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(Created page with "For fully discrete whole life insurance policies of 10,000 issued on 600 lives with independent future lifetimes, each age 62 , you are given: (i) Mortality follows the Standard Ultimate Life Table (ii) <math>\quad i=0.05</math> (iii) Expenses of <math>5 \%</math> of the first year gross premium are incurred at issue (iv) Expenses of 5 per policy are incurred at the beginning of each policy year (v) The gross premium is <math>103 \%</math> of the net premium. (vi)...") |
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<ul class="mw-excansopts"><li> 0.75<li> 0.79<li> 0.83<li> 0.87<li> 0.91</ul> | <ul class="mw-excansopts"><li> 0.75<li> 0.79<li> 0.83<li> 0.87<li> 0.91</ul> | ||
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Latest revision as of 23:39, 19 January 2024
For fully discrete whole life insurance policies of 10,000 issued on 600 lives with independent future lifetimes, each age 62 , you are given:
(i) Mortality follows the Standard Ultimate Life Table
(ii) [math]\quad i=0.05[/math]
(iii) Expenses of [math]5 \%[/math] of the first year gross premium are incurred at issue
(iv) Expenses of 5 per policy are incurred at the beginning of each policy year
(v) The gross premium is [math]103 \%[/math] of the net premium.
(vi) [math]{ }_{0} L[/math] is the aggregate present value of future loss at issue random variable
Calculate [math]\operatorname{Pr}\left({ }_{0} L\lt40,000\right)[/math], using the normal approximation.
- 0.75
- 0.79
- 0.83
- 0.87
- 0.91
Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.