iandfct5201104examfinal - INSTITUTE AND FACULTY OF...

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INSTITUTE AND FACULTY OF ACTUARIES EXAMINATION 26 April 2011 (am) Subject CT5 — Contingencies Core Technical Time allowed: Three hours INSTRUCTIONS TO THE CANDIDATE 1. Enter all the candidate and examination details as requested on the front of your answer booklet. 2. You must not start writing your answers in the booklet until instructed to do so by the supervisor. 3. Mark allocations are shown in brackets. 4. Attempt all 13 questions, beginning your answer to each question on a separate sheet. 5. Candidates should show calculations where this is appropriate. Graph paper is NOT required for this paper. AT THE END OF THE EXAMINATION Hand in BOTH your answer booklet, with any additional sheets firmly attached, and this question paper. In addition to this paper you should have available the 2002 edition of the Formulae and Tables and your own electronic calculator from the approved list. CT5 A2011 © Institute and Faculty of Actuaries
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CT5 A2011—2 1 Give a different example of selection shown by each of the following mortality tables: (a) ELT15 (b) PMA92 (c) AM92 [ 3 ] 2 Calculate: (a) 23 65 p (b) 10|5 60 q (c) 65:10 s ±± Basis: Mortality PMA92C20 Rate of interest 4% per annum [4] 3 Calculate () x Ia Basis: x μ = 0.02 for all x δ = 4% per annum [ 4 ] 4 Outline the benefits that are usually provided by a pension scheme on retirement due to ill health. [5] 5 A pension scheme uses the following model to calculate probabilities, where the transition intensities are μ = 0.05 and ρ = 0.08. Calculate: (a) the dependent probability of retirement (b) the independent probability of death from active service using the Kolmogorov equations. [5] ρ Active Retired Dead μ μ
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CT5 A2011—3 PLEASE TURN OVER 6 (i) Define uniform distribution of deaths [2] (ii) Using the method in (i) above calculate 1.25 q 65.5 [4] Basis: Mortality ELT15(Males) [Total 6] 7 Explain how education influences morbidity. [6] 8 A life insurance company issues a with profits whole life assurance policy to a life aged 40 exact. The sum assured of £100,000 plus declared reversionary bonuses are payable immediately on death.
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This note was uploaded on 06/12/2011 for the course ASB 1001,2522, taught by Professor Nicole during the One '09 term at University of New South Wales.

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iandfct5201104examfinal - INSTITUTE AND FACULTY OF...

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