SOA Exam FAM Sample Question 7.8
Study guide: Exam FAM
For a fully discrete whole life insurance of 1000 on a select life [70], you are given:
(i) Ultimate mortality follows the Standard Ultimate Life Table
(ii) During the three-year select period, q_{[x]+k} = (0.7 + 0.1k)\,q_{x+k}, \ k = 0, 1, 2
(iii) i = 0.05
(iv) The net premium for this insurance is 35.168
Calculate _{1}V, the net premium policy value at the end of year 1 for this insurance.
[A modified version of Question 6 on the Fall 2013 exam]
- A) 25.25
- B) 27.30
- C) 29.85
- D) 31.60
- E) 33.35
Answer this question and see the worked solution