« previous next »

Author Question: The net single premium for a life insurance policy is A) the premium the insurer charges to cover ... (Read 149 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?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

The life cycle of a typical fern. The life cycle of a typical fern.
Basic energy of a human life Basic energy of a human life
A rich diversity of life lives in and among coral reefs. A rich diversity of life lives in and among coral reefs.
Fern Life Cycle Fern Life Cycle
French and U.S. presidential elections in 2012 illustrate the durability of political culture and ho French and U.S. presidential elections in 2012 illustrate the durability of political culture and ho
Thangka depicting Bhavacakra (Wheel of Life), Bhutan. Thangka depicting Bhavacakra (Wheel of Life), Bhutan.
Video: Lipid absorption - end products & transport mechanism

For a complete list of videos, visit our video library