Mathematics 380, Introduction to Life Contingencies, Fall 2000

Illinois State University Mathematics Department



Instructor
Dr. Krzysztof Ostaszewski , F.S.A., C.F.A., M.A.A.A.
Actuarial Program Director
Office: Stevenson Hall, room 313G.
Telephone: 309-438-7226, Fax: 309-438-5866.
E-mail: krzysio@ilstu.edu


Classes meet
Tuesdays 3:20-4:50 p.m., Thursdays 3:20-5:20 p.m., 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 1996 by the Society of Actuaries .


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 lilfe 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 three 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 three tests will count as 30% of your grade each. The grading scale will be as follows: 70% or better -- A, 60% to 70% -- B, 50% to 60% -- C, 40% to 50% -- D, below 40% -- F. You will also receive up to 20% extra credit for homeworks. Your homework assignment consist of textbook problems, and it is due on midnight first Tuesday two weeks after the corresponding material is covered in class. No late homeworks can be accepted. 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 22. Chapter 3 (Survival distributions and life tables).
  • Thursday, August 24. Chapter 3 (Survival distributions and life tables).
  • Tuesday, August 29. Chapter 3 (Survival distributions and life tables).
  • Thursday, August 31. Chapter 4 (Life insurance).
  • Tuesday, September 5. Chapter 4 (Life insurance).
  • Thursday, September 7. Chapter 4 (Life insurance).
  • Tuesday, September 12. Chapter 5 (Life annuities).
  • Thursday, September 14. Chapter 5 (Life annuities).
  • Tuesday, September 19. Chapter 5 (Life annuities).
  • Thursday, September 21. Chapter 6 (Benefit premiums).
  • Tuesday, September 26. Review and problem solving session.
  • Thursday, September 28. Test No. 1. (Covering Chapters 3, 4, 5). (This test with solutions is posted here )
  • Tuesday, October 3. Chapter 6 (Benefit premiums).
  • Thursday, October 5. Chapter 6 (Benefit premiums).
  • Tuesday, October 10. Chapter 7 (Benefit reserves).
  • Thursday, October 12. Chapter 7 (Benefit reserves).
  • Tuesday, October 17. Chapter 7 (Benefit reserves)
  • Thursday, October 19. Chapter 8 (Analysis of benefit reserves)
  • Tuesday, October 24. Chapter 8 (Analysis of benefit reserves)
  • Thursday, October 26. Chapter 8 (Analysis of benefit reserves)
  • Tuesday, October 31. Review and problem solving session.
  • Thursday, November 2. Test No. 2. (Covering chapters 6, 7, 8). (This test with solutions is posted here )
  • Tuesday, November 7. Bonus test. (Covering chapters 3-8). (This test with solutions is posted here )
  • Thursday, November 9. Chapter 9 (Multiple life functions).
  • Tuesday, November 14. Chapter 9 (Multiple life functions).
  • Thursday, November 16. Chapter 9 (Multiple life functions).
  • Tuesday, November 21. Chapter 10 (Multiple decrement models).
  • Thursday, November 23. Thanksgiving Holiday. No class.
  • Tuesday, November 28. Chapter 10 (Multiple decrement models).
  • Thursday, November 30. Chapter 10 (Multiple decrement models).
  • Tuesday, December 5. Review and problem solving session.
  • Thursday, December 7. Test No. 3. (Covering Chapters 9, 10).
  • Tuesday, December 12, 3:10 p.m. -- 5:10 p.m. Final examination. (Comprehensive).


  • 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.