Exam 3 MLC

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MLC Seminar Providers

Austin Actuarial Seminars (Jim Daniel), http:\\www.actuarialseminars.com . Site contains links to some free study notes.

MLC Formula Sheet

Exam 3 / MLC Syllabus

http://www.soa.org/files/pdf/edu-2008-spring-mlc-note.pdf

EDUCATION AND EXAMINATION COMMITTEE OF THE SOCIETY OF ACTUARIES (SOA)

SPRING 2008

EXAM MLC

ACTUARIAL MODELS—LIFE CONTINGENCIES SEGMENT

INTRODUCTORY STUDY NOTE

1. The Actuarial Models–Life Contingencies Segment examination for Spring 2008 will be given on
Thursday, May 15, from 8:30 a.m. to 11:30 a.m. The examination will consist of 30 multiple-choice
questions.

The score for the examination is based solely on the number of questions answered correctly.
Therefore, candidates should answer every question to maximize their scores.

2. Any changes in the Course of Reading for this exam since the publication of the Spring 2008 Basic
Education Catalog of the SOA are reflected in this Introductory Study Note and will also be posted
on our Web site.

3. The following list contains all study notes for this exam in Spring 2008. Items marked with # are
new/updated for this session.
MLC-05-08# Introductory Study Note (this study note)
Exam MLC Tables
Notational differences between Actuarial Mathematics (AM) and Models for
Quantifying Risk (MQR) for candidates taking Exam MLC
Candidates using the First Edition of Models for Quantifying Risk will need to
supplement the text with the Errata Package available on the Actex web site
www.actexmadriver.com.
Past Exams All released exam papers, since 2000, can be found at:
http://www.soa.org/education/resources/edu-multiple-choice-essayexaminations.
aspx
MLC-09-08# Exam MLC Sample Questions and Solutions
MLC-24-05 Multi-State Transition Models with Actuarial Applications (second printing with minor
corrections, October 2007)
MLC-25-05 Section 8.5 from the second printing of Actuarial Mathematics, Second Edition (only
the variance recursion given by Equation 8.5.16 with i=1)
MLC-28-08# Poisson Processes (and mixture distributions)-03.12.08

4. Errata:
MLC-05-08 - 2 - Printed in U.S.A.
Actuarial Mathematics, Second Edition
Page 87, the last line of problem 3.17b; (2k + 1) should be (2k – 1).
MLC-24-05 (first printing) Page 15, the formula before “Problems” should be:
[(1)(0.2)](54)v + [(0.3)(0.3)](64)v2 + [(0.08)(0.5)](74)v3 + [(0.012)(1)]81v4 = 14.240.
The combined actuarial present value for the two types of transitions together is
17.426 + 14.240 = 31.486.

5. The study notes for this exam include sample questions and solutions. The sample questions
provide the candidate with the opportunity to practice on the types of questions that are likely to
appear on the examination. New sample examinations will be released periodically or whenever the
nature of the examination changes substantially.

6. The Illustrative Life Table, the Illustrative Service Table, and a set of values from the standard
normal distribution will be available for use on Exam M Actuarial Models–Life Contingencies
Segment (Exam MLC). A copy of these is included with this note. Note that candidates will not
be allowed to bring copies of the tables into the examination room.

The Special Notes on the “Interest Functions” page of the tables include some general
assumptions that apply to all problems unless otherwise stated.

7. A survey for examinations FM, MLC, MFE and C will be available on the SOA and CAS web sites
after the examinations have been administered. Candidates are encouraged to provide
feedback on the exam readings and the examinations that they have taken.

8. Several book distributors carry some or all of the textbooks for the Society of Actuaries exams. A list
of distributors is available at: http://www.soa.org/education/course-catalog/edu-catalog-detail.aspx
Any book distributor who carries books for SOA exams may have its information included on the
SOA Web site unless the SOA office receives substantial complaints about service. Candidates
should notify the Publication Orders Department of the SOA in writing if they encounter serious
problems with any distributor.

9. The examination questions for this exam will be based on the required readings for this exam. If a
conflict exists (in definitions, terminology, etc.) between the readings for this exam and the readings
for other exams, the questions should be answered on the basis of the readings for this exam.

10. Candidates may use the battery or solar-powered Texas Instruments BA-35 model calculator, the BA
II Plus*, the BA II Plus Professional* or TI-30X or TI-30Xa or TI-30X II* (IIS solar or IIB battery).
Candidates may use more than one of the approved calculators during the examinations.
Calculator instructions may not be brought into the exam room. During the exam, the calculator
must be removed from its carrying case so the supervisor can confirm it is an approved model.
Candidates using a calculator other than the approved models will have their examinations
disqualified.

Candidates can purchase calculators directly from: Texas Instruments, Attn: Order Entry, PO Box
MLC-05-08 - 3 - Printed in U.S.A.

650311, Mail Station 3962, Dallas, TX 75265, phone 800/842-2737 or http://epsstore.ti.com
*The memory of TI-30X ll, BA ll Plus and BA II Plus Professional will need to be cleared by
the examination supervisor upon the candidate’s entrance to the examination room.

11. Information for various seminars/workshops and study manuals are listed at
http://www.soa.org/education/course-catalog/edu-catalog-detail.aspx These seminars/workshops
and study manuals do not reflect any official interpretation, opinion, or endorsement of the Society of
Actuaries.

12. A candidate planning to seek admission to the SOA should submit the Application for Admission as
Associate before completing the education requirements for Associateship as detailed in the Spring
2008 Basic Education Catalog.

13. In addition to the examination requirements, all prospective SOA Associates will be required to
attend and successfully complete a seminar on professionalism prior to admission as a member.
See the SOA Spring 2008 Basic Education Catalog for more information.

14. The Society of Actuaries provides study notes to persons preparing for this examination. They are
intended to acquaint candidates with some of the theoretical and practical considerations involved in
the various subjects. While varying opinions are presented where appropriate, limits on the length of
the material and other considerations sometimes prevent the inclusion of all possible opinions.
These study notes do not, however, represent any official opinion, interpretation or endorsement of
the Society of Actuaries. The SOA is grateful to the authors for their contributions in preparing study
notes.

The American Academy of Actuaries (AAA) and the Conference of Consulting Actuaries (CCA)
jointly sponsor the Associateship and Fellowship examinations with the SOA.