exam_00 - ACT348H Final Exam 2000 Questions 1-3 relate to...

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ACT348H, Final Exam 2000 Questions 1-3 relate to the following situation. A fully continuous 25-year deferred life annuity of 1 per year is issued at age 40. Premium is paid during the 25 year deferral period at a continuous rate of .025 per year. The force of interest is .06 . 1. Find the insurer's issue date loss if the individual dies at exact age 80 M²±³´ (nearest .1). A) 1.0 B) 1.3 C) 1.6 D) 1.9 E) 2.2 2. denotes the insurer's issue date loss if the individual dies at exact age . M²!´ ±³ b ! Which of the following statements is true? A) for all B) for all ! ! M²!´µ³ !µ³ M²!´³ C) for all and for all ! ! M²!´ µ ³ ³  !  ¶· M²!´  ³ ! µ ¶· D) for all and for all ! ! M²!´  ³ ³  !  ¶· M²!´ µ ³ ! µ ¶· E) for all ! M²!´ ~ ³ ! µ ³ 3. The probability of a positive issue date loss occurring is . Find 7¸3 µ ³Μ ~ ¹ º A) 23.5 B) 25.0 C) 26.5 D) 28.0 E) 29.5
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Question 4-7 relate to the following situation. A fully discrete 3 year endowment insurance issued at age has death benefit of 1000 and endowment benefit 2000. % You are given and (annual effective rate of interest). ± ~ ±~ À ² ³ ~ À ´ % %b %b The equivalence principle premium, payable for 3 years is 522.81 . 4. The issue date loss function can be written as . Find . 3~ *b+ (2 µ % ~ · )2 µ % ~ ´ *2 µ % ~ ² +2 µ % ¶¸¹ J (nearest 0). º A) B) C) D) E) c º·· c ºº· c »·· c »º· c ¼·· 5. Find (nearest 1). = A) 1100 B) 1107 C) 1114 D) 1121 E) 1128 6. Find (nearest 100). =½¾¿ O2µ%¶¸´Μ $ A) 1500 B) 1600 C) 1700 D) 1800 E) 1900 7. The policy is modified so that the death benefit is equal to 1000 plus the terminal benefit reserve. Find the new equivalence principle premium (nearest 10). A) 700 B) 710 C) 720 D) 730 E) 740
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8. A special term insurance policy pays a death benefit of 1 at time ± if death occurs before time . The policy has discrete level annual premiums payable during the year ±± term. The premium is based on the equivalence principle. Which of the following is a 7 correct expression for . 7 A) B) 7 # %¢ O % % 77 c 7 %¢ O %¢ O %¢ O C) D) # ÀÀ ÀÀ ÀÀ ÀÀ %¢ O %¢ O %¢ O %¢ O cc E) 9.
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exam_00 - ACT348H Final Exam 2000 Questions 1-3 relate to...

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