SOA Exam FAM Sample Question 6.1
Study guide: Exam FAM
You are given the following information about a special fully discrete 2-payment, 2-year term insurance on (80):
(i) Mortality follows the Standard Ultimate Life Table
(ii) i = 0.03
(iii) The death benefit is 1000 plus a return of all premiums paid without interest
(iv) Level premiums are calculated using the equivalence principle
Calculate the net premium for this special insurance.
[A modified version of Question 22 on the Fall 2012 exam]
- A) 32
- B) 33
- C) 34
- D) 35
- E) 36
Answer this question and see the worked solution