MATH 3281 3.00 W

This is an intermediate level course on the mathematics of life contingencies.
It builds on MATH 3280 3.00 and develops theoretical basis for pricing and
supporting life-contingent products. The topics include: economics of insurance,
general insurances and annuities, (benefit) premiums and reserves, analysis of
reserves, Hattendorf's theorem. The course, along with MATH 3280 3.00 and
MATH 4430 3.00 (or MATH 4431 3.00) ensures an adequate preparation for the
MLC exam of the Society of Actuaries.

Prerequisites: MATH 3280 3.00.

The subjects to be covered include but are not limited to:

  1. Economics of insurance. Utility functions and risk appetite. Feasibility of
    insurance contracts.
  2. Actuarial present values of general insurances and annuities.
  3. General life insurance pricing.
  4. Solvency and the notion of reserves.
  5. Analysis of reserves and the Hattendorff's theorem.
  6. Applications of multiple state models.

The syllabus can be downloaded in the PDF format