Question: Let L be the insurer's loss at issue variable for a 15 year endowment insurance with benefit $100,000 on (2:) payable at the end of

Let L be the insurer's loss at issue variable for a

Let L be the insurer's loss at issue variable for a 15 year endowment insurance with benefit $100,000 on (2:) payable at the end of the quarter of death or at its maturity settled by a 15 year term quarterly annuity-due. You are given: (a) xPx = 0.85, k. = 0, 1, 2, ... (b) Assuming Uniform Distribution of Death over Fractional Ages (c) i = 5% (d) Premiums are determined by the equivalence principle Calculate Var( L)

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