« previous next »

Author Question: The net single premium for a life insurance policy is A) the premium the insurer charges to cover ... (Read 178 times)

yoroshambo

  • Hero Member
  • *****
  • Posts: 566
on: Jul 11, 2018
The net single premium for a life insurance policy is
 
  A) the premium the insurer charges to cover the death benefit and the insurer's expenses.
  B) the future value of the future death benefit.
  C) the present value of the future death benefit.
  D) the face value of the policy discounted back for the number of year the policy will be in force.

Question 2

According the 2001 CSO mortality table, the yearly probability of dying for a 40 year-old man is .00165. The present value of 1 one year from today, assuming a 5.5 percent interest rate, is .9479.
 
  What is the net single premium per 1,000 for a one-year term insurance policy sold to a man at age 40 assuming a 5.5 percent interest rate? Assume the premium is paid at the start of the year and the death benefit is paid at the end of the year.
  A) 1.56
  B) 2.45
  C) 7.18
  D) 952.81


smrerig

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: C

Answer to Question 2

Answer: A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Testing the reducing atmosphere hypothesis for the origin of life - the Miller and Urey experiment. Testing the reducing atmosphere hypothesis for the origin of life - the Miller and Urey experiment.
Basic overview of energy and human life. Basic overview of energy and human life.
Life of a Medical School Student Life of a Medical School Student
The Uses of Petroleum in Daily Life The Uses of Petroleum in Daily Life
Cover test Cover test
Video: Condensation and Hydrolysis Animation

For a complete list of videos, visit our video library