SOA Exam FAM Sample Question 6.49
Study guide: Exam FAM
For a special whole life insurance of 100,000 on (40), you are given:
(i) The death benefit is payable at the moment of death
(ii) Level gross premiums are payable monthly for a maximum of 20 years
(iii) Mortality follows the Standard Ultimate Life Table
(iv) i = 0.05
(v) Deaths are uniformly distributed over each year of age
(vi) Initial expenses are 200
(vii) Renewal expenses are 4% of each premium including the first
(viii) Gross premiums are calculated using the equivalence principle
Calculate the monthly gross premium.
[A modified version of Question 10 on the Fall 2017 exam]
- A) 66
- B) 76
- C) 86
- D) 96
- E) 106
Answer this question and see the worked solution