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#1




I think I see a problem with this question and I am looking for confirmation. I'm not going to restate it here  it's availible on the SOA and CAS website. As I see it, Ax is equal to one so that would make the value of answer A undefined as (1Ax) is in the denominator. This could not be the right answer as the expected value of L at t=0 with premiums determined by the equivalence principle is 0. So what's the deal?

#2




Where is it available on the web site...I have not seen it as of yet....oops May 01
<font size=1>[ This Message was edited by: Macroman on 20011107 15:30 ]</font> 
#3




Naturally, as soon as I post this I realize my mistake. They are not asking for an expression for the Expected value of L. So the fact that the expresion for answer A is undefined apparently doesn't matter.

#4




For this one, it's (b_t)*(A_x) = 1, not A_x = 1...

#5




I now realize that I viewed Ax is the expected value of the special insurance.

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