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.
Tot
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
Description
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?
tntptn two
THE llFE
llllll] HEALTH
INS ll HHHBE
canmn llllllllllE lEthnllﬂli amounts
After reading and Studyng this
chapter, you should be! able to:
Insurance Companies as Business
Organizations
Types of ins
Sectmnﬂne “
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
20
1.15 §
a
b
%
Why Insurance?
Differentiate among risk, peril, and hazard.
Give an example of each.
g;
a,
a
CHAPTER TWO
PROPERTY‘CASUALTY COVERAGES
2.1 INTRODUCTION
Chapter One outlined the reasons that consumers buy insur—
ance. In Chapter 2 We will r
CHAPTER ONE
WHY INSURANCE?
*
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
the stor
Last Name AbadPolicicchio Abdul Razak AboagyeAdjei 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
Name
AbadPolicicchio, Joseph Abdul Razak, Mohd Noordin AboagyeAdjei, 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: ken@theinfiniteactuary.com
Ken Fikes, FCAS, MAAA
1
Casualty Actuarial Science
Two major areas are measuring 1. Written Premium Risk
Pricing
2. Earned P
(2.10) House should be insured for O A d .8$800000 A := 6.400000 10 Fraction insured 400000 O fd A
5
(1) (1)
f := 0.6250000000 Let L=loss O Loss d solve 320000 = f$L, L Loss := 5.12000 10 O (2.11) Let f be the fraction insured. O f d solve 7500 = x$10000,
Trend 101
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
CHAPTER 1
Compound Interest
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
ACTUARIAL SCIENCE
MA/STAT 170
MA/STAT
AUGUST 20, 2013
Me!
Me!
Prof. Richard Penney
CoDirector Actuarial Science
Jeff Beckley, FSA
Jeff
CoDirector, Actuarial Science Program
Join The Club!
Join
s
s
Mentor Program
Job Interviews
Internships
fulltime
s
s
MATH/STAT 170
Answers to Interest Theory Questions
1.
a.
b.
c.
d.
532.00
660.00
516.00
676.00
a.
b.
c.
d.
532.00
681.83
515.75
703.31
2.
3.
a. 532.00
b. 681.83
c. 516.00
d. 703.65
4. 14.21 years
5. 1500.00
6. 1519.38
7. 736.32
8. 743.19
9. 746.07
10. 3276
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
Probability Lab
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
Lab 7
Loss Reserves
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
Name
Aitkali, Makhambet
An, Ran
Austin, Emily A.
Bauer, Austin B.
Beckley, Jenna K.
Bergmann, Mayfawny H.
Buness, Alicia N.
Catania, Christian A.
Chelius, Kevin P.
Dong, Wanxue
Fisher, Bradley A.
Henry, Michael P.
Hillman, Matthew R.
Hooks, Malcolm T.
Hu,
Last Name, First Name
Barnes, Keith
Boyd, Peter
Burnell, Brandon
Cash, Madison
Choka, Andrea
Combs, Katherine
Copp, Samuel
Elming, Eric
Fisher, Waylon
Gao, Zihuan
Gill, Keaton
Goodman, Grant
Guo, Likai
Hallinin, Dakota
Hubbard, Justin
Huemann, Kyle
Hughes
Math/Stat 170
Lab Project 5
Macros
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
Barnes, Keith
Boyd, Peter
Burnell, Brandon
Cash, Madison
Choka, Andrea
Combs, Katherine
Copp, Samuel
Elming, Eric
Fisher, Waylon
Gao, Zihuan
Gill, Keaton
Goodman, Grant
Guo, Likai
Hallinin, Dakota
Hubbard, Justin
Huemann, Kyle
Hughes
Math/Stat 170
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
Barnes, Keith
Boyd, Peter
Burnell, Brandon
Cash, Madison
Choka, Andrea
Combs, Katherine
Copp, Samuel
Elming, Eric
Fisher, Waylon
Gao, Zihuan
Gill, Keaton
Goodman, Grant
Guo, Likai
Hubbard, Justin
Huemann, Kyle
Hughes, Brad
Hunt, Jack
First Name
Keith
Peter
Brandon
Madison
Andrea
Katherine
Samuel
Eric
Waylon
Zihuan
Keaton
Grant
Likai
Justin
Kyle
Brad
Jackson
Laura
Emily
Spenser
Anthony
Zorawar
Xiangxi
Christopher
Ryan
Tianhao
Andrew
Collin
Jennifer
Joseph
Matthew
Ji Hun
Samantha
Weston
Math/Stat 170
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
Math/Stat 170
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,