MA473 S10 Test 1

MA473 S10 Test 1 - 1. A participant in a pension plan is...

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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. ± ²³´ = 0.09 ii. ± ²µ´ = 0.01 iii. ± ²¶´ = 0.15 Calculate the following items: i. · ¸ ± ²³´ ii. · ¹ ± ²µ´ iii. · ¶º ± ²¶´ iv. · µ ± »²¶´ ¼

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2. One thousand whole life policies are issued to males (20). The policies are subject to two decrements - Mortality (1) and Lapse (2). You are given the following table: x ± ²³´ µ ± ²¶´ µ ± ²·´ 20 1000 20 180 21 800 40 80 22 680 34 36 23 610 40 30 Calculate the following items: i. ¸ · ·¶ ²¶´ ii. ¸ ·¶ ¹²·´ º assuming that each decrement is uniformly distributed in the double decrement table. iii. ¸ ·» ¹²¶´ º assuming that each decrement is uniformly distributed in the associated single decrement table.
3. A whole life policy pays a death benefit of 50,000 upon death. It pays an additional death benefit of 25,000 (over and above the 50,000 death benefit) upon death from an accident. You are given: i. δ = .08 ii. ± ²³´ µ ¶·¸·¹ where (1) is death from an accident. iii. ± ²º´ µ ¶·¸·» where (2) is death from any cause other than an accident. iv. Death Benefits are payable at time of death. Calculate the single benefit premium.

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4. Lu Life Insurance Company sells a fully discrete whole life policy with a benefit of 50,000 to (20). The policy has level annual premiums.
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MA473 S10 Test 1 - 1. A participant in a pension plan is...

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