SOA Exam FAM Sample Question 4.21
Study guide: Exam FAM
For a two-year term insurance of 1 on (x) payable at the moment of death, you are given:
i) q_{x} = 0.04
ii) q_{x+1} = 0.06
iii) Deaths are uniformly distributed over each year of age
iv) i = 0.04
v) Z is the present value random variable for this insurance
Calculate Var[Z].
[Question on October 2022 FAM-L Exam]
- A) 0.065
- B) 0.069
- C) 0.073
- D) 0.077
- E) 0.081
Answer this question and see the worked solution