COURSE SYLLABUS

Course Number: MA Department/Program: Mathematics Semester: Second

Title: Actuarial Mathematics II School: Science and Engineering Instructor: Gerardo S. Salas

School Year: 2011-12

A. COURSE DESCRIPTION This course is a continuation of Actuarial Mathematics I. Discussion of Individual Life Insurance Model is extended to include operational and business constraints such as expenses, accounting requirements, and the impact of contract terminations. Actuarial concepts are also used to define actuarial present values, benefit and contract premiums, and benefit reserves for selected special insurance plans. B. COURSE OUTLINE Chapter 7. Benefit Reserves (Review from 1st Semester) 1. Fully Continuous Benefit Reserves 2. Other Formulas for Fully Continuous Benefit Reserves 3. Fully Discrete Benefit Reserves 4. Benefit Reserves on a Semicontinuous Basis 5. Benefit Reserves Based on True m-thly Benefit Premiums 6. Benefit Reserves on an Apportionable or Discounted Continuous Basis Chapter 8. Analysis of Benefit Reserves 1. Benefit Reserves for General Insurances 2. Recursion Relations for Fully Discrete Benefit Reserves 3. Benefit Reserves at Fractional Durations 4. Allocation of the Risk to Insurance Years Chapter 15. Insurance Models Including Expenses 1. Expense Augmented Models 2. Withdrawal Benefits 3. Types of Expenses 4. Asset Shares 5. Expenses, Reserves, and General Insurances Chapter 16. Business and Regulatory Considerations 1. Cash Values 2. Insurance Options 3. Premiums and Economic Considerations 4. Experience Adjustments 5. Modified Reserve Methods 6. Full Preliminary Term 7. Modified Preliminary Term 8. Nonlevel Premiums or Benefits

Chapter 17. Special Annuities and Insurances 1. Special Types of Annuity Benefits 2. Family Income Insurances 3. Flexible Plan Products 4. Accelerated Benefits

C. TEXTBOOK ACTUARIAL MATHEMATICS, By Newton L. Bowers, Jr., Hans U. Gerber, James C. Hickman, Donald A. Jones and Cecil J. Nesbitt; Published by THE SOCIETY OF ACTUARIES, 1997 2nd edition. D. REFERENCES Jordan, C.W., 1952, Life Contingencies, 2nd edition, 1967, Schaumburg, Ill.; Society of Actuaries Neill, A. 1977, Life Contingencies, London; Heinemann. Borch, K. 1974. The Mathematical Theory of Insurance, Lexington, Mass.; Lexington Books E. GRADING SYSTEM Quizzes and Assignments Chapter Exams Final Exam Example: HOMEWORK / QUIZ 30% 50% 20%

EXAM 1

EXAM 2

EXAM 3

Ave Chap

FINAL EXAM

LETTER 1 2 3 SUM % SCR % SCR % SCR % Exam SCR % GRADE Grade Name ID NO. 25 30 20 75 100.0% 90 100% 90 100% 100 100% 100% 80 100% 100.0% JIGS 999999 19 13 20 52 69.3% 86 95.6% 85 94.4% 99 99.0% 96.3% 75 93.8% 87.72% B+ Letter Grades A 92-100 B+ 86-91 B 77-85 C+ 69-76 C 60-68 D 50-59 F < 50 F. Consultation Hours By Appointment. Phone: 0928 5079130