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Sample Multiple Choice Questions v4.1.pdf

Calculate the gross premium for this insurance a 617

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Calculate the gross premium for this insurance. (A) 617 (B) 627 (C) 637 (D) 647 (E) 657 [This is a modified version of Question 9 on the Fall 2013 Multiple Choice exam.]
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July 3, 2018 Page 49 6.10. For a fully discrete 3-year term insurance of 1000 on ( x ), you are given: (i) 0.975 x p (ii) 0.06 i (iii) The actuarial present value of the death benefit is 152.85. (iv) The annual net premium is 56.05. Calculate 2 x p . (A) 0.88 (B) 0.89 (C) 0.90 (D) 0.91 (E) 0.92 [This is a modified version of Question 15 on the Fall 2013 Multiple Choice exam.]
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July 3, 2018 Page 50 6.11. For fully discrete whole life insurances of 1 issued on lives age 50, the annual net premium, P , was calculated using the following: (i) 50 0.0048 q (ii) 0.04 i (iii) 51 0.39788 A A particular life has a first year mortality rate 10 times the rate used to calculate P . The mortality rates for all other years are the same as the ones used to calculate P . Calculate the expected present value of the loss at issue random variable for this life, based on the premium P . (A) 0.025 (B) 0.033 (C) 0.041 (D) 0.049 (E) 0.057 [This is a modified version of Question 16 on the Fall 2013 Multiple Choice exam.]
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July 3, 2018 Page 51 6.12. For a fully discrete whole life insurance of 1000 on ( x ), you are given: (i) The following expenses are incurred at the beginning of each year: Year 1 Years 2+ Percent of premium 75% 10% Maintenance expenses 10 2 (ii) An additional expense of 20 is paid when the death benefit is paid. (iii) The gross premium is determined using the equivalence principle. (iv) 0.06 i (v) 12.0 x a (vi) 2 0.14 x A Calculate the variance of the loss at issue random variable. (A) 14,600 (B) 33,100 (C) 51,700 (D) 70,300 (E) 88,900 [This was Question 18 on the Fall 2013 Multiple Choice exam.]
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July 3, 2018 Page 52 6.13. For a fully discrete whole life insurance of 10,000 on (45), you are given: (i) Commissions are 80% of the first year premium and 10% of subsequent premiums. There are no other expenses. (ii) Mortality follows the Standard Ultimate Life Table. (iii) 0.05 i (iv) 0 L denotes the loss at issue random variable. (v) If 45 10.5, T then 0 4953. L Calculate 0 E . L (A) 580 (B) 520 (C) 460 (D) 400 (E) 340 [This is a modified version of Question 19 on the Fall 2013 Multiple Choice exam.]
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July 3, 2018 Page 53 6.14. For a special fully discrete whole life insurance of 100,000 on (40), you are given: (i) The annual net premium is P for years 1 through 10, 0.5 P for years 11 through 20, and 0 thereafter. (ii) Mortality follows the Standard Ultimate Life Table. (iii) 0.05 i Calculate P . (A) 850 (B) 950 (C) 1050 (D) 1150 (E) 1250 [This is a modified version of Question 8 on the Spring 2014 Multiple Choice exam.]
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