Question: Please answer question a); and I already have the answer for question (b) 2.47055 and question (c) 0.6716, I need the calculation process for Q(b)and
Please answer question a); and I already have the answer for question (b) 2.47055 and question (c) 0.6716, I need the calculation process for Q(b)and (c), the more detailed the better.
6. Consider a 10-year payment whole life insurance policy of $100 on (50), with death benefit payable at the moment of death. The level premium is payable continuously at a rate of P. Assuming that - Mortality follows the SOA-FAM-L Standard Ultimate Life Table, and interest rate is i=5%. - Deaths are uniformly distributed over each year of age. (a) Write out the expression of the loss-at-issue random variable L0. (b) Calculate the net premium rate P under Equivalence Principle. (c) Calculate the probability that the contract makes a profit. 6. Consider a 10-year payment whole life insurance policy of $100 on (50), with death benefit payable at the moment of death. The level premium is payable continuously at a rate of P. Assuming that - Mortality follows the SOA-FAM-L Standard Ultimate Life Table, and interest rate is i=5%. - Deaths are uniformly distributed over each year of age. (a) Write out the expression of the loss-at-issue random variable L0. (b) Calculate the net premium rate P under Equivalence Principle. (c) Calculate the probability that the contract makes a profit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
