You are given the following information for a block of fully discrete whole life insurance policies...

 

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You are given the following information for a block of fully discrete whole life insurance policies on individuals age x: (i) Number of policies 100 100 Face Gross amount premium A, ²A, 1000 1000 40 60 0.40 0.24 0.50 0.30 (ii) d = 0.05 (iii) oL is the future loss at issue for the entire block of business. Using the normal approximation, calculate the 90th percentile of oL.. (B) -8,924 (A) -10,743 (C) -7,215 (D) -6,354 (E) -4,124 You are given the following information for a block of fully discrete whole life insurance policies on individuals age x: (i) Number of policies 100 100 Face Gross amount premium A, ²A, 1000 1000 40 60 0.40 0.24 0.50 0.30 (ii) d = 0.05 (iii) oL is the future loss at issue for the entire block of business. Using the normal approximation, calculate the 90th percentile of oL.. (B) -8,924 (A) -10,743 (C) -7,215 (D) -6,354 (E) -4,124

Answer rating: 100% (QA)

To calculate the 90th percentile of the future loss at issue for the entire block of business oL we first need to determine the mean and standard deviation of the future loss for the block of policies ... View the full answer