SOA Exam FAM Sample Question 7.2
Study guide: Exam FAM
A special fully discrete 2-year endowment insurance with a maturity value of 2000 is issued to (x). The death benefit is 2000 plus the net premium policy value at the end of the year of death. For year 2, the net premium policy value is the net premium policy value just before the maturity benefit is paid.
You are given:
(i) i = 0.10
(ii) q_{x} = 0.150 and q_{x+1} = 0.165
Calculate the level annual net premium.
[A modified version of Question 5 on the Fall 2012 exam]
- A) 1070
- B) 1110
- C) 1150
- D) 1190
- E) 1230
Answer this question and see the worked solution