QUESTION 1 A 15-year endowment assurance policy is issued to a group of lives aged 45 with a sum assured of RM300,000 pa

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Question 1 A 15 Year Endowment Assurance Policy Is Issued To A Group Of Lives Aged 45 With A Sum Assured Of Rm300 000 Pa 1 (34.77 KiB) Viewed 33 times

QUESTION 1 A 15-year endowment assurance policy is issued to a group of lives aged 45 with a sum assured of RM300,000 payable at the end of the year of death or if the life survives to the maturity date. Net premiums are payable annually in advance. You are given the following information: • Reserve at the start of the 10th year (per policy in force): • Number of policies in force at the start of the 10th year: • number of deaths during the 10th year: RM172,183 775 3 Assuming that reserves are calculated according to the basis specified below, calculate the profit or loss arising from mortality in the 10th year. Basis: Mortality: Interest: Expenses: None AM92 Ultimate 6% pa interest