SOA Exam FAM Sample Question 4.20

Study guide: Exam FAM

For a special fully continuous whole life insurance on $(x)$ , you are given:

i) $\mu_{x+t} = 0.03, t \ge 0$

ii) $\delta = 0.06$

iii) The death benefit at time $t$ is $b_{t} = e^{0.05t}, t \ge 0$

iv) $Z$ is the present value random variable at issue for this insurance

Calculate Var( $Z$ ).

[Question on October 2022 FAM-L Exam]

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