fall2010Homework 2

fall2010Homework 2 - November 12, 2010 1. A participant in...

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Unformatted text preview: November 12, 2010 1. A participant in a pension plan is subject to three decrements: (1) is retirement, (2) is death, (3) is other termination. All terminations have a constant force of decrement as follows: i. = 0.05 ii. = 0.01 iii. = 0.10 Calculate the following items: a. b. c. d. e. f. g. h. i. j. k. l. November 12, 2010 2. Your professor is 54 years old. My teaching career is subject to two decrements as follows: i. Decrement 1 is mortality. The associated single decrement table for future mortality follows De Moivres law with = 50. ii. Decrement 2 is retirement. The associated single decrement table for future retirement follows De Moivres law with = 20. Calculate the following items: a. b. c. d. e. f. g. h. i. j. k. l. m. n. o. November 12, 2010 3. (Spreadsheet) One thousand whole life policies are issued to males (20). The policies are subject to two decrements as follows: i. Mortality (1) where is the mortality rate in the Excel File on Class Website ii. Lapse (2) where is the lapse rate in the following table x 20 0.20 21 0.10 22 0.08 23 0.07 24 0.06 25+ 0.05 In a spreadsheet complete the following table: x 20 21 120 4. Using the table created in Problem 3, calculate the following: i. ii. The probability of termination by lapse between the end of the 5 th duration and the end of the 10 th duration. iii. The number of policies still in force at attained age 65. iv. v. November 12, 2010 5. You are given: i. ii. iii. Assuming that each decrement is uniformly distributed over each year of age in the associated single decrement table, calculate 6. You are given: i. ii. iii....
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fall2010Homework 2 - November 12, 2010 1. A participant in...

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