Unit convenor and teaching staff |
Unit convenor and teaching staff
Simon Guthrie
Veronica Chen
|
---|---|
Credit points |
Credit points
10
|
Prerequisites |
Prerequisites
(ACST881 or ACST8081) and (STAT810 or STAT8310 or STAT806)
|
Corequisites |
Corequisites
|
Co-badged status |
Co-badged status
|
Unit description |
Unit description
This unit covers the analysis of cash flows dependent on uncertain events due to mortality and other factors. It introduces the concept of the expected present value of payments under various life insurance contracts, including whole life, term and endowment assurances; immediate and temporary annuities; and deferred assurances and annuities. The standard international actuarial notation in life insurance is used extensively. Probability models and life tables are used to calculate the expected present values accurately based on ultimate or select mortality. Furthermore, important concepts of pricing and reserving for future contingent liabilities are discussed. Equations of value are established to calculate net premiums. Prospective and retrospective net premium reserves required to meet future liabilities are determined and compared. Techniques for the valuation of annuity and assurance products involving two lives are developed. Students gaining a credit average in both ACST8081 and ACST8082 (minimum mark of 60 on both units) will satisfy the requirements for exemption from the professional subject CM1 of the Actuaries Institute. |
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:
Late submissions of assessments Unless a Special Consideration request has been submitted and approved, no extensions will be granted. There will be a deduction of 10% of the total available assessment-task marks made from the total awarded mark for each 24-hour period or part thereof that the submission is late. Late submissions will only be accepted up to 96 hours after the due date and time.
No late submissions will be accepted for timed assessments – e.g., quizzes, online tests.
Table 1: Penalty calculation based on submission time
Submission time after the due date (including weekends) |
Penalty (% of available assessment task mark) |
Example: for a non-timed assessment task marked out of 30 |
< 24 hours |
10% |
10% x 30 marks = 3-mark deduction |
24-48 hours |
20% |
20% x 30 marks = 6-mark deduction |
48-72 hours |
30% |
30% x 30 marks = 9-mark deduction |
72-96 hours |
40% |
40% x 30 marks = 12-mark deduction |
> 96 hours |
100% |
Assignment won’t be accepted |
Special Consideration
To request an extension on the due date/time for a timed or non-timed assessment task, you must submit a Special Consideration application. An application for Special Consideration does not guarantee approval.
The approved extension date for a student becomes the new due date for that student. The late submission penalties above then apply as of the new due date.
Name | Weighting | Hurdle | Due |
---|---|---|---|
Online Quiz | 5% | No | Week 3 |
Assignment | 15% | No | Week 8 |
Class Test | 20% | No | Week 10 |
Final Exam | 60% | No | University Examination Period |
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 2 hours
Due: Week 3
Weighting: 5%
You should complete the quiz online, available on iLearn.
Assessment Type 1: Quantitative analysis task
Indicative Time on Task 2: 15 hours
Due: Week 8
Weighting: 15%
This is an individual assignment which focuses on problem solving using Excel spreadsheet.
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: Week 10
Weighting: 20%
The test will be approximately 90 minutes, to be held during class time.
Assessment Type 1: Examination
Indicative Time on Task 2: 28 hours
Due: University Examination Period
Weighting: 60%
The final examination will be closed book, a three-hour written paper with ten minutes reading time, to be held during the University Examination period.
1 If you need help with your assignment, please contact:
2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation
Classes
Timetable is available at https://timetables.mq.edu.au/2022/. Please see iLearn for further details on class delivery.
Classes on tutorial questions will commence in week 2 of the session. Students are expected to have attempted the previous weeks tutorial questions before coming to this class.
If you are enrolled into the "Online-flexible" attendance mode, you are not required to register into any classes as there is no real-time live online class. A lecture recording will be made available to students after the on-campus class is held.
Required and Recommended Texts and/or Materials
No textbooks are prescribed for this unit. Detailed lecture notes, exercises and solutions are available on the unit's iLearn site.
Technology Used and Required
You will require a calculator. For the final exam, you may only use non-programmable calculators which are not able to store text.
You will also need to be able to construct spreadsheets for tutorial exercises. You will also be required to use a spreadsheet for the assignment. We do not prescribe any particular brand of spreadsheet, although materials will be provided in MS Excel.
You require access to a computer to access material on the unit's iLearn web site.
Required unit materials
Course materials, including pre-recorded lectures, are available on the iLearn page.
To access the teaching website, go to http://ilearn.mq.edu.au and login using your usual login and password.
Inherent requirements
Attendence of the weekly lectures and tutorials, either via face-to-face venue or the pre-uploaded recordings.
Week |
Week Begins |
Topics covered in lectures |
Assessment |
1 |
21 Feb |
Life tables and survival models |
|
2 |
28 Feb |
Valuing single payment benefits |
|
3 |
7 Mar |
Valuing life annuities |
Quiz |
4 |
14 Mar |
Select mortality Net premiums |
|
5 |
21 Mar |
Policy values |
|
6 |
28 Mar |
Variable benefits |
|
7 |
4 Apr |
Operating expenses Profit testing |
|
------ 2 week study break ------ |
|||
8 |
25 Apr |
Participating policies |
Assignment |
9 |
2 May |
Analysis of profits Profit loading |
|
10 |
9 May |
Joint life and last survivor statuses (class test) |
Class test |
11 |
16 May |
Joint life and last survivorship benefits |
|
12 |
23 May |
Contingent and reversionary benefits |
|
13 |
30 May |
Revision |
|
Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:
Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
The Writing Centre provides resources to develop your English language proficiency, academic writing, and communication skills.
The Library provides online and face to face support to help you find and use relevant information resources.
Macquarie University offers a range of Student Support Services including:
Got a question? Ask us via AskMQ, or contact Service Connect.
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Unit information based on version 2022.04 of the Handbook