Contingent Payments 1 - ACST255
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. The concepts and methods are then extended to gross premiums and reserves that make allowance for profits and expenses. Students gaining a grade of credit or higher in both ACST255 and ACST355 are eligible for exemption from subject CT5 of the professional exams of the Institute of Actuaries of Australia.
| Credit Points: | 3 |
| When Offered: | S2 Day - Session 2, North Ryde, Day |
| Staff Contact(s): | Actuarial staff |
| Prerequisites: |
(Admission to BActStud or BActStudBSc or BAppFinBActStud or BActStudBProfPrac) and ACST152 and ACST202 and STAT272 and GPA of 4.5 (out of 7.0) |
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| Assessed As: | Graded |
| Offered By: | Department of Applied Finance and Actuarial Studies Faculty of Business and Economics |
Course structures, including unit offerings, are subject to change.
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