SOA Exam FAM Sample Question 7.25

Study guide: Exam FAM

For a fully discrete whole life insurance policy of 100,000 on [55], a professional skydiver, you are given:

(i) Level premiums are paid annually

(ii) Mortality follows a 2-year select and ultimate table

(iii) $i = 0.04$

(iv) The following table of values for $A_{[x]+t}$ :

$x$	$A_{[x]}$	$A_{[x]+1}$	$A_{x+2}$
55	0.23	0.24	0.25
56	0.25	0.26	0.27
57	0.27	0.28	0.29
58	0.29	0.30	0.31

Calculate the Full Preliminary Term reserve at time 3.

[A modified version of Question 12 on the Fall 2016 exam]

Concepts tested