SOA Exam FAM Sample Question 7.24
Study guide: Exam FAM
For a fully discrete whole life insurance policy of 1,000,000 on (50), you are given:
(i) The annual gross premium, calculated using the equivalence principle, is 11,800
(ii) Mortality follows the Standard Ultimate Life Table
(iii) i = 0.05
Calculate the expense loading, P^{e}, for this policy.
[A modified version of Question 8 on the Fall 2016 exam]
- A) 480
- B) 580
- C) 680
- D) 780
- E) 880
Answer this question and see the worked solution