Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Xian Zhou
Contact via xian.zhou@mq.edu.au
E4A 607
Refer to the unit's web site
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
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Corequisites |
Corequisites
ACST851 and (STAT806 or STAT810 or (ACST601 and ACST604))
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Co-badged status |
Co-badged status
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Unit description |
Unit description
This unit covers the analysis of cash flows dependent on uncertain events of mortality. Single decrement survival models will be used to evaluate the expected present values of payments under life insurance and annuity contracts, and calculate the premiums of such contracts. The concepts of pricing and reserving for future contingent liabilities are considered, and the methods of calculating required reserves will be discussed.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
Name | Weighting | Due |
---|---|---|
Assignment 1 | 10% | Thursday, 27 March 2014 |
Assignment 2 | 20% | Thursday, 8 May 2014 |
Final Examination | 70% | University Examination Period |
Due: Thursday, 27 March 2014
Weighting: 10%
Type of questions: Multiple-choice
Submission: By answer sheet
Extension: No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.
Penalties: Not applicable
What is required to complete the unit satisfactorily: Not Applicable
Weight: 10% upon passing the final examination
Due: Thursday, 8 May 2014
Weighting: 20%
Type of questions: Detailed solutions required
Submission: By answer sheets
Extension: No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.
Penalties: Not applicable
What is required to complete the unit satisfactorily: 60 marks out of 100 are required for satisfactory coursework
Weight: 20% upon passing the final examination
Due: University Examination Period
Weighting: 70%
Examination conditions: Open-book, any materials on paper allowed
Type of questions: A combination of multiple-choice and questions requiring detailed solutions
What is required to complete the unit satisfactorily: Passing the final examation is required to pass this unit.
Classes
This unit is taught through 3 hours of lectures and 2 hours of tutorials per week.
Tutorials start in Week 1.
The timetable for classes can be found on the University web site at: http://www.timetables.mq.edu.au/
Required and Recommended Texts and/or Materials
Lecture Notes are the required materials and will be posted on the website before the lectures.
The main additional reading materials are the ActEd CT5 notes Chapters 1 to 7 inclusive. This will also be used as background reading for ACST860.
Technology Used and Required
You will need access to the internet to obtain course information and download teaching materials from the unit website.
It is your responsibility to check the unit website regularly to make sure that you are up-to-date with the information for the unit.
Unit Web Page
Course materials are available on the learning management system (iLearn).
The web page for this unit can be found at: http://ilearn.mq.edu.au
Teaching and Learning Activities
The unit is taught through 3 hours of lectures and 2 hours of tutorial per week. Lectures cover the topics and materials in accordance with the syllabus of Subject CT5 of Institute of Actuaries (IA). Tutorials will discuss exercise questions covered by the lectures.
Students are expected to listen carefully to all lectures and tutorials; participate in discussions during tutorials, read relevant materials in advance; review the knowledge learnt in classes; and complete all assignments independently.
The planned week-by-week list of the topics is provided in Unit Schedule. Note that this is a tentative schedule, and small departures are expected on the basis of week to week progress.
Changes Since the Last Offering of This Unit
Teaching materials are updated.
Week |
Topics covered |
1 |
Review of probability; Expected present value; Introduction to survival models |
2 |
Life assurance contracts |
3 |
Life annuity contracts |
4 |
The Life table; Select mortality |
5 |
Evaluation of life insurance contracts |
6 |
Net premiums and reserves |
BREAK |
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7 |
Prospective and retrospective policy values |
8 |
Policies with variable benefits |
9 |
With-profit policies |
10 |
Gross premiums |
11 |
Gross premiums and reserves; Profit and loss in life insurance |
12 |
Profit and loss in life insurance |
13 |
Revision |
Note: This is only a tentative schedule. Small departures are expected on the basis of week to week progress.
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy.html
Grading Policy http://mq.edu.au/policy/docs/grading/policy.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html
Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
The nature of scholarly endeavour, dependent as it is on the work of others, binds all members of the University community to abide by the principles of academic honesty. Its fundamental principle is that all staff and students act with integrity in the creation, development, application and use of ideas and information. This means that:
Further information on the academic honesty can be found in the Macquarie University Academic Honesty Policy at http://www.mq.edu.au/policy/docs/academic_honesty/policy.html
Macquarie University uses the following grades in coursework units of study:
Grade descriptors and other information concerning grading are contained in the Macquarie University Grading Policy which is available at:
http://www.mq.edu.au/policy/docs/grading/policy.html
If, at the conclusion of the unit, you have performed below expectations, and are considering lodging an appeal of grade and/or viewing your final exam script please refer to the following website which provides information about these processes and the cut off dates in the first instance. Please read the instructions provided concerning what constitutes a valid grounds for appeal before appealing your grade.
The University is committed to equity and fairness in all aspects of its learning and teaching. In stating this commitment, the University recognises that there may be circumstances where a student is prevented by unavoidable disruption from performing in accordance with their ability. A special consideration policy exists to support students who experience serious and unavoidable disruption such that they do not reach their usual demonstrated performance level. The policy is available at:
http://www.mq.edu.au/policy/docs/special_consideration/policy.html
Further information regarding supplementary exams, including dates, is available here
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
For all student enquiries, visit Student Connect at ask.mq.edu.au
For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/.
When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.
Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.
This graduate capability is supported by:
Research underlying the topic of “life contingencies” goes back to original attempts to construct life tables (see Gaunt J (1646): Natural and Political Observations made upon the Bills of Mortality)
First attempts to price life insurance contracts were mainly done in England. For a discussion of the same and pertinant references see the introduction to eg De Jong, P and Ferris, S (2006) Adverse selection spirals. Astin Bulletin, 36(2):589.