Calculate the life insurance gross premium for an insurance company, XYZ Life, under the following assumptions. Please round your answer to the nearest dollar. 1-year term insurance for a 35-year-old...


Calculate the life insurance gross premium for an insurance<br>company, XYZ Life, under the following assumptions. Please round<br>your answer to the nearest dollar.<br>1-year term insurance for a 35-year-old female<br>• The death benefit is $10,00O<br>• The probability of death within one year given a female is 35<br>years old (q30) is 0.015<br>The interest rate is 1.5%<br>• All deaths occur uniformly, hence for simplicity, price the<br>product assuming all deaths happen at the middle of the year<br>• XYZ Life is looking for a 25% loading based on the pure<br>premium (i.e. PV of expected loss)<br>(Hint: When loading Ap, expressed as a percentage, is based on<br>pure premium, Gross premium = Pure premium × [1 + Ap])<br>Choose the correct answer from below.<br>$166<br>$171<br>$149<br>$155<br>O $186<br>

Extracted text: Calculate the life insurance gross premium for an insurance company, XYZ Life, under the following assumptions. Please round your answer to the nearest dollar. 1-year term insurance for a 35-year-old female • The death benefit is $10,00O • The probability of death within one year given a female is 35 years old (q30) is 0.015 The interest rate is 1.5% • All deaths occur uniformly, hence for simplicity, price the product assuming all deaths happen at the middle of the year • XYZ Life is looking for a 25% loading based on the pure premium (i.e. PV of expected loss) (Hint: When loading Ap, expressed as a percentage, is based on pure premium, Gross premium = Pure premium × [1 + Ap]) Choose the correct answer from below. $166 $171 $149 $155 O $186

Jun 05, 2022
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