Tutorial 6

Tutorial 6 - FIN 3220A Actuarial Models I Tutorial 6 23...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN 3220A Actuarial Models I Tutorial 6 23 November 2005 1. A level premium whole life insurance of 1, payable at the end of the year of death, is issued to (x). A premium of G is due at the beginning of each year, provided that (x) survives. You are given the following: (i) L = the insurer’s loss when G = P x (ii) L* = the insurer’s loss when G is chosen such that E[L*] = -0.2 (iii) Var(L) = 0.3 Calculate Var(L*). 2. The random variable L is the loss at issue for a fully continuous whole life insurance of 1 on (40). You are given: (i) δ = 0.02 (ii) mortality follows de Moivre’s law with l x = 100 – x __ (iii) 2 A x = 0.379 (iv) premiums are determined by the equivalence principle Calculate Var(L). 3. For a special fully discrete whole life insurance of 1000 issued on the life of (75), increasing premiums, Π k , are payable at time k, for k = 0,1,2…. You are given: (i) Π k = Π 0 (1 + i) k (ii) mortality follows de Moivre’s law with ω = 105 (iii) i = 0.05 (iv) premiums are calculated according to the equivalence principle. Calculate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Tutorial 6 - FIN 3220A Actuarial Models I Tutorial 6 23...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online