The next phase in my study schedule will be to tackle the remaining information found in the “Life Insurance Products and Finance” textbook. There are several chapters to cover here, so I am allocating two weeks (8 & 9) to cover this information.
Before I list the specific topics and corresponding sessions, I wanted to make a few general comments about the material found in this portion of the book. There are a lot of formulas included and the format used is somewhat unique. The formulas are written more from a programmer’s perspective or for someone who is writing a spreadsheet. Thus, they are probably different from what you have seen on prior exams.
I think it’s more important to understand the concepts represented by the formulas rather than getting caught up in the notation that is used in the textbook. In my recordings I try to explain the logic behind the formulas more than the actual notation that is used. Hopefully this will be helpful in your preparations.
The other thing to remember is that each chapter builds on the previous one. That means that some of the earlier chapters (like 4 & 5) are not likely to be tested on their own, but the concepts presented in these chapters will be needed later on to do the calculations that are more likely to appear on the exam. In a few weeks, I will have some practice problems which will show the type of questions that I think could come from this portion of the syllabus.
So with that as background, here is the information that I recommend you cover in weeks 8 & 9 (All of the chapters are from “Life Insurance Products and Finance”):
Chap. 4 — Basic Actuarial Math (C.1.1)
Chap. 5 — Life Insurance Cash Flows (C.1.2)
Chap. 7 — Reinsurance (C.1.3)
Chap. 8 — Investment Income (C.1.4)
Chap. 9 — Taxes (C.1.5)
Chap. 10 — Required Capital (C.1.6)
Chap. 11 — Profit Measures (C.1.7)
Chap. 13 — Annuity Products (C.1.8)
Chap. 14 — Financial Modeling (C.1.9)
Good luck and happy studying!!
Jeremy