Handbook 1996 : Faculty of Economics and Commerce (Volume 3 page 193)
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300-311 Life Insurance Mathematics

Year 3 Actuarial Studies.

Credit points: 12.5

Coordinator: Dr David Dickson.

Prerequisite: 300-310 Actuarial Principles

Contact: Three 1-hour lectures and a one-hour tutorial per week

Timetable: Second semester

Objectives:

At the end of this subject, the student should be able to:

• calculate the present value and the accumulated value of a stream of payments using a single rate of interest, taking into account the probability of the payments being made according to a single decrement or a multiple state or multiple decrement model;
• analyse problems involving an equation of value taking into account the probability of the payments being made according to different models;
• define and use Manchester Unity sickness functions as an alternative method to a multiple state model for analysing problems involving sickness and discuss the advantages and limitations of the method;
• define and use straightforward functions involving more than one life;
• define and use simple commutation functions suitable for valuing pension fund benefits and contributions; and
• carry out straightforward profit test of a life insurance product.

Content:

Construction of mortality, sickness, multiple-decrement and similar tables from graduated data; contracts dependent upon marriage, sickness, etc. ; joint life and last survivor annuities; contingent assurances; reversionary annuities; valuation of pension benefits; assessment of unit-linked contracts; profit testing.

Assessment:

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

Actuarial Studies subject : Next:300-400 | Prev:300-310 | 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.