SOA Exam FAM Sample Question 4.22
Study guide: Exam FAM
(50) just had surgery to remove a life-threatening tumor and is purchasing a 3-year term life insurance policy with a face amount of 100,000. You are given:
i) The probability of (50) surviving the first year after surgery is 55% of the Standard Ultimate Life Table survival probability
ii) If (50) survives the first year, subsequent mortality follows the Standard Ultimate Life Table
iii) Benefits are payable at the end of the year of death
iv) i = 0.05
Calculate the expected present value of the death benefit.
[Question on October 2022 FAM-L Exam]
- A) 43,000
- B) 44,000
- C) 45,000
- D) 46,000
- E) 47,000
Answer this question and see the worked solution