qand y. 5.9 An actuary calculates a single premium for a certain life insurance policy...
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qand y. 5.9 An actuary calculates a single premium for a certain life insurance policy on (40), and then discov- ers there were two errors made. In the first place, the life table used showed a value of q40 that was only one half of what the correct figure was. Secondly, the first-year death benefit was taken as 20 when it should have been 10. Will the correct premium be the same as, lower, or higher than the one calculated? 5.10 For a certain insurance contract, on (50), the death benefit for the first year of the contract is 1100, payable at the end of the year of death. The single premium for the whole contract is 600. This is based qand y. 5.9 An actuary calculates a single premium for a certain life insurance policy on (40), and then discov- ers there were two errors made. In the first place, the life table used showed a value of q40 that was only one half of what the correct figure was. Secondly, the first-year death benefit was taken as 20 when it should have been 10. Will the correct premium be the same as, lower, or higher than the one calculated? 5.10 For a certain insurance contract, on (50), the death benefit for the first year of the contract is 1100, payable at the end of the year of death. The single premium for the whole contract is 600. This is based
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