SOA Exam FAM Sample Question 6.34
Study guide: Exam FAM
For a fully discrete whole life insurance policy on (61), you are given:
(i) The annual gross premium using the equivalence principle is 500
(ii) Initial expenses, incurred at policy issue, are 15% of the premium
(iii) Renewal expenses, incurred at the beginning of each year after the first, are 3% of the premium
(iv) Mortality follows the Standard Ultimate Life Table
(v) i = 0.05
Calculate the amount of the death benefit.
[A modified version of Question 17 on the Spring 2015 exam]
- A) 23,300
- B) 23,400
- C) 23,500
- D) 23,600
- E) 23,700
Answer this question and see the worked solution