act480 | undergraduate

Life Contingencies

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This course introduces students to the theoretical knowledge of contingent payment models as they apply to insurance and financial risk. In addition, students will gain an understanding of what is necessary to master this material to pass the Contingency professional examination. This course will cover the following topics: present values of random variables using survival models and life states, premium-calculation methodologies, insurance and annuity reserve methods, and retirement plans and benefits.

This undergraduate-level course is 7 weeks To enroll, speak with an Enrollment Representative.

Course details:

Credits: 4
Continuing education units: XX
Professional development units: XX
Duration: 7 weeks

topic title goes here

    Present Value Random Variables

    • Describe common probability approximation methods over a time period inherent in present value calculations.
    • Present Value Random Variables.
    • Describe the impact of varying assumptions in various contingent models.
    • Calculate common probability metrics for contingent models.

    Premium Calculation

    • Explain the background and types of products and problems a life insurance actuary encounters.
    • Describe the 3 main calculation methodologies (the equivalence principle, the portfolio-premium principle, and premiums determined by specified profit objectives principle).

    Introduction to Policy Values and Reserves

    • Describe Full Preliminary Term and Modified Net Premium Reserve methods.
    • Explain Thiele’s differential equation.
    • Describe Common Life insurance policy Alterations.
    • Calculate Policy Values.

    Profit and Advanced Valuation Concepts

    • Describe the Yield curve.
    • Explain Diversifiable and Non-Diversifiable risk in life insurance products.
    • Describe common profit measures for life contingent products.
    • Calculate common profit measures including Internal Rate of Return, Actual Profit, Gain, Expected profit.

    Universal Life Insurance and Policy Dividends

    • Explain Participating (dividend paying) Life Insurance.
    • Calculate Participating Life Insurance Contract Values.
    • Explain Universal Life Insurance.
    • Calculate Univeral Life Contract values.
    • Calculate Universal Life Profit measures.

    Retirement Plans

    • Compare Defined Benefit to Defined Contribution Pension Plans.
    • Compare decrements associated with evaluating pension plans.
    • Compare different models associated with evaluating pension plans.
    • Explain considerations in varying assumptions of a pension evaluation.

    Contingency Models for Single and Multiple Lives

    • Calculate Life length expectation (how long you are expected to live based on a table).
    • Explain how multiple life states and lifeprobabilities are calculated.
    • Explain the survival function.
    • Describe Markov chain model process.
    • Describe common probability approximation methods over a time period inherent in Contingent Model calculations.
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    Transferability of credit is at the discretion of the receiving institution. It is the student’s responsibility to confirm whether or not credits earned at University of Phoenix will be accepted by another institution of the student’s choice.