SOA Exam FAM Sample Question 6.31
Study guide: Exam FAM
For a fully continuous whole life insurance policy of 100,000 on (35), you are given:
(i) The density function of the future lifetime of a newborn:
f(t) = \begin{cases} 0.01e^{-0.01t}, & 0 \le t < 70 \\ g(t), & t \ge 70 \end{cases}
(ii) \delta = 0.05
(iii) \bar{A}_{70} = 0.51791
Calculate the annual net premium rate for this policy.
[Question 10 on the Fall 2015 exam]
- A) 1000
- B) 1110
- C) 1220
- D) 1330
- E) 1440
Answer this question and see the worked solution