SOA Exam FAM Sample Question 7.32
Study guide: Exam FAM
For two fully continuous whole life insurance policies on (x), you are given:
(i)
| Death Benefit | Annual Premium Rate | Variance of the Present Value of Future Loss at t | |
|---|---|---|---|
| Policy A | 1 | 0.10 | 0.455 |
| Policy B | 2 | 0.16 | - |
(ii) \delta = 0.06
Calculate the variance of the present value of future loss at t for Policy B.
[Question 12 on the Spring 2014 exam]
- A) 0.9
- B) 1.4
- C) 2.0
- D) 2.9
- E) 3.4
Answer this question and see the worked solution