Actuard

Actuarial Society of India EXAMINATIONS June 2005 CT5 General Insurance, Health and Life Contingencies declarative Solution Soln 1 n q [x] [y] represents the probability that a consume life, now sr. y, will die within n social classs, having been predeceased by a select life now decrepit x. [2] 2 Soln 2 The payments correspond to a wellbeing that is deferred for 10 years, then makes payments annually in locomote during the remaining lifetime, up to a maximum of 25 payments. [1] In terms of actuarial symbols, the expected present value is: E[g(k)] = (D50 /D40 ) ä50:25 = (D50 /D40 ) (ä50 (D75 /D50 ) ä 75) = 1366.61 X 17.444 363.11 X 8.524 2052.96 [2] heart [4] [1] = 10.104 Solns 3 q[40] q[40] + 1 q[40] + 2 q[40] + 3 q[40] + 4 = = = = = 0.5 q40 0.55 q41 0.7 q42 0.8 q43 0.9 q44 = 0.5 X 0.00172 = 0.00086 = 0.55 X 0.00186 = 0.001023 = 0.7 X 0.00201 = 0.001407 = 0.8 X 0.00219 = 0.001752 = 0.9 X 0.00240 = 0.00216 => p[40] = 0.99914 => p[40] + 1 = 0. 99898 => p[40] + 2 = 0.99859 => p[40] + 3 = 0.99825 => p[40] + 4 = 0.99784 [ ½] [ ½] [ ½] [ ½] [ ½] [1] l[40] X p[40] X p[40] + 1 X p[40] + 2 X p[40] + 3 X p[40] + 4 = l 45 ð ð l[40] X 0.99282 = l[40] = 95521 96212 lend [ ½] [4] Soln 4. Construct a multiple decrement put sullen Age No of lives Deaths 30 31 100000 80833 xcl 153.

58 No of withdrawals all over year 9995 No of withdrawals year finale 8982 At age number of deaths = 100000*0.002*(1-0.5*0.1)= one hundred ninety [1] No of withdrawals over the year=100000*0.1*(1-0.5*0.002)= 9995 [1] No of withdrawals over year end =100 000*(1-0.1)*(1-0.002)*0.1= 8982 [1] Required! chance =80833*(1-0.5*0.1)*0.002= 153.58 [1] Probability= 153.58/100000= 0.0015358 [1] Total [5] Soln 5 The premium is given by: P = 20000 ä67:63 ä 67:63 (12) (12) [ ½] [3] [1] = ä67 + ä 63 - ä 67:63 (11/24) = 12.834 + 15.606 11.687 0.458 = 16.295 => P = Rs.325,900 [ ½] Total [5] Soln 6 P be the premium then maturity benefit is 1.21550625 [ ½] The...If you want to get a full essay, rank it on our website: BestEssayCheap.com

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