • Thursday, October 4, 2001. Chapter 6, Sections 6.1-6.4 (Benefit premiums). Class taught by Mr. Williams.
  • Tuesday, October 9, 2001. Chapter 7, Sections 7.1-7.6 (Benefit reserves). Class taught by Mr. Williams.
  • Thursday, October 11, 2001. Chapter 7, Sections 7.1-7.6 (Benefit reserves). Class taught by Mr. Williams.
  • Tuesday, October 16, 2001. Test No. 1, covering Chapters 3-6.
  • Thursday, October 18, 2001. Chapter 7, Sections 7.1-7.6 (Benefit reserves).
  • Tuesday, October 23, 2001. Chapter 7, Sections 7.1-7.6 (Benefit reserves).
  • Thursday, October 25, 2001. Test No. 2, covering Chapters 3-7.
  • Tuesday, October 30, 2001. Chapter 8, Sections 8.1-8.4 (Analysis of benefit reserves). Class taught by Mr. Williams.
  • Thursday, November 1, 2001. Chapter 8, Sections 8.1-8.4 (Analysis of benefit reserves). Class taught by Mr. Williams.
  • Tuesday, November 6, 2001. Chapter 8, Sections 8.1-8.4 (Analysis of benefit reserves). Class taught by Mr. Williams.
  • Thursday, November 8, 2001. Test No. 3, covering Chapters 3-8.
  • Tuesday, November 13, 2001. Chapter 9 (Multiple life functions).
  • Thursday, November 15, 2001. Chapter 9 (Multiple life functions).
  • Tuesday, November 20, 2001. Chapter 9 (Multiple life functions).
  • Tuesday, November 27, 2001. Chapter 10 (Multiple decrement models).
  • Thursday, November 29, 2001. Chapter 10 (Multiple decrement models).
  • Tuesday, December 4, 2001. Chapter 11, Sections 11.1-11.3 (Applications of multiple decrement theory).
  • Thursday, December 6, 2001. Test No. 4, covering Chapters 3-11.
  • Friday, December 14, 10:00 a.m. -- 12:00 a.m. Final examination, covering Chapters 3-11.

    • 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 page are welcome and should be sent to Dr. Krzysztof Ostaszewski  at his e-mail address: krzysio@ilstu.edu.