AMS 2510

This course will explore the future lifetime random variable, probability and survival functions, force of mortality; complete and curtate expectation of life, and Makeham and Gompertz mortality laws. Other topics will include: Life tables, characteristics of population and insurance life tables, selection, and fractional age assumptions. Life insurance payments and annuity payments: Present value random variables; expected present values; higher moments; actuarial notation, annual, monthly and continuous cases, relationships between insurance and annuity functions. Premiums, expense loadings, present value of future loss random variables and distribution, net and gross cases, the equivalence principle and portfolio percentile principle will also be discussed. Three lecture hours plus a two hour lab per week.