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 Universitys 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.