SophiaPretty

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    Strayer,Devery,Harvard University
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Category > Economics Posted 31 Aug 2017 My Price 7.00

A company issues whole life policies to a group of 700 lives aged 30 exact.

  • A company issues whole life policies to a group of 700 lives aged 30 exact. The sum-assured for each policy is Rs 200,000. The death-benefit is payable at the end of year in which death happens. Level premiums are payable annually in advance throughout life of the life assured. Basis: Mortality: AM 92 Ultimate Interest rate: 4% pa Expenses Nil  

(i) Calculate the net premium reserve per policy at the end of 10th year of the policy  

(ii) Calculate the profit or loss arising in 10th policy year given that the number of deaths during the year is 1 and the number of deaths before the 10th policy year is 11

Answers

SophiaPretty
(5)
Status NEW Posted 31 Aug 2017 06:08 AM My Price 7.00

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