Practice Questions 1

Practice Questions 1 - Practice Questions 1 ACTSC 331, FALL...

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Practice Questions 1 – ACTSC 331, FALL 2011 1. A woman purchased a fully discrete three-year term insurance of 50,000 with annual premium of P at select age 41. You are given that i = 6% and the following select life table with four-year select period: [ x ] l [ x ] l [ x ]+1 l [ x ]+2 l [ x ]+3 l x +4 x +4 [40] 100,000 99,899 99,724 99,520 99,288 44 [41] 99,802 99,689 99,502 99,283 99,033 45 [42] 99,597 99,471 99,628 99,030 99,752 46 (a) Calculate the annual premium of P . (b) Write down the expression of the future loss function 1 L , given that the woman is still alive after one year. (c) Calculate the policy value at the end of the Frst year. (d) Calculate the standard derivation of the future loss function 1 L , given that the woman is still alive after one year. 2. A fully discrete whole life insurance of 300,000 is issued to a life at age 35. You are given that Interest rate i = 6% and the illustrative life table. Initial Expenses: 40% of the gross premium plus 375.
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This note was uploaded on 01/04/2012 for the course ACTSC 331 taught by Professor David during the Fall '09 term at Waterloo.

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Practice Questions 1 - Practice Questions 1 ACTSC 331, FALL...

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