2022-2023 Academic Catalog 
    
    Apr 24, 2024  
2022-2023 Academic Catalog [Archived Catalog]

ACSC 521 - Actuarial Modeling I


Credits: 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.
Note: The course covers the learning objectives contained in Examination FAM-L (Fundamentals of Actuarial Mathematics Exam-Long Term) of the Society of Actuaries.

Related Courses: ACSC-421
Prerequisite: MATH-571 and ACSC-515