MLC: How to solve it study guide

Why Guo's MLC study guide is unique. Each chapter of my study guide addresses some real pain points most exam candidates have.

Spring 2018 edition

You should be able to order my spring 2018 MLC study guide from Actuarial Bookstore or Actex starting Monday October 30, 2017.

Spring 2018 MLC: How To Solve It sample chapters

Fall 2017 edition errata

These are the most errors found as of 12/17/2018.

Please report any errors to yufeng.guo.actuary@gmail.com

Fall 2017 MLC: How To Solve It sample chapters

Serious Errors

Numerous typos were found. Most typos should be obvious and will not be reported here. Only serious errors are reported here.

Other questions

ANSWER. For example, the loss-at-issue for a 10-pay whole life insurance of b on (x) is L=b*v^(Tx+1)-G* PV of m year annuity due, where m=min(Kx+1,10) and G is the gross premium. The PV of the benefit random variable is b*v^(Tx+1), which is not affected by the max number of premiums. Only the PV of the premium is impacted by the maximum number of premiums. The PV of the premiums is G* adue min(Kx+1,10).

ANSWER. As a rule of thumb, when projecting the final salary under PUC, you'll want to use the most current salary data. In this problem, the salary during the year after the valuation date is most current.

Study Schedule

Some people asked me how to set up a study schedule for the fall 2017 exam. My answer: you can study at whatever pace you like. However, you'll want to set aside roughly 1 month before the fall 2017 exam date to practice the post 2014 MLC exam papers. The fall 2017 MLC exam date is October 27, 2017. So roughly from September 27 to October 26, you'll want to have a dry run of the officially released post-2014 MLC exam papers under the exam like condition. Before you walk into the exam room on October 27, you should be able to reproduce the solutions to all the post-2014 exam papers pretty much error free.

This really means that your learning of the MLC fundamentals should roughly end around September 27. After Septembers 27, your focus should be to master the post 2014 exam papers. It may take you multiple draw runs of the post-2014 papers for you to reach the exam ready state where you can solve the post-2014 exam papers without thinking nearly error free.

From now till the exam date, you'll want to use a notepad or index cards to keep track your habitual calculation errors. Virtually everyone has some blind spots. For example, my habitual math error was that 5 times 0.24=1. I will write down this common error of mine in a notepad as a reminder to help avoid this math error next time. It's often hard to discover your own faulty math thinking unless you have solved a lot of problems. If you don't track your habitual errors before the exam, trust me, you'll most likely make such errors in the exam. Some times you know the concept inside out yet you just couldn't reproduce the correct answer. Chances are that your brain has hidden math errors. You'll need to expose most of your hidden errors before walking into the exam room.

Of course, the 1 month is the just a rule of thumb. It varies by person. However, make sure you set aside enough dry run time.

Can you possibly cut some corners because your study time is limited? You can probably skip how to derive Thiele's differential equation, the profit testing under a multiple state model, and profit testing under reversionary bonus. These problems are too time-consuming and harder to be tested in the exam.

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