Math 472 Spring 2011 Chapter 8 Lecture Examples

Math 472 Spring 2011 Chapter 8 Lecture Examples - MATH...

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Unformatted text preview: MATH 472/567: Actuarial Theory II/Topics in Actuarial Theory I Chapter 8: Lecture Examples 1. Consider a fully discrete whole life insurance on (30): (i) The death benefit is adjusted for inflation such that: b j = 1000(1 . 03) j for j = 1, 2, ... (ii) The annual level benefit premium is π . (iii) i = 0.05 (iv) l x = 100 - x for 0 ≤ x ≤ 100 (a) Determine π . (b) Calculate the benefit reserve at the end of policy year 5 using a prospective approach. (c) Calculate the benefit reserve at the end of policy year 5 using a retrospective approach. 1 2 2. For a special fully discrete whole life insurance of 1000 on (40): (i) The level benefit premium for each of the first 20 years is π . (ii) The benefit premium payable thereafter is 1000 vq x for x = 60, 61, ... (iii) Mortality follows the Illustrative Life Table, and i = 0.06. Calculate: π . 3 3. For a special fully continuous whole life insurance on (x): (i) The death benefit at time t is b t = 1000exp[0 . 03 t ] for t ≥ 0....
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Math 472 Spring 2011 Chapter 8 Lecture Examples - MATH...

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