Contingencies

Bond University

Course Description

• Course Name

Contingencies

• Host University

Bond University

• Location

Gold Coast, Australia

• Area of Study

Accounting, Mathematics

• Language Level

Taught In English

• Prerequisites

Students must have successfully completed ACSC12-201 Financial Mathematics or equivalent as well as 120 Credit Points of their program prior to undertaking ACSC13-301.

• Course Level Recommendations

Upper

ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

Hours & Credits

• Credit Points

10
• Recommended U.S. Semester Credits
3 - 4
• Recommended U.S. Quarter Units
4.5 - 6
• Overview

Introduction

This subject develops the actuarial skills of using advanced mathematical techniques to model and value cashflows that are subject to business and life events such as death, survival, illness and retirement. Specific topics include defining simple assurance and annuity contracts, evaluating expected values and variances of the present values of payments under these contracts, calculating net premiums and net premium reserves of insurance contracts, and techniques to deal with contracts that involve two lives.

Learning Objectives
1. Define simple assurance and annuity contracts, and develop formulae for the means and variances of the present values of the payments under these contracts, assuming constant deterministic interest.
2. Describe the principal forms of heterogeneity within a population and the ways in which selection can occur.
3. Describe and use practical methods of evaluating expected values and variances of the simple contracts.
4. Describe and calculate, using ultimate or select mortality, net premiums and net premium reserves of simple insurance contracts.
5. Describe and calculate, using ultimate or select mortality, net premiums and net premium reserves for increasing and decreasing benefits and annuities.
6. Describe and calculate gross premiums and reserves of assurance and annuity contracts.
7. Define and use functions involving two lives.
8. Describe and illustrate methods of valuing cash flows that are contingent upon multiple transition events.
9. Describe and use methods of projecting and valuing expected cash flows that are contingent upon multiple decrement events.
10. Describe and use projected cash flow techniques for use in pricing, reserving, and assessing profitability.