Models of Life Contingencies I.

Catalog description

This course is an introduction to life contingencies as applied in actuarial practice. This course is the first semester of two-semester course sequence, and it is designed to develop knowledge of the theoretical basis of life-contingent actuarial models and the application of those models to insurance and other financial risks. It covers the mathematical and probabilistic topics that underlie life contingent financial instruments like life insurance, pensions and lifetime annuities. Topics include life tables, present value random variables for contingent annuities and insurance, their distributions and actuarial present values, equivalence principle, and other principles for determining premiums and reserves. Prerequisites: MATH 122 ; MATH 131 with a “C-“ or better or Permission of Instructor.