An insurer issued a large number of policies to women aged 60, where sum insured S...

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An insurer issued a large number of policies to women aged 60, where sum insured S = 100,000, level premium P = 5,200, 5V = 29,068 and 6V = 35, 324. Five yeaers after they were issued, a total of 450 of these policies were still in force. In the following year, Expenses of 5% of each premium paid were incurred. Interest was earned at i = 4% on all assets. - - Two policyholders died. Expenses of $150 were incurred on the payment of the sum insured for the policyholder who died. (a) Calculate the total asset at the beginning of the 6th year after receiving premiums and paying prem-related expenses. (b) Calculate the total amount the insurer requires at the end of the 6th year. An insurer issued a large number of policies to women aged 60, where sum insured S = 100,000, level premium P = 5,200, 5V = 29,068 and 6V = 35, 324. Five yeaers after they were issued, a total of 450 of these policies were still in force. In the following year, Expenses of 5% of each premium paid were incurred. Interest was earned at i = 4% on all assets. - - Two policyholders died. Expenses of $150 were incurred on the payment of the sum insured for the policyholder who died. (a) Calculate the total asset at the beginning of the 6th year after receiving premiums and paying prem-related expenses. (b) Calculate the total amount the insurer requires at the end of the 6th year.

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The image contains a problem related to calculating the finances of an insurance company It gives information about policies issued to women aged 60 and subsequent events five years later Lets break d... View the full answer