STUART A. KLUGMAN, PhD, FSA, is Principal Financial Group Professor of Actuarial Science at Drake University, Des Moines, Iowa. HARRY H. PANJER, PhD, FSA, FCIA, HonFIA, is Professor in the Department of Statistics and Actuarial Science at the University of Waterloo, Ontario, Canada. GORDON E. WILLMOT, PhD, FSA, FCIA, is Munich Re Professor in the Department of Statistics and Actuarial Science at the University of Waterloo.