
Instruction offered by members of the Department of Mathematics and Statistics in the Faculty of Science.
Note: For listings of related courses, see also Applied Mathematics, Mathematics, Pure Mathematics, and Statistics.


Actuarial Science
325

Theory of Interest/Mathematics of Finance


Measurement of interest, elementary annuities, general annuities, amortization schedules and sinking funds, bonds and other securities.
Course Hours:
3 units; H(31T)
Prerequisite(s):
One of Mathematics 253 or 267 or 277 or 283 or Applied Mathematics 219; or one of Mathematics 249 or 251 or 265 or 275 or 281 or Applied Mathematics 217 and consent of the Department.
Notes:
Actuarial Science 325 is strongly recommended as preparation for Actuarial Science 327.

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Actuarial Science
327

Life Contingencies I


The survival function, force of mortality, life tables, analytical laws of mortality, life insurance, continuous and discrete life annuities, recursion equations. Introduction to benefit premiums and/or insurance and annuity models with interest as a random variable as time permits.
Course Hours:
3 units; H(31T)
Prerequisite(s):
A grade of "C" or higher in Statistics 321 or Mathematics 321.
Notes:
Actuarial Science 325 is strongly recommended as a prerequisite.

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Actuarial Science
425

Intermediate Topics in Finance and Investment


Selected topics relevant to students with an interest in actuarial science, enterprise risk management, financial mathematics, etc. Topics include financial instruments; sources and cost of capital; portfolio selection; CAPM and alternatives; dividend policy; taxation; basic option pricing theory; stock valuation; measurement and assessment of financial performance; risk management.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 325 and Statistics 323 or Mathematics 323; or Actuarial Science 325 and 60 units (10 fullcourse equivalents) and consent of the Department.
Antirequisite(s):
Credit for Actuarial Science 425 and Finance 317 will be not be allowed without consent of the Department.
Notes:
Students with credit for Finance 317 but requiring Actuarial Science 425 for VEE credit from the Society of Actuaries should consult with the Department.

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Actuarial Science
427

Life Contingencies II


Benefit premiums, premium principles, fully continuous and fully discrete premiums. Benefit reserves and their analysis. Insurance models including expenses. Multiplestate models.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327; and Statistics 323 or Mathematics 323; and one of Mathematics 311 or 313 or 353 or 367 or 375 or 381.

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Actuarial Science
437

Actuarial Models


Basic distributional quantities; characteristics of actuarial models; continuous models; Basic and advanced discrete distributions; frequency and severity with coverage modifications (deductibles, policy limits, coinsurance); aggregate loss models.
Course Hours:
3 units; H(30)
Prerequisite(s):
Statistics 323 or Mathematics 323.
Also known as:
(formerly Statistics 437)

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Actuarial Science
511

Generalized Linear Models for Actuaries


Description of insurance data, response distributions, exponential family responses and estimation, GLMs, models for count data, categorical and continuous responses. Applications include: personal injury insurance, vehicle insurance, diabetes deaths, third party claims, and degree of vehicle crash. Software for fitting GLMs will be discussed.
Course Hours:
3 units; H(30)
Prerequisite(s):
Statistics 323 or Mathematics 323.
Notes:
Statistics 429 is recommended as a corequisite or prerequisite.

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Actuarial Science
513

Fundamentals of Actuarial Practice


An introduction to the foundations of actuarial science including the history and development of insurance, the actuarial profession, and the professional societies. Standards of practice and codes of ethics and conduct. An examination of the contexts and environments (including the legal, political, and societal) in which actuarial work takes place. Foundational skills required by actuaries, with an emphasis on communication.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327; and Statistics 321 or Mathematics 321.
Antirequisite(s):
Credit for Actuarial Science 513 and 539.02 will not be allowed.

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Actuarial Science
515

Models for Financial Economics


Survey of financial derivatives, valuation of derivatives using binomial trees, BlackScholesMerton equation, dynamic hedging, Brownian motion and Ito’s Lemma.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 325; and Statistics 321 or Mathematics 321.
Antirequisite(s):
Credit for Actuarial Science 515 and 539.04 will not be allowed.

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Actuarial Science
517

Estimating Unpaid Claims in General Insurance


Data collection, adjusting premiums, trending losses, development triangles, expected method, frequency severity method, Bornhuetter Ferguson method, Benktander method, Cape Cod method, impact of changing conditions on projection method.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327.
Antirequisite(s):
Credit for Actuarial Science 517 and 539.06 will not be allowed.

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Actuarial Science
519

Quantitative Financial Risk Management


Risk measures, correlations and copulas, various approaches to modelling market and credit risk, liquidity risk, enterprise risk management.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327.

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Actuarial Science
527

Life Contingencies III


Multiple life functions, dependent and independent models, related annuities and insurances. Multiple decrement models: time until and causes of death. Associated single decrement tables. Applications of multiple decrement theory. Asset shares. Business and regulatory considerations.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327; and Statistics 323 or Mathematics 323; and one of Mathematics 311 or 313 or 353 or 367 or 375 or 381; and Computer Science 217 or 231 or 235.

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Actuarial Science
531

Loss Distributions and Their Estimations


Review of mathematical statistics; estimation based on complete and modified data; frequentist estimation; Bayesian estimation; simulation in actuarial modelling; model selection.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327; and Statistics 323 or Mathematics 323; and one of Mathematics 311 or 313 or 353 or 367 or 375 or 381.
Antirequisite(s):
Credit for Actuarial Science 531 and 533 will not be allowed.
Notes:
Actuarial Science 437 or Statistics 437 is strongly recommended as a prerequisite.

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Actuarial Science
535

Mathematics of Demography


Conventional and adjusted measures of mortality; measures of fertility; measures of morbidity; North American demographic characteristics and trends; evaluation of demographic data; projections for stable and stationary populations; actuarial applications of demographic characteristics and trends.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327; and Statistics 323 or Mathematics 323.

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Actuarial Science
537

Credibility Theory


Limited fluctuation credibility; full and partial credibility; greatest accuracy credibility; Bayesian methodology; credibility premium; Buhlmann model; BuhlmannStraub model; empirical Bayes method; bonusmalus system.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327; and Statistics 323 or Mathematics 323; and one of Mathematics 311 or 313 or 353 or 367 or 375 or 381.
Antirequisite(s):
Credit for Actuarial Science 537 and either 533 and 637 will not be allowed.
Notes:
Actuarial Science 437 or Statistics 437 is strongly recommended as a prerequisite.

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Graduate Courses
Note: In addition to the prerequisites listed below, consent of the Department is a prerequisite for all graduate courses.

Actuarial Science
627

Advanced Life Contingencies


Multiple life functions, dependent and independent models, related annuities and insurances. Multiple decrement models: time until and causes of death. Associated single decrement tables. Applications of multiple decrement theory. Asset shares. Business and regulatory considerations.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327; and one of Statistics 323 or Mathematics 323; and one of Mathematics 311 or 313 or 353 or 367 or 375 or 381; and one of Computer Science 217 or 231 or 235.
Antirequisite(s):
Credit for Actuarial Science 627 and 527 will not be allowed.

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Actuarial Science
637

Credibility Theory


Limited fluctuation credibility; full and partial credibility; greatest accuracy credibility; Bayesian methodology; credibility premium; Buhlmann model; BuhlmannStraub model; empirical Bayes method; bonusmalus system.
Course Hours:
3 units; H(30)
Prerequisite(s):
Actuarial Science 327; Statistics 323 or Mathematics 323; and one of Mathematics 311 or 313 or 353 or 367 or 375 or 381.
Antirequisite(s):
Credit for more than one of Actuarial Science 537, 637 and 533 will not be allowed.
Notes:
Actuarial Science 437 or Statistics 437 is strongly recommended as a prerequisite.

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