SDST3909 Life contingencies II (6 credits) Academic Year 2025
Offering Department SCDS (Department of Statistics and Actuarial Science) Quota ---
Course Co-ordinator Dr D Lee, SCDS (Department of Statistics and Actuarial Science) < leedav@hku.hk >
Teachers Involved (Dr D Lee,Statistics & Actuarial Science)
Course Objectives This course aims at introducing further topics in life insurance. Emphasis will be placed on applications of more advanced theories of life contingencies.
Course Contents & Topics This course is a continuation of the materials covered in SDST3901. We shall discuss the following topics: expenses and asset shares; Thiele's differential equation and policy values at fractional years; multiple state models and their applications in multiple decrement and multiple life theories; profit testing.
Course Learning Outcomes
On successful completion of this course, students should be able to:

CLO 1 incorporate expenses in gross premium and calculate policy values based on the gross premium for life insurances and annuities
CLO 2 apply the recursion formula and Thiele's differential equation in calculating policy values
CLO 3 calculate probabilities and actuarial present values under the multiple state model framework
CLO 4 analyze multiple decrement models and calculate the life insurances and annuities in models with multiple decrements
CLO 5 analyze multiple life models and calculate the life insurances and annuities in models with multiple lives
CLO 6 explain the concept of profit testing and perform relevant calculations
Pre-requisites
(and Co-requisites and
Impermissible combinations)		 Pass in SDST3901, or already enrolled in this course; and
For BSc(Actuarial Science) students only.
Only for students admitted in 2025 and thereafter.
Course Status with Related Major/Minor /Professional Core 2U000C00 Course not offered under any Major/Minor/Professional core
2024 BSc in Actuarial Science ( Core/Compulsory )
2023 BSc in Actuarial Science ( Core/Compulsory )
2022 BSc in Actuarial Science ( Core/Compulsory )
2021 BSc in Actuarial Science ( Core/Compulsory )
Course to PLO Mapping 2024 BSc in Actuarial Science < PLO 1,2,3,4,5 >
2023 BSc in Actuarial Science < PLO 1,2,3,4,5 >
2022 BSc in Actuarial Science < PLO 1,2,3,4,5 >
2021 BSc in Actuarial Science < PLO 1,2,3,4,5 >
Offer in 2025 - 2026 Y        2nd sem    Examination May     
Offer in 2026 - 2027 Y
Course Grade A+ to F
Grade Descriptors
A Demonstrate thorough mastery at an advanced level of extensive knowledge and skills required for attaining all the course learning outcomes. Show strong analytical and critical abilities and logical thinking, with evidence of original thought, and ability to apply knowledge to a wide range of complex, familiar and unfamiliar situations. Apply highly effective organizational and presentational skills.
B Demonstrate substantial command of a broad range of knowledge and skills required for attaining at least most of the course learning outcomes. Show evidence of analytical and critical abilities and logical thinking, and ability to apply knowledge to familiar and some unfamiliar situations. Apply effective organizational and presentational skills.
C Demonstrate general but incomplete command of knowledge and skills required for attaining most of the course learning outcomes. Show evidence of some analytical and critical abilities and logical thinking, and ability to apply knowledge to most familiar situations. Apply moderately effective organizational and presentational skills.
D Demonstrate partial but limited command of knowledge and skills required for attaining some of the course learning outcomes. Show evidence of some coherent and logical thinking, but with limited analytical and critical abilities. Show limited ability to apply knowledge to solve problems. Apply limited or barely effective organizational and presentational skills.
Fail Demonstrate little or no evidence of command of knowledge and skills required for attaining the course learning outcomes. Lack of analytical and critical abilities, logical and coherent thinking. Show very little or no ability to apply knowledge to solve problems. Organizational and presentational skills are minimally effective or ineffective.
Communication-intensive Course N
Course Type Lecture-based course
Course Teaching
& Learning Activities
Activities Details No. of Hours
Lectures 36.0
Tutorials 12.0
Reading / Self study 100.0
Assessment Methods
and Weighting
Methods Details Weighting in final
course grade (%)		 Assessment Methods
to CLO Mapping
Assignments Coursework (assignments, tutorials, a computer-based assessment and a class test) 25.0 1,2,3,4,5,6
Examination One 3-hour written examination 75.0 1,2,3,4,5,6
Required/recommended reading
and online materials		 Bowers. N.L., Gerber, H.U., Hickman, J.C., Jones, D.A., and Nesbitt, C.J.: Actuarial Mathematics (Society of Actuaries, 1997, 2nd edition)
Dickson, D.C.M., Hardy, M.R., and Waters, H.R.: Actuarial Mathematics for Life Contingent Risks (Cambridge University Press, 2020, 3rd edition)
Course Website http://moodle.hku.hk
Additional Course Information NIL