test1_04 - ACT348F - TERM TEST 1 - OCTOBER 6, 2004 Print...

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ACT348F - TERM TEST 1 - OCTOBER 6, 2004 Print your name and student number clearly on each page Do all work on this question paper, with work for question 1 on this page (use both sides if necessary), work for question 2 on the next page, etc. All calculations should be done to at least 6 digit accuracy . Answers are expected to have at least 4 digit accuracy. THIS IS A CLOSED BOOK TEST - NO BOOKS OR NOTES ARE ALLOWED. A calculator may be used 1. A 4-year fully discrete endowment insurance has death benefit equal to 1000 and the endowment (survivor) benefit is equal to 2000. The policy is issued at age (premiums B are scheduled for the lifetime of the policy). The effective annual interest rate is 3œ ! 2 %, and the mortality probabilities are ; œ Þ#& ß ; œ Þ#& ß ; œ Þ&! ß ; œ Þ&! B B" B# B$ . The level equivalence principle annual premium is . T œ $#$Þ&# 5 (a) Formulate the 2nd year terminal prospective loss random variable (conditional distribution).
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test1_04 - ACT348F - TERM TEST 1 - OCTOBER 6, 2004 Print...

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