2020-2021 Academic Catalog 
    
    May 05, 2021  
2020-2021 Academic Catalog

ACSC 521 - 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, l 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 521 and ACSC 522 together cover all of the learning objectives contained in Examination LTAM (Long-Term Actuarial Models) of the Society of Actuaries.
Note: This course is for graduate students only.

Cross-listed: ACSC-421
Prerequisite: MATH-571 and ACSC-515