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Unformatted text preview: MATH 471: Actuarial Theory I Homework #12: Fall 2010 Assigned December 1, due December 8 1. For a 10year deferred whole life insurance of 1 on (35) with benefit payable at the moment of death: (i) Mortality follows de Moivre’s Law with ω = 90. (ii) δ = 0.05 (iii) Benefit premiums are payable continuously in each of the first 10 years. (a) Calculate the benefit premium. (0.0274) (b) Calculate the benefit reserve at time 5 prospectively. (0.1635) (c) Calculate the benefit reserve at time 5 retrospectively. (0.1635) 2. For a 10payment fully continuous 20year term insurance of 1000 on (x): (i) μ x ( t ) = 0.05 for 0 ≤ t < 15; μ x ( t ) = 0.07 for 15 ≤ t < 20 (ii) δ t = 0.07 for 0 ≤ t < 15; δ t = 0.08 for 15 ≤ t < 20 Calculate the benefit reserve at the end of the 14th policy year. (265.50) 3. Consider three fully continuous whole life policies of 1 on (30), (32), and (34)....
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This note was uploaded on 02/02/2011 for the course MATH 471 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.
 Fall '08
 Staff
 Math

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