SOA Exam FAM Sample Question 7.35
Study guide: Exam FAM
For a fully discrete whole life insurance of 100,000 on (60), you are given:
i) Reserves are determined using a modified net premium reserve method
ii) The modified net premium reserve at the end of year 2 is 0
iii) Valuation premiums in years 3 and later are level
iv) Mortality follows the Standard Ultimate Life Table
v) i = 0.05
Calculate the valuation premium for year 5.
[Question on October 2022 FAM-L Exam]
- A) 1,950
- B) 2,050
- C) 2,120
- D) 2,190
- E) 2,290
Answer this question and see the worked solution