ct010t09 - UNSW ACTL1001 Actuarial Studies and Commerce...

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

View Full Document Right Arrow Icon
UNSW ACTL1001 Actuarial Studies and Commerce Tutorial Exercises 9 Exercise 1 An insurance company allows the following NCD levels NCD Level Discount % 0 0 1 30 2 50 If a policyholder has no claims in a year then they move to the next higher level of discount (unless they are already on the highest level, in which case they stay there). If a policyholder has one or more claims in a year then they move to the next lowest level of discount (unless they are already on the lowest level, in which case they stay there). The number of claims each year is assumed to be Poisson (0 : 1) . 1. Calculate the probability that a new policyholder will be on the maximum 2. Assuming that the proportions become stable, out of a new group of pol- icyholders what proportion will eventually be paying the full premium? Exercise 2 Use the following mortality rates Age q x 30 0.00131 31 0.00132 32 0.00133 33 0.00135 34 0.00138 and a 5% p.a. e/ective interest rate to determine 1. the expected present value of the claim payments for a 5 year term
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

ct010t09 - UNSW ACTL1001 Actuarial Studies and Commerce...

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