Description: This paper is designed to be a single reference source for an actuary who wants to increase his or her understanding of a Guaranteed Investment Contract 'GIC', its risks, and how to control them. The paper emphasizes the practical difficulties of matching asset and liability cash flows and discusses in detail how the sponsor and/or participants of the plan being funded by the GIC can antiselect against the insurance company. It also discusses how the actuary should go about pricing and reserving for GICs. From Transactions of Society of Actuaries 1984, Vol. 36.

Description: This paper, originally published in March 1983 as a study note for exam part 10E, and in 1984 in the Transactions of Society of Actuaries Vol. 34, is designed to be a single reference source for actuaries who want to increase their understanding of a GIC. This educational paper provides knowledge on all aspects of GICs, including their history, and has received significant recognition, including the 1984-85 Annual Prize, and the L. Ronald Hill Memorial Prize in 1985.