Mathematics 480, Spring 2016

Illinois State University Mathematics Department

This class is also run on ReggieNet


Instructors
Dr. Wei Hao, FSA, CFA, MAAA, Actuary

State Farm Insurance Companies

E-mail: wei.hao.pc3n@statefarm.com

and

Mr. Joseph Morrow, FSA, EA, MAAA
Financial Actuary, COUNTRY Financial
E- mail: jmorrow.hubbard@gmail.com
and
Dr. Krzysztof Ostaszewski, FSA, CERA, FSAS, CFA, MAAA
Actuarial Program Director
Office: Stevenson Hall, room 313G
Telephone: 309-438-7226, Fax: 309-438-5866
E-mail: krzysio@ilstu.edu
and
Mr. Ken Williams, FCAS, MAAA
Senior Associate Actuary, COUNTRY Financial
E-mail: ken.williams@countryfinancial.com


Classes Meet
Tuesdays and Thursdays 6:00-7:50 p.m., in Stevenson Hall, room 120, with a ten minute break in the middle of the time period.
Office Hours
Tuesdays and Thursdays 5:00-5:50 p.,m., held by Dr. Ostaszewski in his office: STV 313G. Please ask for an appointment at other times. You can schedule an appointment with Dr. Ostaszewski at http://smartURL.it/appointment.

Textbooks
There will be study notes provided online through Reggienet.


Supplementary textbooks (not required):
Fundamentals Of General Insurance Actuarial Analysis, by Jacqueline Friedland, Casualty Actuarial Society, 2010.

Valuation of Life Insurance Liabilities, 4th Edition, by Louis Lombardi, Actex Publications, 2006, ISBN 1-56698-560-9.

Financial Risk Management for Pension Plans by Leslaw Gajek and Krzysztof Ostaszewski, Elsevier, 2004, ISBN 0444516743.
A Problem Solving Approach to Pension Funding and Valuation, (Second Edition), 1996, by Aitken, W.H., Actex Publications, ISBN 1-56698-200-6.
Actuarial Aspects of Individual Life Insurance and Annuity Contracts, by Timothy F. Harris and Albert E. Easton, Actex Publications, ISBN 1-56698-346-0.
Group Insurance, (Fifth Edition), 2007, edited by William F. Bluhm, Actex Publications, 5th edition (2007), ISBN: 1-56698-613-3.
These supplementary books should be available at Actex Publications, or The Actuarial Bookstore.

The following two textbooks are available as free downloads from the Casualty Actuarial Society:
Basic Ratemaking, Fourth Edition, by Geoff Werner and Claudine Modlin
Estimating Unpaid Claims Using Basic Techniques, by Jacqueline Friedland


Objective
The objective of this class is to help you learn about applications of actuarial models in practice. The main emphasis of the class in the practical methodology of calculation of actuarial liabilities, as well as pricing of insurance products, in all key lines of business of insurance, including defined benefit pensions.
Grading
There will be five tests and any of the last three comprehensive examinations can count as the final examination. No make up tests will be given. All regular tests will be quantitative in nature. The final will count as 40% of your grade, and the best two of the remaining five tests will count as 30% of your grade each. You will also get up to 10% extra credit for the best of the remaining tests. 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. Students can also earn extra credit by making presentations of readings (readings from advanced actuarial examinations will be proposed by Dr. Ostaszewski, but students can also propose advanced readings on topics of the class, and if approved by Dr. Ostaszewski, they can be presented, as well). Because there will be opportunity for extra credit, no make up tests will be allowed. This is a graduate level class, and therefore active student participation in the class, through presentations and discussions, is expected. All tests will be quantitative, and while we will study variety of specific regulations for life insurance, life annuities, pensions, property-casualty, health or group insurance, you will be tested on principles and mathematics of those regulations, not detailed specifics of laws and regulations.
Disability concerns
Any student needing a special accommodation for a documented disability should contact Disability Concerns at Fell Hall, Room 350.

Important dates

Illinois State University important dates information for the Spring 2016 semester is given here: http://registrar.illinoisstate.edu/downloads/calendars/2016/spring2016cal.pdf


Schedule of classes

  • Tuesday, January 12, 2016. Review of some topics on Course MLC examination. Life insurance valuation. This class taught by Dr. Wei Hao.
  • Thursday, January 14, 2016. Life insurance valuation. This class taught by Dr. Wei Hao.
  • Tuesday, January 19, 2016. Life annuity valuation. This class taught by Dr. Wei Hao.
  • Thursday, January 21, 2016. Exercises on life insurance and life annuity valuation. This class taught by Dr. Wei Hao.
  • Tuesday, January 26, 2016. Special presentation by Mr. Glen Simpson and Mr. Brian Buss, actuaries from State Farm Insurance, on health insurance pricing and reserving in practice. This will also be an event of the Actuarial Club, and open to all actuarial students.This class will be held in room 401 in Stevenson Hall.
  • Thursday, January 28, 2016. Current issues in actuarial practice. Dodd-Frank Act of 2010.
  • Tuesday, February 2, 2014. Principles-Based Reserving. Variable products.
  • Thursday, February 4, 2016. Principles-Based Reserving.
  • Tuesday, February 9, 2016. Principles-Based Reserving.
  • Thursday, February 11, 2016. Optimal funding of a liability. Review.
  • Tuesday, February 16, 2016. Overview of U.S. pension system.
  • Thursday, February 18, 2016. Test No. 1, on material covered through February 11, 2016.
  • Tuesday, February 23, 2016. Pension funding and valuation. Class taught by Mr. Joseph Morrow.
  • Thursday, February 25, 2016. Pension funding and valuation. Class taught by Mr. Joseph Morrow.
  • Tuesday, March 1, 2016. Pension funding and valuation. Class taught by Mr. Joseph Morrow.
  • Thursday, March 3, 2016. Pension funding and valuation. Class taught by Mr. Joseph Morrow.
  • Note: March 6-12, 2016 is the Spring Break at Illinois State University

  • Tuesday, March 15, 2016. Pension funding and valuation. Class taught by Mr. Joseph Morrow.
  • Thursday, March 17, 2016. Pension funding and valuation. Class taught by Mr. Joseph Morrow.
  • Tuesday, March 22, 2016. This class has been moved to March 30, 2016.
  • Thursday, March 24, 2016. Test No. 2, covering material taught through March 17, 2016.
  • Tuesday, March 29, 2016. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Wednesday, March 30, 2016. This class will be held in room 401 of Stevenson Hall. Special presentation by Mr. Chris Holt of Pinnacle Actuarial Resources, on stochastic reserving methodologies.
  • Thursday, March 31, 2016. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Tuesday, April 5, 2016. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, April 7, 2016. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Tuesday, April 12, 2016. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, April 14, 2016. Health and group insurance pricing and reserving.
  • Tuesday, April 19, 2016. Special presentation on Workers Compensation by Mr. Erich Brandt, FCAS, Mr. Greg Fears, ACAS, and Mr. Nick Easley, of Pinnacle Actuarial Resources. This class will be held in STV 401 and will be an event of the Actuarial Program and the Actuarial Club.
  • Thursday, April 21, 2016. Health and group insurance pricing and reserving. Review.
  • Tuesday, April 26, 2016. Test No. 3, comprehensive.
  • Thursday, April 28, 2016. Test No. 4, comprehensive.
  • Tuesday, May 3, 2015, 5:30 p.m. -- 7:30 p.m. Test No. 5, comprehensive.