This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: h + 1) b h +1-h +1 V = net amount at risk for year ( h + 1) Interim Benet Reserves : Exact formula: h + s V = v 1-s ( b h +1 ) 1-s q x + h + s + v 1-s ( h +1 V ) 1-s p x + h + s where h = 0, 1, . .. and 0 < s < 1 Approximate formula, UDD: h + s V [Linear interpolation of successive terminal benet reserves at h , h + 1] + [Unearned benet premium during the valuation period]. Note: You may use the approximate formula when given UDD to calculate the interim benet reserve. Hattendorf Theorem : var [ h L | K ( x ) h ] = var [ h | K ( x ) h ] + v 2 p x + h var [ h +1 L | K ( x ) h + 1] where var [ h | K ( x ) h ] = v 2 ( b h +1-h +1 V ) 2 p x + h q x + h 2...
View Full Document
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