2008 # 13 part c

[idono]

in the illustrated solution they talk about the difference between the substandard expectation and the substandard assumption used in pricing. i understand the difference, but i don't see any part of the question that states "price(premium) is based on substandard mortality using a rated age mortality". am i missing something in the question, or was that just a leap you have to make to answer the question?

[soyleche]

in the illustrated solution they talk about the difference between the substandard expectation and the substandard assumption used in pricing. i understand the difference, but i don't see any part of the question that states "price(premium) is based on substandard mortality using a rated age mortality". am i missing something in the question, or was that just a leap you have to make to answer the question?

It was a terribly worded question. Just hope they do better this time around.

[apparition]

It was a terribly worded question. Just hope they do better this time around.

+1

at first i thought as they wanted to wait till he turned 86, but then the issue age was 85.. was over my head..

also, the commission is % of premium, then why does it say it is % of "benefits and expenses"?

[godzilla]

bump. wtf is going on in this question?

[godzilla]

I think the question needs to say rated age 86 or else it is just unfair.