Actuarial Mathematical Models II

Actuarial Mathematical models II

1. Multiple Decrement Models: Theory
   1. Multiple Decrement Table
   2. Forces of Decrement
   3. Associated Single Decrement
   4. Discrete Jumps
2. Multiple Decrement Models: Applications
   1. Calculating Actuarial Present Values of Cash Flows
   2. Calculating Reserve and Profit
   3. Cash Values
   4. Calculating Asset Shares under Multiple Decrement
3. Multiple State Models
   1. Discrete-time Markov Chain
   2. Continuous-time Markov Chain
   3. Kolmogorov’s Forward Equations
   4. Calculating Actuarial Present Value of Cash Flows
   5. Calculating Reserves
4. Multiple Life Functions
   1. Multiple Life Statuses
   2. Insurances and Annuities
   3. Dependent Life Models
5. Interest Rate Risk
   1. Yield Curves
   2. Interest Rate Scenario Models
   3. Diversifiable and Non-Diversifiable Risks
6. Profit Testing
   1. Profit Vector and Profit Signature
   2. Profit Measures
   3. Using Profit Test to Compute Premiums and Reserves
7. Universal Life Insurance
   1. Basic Policy Design
   2. Cost of Insurance and Surrender Value
   3. Other Policy Features
   4. Projecting Account Values
   5. Profit Testing
   6. Asset Shares for Universal Life Policies
8. Participating Insurance
   1. Dividends
   2. Bonuses

TEXT BOOK: ACTEX MLC Study Manual Fall 2017, Volume II, by: Johnny Li, Ph.D., FSA, Andrew Ng, Ph.D., FSA.