Handbook 1996 : Faculty of Economics and Commerce (Volume 3 page 193)
Actuarial Studies subject : Next:300-311 | Prev:300-304 | Search | Help

300-310 Actuarial Principles

Year 3 Actuarial Studies.

Credit points: 12.5

Coordinator: Mr Des Welch

Prerequisite: 619-202 Theory of Statistics and 300-203 Mathematics in the Financial World.

Contact: Two one-and-a-half hour lectures and a one-hour tutorial per week

Timetable: First semester

Objectives:

On completion of this subject the student will be able to:

• analyse simple problems of emerging cost using a single decrement model, which describes the evolution of a population;
• calculate the present value and accumulated value of a stream of payments using a single rate of interest and taking into account the probability of the payments being made;
• define and use annuity functions and assurance functions for a single decrement model, including both select and ultimate functions;
• evaluate the liabilities under a life insurance or annuity contract, in terms of emerging costs and in terms of present values, for the purpose of product pricing, reserving and the calculation of surrender values;
• demonstrate how the emergence of profit on a life insurance or annuity contract depends on the interaction between the pricing basis and reserving basis;
• describe and apply techniques for analysing a delay (or run-off) triangle and projecting the ultimate position; and
• explain the workings of a simple no claims discount (NCD) system.

Content:

The life table; the application of probability to contingencies of human life; commutation functions; select tables; annuities and assurances on single lives; office premiums; policy values; extra risks; laws of mortality; construction of tables.

Assessment:

A 3-hour end-of-semester examination(85%) and a one and a half hour examination during the semester (15%).

Actuarial Studies subject : Next:300-311 | Prev:300-304 | Search | Help
Handbook 1996 : Faculty of Economics and Commerce (Volume 3 page 193)

Status:          Official 1996
Date created:    Oct  9 1995
Last modified:   Oct  9 1995
Authorised by:   Academic Registrar
Email enquiries: Course_Information@registrar.unimelb.edu.au

Copyright © University of Melbourne 1995,1996.