This is a compulsory level II course which is an important foundation course in actuarial science. Candidates should master the fundamental concepts of actuarial and financial mathematics and its simple applications. This course allows the candidate to begin preparation for the professional examinations (the Society of Actuaries Actuarial Models examination, Exam 3 of the Casualty Actuarial Society, and the Faculty/Institute of Actuaries Contingencies examination). It covers practical applications such as the computational aspects of pricing and prepares the candidate for the follow up courses in reserving and risk measurement of insurance portfolios.

The course contains survival distributions and life tables – applications of probability to problems of life and death, the determination of premiums for insurances and annuities in both the discrete and continuous cases and net Premiums.