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STAT 490 F11 Quiz 8 Solutions

# STAT 490 F11 Quiz 8 Solutions - 1 Quiz 8 STAT 490 December...

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Unformatted text preview: 1. Quiz 8 STAT 490 December 1, 2011 For a multiple decrement model with two decrements, decrement 1 is lapses and decrement 2 is deaths. You are given: a. 7f)1)=0.12 b. 759:0.04 Anne calculates giggassuming decrements are uniformly distributed in the associated single decrement tables. Brittany calculates qgg assuming decrements are uniformly distributed in the multiple decrement table. Determine the value that Anne and Brittany calculated. / (a) (lug—w o.is{lw—%s:‘(~w\)>a/l7(000 ljr” 2. An 3 year term insurance policy on (70) provides a benefit of 100,000 upon death or a benefit of 50,000 upon diagnosis of critical illness. The policy will only pay one benefit. The benefit in either case is paid at the end of the year of death or diagnosis. No benefit is paid upon lapse. A policy can decrement from three causes: 1 — Lapse 2 — Death 3 — Diagnosis of critical illness Calculate the net annual premium at 8% using the following multiple decrement table: .QQ K a; > W m, «rmgﬁggwmmwvmmmﬂfwmp 70 /[email protected]@ @bQ .200 3 0 7! “7 sh “75 MAB “if 72... @015?!) (423% was U’grk ~ mmeaamWi-rmm ...
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STAT 490 F11 Quiz 8 Solutions - 1 Quiz 8 STAT 490 December...

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