Mathematics 480, Spring 2017

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
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 311, with a ten minute break in the middle of the time period.
Office Hours
Tuesdays 4:00-5:50 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 2017 semester is given here: http://registrar.illinoisstate.edu/downloads/calendars/2017/spring2017cal.pdf


Schedule of classes

  • Tuesday, January 17, 2017. Review of some topics on Course MLC examination. Life insurance valuation.
  • Thursday, January 19, 2017. Life insurance valuation.
  • Tuesday, January 24, 2017. Life annuity valuation.
  • Thursday, January 26, 2017. Exercises on life insurance and life annuity valuation.
  • Tuesday, January 31, 2017. Special presentation by Ms Sabrina Weislak and Ms. Megan Coleman, actuaries from State Farm Insurance, on 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 131 in Stevenson Hall.
  • Thursday, February 2, 2017. Current issues in actuarial practice. Dodd-Frank Act of 2010.
  • Tuesday, February 7, 2017. Principles-Based Reserving. Variable products.
  • Thursday, February 9, 2017. Principles-Based Reserving.
  • Tuesday, February 14, 2017. Principles-Based Reserving.
  • Thursday, February 16, 2017. Optimal funding of a liability. Review.
  • Tuesday, February 21, 2017. Overview of U.S. pension system.
  • Thursday, February 23, 2017. Test No. 1, on material covered through February 21, 2017.
  • Tuesday, February 28, 2017. Special presentation on Workers Compensation by Mr. Erich Brandt, FCAS and Ms. Nicole McArdle 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, March 2, 2017. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Tuesday, March 7, 2017. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Thursday, March 9, 2016. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Note: March 11-18, 2017 is the Spring Break at Illinois State University

  • Tuesday, March 21, 2017. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Thursday, March 23, 2017. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Tuesday, March 28, 2017. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Thursday, March 30, 2017. Test No. 2, covering material taught through March 28, 2017.
  • Tuesday, April 4, 2017. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, April 6, 2017. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Tuesday, April 11, 2017. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, April 13, 2017. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Tuesday, April 18, 2017. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, April 20, 2017. This class will be held in room 401 of Stevenson Hall. Special presentation by Mr. Gary Wang of Pinnacle Actuarial Resources, on stochastic reserving methodologies.
  • Tuesday, April 25, 2017. Health and group insurance pricing and reserving.
  • Thursday, April 27, 2017. Health and group insurance pricing and reserving. Review.
  • Tuesday, May 2, 2017. Test No. 3, comprehensive.
  • Thursday, May 4, 2017. Test No. 4, comprehensive.
  • Tuesday, May 9, 2017. Final examination, comprehensive, 5:30 p.m. -- 7:30 p.m., in the regular classroom, STV 311.