3 credits
Fall 2025 Lecture Upper Division
This course covers advanced life contingencies topics such as multiple decrement models, joint life models, pension models, and profit emergence and testing for insurance products. It builds on the basic life contingent models learned in STAT 47200.
Learning Outcomes1Understand key concepts concerning multiple state mortality/morbidity and joint life mortality models for insurance and annuity contracts.
2Understand key concepts concerning estimation and construction of multiple state and joint life models for insurance and annuity contracts.
3Perform calculations on the present value random variables associated with benefits and expenses for any of the models in the first learning objective.
4Analyze emerging surplus, and to set premiums and reserves, using profit testing.
5Understand how retirement benefits are accrued, valued, and funded.
6Understand various types of equity-linked life insurance guarantees, options that are embedded in life insurance and annuity contracts and be able to price, reserve and hedge the risk inherent in these options.
Prerequisites
made by Purdue students.