Instructors
Mr. R. Dale Hall, FSA, MAAA, CFA
Chief Life & Annuity Actuary
COUNTRY Financial
1701 North Towanda Avenue
Bloomington, IL 61702-2000
Telephone: 309-821-6407, Fax: 309-820-5709
E-mail: dale.hall@countryfinancial.com
and
Dr. Krzysztof Ostaszewski,
FSA, CFA, MAAA
Actuarial
Program Director
Office: Stevenson Hall, room 313G
Telephone: 309-438-7226, Fax: 309-438-5866
E-mail: krzysio@ilstu.edu
Classes Meet
Tuesdays and Thursdays 4:00-5:50 p.m., in Stevenson Hall, room 310,
with a ten minute break in the middle of the time period.
Office Hours
Tuesdays and Thursdays 3:00-3:50 p.m., held by Dr. Ostaszewski.
Please ask for an appointment at other times.
Textbooks
Main textbooks:
Financial
Risk Management for Pension Plans by Leslaw Gajek and Krzysztof Ostaszewski, Elsevier, 2004.
There will also be study notes provided online by Dr. Krzysztof Ostaszewski,
as well as materials provided by Mr. Dale Hall. Study notes by Dr.
Ostaszewski can be
downloaded by clicking on links next to dates of
classes.
Supplementary textbooks:
A
Problem Solving Approach to Pension Funding and Valuation,
(Second Edition),
1996, by Aitken, W.H., Actex
Publications,
ISBN 1-56698-200-6.
Actex
Study Manual for the Society
of Actuaries
Course 5 examination, by Robert Brown and Keith Sharp. Actex Publications, ISBN:
1-56698-485-8.
Actuarial
Aspects of Individual Life Insurance and Annuity Contracts, by
Timothy F. Harris and Albert E. Easton, Actex Publications, ISBN
1-56698-346-0.
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, Actex Publications,
or The Actuarial
Bookstore.
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. The main emphasis of the class in
the practical methodology of calculation of actuarial liabilities.
Grading
There will be four tests and a final examination. You can have a
make-up test if you miss a test, but all make-ups will be new, original
tests. Any make-up must be requested at least five days in advance of
the
proposed date for the make-up (not the date of the original test). The
last day for any possible make-up request is April 30, 2006, the sixth
day counting back from the last day of classes (May 5, 2006). Any
make-up requests made after that date cannot be accommodated under any
circumstances. A student who misses tests scheduled after April 30,
2006 and has a passing grade up to that date will receive a grade of
Incomplete and will have to complete the class in the next term. If you
request a make-up for a real reason, such as medical need, or a job
interview, and provide a proof of such reason, your make-up will be of
the same level of difficulty as the original test. If you request a
make-up for a frivolous reason, such as scheduling your vacation
travel, convenience, time to study for other classes (you know what
classes you sign up at the beginning of the semester, thus you should
plan accordingly, and you can do so, because this class is completely
planned for you well in advance), the make-up test will be
intentionally more difficult, and will be at least as difficult and
unreasonable as the real actuarial examination. All regular tests will
be only quantitative in nature and will only contain actuarial
calculations. Frivolous make-ups will be written on any topic on the Society of Actuaries Course 5
examination,
or pricing and reserving in general.
The final will count as 40% of your grade, and the best two of the four
tests
will count as 30% of your grade each. The best of the last three
comprehensive tests will count as the final examination in this
calculation. 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 20% extra credit for the better
of
the your two worst tests, and 20% for class participation. Class
participation
may be expressed by making presentations of study notes readings for
the
Society of Actuaries Course 5
examination.
Generally, a reading of length of 80 pages presented perfectly, will
receive 20% extra credit. All presentations of readings must be
scheduled at least five days in advance of the actual presentation.
Disability concerns
Any student needing a special accommodation for a documented
disability should contact Disability Concerns at Fell Hall, Room 350.
Schedule of classes
Tuesday, January 17, 2006. Life
insurance valuation.
Thursday, January 19, 2006.
Life
insurance valuation.
Tuesday, January 24, 2006. Life
insurance valuation.
Thursday, January 26, 2006. Life
annuity valuation.
Tuesday, January 31, 2006. Life
annuity valuation.
Thursday, February 2, 2006. Cash
flow testing.
Tuesday, February 7, 2006.
Valuation of variable annuities and equity-indexed annuities.
Thursday, February 9, 2006. Review.
Tuesday, February 14, 2006. Pension funding and valuation. Class taught
by Mr. Dale Hall.
Thursday, February 16, 2006. Pension
funding and valuation. Class taught by Mr. Dale Hall.
Tuesday, February 21, 2006. Pension
funding and valuation. Class taught by Mr. Dale Hall.
Thursday, February 23, 2006. Pension funding and valuation. Class
taught by Mr. Dale Hall.
Tuesday, February 28, 2006. Pension funding and valuation. Class
taught by Mr. Dale Hall.
Thursday, March 2, 2006. Pension funding and valuation. Class
taught by Mr. Dale Hall.
Tuesday, March 7, 2006. Review.
Thursday, March 9, 2006. Test
No. 1, on material covered through March 2.
Tuesday, March 21, 2006. Ratemaking and loss reserving for
property and casualty insurance. Class taught by Mr. Dale Hall.
Thursday, March 23, 2006. Ratemaking and loss reserving for
property and casualty insurance. Class taught by Mr. Dale Hall.
Tuesday, March 28, 2006. Ratemaking and loss reserving for
property and casualty insurance. Class taught by Mr. Dale Hall.
Thursday, March 30, 2006. Ratemaking and loss reserving for
property and casualty insurance. Class taught by Mr. Dale Hall.
Tuesday, April 4, 2006. Ratemaking and loss reserving for
property and casualty insurance. Class taught by Mr. Dale Hall.
Thursday, April 6, 2006.
Test No. 2, covering material taught through April 4.
Tuesday, April 11, 2006. Optimal
funding of a liability.
Thursday, April 13, 2006. Individual
health insurance.
Tuesday, April 18, 2006. Health
insurance reserving.
Thursday, April 20, 2006.
Group
insurance.
Tuesday, April 25, 2006.
Group
insurance.
Thursday, April 27, 2006. Review.
Tuesday, May 1, 2006.
Test No. 3, comprehensive.
Thursday, May 4, 2006.
Test No. 4, comprehensive.
Friday, May 12, 2006, 10:00 a.m. -- 12:00 noon in STV 126.
Test
No. 5, comprehensive.