SOA Exam FAM Sample Question 6.42
Study guide: Exam FAM
For a fully discrete 3-year endowment insurance of 1000 on (x), you are given:
(i) \mu_{x+t} = 0.06, for 0 \le t \le 3
(ii) \delta = 0.06
(iii) The annual premium is 315.80
(iv) L_{0} is the present value random variable for the loss at issue for this insurance
Calculate \Pr[L_{0} > 0].
[Question 10 on the Fall 2016 exam]
- A) 0.03
- B) 0.06
- C) 0.08
- D) 0.11
- E) 0.15
Answer this question and see the worked solution