For a fully discrete whole life insurance of 100,000 on (60), you are given:

i) Reserves are determined using a modified net premium reserve method

ii) The modified net premium reserve at the end of year 2 is 0

iii) Valuation premiums in years 3 and later are level

iv) Mortality follows the Standard Ultimate Life Table v) [math]i=0.05[/math]

Calculate the valuation premium for year 5 .

• 1,950
• 2,050
• 2,120
• 2,190
• 2,290

You are checking gross premium policy values for a fully discrete whole life insurance of 1000 on (50).

[math]{ }_{k} V[/math] denotes the gross premium policy value at the end of year [math]k, k=0,1,2, \ldots[/math].

The valuation assumptions were intended to include:

i) There are commissions and maintenance expenses payable at the beginning of the year

ii) There are no other expenses

iii) [math]q_{58}=0.002736[/math]

iv) [math]i=0.05[/math]

You discover that all intended assumptions were used correctly, except that calculations were based on [math]q_{58}=0.003736[/math].

The calculated results included [math]{ }_{8} V=86.74[/math] and [math]{ }_{9} V=100[/math].

Calculate [math]{ }_{8} V[/math] using the intended value of [math]q_{58}[/math].

• 85.79
• 85.88
• 85.97
• 86.06
• 86.15

For a fully discrete increasing 20-year endowment insurance on (50), you are given:

i) The level annual net premium is 5,808

ii) The net premium policy value at the end of year 15 is 130,580

iii) Mortality after age 60 follows the Standard Ultimate Life Table

iv) [math]i=0.05[/math]

Calculate the expected present value of future death and endowment benefits at age 65 .

• 156,530
• 156,570
• 156,610
• 156,650
• 156,690

For a fully discrete 30 payment whole life insurance of 1000 on (50) with level annual premiums of [math]16,{ }_{k} V[/math] denotes the gross premium policy value at the end of year [math]k, k=0,1,2, \ldots[/math].

The original valuation assumptions include:

i) Mortality follows the Standard Ultimate Life Table

ii) [math]i=0.05[/math]

iii) Premium taxes are [math]2 \%[/math]

iv) There are commissions and various other expenses

Using the original valuation assumptions, [math]{ }_{10} V=110[/math].

At some point prior to year 10 , your jurisdiction increased the premium tax rate so the premium tax assumption increased to [math]3 \%[/math]. All other assumptions are unchanged.

Calculate the revised value of [math]{ }_{10} \mathrm{~V}[/math].

• 112
• 114
• 116
• 118
• 120

An insurer issues a 20-year deferred whole life annuity due on [45]. You are given:

i) Net premiums of 20,000 are payable at the beginning of each year during the deferral period

ii) There is no benefit paid upon death during the deferral period

iii) [math]V[/math] denotes the net premium policy value at time [math]t, t \geq 0[/math]

iv) [math]{ }_{19} V=575,000[/math] v) [math]q_{[45]+18}=0.023044[/math]

vi) [math]i=0.05[/math]

Calculate [math]{ }_{18} V[/math].

• 495,000
• 505,000
• 515,000
• 525,000
• 535,000

For a fully discrete whole life insurance of 1000 on (60), you are given:

i) Reserves are determined using a modified net premium reserve method

ii) The modified reserve at the end of year 2 is 0

iii) Valuation premiums in years 3 and later are level

iv) Mortality follows the Standard Ultimate Life Table v) [math]i=0.05[/math]

Calculate the modified net premium reserve at the end of year 5 .

• 58
• 69
• 79
• 90
• 99