MATH 4560 - Life Contingencies

• Students will be able to work with key concepts concerning parametric and non-parametric models including single life, multiple life and multiple decrements.
• Students will be able to perform calculations on present value random variables associated with benefits and expenses for different survival models.
• Students will be able to calculate and interpret probabilities, means, variances and percentiles for the present value random variable.
• Students will be able to calculate the effect of changes in underlying assumptions such as mortality and interest on the present value random variable.
• Students will be able to use and explain premium calculation methodologies.
• Students will be able to calculate and interpret probabilities, means, variances and percentiles of random variables associated with premiums.
• Students will be able to calculate premiums based on the equivalence principle, the portfolio percentile premium principle and profit testing.
• Students will be able to calculate and interpret probabilities, means, variances and percentiles for random variables associated with reserves.
• Students will understand premium reserves for insurances and annuities for survival models and different premium types, including net premium, modified premium, gross premium and expense.
• Students will be able to calculate and interpret common profit measures such as expected profit, actual profit and break-even year.
• Students will be able to apply survival models, different types of premiums and reserves calculations to pension plans and retirement benefits.