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Unformatted text preview: Review Notes ACTSC 331, FALL 2011 Part 1 Policy Values/Benefit Reserves (Continuous Basis) 1. The prospective formula for policy values/benefit reserves for general fully continuous insurances on ( x ): t V = Z b t + s v s s p x + t x ( t + s ) ds- Z t + s v s s p x + t ds, t , where b t is the death benefit at time t if death is at time t , and t is the annual rate of benefit premiums at t and payable continuously as long as ( x ) is alive, t . 2. The retrospective formula for policy values benefit reserves for general fully continuous insurances on ( x ): t V = 1 t E x Z t s v s s p x ds- Z t b s v s s p x x ( s ) ds , t . 3. Prospective formulas for the standard fully continuous policy values/benefit reserves: (a) Whole life insurance of 1 on ( x ): t V ( A x ) = A x + t- P ( A x ) a x + t , t . (b) n-Year endowment insurance of 1 on ( x ): t V ( A x : n | ) = A x + t : n- t |- P ( A x :...
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- Fall '09