Mathematics 480, Spring 2021

Illinois State University Mathematics Department

This class is taught online through 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
Staff Actuary, Casualty Actuarial Society
E-mail: kwilliams@casact.org


Classes Meet
Tuesdays and Thursdays 4:00-5:50 p.m., online.

Office Hours
Tuesdays 3:00-3:50 p.,m., held by Dr. Ostaszewski online at: http://smartURL.it/ZoomActuary. 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):

Statutory Valuation of Individual Life and Annuity Contracts, by Claire, D., Lombardi, L., and Summers, S., Fifth Edition, Volume I, 2018, Actex Learning, ISBN: 978-1-63588-494-4.

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 Learning ISBN 1-56698-200-6.
Actuarial Aspects of Individual Life Insurance and Annuity Contracts, by Timothy F. Harris and Albert E. Easton, Actex Learning, ISBN 1-56698-346-0.
Group Insurance, by Skwire, Seventh Edition, 2016, Actex Learning, ISBN: 978-1-62542-682-6.
These supplementary books should be available at The Actuarial Bookstore.

The following 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.
Stochastic Loss Reserving using MCMC Methods by Glenn Meyers.


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 six tests and any of the last three comprehensive examinations can count as the final examination. 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 two (each) 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.

You will be required to complete your exams for this course through ProctorTrack software.  You must download the software and complete a test run of the software by January 25, 2020, and email me that your device has the necessary capacity to run the software. You can find a link for this at:  https://ithelp.illinoisstate.edu/knowledge/7412-how-to-take-the-proctortrack-onboarding-exam/, If you do not have the necessary technology capacity, please email me letting  me know and then contact the Technology Support Center at https://ithelp.illinoisstate.edu/. The Technology Support Center will assist with setting up your current computer or assist with receiving a loaner laptop.

Student Access and Accommodation Services
Illinois State University provides a welcoming atmosphere for individuals with disabilities by assisting each in functioning independently within the University community and providing equal access and opportunity in accomplishing educational, professional and personal goals. Student Access and Accommodation Services is the designated office to provide approved accommodation services for students, faculty, staff, and guests with disabilities. Student Access and Accommodation Service obtains and maintains documentation of disability, certifies eligibility for services, determines reasonable accommodations, and develops plans for providing such accommodations. This is accomplished in a confidential manner to ensure equal opportunity for participation in all courses, programs, activities and employment offered by Illinois State University. Please contact the Student Access and Accommodation Services in Fell Hall room 350, tel.  309-438-5853 (Voice), 309-438-8620 (TTY), web site: www.studentaccess.ilstu.edu if you have needs that can be accommodated by that office.

No recording of this class is allowed
Students may not photograph or use audio or video devices to record classroom lectures or discussions or visual materials that accompany them (e.g., lecture slides, whiteboard notes/equations). Students with disabilities who need to record classroom lectures or discussions must contact Student Access and Accommodation Services to register, request and be approved for an accommodation. Students who violate this policy may be subject to both legal sanctions for violations of copyright law and disciplinary action under the University’s Code of Student Conduct.
Students who face technology limitations in using ProctorTrack should report this immediately to Dr. Ostaszewski, and such issues will be addressed by Illinois State University Tech Solutions.


Important dates

Illinois State University important dates information for the Spring 2021 semester are given at the web site of the University Registrar.


Schedule of classes

  • Tuesday, January 12, 2021. Current issues in actuarial practice. Insurance regulation. Dodd-Frank Act of 2010. Systemic risk.
  • Thursday, January 14, 2021. Universal life insurance.
  • Tuesday, January 19, 2021. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, January 21, 2021. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Tuesday, January 26, 2021. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, January 28, 2021. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams. 
  • Tuesday, February 2, 2021. Ratemaking and loss reserving for property and casualty insurance. Class taught by Mr. Ken Williams.
  • Thursday, February 4, 2021. Life insurance valuation.
  • Tuesday, February 9, 2021. Life insurance valuation.
  • Thursday, February 11, 2021. Life insurance valuation.
  • Tuesday, February 16, 2021. Life annuity valuation.
  • Thursday, February 18, 2021.  Life annuity valuation.
  • Tuesday, February 23, 2021. Test No. 1, on material covered through February 18, 2021.
  • Thursday, February 25, 2021. Special presentation on Workers Compensation by Mr. Erich Brandt, FCAS, Consulting Actuary at Pinnacle Actuarial Resources. This class will also be an event of  the Actuarial Program and of the Actuarial Club.
  • Tuesday, March 2, 2021. Principles-based reserving. Special presentation by Ms. Magdalena Diedrich, FSA, Corporate Vice President and Actuary at New York Life Insurance Company.
  • Thursday, March 4, 2021. Principles-based reserving. Special presentation by Ms. Magdalena Diedrich, FSA, Corporate Vice President and Actuary at New York Life Insurance Company.
  • • Tuesday, March 9, 2021. Personal Well-Being Day, no class.
    • Thursday, March 11, 2021. This class will be replaced by the class on Wednesday, April 28, 2021.
    • Tuesday, March 16, 2021. Test No. 2, on material covered through March 4, 2021.
    • Thursday, March 18, 2021. Health and group insurance.
    • Tuesday, March 23, 2021. Optimal funding of a liability.
    • Thursday, March 25, 2021. Overview of the U.S. retirement system.
    •
    Tuesday, March 30, 2021. Review.
    •
    Thursday, April 1, 2021. Test No. 3,  on material covered through March 25, 2021.
  • Tuesday, April 6, 2021. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Thursday, April 8, 2021. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Tuesday, April 13, 2021. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Thursday, April 15, 2021.  Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Tuesday, April 20, 2021. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • Thursday, April 22, 2021. Pension funding and valuation. Class taught by Dr. Wei Hao.
  • • Tuesday, April 27, 2021. Test No. 4, comprehensive.
    • Wednesday, April 28, 2021. Test No. 5, comprehensive.
    • Thursday, April 29, 2021. Reading Day. No class.
    • Wednesday, May 5, 2021: 8:00 p.m. -- 10:00 p.m.: Test No. 6, final examination, comprehensive.