1) You receive an award that pays $1,000 at the beginning of
year 0, $P at the beginning of year 1, and $3,000 at the beginning of year 2. Find P, given that at the
beginning of year 0, the present value of the award at 5% interest per year was $9300.
Term Pricing Project
Your job is to reprice Purdue Lifes 20 Year Term. You are to write a one
page memo or report summarizing your work. The report should include:
Statement of the problem being addressed
Your conclusions and recommendations
1)\Lafayette Savings Bank offers an account that pays 2% compounded daily. Bank One wants to offer
an account that pays the same annual effective rate as Lafayette Bank but is compounded monthly.
What interest rate, compounded monthly, should they offer?
INS ll HHHBE
canmn llllllllllE lEthnllﬂli amounts
After reading and Studyng this
chapter, you should be! able to:
Insurance Companies as Business
Types of ins
Immunucnum 10 [IE
mun HEALTH INSURANCE
Section 1 of this text is intended to introduce some basic principles
insurance companies follow when they issue life and health insurance poli-
cies. Chapter 1 begins by introducing the basic principles
Differentiate among risk, peril, and hazard.
Give an example of each.
Chapter One outlined the reasons that consumers buy insur—
ance. In Chapter 2 We will r
1.1 THE EVOLUTION OF INSURANCE
Humans have strived for security since the beginning of their
existence. At its earliest point, security existed if there was
an assurance of food, warmth, and shelter. The Bible relates
Last Name Abad-Policicchio Abdul Razak Aboagye-Adjei Ahmad Amstutz Avram Bailey Barker Belwood Ben Book Brushenko Chen Chen Chen Copeland Cui Diesslin Dolney Eckerley Fong Gao Gargano Geolat Gerardi Graber Haupert He He He Hudak Jalaludin Janneck Joest Jo
Abad-Policicchio, Joseph Abdul Razak, Mohd Noordin Aboagye-Adjei, Kwadwo Ahmad, Syaza Amstutz, Kevin Avram, Mihai Bailey, Andrea Barker, Caleb Belwood, Mary Ben, Chi Book, Edward Brushenko, Robert Chen, Haowei Chen, Kaidan Chen, Lingxiao Copeland, Be
Introduction to Casualty Actuarial Science
Ken Fikes, FCAS, MAAA Director of Property & Casualty
Email: [email protected]
Ken Fikes, FCAS, MAAA
Casualty Actuarial Science
Two major areas are measuring 1. Written Premium Risk
2. Earned P
(2.10) House should be insured for O A d .8$800000 A := 6.400000 10 Fraction insured 400000 O fd A
f := 0.6250000000 Let L=loss O Loss d solve 320000 = f$L, L Loss := 5.12000 10 O (2.11) Let f be the fraction insured. O f d solve 7500 = x$10000,
Purdue University MA/STAT 170
presented by Andy Henn
Directory & Actuary III
September 30, 2010
Trend 101 Session Overview
What is Trend? Types of Healthcare Claims Trend Trend Normalization
Company Confidential | For Internal Use Only | Do Not
MA/STAT 170 Fall 2010 Assignments
Homework is due at the beginning of class. Place the assignment on the table in the front of class as you come in. Sometime during the class I will put the papers into my binder. After this point I will not accept any mor
1. Compound Interest
The simplest example of interest is a loan agreement two children might make:
I will lend you a dollar, but every day you keep it, you owe me one more penny.
In this example, the interest rate is 1%/day and
AUGUST 20, 2013
Prof. Richard Penney
Co-Director Actuarial Science
Jeff Beckley, FSA
Co-Director, Actuarial Science Program
Join The Club!
Answers to Interest Theory Questions
4. 14.21 years
MA/STAT 170 Fall 2013 Assignments
Homework is due at the beginning of class. Place the assignment on the table in the
front of class as you come in. Sometime during the class I will put the papers into my
binder. After this point I will not accept any mor
The Problem: Purdue Property and Casualty Co. (PP&C) sells, among other products,
car insurance. Sue Purdue, a long standing customer, has had a claim in each of the last
two years. Underwriting would like to know whether or not to cancel
In this lab, you will develop the estimated loss reserves necessary using the paid loss
development method. The paid loss development method is the method discussed by Ken Fikes
in his presentation last week. In Part 1, each of you wil
Austin, Emily A.
Bauer, Austin B.
Beckley, Jenna K.
Bergmann, Mayfawny H.
Buness, Alicia N.
Catania, Christian A.
Chelius, Kevin P.
Fisher, Bradley A.
Henry, Michael P.
Hillman, Matthew R.
Hooks, Malcolm T.
Last Name, First Name
Lab Project 5
The purpose of this lab is to introduce you to additional functionality with in Excel. In particular, you will be
introduced to Macros and the graphing functionality. A Macro is a program in Excel that allows you to exec
Last Name, First Name
Lab Project 4
Pricing a Term Policy
This project builds on Labs 2 and 3. In this Lab, we will assume that Purdue Life sells a 30 year term insurance policy
with a death benefit of $10,000 and an annual premium of $100/year, payable on Januar
Pricing an Annuity
Central Indiana Life Insurance Companys customers can use a portion of the funds accumulated in
their 401(k) retirement plan to buy an annuity that pays $30,000 a year until death.
Part 1: When Martin Dempster retired at age 61 on Janua
Last Name, First Name
Lab Project 2
Purdue Life Profits
Part 1: Purdue Life sells 100, 30 year term insurance policies, each with a death benefit of $10,000 and each with
an annual premium of $100/year, payable on January 1. We will initially assume that every De
Lab Project 1
August 31, 2006
Introduction to Excel
Part 1: You will be given a function (mortality function) that defines the probability of death in any given year
and from that you will create a mortality table in Excel. In this project,