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#1
02-08-2018, 02:16 PM
 am62 SOA Join Date: Dec 2017 College: University of Illinois Posts: 13
ASM Manual Question on Reservers

Can someone please help me solve this problem? I am having a hard time following the solution for calculating the insurance.

For a special whole life insurance on (65), you are given:
(i) a benefit of 1000 is paid at the moment of death only if death occurs in an odd year( the first year, the third year, etc.)
(ii) continuous premiums are payable at all durations and are determined using the equivalence principle
(iii) mortality is uniformly distributed with w=100
(iv) alpha = .03

Compute the net premium reserve at the end of the 15th year.
#2
02-08-2018, 02:35 PM
 Academic Actuary Member Join Date: Sep 2009 Posts: 8,145

PVFB0 = [(v + v^3 .....+v^35)/ 35]x(i/ln(1+i))

Divide by the continuous annuity factor under De Moivre's law to get the annual premium.

Calculate PVFB15 (similar to initial PVFB but first term is v^2 and last term is v^20.

Subtract PVFP15.

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