ACTS399
Independent Study

Prerequisites: Permission.

Course details
Credit Hours:1-3
Max credits per semester:3
Max credits per degree:24
Course Format:IND

Credit Hours:1-3

ACE:

ACTS401
Problem Lab: Basic Actuarial Applications of Probability

Prerequisites: MATH 208/208H and STAT 462, or parallel, and both with a grade of "Pass" or "C" or better

Description: Calculus-based probability, both univariate and multivariate, applications to risk management-related problems. Problems as posed in the Society of Actuaries (SOA) Exam "P" and/or Casualty Actuarial Society (CAS) Exam "1". Determination of loss frequency distributions and their characteristics, expected value, variance, and percentiles. Determination of loss severity distributions and their characteristics, expected value, variance, and percentiles. Determination of loss sharing parameters, deductibles, and maximum payments.

Course details
Credit Hours:1
Max credits per semester:1
Max credits per degree:1
Course Format:LAB

Credit Hours:1

ACE:

ACTS402
Problem Lab: Basic Actuarial Applications of Financial Mathematics

Prerequisites: ACTS 440/840 or parallel

Description: Application of basic mathematics of finance to problems involving valuation of financial transactions. Problems as posed in the "Society of Actuaries (SOA) Exam 'FM'" and/or "Casualty Actuarial Society (CAS) Exam '2'". Determining equivalent measures of interest; estimating the rate of return on a fund; discounting or accumulating a sequence of payments with interest; determining yield rate; length of investment; amounts of investment contributions or amounts of investment returns for various types of financial transactions; and basic calculations involving yield curves, spot rates, forward rates, duration, convexity, immunization and short sales; introduction to financial derivatives (forwards, options, futures, and swaps) and their use in risk management; and introduction to the concept of no-arbitage as a fundamental concept in financial mathematics.

Course details
Credit Hours:1
Max credits per semester:1
Max credits per degree:1
Course Format:LAB

Credit Hours:1

ACE:

ACTS403
Problem Lab: Actuarial Models - Life Contingencies

Prerequisites: ACTS 470/870, 471/871, and 473/873

Description: Problems as posed in the "Society of Actuaries (SOA) Exam 'M'" and/or "Casualty Actuarial Society (CAS) Exam '3'". Survival and severity models; "Markov Chain" models; life contingencies; and "Poisson" processes.

Course details
Credit Hours:1
Max credits per semester:1
Max credits per degree:1
Course Format:LAB

Credit Hours:1

ACE:

ACTS404
Problem Lab: Construction and Evaluation of Actuarial Models

Prerequisites: ACTS 410 and 425

Description: Problems as posed in the Society of Actuaries (SOA) Exam "C" and/or Casualty Actuarial Society (CAS) Exam "4". Construction of empirical models; construction and selection of parametric models; credibility theory; interpolation and smoothing of data; and simulation.

Course details
Credit Hours:1
Max credits per semester:1
Max credits per degree:1
Course Format:LAB

Credit Hours:1

ACE:

ACTS405
Problem Lab: Actuarial Models - Financial Economics

Prerequisites: ACTS 440/840 and FINA 467

Description: Problems as posed in the "Society of Actuaries (SOA) Exam 'M'". Interest rate models; rational valuation of derivative securities (option pricing: put-call parity, the binomial model, Black-Scholes formula, and actuarial applications; interpretation of option Greeks and delta-hedging; features of exotic options; an introduction to Brownian motion and Itô's lemma); and risk management techniques.

Course details
Credit Hours:1
Max credits per semester:1
Max credits per degree:1
Course Format:LAB

Credit Hours:1

ACE:

ACTS410
Introduction to Credibility, Smoothing of Data, and SimulationCrosslisted with ACTS 810

Prerequisites: STAT 463

Description: Full, partial, Buhlmann, and Buhlmann-Straub credibility models. Introduction to empirical Bayes and statistical distributions used to model loss experience. Application of "polynomial splines" to actuarial data. Simulation of "discrete" and "continuous random" variables in context of actuarial models. Simulation to "p-value" of hypothesis test. "Bootstrap method" of estimating the "mean squared error" of an estimator.

This course is a prerequisite for: ACTS 404

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS425
Survival ModelsCrosslisted with ACTS 825

Prerequisites: STAT 463 with a grade of "C" or better

Description: Parametric and tabular survival models. Estimation based on observations that might not be complete. Concomitant variables. Use of population data. Applications to groups with impaired lives.

This course is a prerequisite for: ACTS 404

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS430
Actuarial Applications of Applied StatisticsCrosslisted with ACTS 830

Prerequisites: STAT 463 with a grade of "C" or better

Data sets processed and analyzed using statistical software.

Description: Introduction to forecasting in actuarial science. Simple and multiple regression, instrumental variables, time series methods, and applications of methods in forecasting actuarial variables. Interest rates, inflation rates, and claim frequencies.

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS440
Interest TheoryCrosslisted with ACTS 840

Prerequisites: MATH 208/208H with a grade of "Pass" or "C" or better, or parallel

Description: Application of financial mathematics to problems involving valuation of financial transactions; equivalent measures of interest; rate of return on a fund; discounting or accumulating a sequence of payments with interest; and yield rates, length of investment, amounts of investment contributions or amounts of investment returns for various types of financial transactions; loans and bonds. Introduction to the mathematics of modern financial analysis. Calculations involving yield curves, spot rates, forward rates, duration, convexity, and immunization.

Course details
Credit Hours:4
Max credits per semester:4
Max credits per degree:4
Course Format:LEC

Credit Hours:4

ACE:

ACTS441
Introduction to Financial EconomicsCrosslisted with ACTS 841

Prerequisites: MATH 208 with grade of "C" or better or concurrent; ACTS 440

Description: Financial mathematics concepts related to short sales, forwards, options, futures, and swaps, and their use in risk management, hedging and investment strategies, fundamental concepts of put-call parity and no-arbitrage, and interest rate models.

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS442
Principles of Pension ValuationCrosslisted with ACTS 842

Prerequisites: ACTS 471/871 with a grade of "C" or better

Description: Actuarial cost methods. Determination of normal costs and accrued liability. Effect on valuation results due to changes in experience, assumptions and plan provisions. Valuation of ancillary benefits. Determination of actuarially equivalent benefits at early or postponed retirement and optional forms of payment.

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS450
Stochastic Processes for ActuariesCrosslisted with ACTS 850

Prerequisites: STAT 463 with a grade of "C" or better

Description: Introduction to stochastic processes and their applications in actuarial science. Discrete-time and continuous-time processes; Markov chains; the Poisson process; compound Poisson processes; non-homogeneous Poisson processes; arithmetic and geometric Brownian motions. Applications of these processes in computation of resident fees for continuing care retirement communities. Pricing of financial instruments.

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS470
Life Contingencies ICrosslisted with ACTS 870

Prerequisites: ACTS 440 and STAT 462, each with a grade of "C" or better

First course of a two-course sequence that includes ACTS 471.

Description: Theory and applications of contingency mathematics in the areas of life and health insurance, annuities, and pensions. Probabilistic models.

This course is a prerequisite for: ACTS 403

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS471
Life Contingencies IICrosslisted with ACTS 871

Prerequisites: ACTS 470 and STAT 462, each with a grade of "C" or better

Description: Life insurance reserve for models based on a single life. Introduction to multiple life models for pensions and life insurance and to multiple decrement models.

This course is a prerequisite for: ACTS 403

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS473
Introduction to Risk TheoryCrosslisted with ACTS 873

Prerequisites: STAT 462 with a grade of "C" or better

Description: Applications of compound distributions in modeling of insurance loss. Continuous-time compound Poisson surplus processes, computation of ruin probabilities, the distributions of the deficit at the time of ruin, and the maximal aggregate loss. The effect of reinsurance on the probability of ruin.

This course is a prerequisite for: ACTS 403

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS474
Introduction to Property/Casualty Actuarial ScienceCrosslisted with ACTS 874

Prerequisites: STAT 462 with a grade of "C" or better.

Description: Mathematical, financial, and risk-theoretical foundations of casualty actuarial science. Risk theory, loss reserving, ratemaking, risk classification, credibility theory, reinsurance, financial pricing of insurance, and other special issues and applications.

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC

Credit Hours:3

ACE:

ACTS475
Actuarial Applications in PracticeCrosslisted with ACTS 875

Prerequisites: ACTS 471/871; FINA 307/307H or 338

Description: Principles and practices of pricing and/or funding and valuation for life, health, property and liability insurance, and annuities and pension plans. Commercially available actuarial modeling software.

Course details
Credit Hours:3
Max credits per semester:3
Max credits per degree:3
Course Format:LEC
ACE Outcomes: ACE 10 Integrated Product

Credit Hours:3

ACE:ACE 10 Integrated Product