# Syllabus Math 471

## Math 471. Life Contingencies I Instructor Syllabus

Text: David Dickson, Mary Hardy and Howard Waters. (2013). Actuarial Mathematics for Life Contingent Risks, Cambridge, Second Edition. (Chapters 1-6)

Chapter 1 – Introduction to life insurance (1 lecture)

• Brief introduction on the terminology and major types of life insurance, annuity and pension

Chapter 2 – Survival models (4 lectures)

• Survival function and (deferred) probability of death
• Force of mortality and some common laws
• Complete and curate future lifetime

Chapter 3 – Life tables and selection (4 lectures)

• Life table construction and national life tables
• Fractional age assumptions
• Select and ultimate survival models
• Mortality trends

Chapter 4 – Insurance benefits (6 lectures)

• Valuation and analysis of the benefits in various traditional life insurance policies, including whole life insurance, term life insurance, pure endowment, endowment insurance, deferred contracts and variable insurance
• Recursion formulae and approximations for insurance benefits with different payment type

Chapter 5 – Annuities (7 lectures)

• Valuation and analysis of the life contingent annuities, including whole life annuity, term life annuity, deferred contracts, guaranteed annuity and increasing annuity
• Recursion formulae and approximations for annuities with different payment type

Chapter 6 – Premium calculation (5 lectures)

• Future loss random variables
• Equivalence principle of net and gross premium calculation for insurance policies and annuities
• The portfolio percentile premium principle
• Profit and extra risk analysis

Midterm Exams (2 lectures)
Total: 29