T5-232-2010W

# T5-232-2010W - ACTSC 232 WINTER 2010 Tutorial 5 3:30-4:20...

This preview shows page 1. Sign up to view the full content.

ACTSC 232, WINTER 2010 Tutorial 5 – 3:30-4:20, Monday, March 22, HH 1101 Note that in the following questions, all premiums are determined by the equiv- alence principle unless stated otherwise. 1. A fully continuous whole life insurance of 1000 is issued to (60) and premiums are charged continuously at an annual rate of P until (60) dies. Let L be the loss random variable for the insurance. You are given δ = 0 . 03 and S 0 ( x ) = (100 - x ) / 100 , 0 x 100. (a) Determine P by the equivalence principle. (b) Determine P so that Pr { L > 0 } = 0 . 3 . 2. A fully discrete 10-year endowment insurance is issued to (60). A level premium of P is payable at the beginning of each year as long as (60) survives in the 10-year term. The insurance will pay 5000 at the end of the year of death if death occurs in the term. If (60) is still alive at the end of the term, all premiums without interest will be returned to (60) at the end of the term. You are given δ = 0 . 06 and μ 60 ( t ) = 0 . 02 , t 0. Calculate P .
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern