SOA Exam FAM Sample Question 7.34

Study guide: Exam FAM

An insurer issues a 30-year term insurance policy on (40). You are given:

i) Net premiums of 750 are payable quarterly

ii) The death benefit, payable at the end of the quarter of death, is 1,000,000

iii) $_{t}V$ denotes the net premium policy value at time t, $t \ge 0$

iv) $_{10.5}V = 10{,}000$

v) $q_{50} = 0.01$

vi) Mortality is uniformly distributed over each year of age

vii) $i = 0.05$

Calculate $_{10.75}V$ .

[Question on October 2022 FAM-L Exam]

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