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Unformatted text preview: 1 4. Consider a fully discrete 5year endowment insurance of 5000 on (40): (i) The annual level beneﬁt premium is 843.07. (ii) Mortality follows the Illustrative Life Table. (iii) i = 0.06. Calculate: var [ 3 L  K (40) = 3 , 4 ,... ]. (3872.01) 5. For a fully discrete 3year term insurance of 1000 on (x) with annual level beneﬁt premiums: (i) i = 0.10 (ii) The mortality rates and terminal beneﬁt reserves are given by: h q x + h h +1 V 0.3 95.833 1 0.4 120.833 2 0.5 (a) Determine the annual level beneﬁt premium. (333.71) (b) Calculate L assuming (x) dies: (1) in the ﬁrst year, (2) in the second year, (3) in the third year, and (4) after the third year. (575.38, 189.36, 161.57,912.88) (c) Calculate var [ L ] using: (1) var [ L ] = E [ L 2 ]E [ L ] 2 and (2) the Hattendorf Theorem. Round your ﬁnal answers to the nearest integer. (289,844) 2...
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This note was uploaded on 05/18/2011 for the course MATH 472 taught by Professor Zhu during the Spring '08 term at University of Illinois, Urbana Champaign.
 Spring '08
 Zhu
 Math

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