2020-2021 Academic Catalog 
    
    Sep 27, 2022  
2020-2021 Academic Catalog [Archived Catalog]

ACSC 421 - Actuarial Modeling I


Credits: Three (3)
This course is the first of two courses in actuarial modeling, designed to develop students’ knowledge in the theoretical basis of actuarial models and the application of those models to insurance and other financial risks. Topics include survival models, force of mortality; complete and curtate expectation of life; Makeham and Gompertz mortality laws. Life tables: characteristics of population and insurance life tables; selection; fractional age assumptions. Life insurance payments and annuity payments: present value random variables; expected present values; higher moments; actuarial notation. Annual, 1/mthly and continuous cases. Relationships between insurance and annuity functions. Premiums: expense loadings. Present value of future loss random variables and distribution, net and gross cases. Equivalence principle. Portfolio percentile principle.

ACSC 421 and ACSC 422 cover the learning objectives contained in Examination LTAM (Long-Term Actuarial Models) of the Society of Actuaries.
Cross-listed: ACSC-521
Prerequisite: MATH-371 and ACSC-415