For a whole life insurance of $5,000 on (20) with benefits payable at the moment of...
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For a whole life insurance of $5,000 on (20) with benefits payable at the moment of death, you are given that the force of mortality satisfies De Moivre's law, i.e. 1 120 - x' If 8 = 0.05 and let Z be the present value random variable of the insurance benefit, calculate μx = 0 < x < 120. (a) APV of this insurance E[Z]. (b) Var (Z). (c) The probability that the APV is insufficient to cover the benefit, given that the insurer charges the APV of the insurance as the single net premium. (d) Find the minimum single premium H that an insurance company must charge in order to be at least 90% certain that this premium will be adequate to fund the death claim. For a whole life insurance of $5,000 on (20) with benefits payable at the moment of death, you are given that the force of mortality satisfies De Moivre's law, i.e. 1 120 - x' If 8 = 0.05 and let Z be the present value random variable of the insurance benefit, calculate μx = 0 < x < 120. (a) APV of this insurance E[Z]. (b) Var (Z). (c) The probability that the APV is insufficient to cover the benefit, given that the insurer charges the APV of the insurance as the single net premium. (d) Find the minimum single premium H that an insurance company must charge in order to be at least 90% certain that this premium will be adequate to fund the death claim.
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Answer 6 b O Life insurance of 5000 ME S005 APV of this insurance 120X Z Answ... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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