At the end of this course, the students; 1) Explain what is the Life Table and construction of life table. 2) Understand certain and contingent annuities. 3) Learn net premiums for life annuity, and life insurance. 4) Explain reserve, net level reserve. 5) Calculate gross premiums.
MODE OF DELIVERY
Face to face
PRE-REQUISITES OF THE COURSE
No
RECOMMENDED OPTIONAL PROGRAMME COMPONENT
None
COURSE DEFINITION
This course is designed to give mathematical theory and applications of life and health insurance and pension plans with the use of stochastic (probabilistic) and deterministic approaches, life distributions and life tables, life insurance, net premiums, net premium reserves, multiple life functions, multiple decrement models.
COURSE CONTENTS
WEEK
TOPICS
1st Week
Annuities: compound interest, annuity certain, net single premiums, pure endowment
2nd Week
Annuities: compound interest, annuity certain, net single premiums, pure endowment
3rd Week
Probability and statistics
4th Week
The life table: construction of mortality tables, notation, expectation of life
5th Week
Life annuities (whole life, temprorary and deffered, forborne, increasing and decreasing, payable more than once a year)
6th Week
Life annuities (whole life, temprorary and deffered, forborne, increasing and decreasing, payable more than once a year)
7th Week
Applications
8th Week
Midterm
9th Week
Premium calculations in life insurance
10th Week
Premium calculations in life insurance
11th Week
Net premiums
12th Week
Return of premium policy
13th Week
Reserve, net level reserve, retrorespective reserve, prospective reserve
14th Week
Applications
RECOMENDED OR REQUIRED READING
1. Workman, L.C. Mathematical Foundations of Life Insurance, LOMA, U.S.A.,1992. 2. Menge, W.O.,Fisher C.H., The Mathematics of Life Insurance, Ullrich's Bookstore, 1991.