Arts & Science Calendar 1998-99: Table of Contents: Programs and Courses
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ACT ACTUARIAL SCIENCE


On this page: Introduction | Faculty Members | Programs | Courses
See also: Course Summer Timetable | Course Winter Timetable | Secondary School Information | More on Department

Faculty Members

Given by Members of the Department of Statistics

Professor and Acting Chair of the Department
M.J. Evans, MA Ph D

Associate Professors
S. Broverman, M Sc, Ph D, ASA B. Chan, MA, Ph D, ASA

Assistant Professor
X. Lin, MA, Ph D

Introduction

Actuarial Science is based upon the application of mathematical techniques to reduce the impact of such hazards as loss of income through death, disability, or retirement, or loss of property through fire, collision, or theft. Actuaries are thus the chief architects of life, health, and property insurance plans, and pension plans, and bear the major responsibility for their soundness. By using probabilities, actuaries forecast and value the expected total costs of the benefits that will be provided to the participants in such plans. They, in effect, commit their employers or clients to substantial long-range financial obligations. New insurance and pension benefits are constantly being introduced and expanded, while at the same time government regulations and tax rules become increasingly complex.

ACT 240H and 247H are courses of general interest, since almost every student will from time to time be either a saver or a borrower, and will also be covered by insurance and pension plans. ACT 335H, 330H cover numerical techniques of broad application. The other third and fourth year courses deal with rather specialized topics, and are taken only by students intending to pursue an actuarial career.

A Specialist Co-operative Program in Actuarial Science is now offered by the Department. Also, Professional Experience Year program is offered after third-year. Contact the "PEY" office at 978-3132 for details. Professional accreditation as an actuary is obtained by passing a series of examinations set by the Society of Actuaries or the Casualty Actuarial Society. For more information about Actuarial studies and careers, contact Professors Broverman, Chan or Lin.

Enquiries: 100 St. George Street, Sidney Smith Hall, Room 6018 (978-3452/5136)

Undergraduate Studies Coordinator: A.M. Vukov

ACTUARIAL SCIENCE PROGRAMS

Enrolment in these programs requires completion of four courses; no minimum GPA is required except for the ACT Specialist Cooperative program where a minimum CGPA of 2.5 is required.

ACTUARIAL SCIENCE (B.Sc.)

Consult Department of Statistics. Specialist program: S06081 or

Specialist Cooperative Program: S12701 (12.5 full courses or their equivalent, including at least one 400-series course)

The Specialist Cooperative Program has the same course requirements as the Specialist Program. Employers are contacted by the program coordinator but work terms must be won by students in competition. Students do two separated 4-month work terms before their last semester. The earliest that a student can start the program is after the first semester of the third year. Consult Professor S. Broverman or Professor B. Chan of the Department of Statistics for details.

This program is designed to prepare a student for professional work as an actuary.
First Year:
1. CSC 148H/260H (may be taken in 2nd year, CSC 108H recommended preparation)
2. ECO 100Y(63%)
3. MAT 137Y/157Y
Second Year:
1. ACT 240H, 247H
2. MAT 235Y/237Y/257Y (MAT237Y/257Y recommended)
3. ECO 200Y/202Y/206Y/208Y (ECO 206Y/208Y recommended)
4. STA(250H, 257H)/ECO227Y; MAT 223H/240H
Higher Years:
1. APM 236H/261H, ACT 330H, ACT 335H/CSC 351H, ACT 348H, 450H, 451H, 460H, 466H, 467H
2. STA 302H
3. STA 457H (MAT 246Y recommended)

Major program: M06081 (6.5 full courses or their equivalent)
First Year:
1. CSC 148H/260H (may be taken in 2nd year, CSC 108H recommended preparation)
2. MAT 137Y/157Y
Higher Years:
1. ACT 240H, 247H, 335H/CSC 351H
2. ACT 348H
3. ACT 330H/APM 236H/261H
4. MAT 223H/240H, 235Y/237Y/239Y/257Y
5. STA (250H, 257H)/ECO227Y

Minor program: R06081 (4 full courses or their equivalent)
1. MAT 133Y/135Y/137Y/157Y
2. ACT 240H, 247H; STA (250H, 255H/257H)/ECO220Y/227Y
3. Two of: ACT 330H/335H/348H/STA 302H

ACTUARIAL SCIENCE COURSES

(see Section 4 for Key to Course Descriptions)

For Distribution Requirement purposes, all ACT courses are classified as SCIENCE courses.

NOTE: Course content in some courses will be changing next year to keep pace with changing professional examination requirements.

ACT240H
Fundamentals of Investment and Credit 26L, 13T

Interest, discount and present values, as applied to determine prices and values of mortgages, bonds, shares of stock; loan repayment schedules and consumer finance payments in general; yield rates on investments given the costs of the investments and the cash returns; effective costs of credit arrangements.
Prerequisite: A first year calculus course

ACT247H
Introductory Life Contingencies 26L, 13T

Valuation of risky securities; probability theory applied to problems involving life and death; costs of life assurances, life annuities, and pensions; select mortality; standard international notation, stochastic interest rates.
Corequisite: ECO220Y/227Y/STA255H/257H
Prerequisite: ACT240H

ACT330H
Operations Research 39L

Dynamic programming; queuing theory; decision analysis; simulation.
Exclusion: APM361H, COM470Y
Prerequisite: ECO220Y/227Y/STA255H/257H

ACT335H
Numerical Analysis 39L

Properties of finite difference operators as applied to interpolation polynomials; approximate differentiation; summation; approximate integration; numerical methods of solving equations in one variable and systems of linear equations.
Exclusion: CSC336H, 350H, 351H
Prerequisite: MAT235Y/237Y/239Y/257Y

ACT348H
Intermediate Life Contingencies 39L, 13T

Determination of net annual premiums and balance sheet reserves; problems involving more than one life; laws of mortality. Expectation of life and central death rate; fractional premiums.
Prerequisite: ACT247H; MAT235Y/237Y/239Y/257Y; ECO227Y/STA257H

ACT349H
Topics in Actuarial Mathematics I 39L
Topics in casualty actuarial mathematics, including loss distributions and credibility theory. (Not offered in 1997-98)
Prerequisite: ACT348H

ACT450H
Advanced Life Contingencies 39L, 13T

Valuation theory for pension plans; methods of valuation; analysis of tables that show survivorship where there is more than one mode of exit from the cohort. Insurance models including expenses; nonforfeiture benefits and dividends; special plans and contingencies.
Prerequisite: ACT348H

ACT451H
Risk Theory 39L

Risk theory; computing for actuarial science.
Co-requisite: ACT335H/CSC350H/351H, ACT330H, 348H; APM236H/261H
Prerequisite: CSC148H/260H; ECO227Y/STA257H

Note: If enroled in Mathematics and Its Applications: Finance Concentration, MAT137Y and STA348H are acceptable in lieu of the co-requisites given above

ACT453H
Topics in Actuarial Mathematics II 39L

Advanced topics in pension mathematics and asset, liability, and investment management for pension plans.
Prerequisite: ACT348H/permission of instructor
Corequisite: ACT450H

ACT460H
Survival Models 39L

Actuarial, moment and maximum likelihood estimation from complete and incomplete data samples for tabular models and for parametric models, including those with concomitant variables; and estimation of life tables from general population data.
Prerequisite: ECO227Y/STA257H
Co-requisite: ACT348H

ACT466H
Credibility Theory and Loss Distribution 39L

Bayesian estimation, credibility theory, maximum likelihood methods, approximations to insured loss distributions.
Exclusion: ACT465Y
Prerequisite: ECO227Y/STA257H
Co-requisite: ACT335H/CSC350H/351H, ACT348H

Note: If enroled in Mathematics and Its Applications: Finance Concentration, MAT137Y and STA348H are acceptable in lieu of the co-requisites given above

ACT467H
Graduation and Demography 39L

Graduation by moving-weighted-average, graphic, Whittaker, Bayesian, parametric and smooth-junction interpolation methods. Statistical considerations. Two-dimensional graduation. Measures of fertility, population projections, stable and stationary populations, characteristics and trends.
Exclusion: ACT465Y
Prerequisite: ECO227Y/STA257H
Co-requisite: ACT335H/CSC350H/351H, ACT348H

ACT496H /497H
Readings in Actuarial Science TBA

Independent study under the direction of a faculty member. Persons wishing to take this course must have the permission of the Undergraduate Secretary and of the prospective supervisor.

ACT498Y /499Y
Readings in Actuarial Science TBA

Independent study under the direction of a faculty member. Persons wishing to take this course must have the permission of the Undergraduate Secretary and of the prospective supervisor.


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Revised: April 6, 1998

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