Chapter 1

Chapter 1 - previously paid bonuses. Determine the death...

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Chapter 1 1. A with profits whole life insurance policy on (30) has a death benefit of 100,000 at the time that it is issued. The policy pays a reversionary bonus at the end of each policy year which are equal to 2.5% of the death benefit (including any death benefit provided by previously paid bonuses) during the policy year. Determine the death benefit that would be paid if the insured died during the fifth policy year. Year Salary 2007 180,000 2008 200,000 2009 210,000 2010 220,000 2011 160,000 2. A with profits whole life insurance policy on (30) has a death benefit of 100,000 at the time that it is issued. The policy pays a reversionary bonus at the end of each policy year. The bonus is equal to 2.5% of the death benefit at issue plus 3.5% of any death benefit that resulted from
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Unformatted text preview: previously paid bonuses. Determine the death benefit that would be paid if the insured died during the fifth policy year. 3. Kelli has worked for Chupp Insurance Company for 23 years when she retires on December 31, 2011. Her salary during the last five years has been: Calculate Kellis annual pension benefit under each of the following plans: a. Her pension benefit is 2% per year of service of her final salary. b. Her pension benefit is 2% per year of service of her average salary over her last five years of service. c. Her pension benefit is 1.8% per year of service of her highest salary over the last five years of service. Answers: 1. 110,381.29 2. 110,537.35 3. a. 73,600 b. 89,240 c. 91,080...
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Chapter 1 - previously paid bonuses. Determine the death...

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