In 2012, the Society of Actuaries modified the learning objectives for Exam MLC. Significant changes have been made to Models for Quantifying Risk as a result. The fourth edition expanded the content in four areas. Now with the fifth edition, a fifth expansion has occurred. 1 Multi-State Models New Learning Objectives place additional emphasis on the notion of representing various actuarial models as multi-state models, �using the mathematics of discrete-time and/or �continuous-time Markov Chains. These topics have been �rewritten and expanded. �Additionally, several sections have been inserted to �illustrate material �represented in a multi-state model context. 2 Additional Insurance Coverage Another new Learning Objective calls for a brief �presentation of other insurance coverages, showing how the concepts developed for traditional �coverages can be applied to additional ones. The expanded �coverage on this topic is focused on disability income insurance and defined �benefit pension plans. 3 Interest Rate Risk An entire section has been added to address this topic, which includes an introduction to interest-sensitive products. 4 Expanded �coverage of reserves Another new Learning Objective calls for an understanding of the concept of reserves as financial accounting �liabilities, including the idea of �addressing this notion via modified premium reserves. To adequately cover these key topics we have separated the chapter on reserves in earlier editions into two expanded �chapters. 5 Analyzing contingent contracts A final new topic is the important concept of analyzing contingent contracts for profit or loss. This change is the primary focus of the fifth edition. This topic is covered in new sections inserted into chapters 10, 11, and 14.

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