Math 472 Spring 2011 Chapter 11 Lecture Examples

Math 472 Spring 2011 Chapter 11 Lecture Examples - MATH...

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MATH 472/567: Actuarial Theory II/Topics in Actuarial Theory I Chapter 11: Lecture Examples 1. Consider a whole life insurance on (x) with a double indemnity provision. 10,000 is payable at the moment of death of (x), with an additional 10,000 payable if death is by accidental means. Furthermore: (i) δ = 0.05 (ii) μ ( τ ) x ( t ) = 0.005 for t 0 (iii) μ ( accident ) x ( t ) = 0.001 for t 0 Calculate the actuarial present value of this insurance. 1
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2. For Example 1, find the standard deviation of Z T . 2
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is an accident and 500,000 for all other causes of death: (i) μ ( τ ) x ( t ) = 0.01 for t 0 (ii) μ ( accident ) x ( t ) = 0.001 for t 0 (iii) Benefits are payable at the moment of death. (iv) δ = 0.05 (v) Salary of (x) at time t is 50,000exp[0 . 04 t ] for t 0. Calculate the net single premium. 3
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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.

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Math 472 Spring 2011 Chapter 11 Lecture Examples - MATH...

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