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Unformatted text preview: MATH 472/567: Actuarial Theory II/Topics in Actuarial Theory I Chapter 15: Lecture Examples 1. For a 10-payment, fully discrete 20-year term insurance of 1000 on (40): (i) Mortality follows the Illustrative Life Table, and i = 0.06 (ii) The following expenses, all payable at the beginning of the year: Year 1 Years 2+ % Premium Per Policy % Premium Per Policy Taxes 4% — 4% — Sales Commission 25% — 5% — Policy Maintenance — 10 — 5 Calculate the expense-loaded premium using the equivalence principle. 1 2. For a fully discrete whole life insurance of 10,000 on (30): (i) Mortality follows the Illustrative Life Table. (ii) i = 0.06 (iii) Percent of premium expenses are 15% in each year, incurred at the begin- ning of the year. (iv) Per policy expenses include 100 at policy issue, 30 at the beginning of each year that the policy is in-force, and 50 payable at the end of the year of death....
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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