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Long-Term Actuarial Math Old Exam MLC Forum

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Old 11-10-2018, 09:17 PM
JohnTravolski JohnTravolski is offline
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Exclamation Net Single Premium



I presume that the net single premium would be given by the formula:



But I'm unsure of how to calculate these values given the limited information about that survival function. Is there an easy way to do this that I'm not seeing? Is the formula I provided even the correct net single premium?
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Old 11-10-2018, 09:43 PM
Academic Actuary Academic Actuary is offline
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For one thing your second term needs a 5 year deferral factor. As mortality is constant over the ten year period the five year term NSPs will be the same per dollar of coverage,
Calculate the premiums assuming the benefit is paid EOY by summing geometric series.
Then do the UDD adjustment for payable at the end of the quarter.
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Old 11-10-2018, 10:24 PM
JohnTravolski JohnTravolski is offline
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Quote:
Originally Posted by Academic Actuary View Post
For one thing your second term needs a 5 year deferral factor. As mortality is constant over the ten year period the five year term NSPs will be the same per dollar of coverage,
Calculate the premiums assuming the benefit is paid EOY by summing geometric series.
Then do the UDD adjustment for payable at the end of the quarter.
Okay, I think I get it. You're saying it should be this, right?



I end up with 3148.49 as the final answer. Is this what you get?
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Old 11-10-2018, 10:27 PM
Academic Actuary Academic Actuary is offline
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Looks good.
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