Sample Multiple Choice Questions v4.1.pdf

For a fully discrete 20 year endowment insurance of

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For a fully discrete 20-year endowment insurance of 100,000 on (30), you are given: (i) 0.05 d (ii) Expenses, payable at the beginning of each year, are: First Year Renewal Years Percent of Premium Per Policy Percent of Premium Per Policy Taxes 4% 0 4% 0 Sales Commission 35% 0 2% 0 Policy Maintenance 0% 250 0% 50 (iii) The net premium is 2143. Calculate the gross premium using the equivalence principle. (A) 2410 (B) 2530 (C) 2800 (D) 3130 (E) 3280 [This was Question 10 on the Spring 2014 Multiple Choice exam.]
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July 3, 2018 Page 56 6.17. For a fully discrete 3-year endowment insurance of 1000 on ( x ), you are given: (i) Expenses, payable at the beginning of the year, are: Year(s) Percent of Premium Per Policy 1 20% 15 2 and 3 8% 5 (ii)