SOA Exam FAM Sample Question 7.40
Study guide: Exam FAM
For a fully discrete whole life insurance of 1000 on (60), you are given:
i) Reserves are determined using a modified net premium reserve method
ii) The modified 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 modified net premium reserve at the end of year 5.
[Question on October 2022 FAM-L Exam]
- A) 58
- B) 69
- C) 79
- D) 90
- E) 99
Answer this question and see the worked solution