1. A fully continuous whole life insurance of $5000 is issued to (80) and premiums are...
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1. A fully continuous whole life insurance of $5000 is issued to (80) and premiums are paid continuously at an annual rate of P until (80) dies. Let L be the loss random variable for the insurance. You are given d 0.01 and So(x) = (115 — x)/115, 0 ≤ x ≤ 115. - (a) Determine P by the equivalence principle. (b) Determine P so that P(L > 0) = 0.2. 1. A fully continuous whole life insurance of $5000 is issued to (80) and premiums are paid continuously at an annual rate of P until (80) dies. Let L be the loss random variable for the insurance. You are given d 0.01 and So(x) = (115 — x)/115, 0 ≤ x ≤ 115. - (a) Determine P by the equivalence principle. (b) Determine P so that P(L > 0) = 0.2.
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