STAT 490 F11 Quiz 6 Solutions

# STAT 490 F11 Quiz 6 Solutions - 1. For a 20 a. b. c....

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Unformatted text preview: 1. For a 20 a. b. c. 7"ng g. Calculat Quiz 6 STAT 490 November 11, 2011 year term insurance policy sold to (65), you are given: The death benefit of 50,000 is payable at the end of the year of death. Annual premiums are payable for 20 years during the life of the insured. Mortality follows the Illustrative Life Table. i: 8% <== Note that z' ¢ 6%. Commissions are 80% of premiums in the first year and 10% of premiums thereafter. Per policy expenses at the beginning of the year are 100 in the first year and 32 in subsequent years. The gross premium reserve at the end of the 19th year is 3184.93. e the annual gross premium. VOW C’Wxﬁi we vim Wm 41.9 H?” Wﬁaﬂﬁg’ _ M‘M M Q 974? gnaw WWW :2. wage as? {we 2. A whole life policy to (x) has a death benefit of 1000 payable at the end of the year of death and annual premiums payable for as long as (x) lives. ' You are given: a. v=0.90 Waiting (WV; ﬁg: b. 10004400 (3- qx =0.04 Calculate the first year premium (IPFPT) under Full Preliminary Term and the renewal premium (PFPT) for years 2 and later under Full Preliminary Term. ,l’gﬂzﬁy ix #9?» Mme 3e Ff (5 f: WWW I???“ W (a: PVPMQWB ea 34W PM away “31:29 ‘ W as “A% .Q If” was: ’%s , (5%” gig + Ll PW, 35 em gm” YDXM 3‘3 We???” {/@0©><.53‘39§§> m Rm W / ...
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## This note was uploaded on 02/17/2012 for the course STAT 490 taught by Professor Na during the Fall '11 term at Purdue University-West Lafayette.

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STAT 490 F11 Quiz 6 Solutions - 1. For a 20 a. b. c....

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