NO.PZ2020011901000032
问题如下:
What is the minimum USD annual premium that an insurance company should charge for a two-year term life insurance policy with face value of USD 1 million when the policyholder is a woman aged 71? (Use Table 2.1 and assume an interest rate of 3% compounded annually.)
选项:
A.
18,153
B.
17,874
C.
17,996
D.
17,767
解释:
B.
The probability of a payout in the first year (time 0.5 years) is 0.017275. The probability of a payout in the second year (time 1.5 years) is
(1 - 0.017275) * 0.019047 = 0.018718
The PV of the expected cost of the policy is therefore:
The first premium is at time zero. The second premium, at time one year, has a probability of 1 - 0.017275 = 0.982725 of being made. If the premium is X, the expected present value is
X + 0.982725X/1.03 = 1.954102X
The minimum premium is given by solving:
1.954102X = 34,928
It is 17,874.
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