Contingencies

This subject is not offered in 2013.

The following:

None

Please refer to Prerequisites and Corequisites.

Students may not gain credit for both ACTL30003 Contingencies and either of 300-341 Actuarial Mathematics I and 300-342 Actuarial Mathematics II.

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Topics include traditional life insurance products; present values of annuities and assurances for single lives; net and gross premiums and policy values; select mortality; joint life theory; cashflow models; competing risks; discounted emerging costs; multiple decrements; guarantees and options; risk classification.

• Define simple assurance and annuity contracts, and develop formulae for the means and variances of the present values of the payments under these contracts, assuming constant deterministic interest.
• Describe practical methods of evaluating expected values and variances of the simple contracts defined in the above objective.
• Describe and calculate, using ultimate or select mortality, net premiums and net premium reserves of simple insurance contracts.
• Describe the calculation, using ultimate or select mortality, of net premiums and net premium reserves for increasing and decreasing benefits and annuities.
• Describe the calculation of gross premiums and reserves of assurance and annuity contracts.
• Define and use straightforward functions involving two lives.
• Describe methods which can be used to model cashflows contingent upon competing risks.
• Describe the technique of discounted emerging costs, for use in pricing, reserving, and assessing profitability.
• Describe the principal forms of heterogeneity within a population and the ways in which selection can occur.

One three-hour end of semester exam (70%) and one major project (30%) which is no more than 3000 words and is due at the end of semester

You will be advised of prescribed texts by your lecturer.

Information Not Available

This subject potentially can be taken as a breadth subject component for the following courses:

• Bachelor of Arts
• Bachelor of Environments
• Bachelor of Music

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

• High level of development: written communication; problem solving; statistical reasoning; application of theory to practice; interpretation and analysis; synthesis of data and other information; evaluation of data and other information; use of computer software.