Mathematics of life contingencies 2, MATH 3281 3.00 W
Intermediate level course on the mathematics of life contingencies. The course builds on MATH 3280 and develops theoretical basis for pricing and
supporting life-contingent products. Topics include economics of insurance, general
insurances and annuities, (benefit) premiums and reserves, analysis of reserves, Hattendorf theorem. The course, along with MATH 3280 3.00 and MATH 4430 3.00 (or MATH 4431 3.00), ensures an adequate preparation for the MLC exam of the Society of Actuaries.
Prerequisites: MATH 3280 3.00.
The subjects to be covered include but are not limited to:
1. Economics of insurance. Utility functions and risk appetite. Feasibility of insurance
2. Actuarial present values of general insurances/annuities.
3. General life insurance pricing.
4. Solvency and the notion of reserves.
5. Analysis of reserves and Hattendorf theorem.
6. Expenses (if time permits).
The syllabus can be downloaded in the PDF format
We will have a class on Monday, April 9 in Ross N501 at 1:00pm