SOA Exam FAM Sample Question 6.56
Study guide: Exam FAM
An insurer issues a fully discrete 20-year endowment insurance policy of 1,000,000 on (35).
You are given:
i) First year expenses are 55% of the premium plus 150
ii) After the first year, expenses are 5% of the premium plus 50
iii) Mortality follows the Standard Ultimate Life Table
iv) i = 0.05
v) Premiums are determined using the equivalence principle
Calculate the annual gross premium on this policy.
[Question on October 2022 FAM-L Exam]
- A) 29,000
- B) 30,000
- C) 31,000
- D) 32,000
- E) 33,000
Answer this question and see the worked solution