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#541




Important to note whether midyear benefits are offered. Sp 2017 WA #6 had midyear benefits  the first time that SOA tested this and it proved difficult for candidates so the shortcut formulas weren't applicable there. I don't find it terribly difficult, but personally the setting up in twostep calculation format can be tedious and lead to some mistakes.

#542




quickest question:
[when calculating net profit margin] is it a rule of thumb for the discount rate (for calculating EPV of Premiums) to be equal to the hurdle rate used for calculating NPV?
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PA + FAPs 
#543




Quote:
They can use both interchangeably...
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Prelim: VEE: FAP 
#544




Quote:
That's exactly what I thought. Thanks for confirming! 
#549




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EPV_0(benefit at time 1) is evaluated at the beginning of 2017, therefore 1/1/2017. From my understanding is EPV_0(benefit at time 1) and is EPV(exits between t and t+1, which is end of year for this problem, and generally mid year in other problems) But with this logic of mine, I don't get why EPV_0(benefit at 0) takes into account termination between 1/1/2016 and 12/31/2016 by holding a supplementary amount of
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Last edited by DarchArvor; 10242017 at 05:56 PM.. 
#550




Quote:
In one of the problems they divide by the probability of survival instead of multiplying by it in order to compute the reversionary bonus, I didn't get why. I will surely come back to you on this matter.
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Last edited by DarchArvor; 10242017 at 05:51 PM.. 
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