Module Catalogues, Xi'an Jiaotong-Liverpool University   
Module Code: MTH217
Module Title: Life Insurance Mathematics I
Module Level: Level 2
Module Credits: 5.00
Academic Year: 2020/21
Semester: SEM1
Originating Department: Mathematical Sciences
Pre-requisites: MTH113
This module provides students with a solid background for life contingent insurance. Students are required to understand tabular/parametric survival models. Students also understand how to calculate the present value of random variables associated with benefits and expenses. Students are equipped with efficient skills to calculate premiums for various life insurance contracts, including allowance for expenses and profits.
Learning outcomes 
A Understand the life insurance, simple assurance and annuity contracts

B Construct the mathematical formula for a variety of survival models

C Apply life table and selection to calculate survival probability

D Assess insurance benefits

E Understand, define and derive the expected present values of life annuities and
be able to use recursive equations; Express the values of life annuities in terms
of the life table functions.

F Be able to calculate net premiums and net reserves for profit contracts and calculate gross premiums and the annual loss/profit for different contracts and policies.

Method of teaching and learning 
This module is delivered through formal lectures and tutorial classes
• Life insurance and annuity contracts, pension benefits. Introduction to the factors that affect mortality, simple life assurance and life annuity contracts.

• Assurance and life annuity contracts.

• The survival random variables, the analytical laws of mortality.

• Life table, life expectancy, fractional age assumptions, survival models for life insurance policyholders, select and ultimate survival models.

• Valuation on insurance benefits, insurance benefits and functions for select lives

• Discrete life annuities and continuous life annuities.

• The present value of future loss random variables, the equivalence principle, gross premium calculation, profit, the portfolio percentile premium principle and extra risks.

Delivery Hours  
Lectures Seminars Tutorials Lab/Prcaticals Fieldwork / Placement Other(Private study) Total
Hours/Semester 39    13      98  150 


Sequence Method % of Final Mark
1 Assignments (2) 15.00
2 Midterm Exam 15.00
3 Final Exam 70.00

Module Catalogue generated from SITS CUT-OFF: 6/5/2020 9:00:30 PM