Mathematics 480, Spring 2018

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 4:00-5:50 p.m., in Stevenson Hall, room 324, with a ten minute break in the middle of the time period.
Office Hours
Tuesdays 2:30-3:50 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):

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 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 2018 semester is given here: http://registrar.illinoisstate.edu/downloads/calendars/2018/spring2018cal.pdf


Schedule of classes

  • Tuesday, January 16, 2018. Current issues in actuarial practice. Dodd-Frank Act of 2010.
  • Thursday, January 18, 2018. Review of some topics on Course MLC examination.
  • Tuesday, January 23, 2018. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, January 25, 2018. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Tuesday, January 30, 2018. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, February 1, 2018. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Tuesday, February 6, 2018. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, February 8, 2018. Optimal funding of a liability.
  • Tuesday, February 13, 2018. Overview of U.S. pension system.
  • Thursday, February 15, 2018. Test No. 1, on material covered through February 13, 2018.
  • Tuesday, February 20, 2018. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Thursday, February 22, 2018. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Tuesday, February 27, 2018. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Thursday, March 1, 2018. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Tuesday, March 6, 2018. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Thursday, March 8, 2018. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Note: March 10-17, 2018 is the Spring Break at Illinois State University

  • Tuesday, March 20, 2018. Test No. 2, covering material taught through March 8, 2018.
  • Thursday, March 22, 2018. This class will be held in room 401 in Stevenson Hall. Special presentation on Workers Compensation by Mr. Erich Brandt, FCAS, and Ms. Judy Cheng, of Pinnacle Actuarial Resources. This will also be an event of the Actuarial Club, and open to all actuarial students.
  • Tuesday, March 27, 2018. This class will be held in room 401 of Stevenson Hall. Special presentation by Mr. Gary Wang, actuary from Pinnacle Actuarial Resources, on stochastic reserving methodologies. This will also be an event of the Actuarial Club, and open to all actuarial students.
  • Thursday, March 29, 2018. This class will be held in room 401 in Stevenson Hall. Special presentation by Ms. Megan Coleman and Ms. Courtney Mumm, 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.
  • Tuesday, April 3, 2018. Life insurance valuation.
  • Thursday, April 5, 2018. Life insurance valuation.
  • Tuesday, April 10, 2018. Life annuity valuation.
  • Thursday, April 12, 2018 . Exercises on life insurance and life annuity valuation.
  • Tuesday, April 17, 2018.Variable products.Principles-Based Reserving.
  • Thursday, April 19, 2018. Health and group insurance pricing and reserving.
  • Tuesday, April 24, 2018. Health and group insurance pricing and reserving.
  • Thursday, April 26, 2018. This class will be held at 5 p.m. (note unusual time) in STV 101, and will be a presentation by Ms. Minchong Mao, FCAS, ASA, actuary at State Farm. Topic of the presentation: Catastrophe Risk Management Credentialization Program.
  • Tuesday, May 1, 2018. Test No. 3, comprehensive.
  • Thursday, May 3, 2018. Test No. 4, comprehensive.
  • Thursday, May 10, 2018, 3:50 p.m. -- 5:50 p.m. (note the unusual time). Final examination, comprehensive.