SOA Exam FAM Sample Question 7.22
Study guide: Exam FAM
For two fully discrete whole life insurance policies on (x), you are given:
(i)
| Death Benefit | Annual Net Premium | Variance of Loss at Issue | |
|---|---|---|---|
| Policy 1 | 8 | 1.250 | 20.55 |
| Policy 2 | 12 | 1.875 | W |
(ii) i = 0.06
(iii) The two policies are priced using the same mortality table.
Calculate W.
[Question 12 on the Spring 2016 exam]
- A) 30.8
- B) 38.5
- C) 46.2
- D) 53.9
- E) 61.6
Answer this question and see the worked solution