+ For a group of individuals all age x, you are given: @ 2596 ere smokers (5); 75% ore aonemokers (ns), 5) . as Tae ° 010 008 1 0m 010 2 030 OS Gi) 002 Calculate 10,0004), for an individua) choven et random from this group. ; Ss . : : (a) te90 Rice Cans RAY W1lee ) Ino 1-2" NS ©) 1930 Ai Loy Are wae (He : zat @ W750 aon C ce TOTO F054 ”(E} 1770 toon Aas loom (orgn 21s a7 ele at Wrao Curse 5: Felt zany‘You are giveni @ the following sclect-ond-ultimate mortality table with 3-year select period: x 60 61 62 63 0.10 oll O12 013 \ Wee 9 x43 ae 017) —~90.15 a aid O14 one 4 0.13, 0.15 017 5 014 0.16 0.18 66 Os O17 0.19 67. Calculate ap fy the ectuarial present valve of a 2-yeer deferred 2-year term fnslirance gas Cy- 0adCl an) = 844 on (60). (A). 0.156 @®) 0.160 (2) 0.186 @S 0.190 ® 0.195 “Course 3: Fall 2002 wehaae ten A gate: a sre | [ 08” = fR958 ‘ (opt Atos = (to2rG GO TO NEXT PAGEeo 26, Oil wells produce unti} they mun dry. The snrvival function for a well is given by; 1 (years) So a. dx 0 ro) (oO 1 0.90 ao 2 0.30 Bo — 3 0.60 60 Zo 4 030 20 Zo 5 0.10 1oO 6 0.05, 7 0.00 An oil company owns 10 wells age 3. It insures them for | million each against failure for two years where the loss is payable at the end of the year of failure. ‘You are given: () Ris the present-velue random variable for the insurer's aggregate losses on the 10 wells. e (ii) The insurer actually experiences 3 failures in the first year und 5 in the second year. iii) 70.10 Calculate the ratio of the actual vnlue of & to the expecied value of R. LL. (a) )0.94 As.q> 9+ + EA) 73 ® 096 Gal R= lOx13 = 2- (©) 098 wpe & 3 ©) 100 Goliad R= te tee 686 ) 107 ~ ~ 6S Gattis = = 2 Se @ Exam M: Fall 2006 GO ON TONEXT TAGE/ BY‘Exam 3, Fal] 2007 4. For a discrete rwo-yeat thom lie insurance of unit benefit on (50), you are given: © 2Em= 0.840 . 2 po =0960 ~? sé soy © 11999 = 0.080 Caloulzts the present valve of the benefit payment of the tax life inrurance, A, Legs than 0.112 B. At lenst 0.112, but lesa shan 0.113 CC. At Ieast 0.113, but nse than 6.114 D, At least 0.114, but less than 0.115 CR pe deast 0.15 her Gar wheat be afc = 6 Dirfies= 1B .57 %E P Vere! goat = wY 0 + Wes So lise 37 Contimued on Next Page. a 3a25. Lire [NS ubence For a special 3-yeor term insurance on (7), you are given: () 2 is the present-valuc random vorisble for this insurance. Gi) Grea SO0AK+1), k= 0,12 Gil} ‘The following benefits are payable at the end of the yeer of death: £ Ba | 9 300 ail 350 2 400 it | fv) 7 = 0.06 we fos hs = De® Calcalne variz). « P sOE Fee VR ROL | AR ROY = 998 W Bui-s0 (4) 9.600 2 SFr UIE FH OKFES SIS-RS (B) 10,000, 10,400, (D) 10,800 ) 11,200 EGR) = N82. 02 ¢ BUSOW - BIL FSIRAT # OSH = 3641 Ee = ss abet + Que ssyt-ctqa + Qss =e ob =U, 179 LAR }=s O73 Beas = lO4lG Exam M: Fell 2005 -25- GO ON TO NEXT PAGE 4,EXAM SL, SPRING 2008 21. You are given the foliowing ston ole life insurance poiiejes with unit benefit, priced at their ectumrial present values, © Policy A is priced under the assumption that lives follow an exponential distribution QI — feet with mean 5, + Policy B is priced under the assumption that lives fallow a uniform distribution with Te meximurs atinined age of 80, DM. + +. 1=0,06 Fora peroon aged 70, calculate the absolute differencs in the prive af the palicies. ‘Lessthan 0.01 At least 0.0], but leas than 0.02 At least 0,02, but less than 0.03 D. Atleast 0,03, but legs than 0.04 E. Atleast 04 p) qlee 2 AMt7 Ko alt 9¢ . od cin Aloe Sat c et Cae ° abe ea Qt jen n€ me iat ( -eree) | _ 7 ee . = TSt3U < L4G “te Woe 4 8) at poate ga) =. T36o] CONTINUED ON NEXT PAGE 21EXAM SL, SPRING 2008 22. You are given: © The probsbility density function of the Future lifetime, T, for (x) is exponential + The forez of mortality, }/'= 0.06 + The force of interent, 60.03 ‘A whole life insurance policy af unit benefit is sued to (4), payable at the moment af death. Calcalate the £0" percentile of the distribution af the present value of the benefit paymen!, A. - Lessthan 0.86 B. . Atleast 0.86, but leas thin 0.27 C. At lenst 0.87, but tess than 0.28 Ax least 0,88, but eas than 0.1 & At least 0.89 ted 22 8 eT GE aay, fgg 2 BFL UL BTixwd 2°€ = -89Y ‘CONTINUED ON NEXT PAGE 2© @ 22. Fora special whole life insurance an (40). you are given: i) The death benefit is 1000 for the first 10 years and 2500 thereafter. Gi) Death benefits are payable af the moment of death. Gi). Zis the present-value zandom variable, Gv) Mortality follows DeMoivie's Jaw with @=100. @) d=0.10 Calculate Pr(Z > 706). th o %, to ~, (A) 0,059 at, o - ®) 0.079 Lovo = low 3 te 357 (c) B (> 0.108 colets (Dy 0.169 zr, Sle PP tL 174 ©) 0.22 a 7 (. C&R IA) seh clea hen = RSPHUTIR a GO {OS™ Exam MLC: Spring 2007 -22- GOON TO NEXT PAGE 5Ss 12, Fora whole life insurance of } on (x) with benefits payable at the moment of death, you are given: OQ = 0.02, 1<12 0.03, 1212 : 004, 1<5 « nt (oie 125 Caleulete the actuarial present value of this insurance, () 0.59 @) 061 watsty Moser + 5G: nE ves Povey ee ee a rel Qian Sree Sper Reet . Gasap “esl ~Ilosned\ WS Ot Le . \ ~~ SCote) hosed) gs CS 08. Exam M: Fall 2006 -2- GO ON TO NEXT PAGE ( d@ s @ &« (D) Fora whole life insurance of 1000 on (80), with death benefits payable at the ond of the year of death, you are given: (Mortality fallows a select ane ullimate mortality table with one-yeer select period. CD Geo} = 0.5.46 (i) =0.06 (iv) 1000.4, = 679.80 () 1000 4) = 689.52 Calculate 1000.4q). A wed 4 wt BR eo A gt iA) 655 {B) 660 670 © 0s -38- GO ON TONEXT PAGE uy10. For whole fife insurances of 1000 on (65) and (66): G) Death henefits are payable at the end of the year of death, Gi)_—The interest rate is 0.10 for 2008 and 0.06 for 2009 and thereafter. Gil) gg = 0.010 and 74 = 0.012 Gs) The actusriel present velue on December 31” 2007 of the insurmnes oni (65) is 300, Calculate the actunrial presem value on December 31" 2007 of the insurance an (65). (279 L GY. = . om A wn bee va Peg Rey (©) 289 oy @) 293 Aa = -3xree 13) 298 y Ve . pet tt Thee de west aS = SUB hs = Ol, Mae 2use bs ee et = ARG Lom Age = Te Exam MLC: Spring 2007 -10- GO ON TONEXT PAGE @Z.is the presert-value rendom variable for a whole life insurance of payable al the moment of death oF (2) ‘You are given: @ 6 =0.04 i) 4,()-0.02, 120 Gil) The single benefit premium for this insurance is equal 1o War(Z), Calealate 5, A = ~ 8% aA © nt we sorts” 3 (A) 275 B) 3.00 RO eet sot — { © 325 ‘A IATR F vertrok @ S @ A> usp> beA rela. \> fi -A*) b ways & Ce -4) betty Exam M: Spring 2005 -T- GO ONTO NEXT PAGE 2) Ses22. For a whole life insurance of | on (41) with death benefit payable at the cud of year of death, ‘you are given: ® F-005 @) >, =0sir Gi) yy Ay = 0.00822 iv) My — 2d = 0.00433 (%) —_Zis the presem-value random variable for this insurance Calealoe Ver(Z). Autor VI eo + ute Ay fl W903 Pre or Rg - o0ke &) 0.024 a? (Ke 26s 0.025 Que aH et 2 eat vf. ‘A ©) 0.027 weet has = Bhar cokes TAL = 0214 VAREI= he AS = +OUry Course 3: Fall 2003 ze. m9 GO ON TO NEXT PAGE Ce10, Forasequence, u(t) is defined by the following recursion formula u(t) =a(4)+ A(E)xu(E-1) fork 1, 2, 3.00 ® ati] Pia wi Cee Whe 6 aye Ren * 8H “Ce ii) 2(70)=1.0 = VPPect Vp tech) Which of the following is equal to (40)? A) to eo Cid lee Has hee Wot “te age @ BD te E tack ls tie wea ode Aa < 4 4am dig Co Cont ley Hes aia vad ©) 4g E— Conk be BS Gee BLS Ran mo Uf Wi Ba hanrae, Course 3: Fall 2003 Con. GO ON TO NEXT PAGE - CpCe at 28. A decreasing term life insurance on (80) peys (20-E) et the end of the year of death if (80) dies in year £+1, fo 0,12,....19, ‘You ste given: @ roe @ @ Caleniate P, @ td ® 114 © uz @ 0 Fora certain mortality ieble with gpp =02, the single benefit premium far linia ‘ingurance is 13. Far this same mortality table, exeept thal yy 0, the single benefit prenaium for this insurance is P, a» Course/Exam 3 Novernber 2000 DAabins D4 tm Df Die Dies > ]2.2ee = of x P ~ Toe * Ee eters ~ AL2te7 028 GO ON TO NEXT “®15. For an Increasing 10-yeer term insurance, you are given: yyy =100,000(14 4), FAD, 8 Gi) Benefits are payable at the end of the year of death. (it) Montlity follows the Illustrative Life Table. (iv) #= 0.06 (¥) The single benefit premium for this insurance on (44) ix 16,736. Caloulate the single benefit premium for this insurance on (40). (ay 12,700 (ZHxh spy = L674 iB) 13,600 t t.- (©) 14,500 (EM hem = BSE wa (Ox fete, CB) 5200 = ape A {E) 16,300, boca < Avice MC. 5] C cen. Gere pala 205°) Ade ae Avo - Ege Prey = ares (Moa = 2017664 Tred B55 ~ .ussts x {00,080 = us 3 — ‘Exam M: Spring 2005 -18- GO ONTO NEXT PAGE an32. Fora continvenly increasing whole life insurance on (x), you are given: (The farce of mortality is constant: (i) 6 = 006 Gy ano. KA =. lo Fete a oy Calcul: TA) me O St le C ek» oh, at (A) 2.889 @) 3.125 ¢ 2 (eet 4.000 7 &® mt “f be tre Le @) 4,667 P ® 5.500 o Ch de e = (gd) (2G (a Course 3: Fall 2002 c- GO TO NEXT PAGE &)Lites *sBEGINNING OF EXAMINATION** For « special whole life insurance on (2), you are elven; VA (i) Zs the presemt value random veriable for this insurance. (i) Death Denefils are paid #1 the moment oF death. Git), (r)= 0.02, ayy 6 =0.08 a8 ore Calculate Vear{z}. (A) 0.075 ®) 0.080 0.085 Dy 0.090 ) 0.095 Rxam M: Fall 2005 | 120 ant 4 eta} (ete mee eee Ht = were (we F ot eels (ce wot eo) @ eer i = Cs Le ¢ 2 A = Vt 6 vaere l= &-G) ¥ “1 GO ON TO NEXT PAGE Ce27. Fora special whole tife insurance, you are given: @ 4=e% 190 Gi) # is constant. fii) 6 =0.06 (i) Z=e°Tv? , where Tis the finure lifesime random variebie) 2 2 ®) — E[Z] = 0.93636 ~ 06% (see Cak pele) Calculate Ver{Z}.. es Ad ta) ) 0.017 - 2 = BN hie (B) 0.021 e@ ©) 0.025 POE Oy (@) 0.029 a &) 0.033 e (eae 2 ne TeloG uaeCz = ‘Olde. @ Fxam MLC: Spring 2007 -27- ~OBAT LG = sofQhu GO ON TONEXT PAGE (ieExam 3, Spring 2007 eo. ., A fund i established 10 pay a death benefit of 500 foreach of 100 independent lives age 30. Ar y. iver: =a: ‘ou are given: qgt (lo7ze + Meratiy follows the Dinstrative Life Table. = Aq Tet * 156% so 7 8753] + Death benefits ere payable al the end of the year of death, Using a normal approximation, calculate the initial amount of the fund in order to have an 85% chance of paying all claims. A. Less than 5,500 B, At Ieast 5,500 but less than 5,750 a At least 5,750, but less than 6,000 At least 6,000 but less than 6,250 E At least 6,250 @ ome Che #1 Rvs ® ECTR3= store & l VARERY = rere = Louse” = soya] (oes &® one ah. Bo “ty ws SCeet}s op leteS = 1 Ae vat Emad] = sone co ten | @ te teeter Qt EGR\= (yx sures Sir Vert Lege\ = 180 HCY x 81 EL e Tree = 69% CONTINUED ON NEXT PACE lb aH Fond = Siw4 + (O€¥Go§ = 6 75G “eS. Le + Bach of 100 independent lives purchase a single premium 5-year deferred whole life insurance of 10 payable at the moment of death, You are given: Gs = 0.04 (A = on oan oe ; s. fee G6 =006 - ee . ‘eerat ye2qnes Gi) nt guane nnn Nc trom oe 09 Bee = 28 Using the normal approximation, calculate F such that the probability the insurer bas eufficiont funds 0 pay all cluims ia 0.95, >) Brel | . . ECE \= + THEI . © 610 VALE) = (tb — UBL? 8 TERT Ss eS © (8) ne Ba B10 Clwzje Lest - URRCOe\ = (O'* NaF Lad Qseeg #10 Gan daar joo KUFELT THE! EGY\< : VAR 2 [ae Us OSE Gogg eee USD » FOND = ZEAL (CHO LEAT eLRO-oy ‘Course 3: November 2001 D ss GO ON TO NEXT PAGE a?