Mathematics 480, Spring 2003

Illinois State University Mathematics Department


Instructor
Dr. Krzysztof Ostaszewski, FSA, CFA, MAAA
Actuarial Program Director
Office: Stevenson Hall, room 313G.
Telephone: 309-438-7226, Fax: 309-438-5866 or 928-244-1757.
E-mail: krzysio@ilstu.edu
Classes Meet Tuesdays and Thursdays 4:30-6:20 (with a ten minute break), in Stevenson Hall, room 131.
Office Hours
Tuesdays and Thursdays 3:30-4:30 p.m. Please ask for an appointment at other times.
Textbooks
Main textbooks:
A Problem Solving Approach to Pension Funding and Valuation, (Second Edition), 1996, by Aitken, W.H., Actex Publications. ISBN 1-56698-200-6.
Life Insurance Products and Finance, by David Atkinson and James Dallas, 2000, Society of Actuaries. ISBN 0938959670.
Supplementary textbooks:
Actex Study Manual for the Society of Actuaries Course 5 examination. by Robert Brown and Keith Sharp. ISBN 1-56698-417-3.
Introduction to Ratemaking and Loss Reserving for Property and Casualty Insurance, (Second Edition), 2001, by Brown, R.L., Chapters 1-5.
Group Insurance, (Third Edition), 2000, edited by Bluhm, Chapters 1, 5-10, 14-15, 19-21, 23, 30-31, and 36.
The books should be available at the ISU Bookstore. If not, please try Alamo II, or The Actuarial Bookstore.
Study notes:
The instructor will be giving you some study notes.
Objective The objective of this class is to help you learn about applications of actuarial models in practice. The class will cover a major portion (the mathematical part) of the material tested on the Society of Actuaries Course 5 examination, but not all of it.
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: 90% or better -- A, 80% to 90% -- B, 70% to 80% -- C, 60% to 70% -- D, below 60% -- F. You will also receive up to 10% extra credit for your worst test, and up to 5% for each presentation made in class. You can make presentations of the following items for the Society of Actuaries Course 5 examination:
November 2002 Course 5 Examination (morning part)
November 2002 Course 5 Examination (afternoon part)
November 2001 Course 5 Examination (morning part)
November 2001 Course 5 Examination (afternoon part)
November 2000 Course 5 Examination (morning part)
November 2000 Course 5 Examination (afternoon part)
Study Note 5-21-02: Introduction to Retirement Income Security Systems
Study Note 5-22-00: The Purpose of Regulation
Study Note 5-23-00: Principles of Taxation
Study Note 5-24-00: Introduction to Financial Security Systems
Fundamentals of Private Pensions, (Seventh Edition), 1996, by McGill, D.M., Brown, K.N., Healy, J.J., and Schieber, S.J., Chapter 22.
Fundamentals of Private Pensions, (Seventh Edition), 1996, by McGill, D.M., Brown, K.N., Healy, J.J., and Schieber, S.J., Chapter 23.
Fundamentals of Private Pensions, (Seventh Edition), 1996, by McGill, D.M., Brown, K.N., Healy, J.J., and Schieber, S.J., Chapter 24.
Individual Health Insurance, 1988, by O'Grady, F.T., Chapter 1.
Individual Health Insurance, 1988, by O'Grady, F.T., Chapter 2 (sections 2.1.6-2.1.8, and 2.4).
Individual Health Insurance, 1988, by O'Grady, F.T., Chapter 3.
Individual Health Insurance, 1988, by O'Grady, F.T., Chapter 4 (sections 4.6-4.7).
Schedule of classes