SOA Exam P Sample Question 217
Study guide: Exam P-1
A company provides each of its employees with a death benefit of 100. The company purchases insurance that pays the cost of total death benefits in excess of 400 per year. The number of employees who will die during the year is a Poisson random variable with mean 2.
Calculate the expected annual cost to the company of providing the death benefits, excluding the cost of the insurance.
- A) 171
- B) 189
- C) 192
- D) 200
- E) 208
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