SOA Exam P Sample Question 91
Study guide: Exam P-1
A man purchases a life insurance policy on his 40^{\text{th}} birthday. The policy will pay 5000 if he dies before his 50^{\text{th}} birthday and will pay 0 otherwise.
The length of lifetime, in years from birth, of a male born the same year as the insured has the cumulative distribution function
F(t) = \begin{cases} 0, & t \le 0 \\ 1 - \exp\left(\frac{1 - 1.1^t}{1000}\right), & t > 0 \end{cases}
Calculate the expected payment under this policy.
- A) 333
- B) 348
- C) 421
- D) 549
- E) 574
Answer this question and see the worked solution