SOA Exam FAM Sample Question 4.15
Study guide: Exam FAM
For a special whole life insurance on (x), you are given:
(i) Death benefits are payable at the moment of death
(ii) The death benefit at time t is b_{t} = e^{0.02t}, for t \ge 0
(iii) \mu_{x+t} = 0.04, for t \ge 0
(iv) \delta = 0.06
(v) Z is the present value at issue random variable for this insurance
Calculate Var(Z).
[Question 4 on the Fall 2016 exam]
- A) 0.020
- B) 0.036
- C) 0.052
- D) 0.068
- E) 0.083
Answer this question and see the worked solution