SOA Exam FAM Sample Question 4.19
Study guide: Exam FAM
(80) purchases a whole life insurance policy of 100,000.
You are given:
(i) The policy is priced with a select period of one year
(ii) The select mortality rate equals 80% of the mortality rate from the Standard Ultimate Life Table
(iii) Ultimate mortality follows the Standard Ultimate Life Table
(iv) i = 0.05
Calculate the actuarial present value of the death benefits for this insurance
[A modified version of Question 5 on the Fall 2017 exam]
- A) 58,950
- B) 59,050
- C) 59,150
- D) 59,250
- E) 59,350
Answer this question and see the worked solution