SOA WA#18 Three interest rates in UL-B problem

A life insurance company issues a Type B universal life policy to a life

age 60. The main features of the contract are as follows.

Premiums: 3,000 per year, payable yearly in advance.

Expense charges: 4% of the first premium and 1% of subsequent premiums.

Death benefit: 10,000 plus the Account Value, payable at the end of the year

of death.

Cost of insurance rate: 0.022 for 60 x 64; discounted at 3% to start of policy year.

Cash surrender values: 90% of the account value for surrenders after 2 or 3

years, 100% of the account value for surrenders after four years or more.

The company uses the following assumptions in carrying out a prot test of this

contract.

Interest rate: 6% per year

Credited interest: 5% per year.

Survival model: q60+t = 0:02 for t = 0; 1; 2; 3.

Withdrawals: None in the first three years; all contracts assumed to surrender

at the end of the fourth year.

Initial expenses: 200 pre-contract expenses.

Maintenance expenses: 50 incurred annually at each premium date including

the first.

Risk discount rate: 8% per year.

There are no reserves held other than the account value.

(a) (4 points) Show that the projected final account value for an insured surrendering at the end of the fourth year is 12,400 to the nearest 100. You should calculate the value to the nearest 1.

(b) (7 points) Calculate the prot margin for a new policy.

(c) (2 points) Calculate the NPV for a policy that is surrendered at the end of the second year.



Question:

There're 3 interest rates in this problem. It's clear that i^q=3% is used to find the CoI value. However, "interest rate" (which I call i) and "credited interest rate" (which I call i^c) are kind of confusing.

The SOA solution uses "i^c" to establish the AV's and "i" to profit test. Is it the common practice? Thanks!

SOA WA#18 Three interest rates in UL-B problem

Revenge Beating for Michael Brown Shooting Not a Hate Crime

http://ift.tt/1nBPFnk

Quote:

Police are investigating a brutal beating at a Mississippi restaurant that some are calling revenge for the killing of black teen Michael Brown in Ferguson, Missouri. A verbal alternation between two white men and up to seven black men began at a West Point, Mississippi, Waffle House shortly after 1 a.m. Saturday. The restaurant’s management warned the two groups to “take it outside” and the two whites, Ralph Weems and David Knighten, left the scene after words were exchanged. About an hour later, the men stopped at a Huddle House restaurant and realized they had been followed by “about 20 people,” according to a local TV station. The verbal confrontation resumed and, this time, it turned violent. When police arrived at the Huddle House about 2:10 a.m., they found Weems, a 32-year-old former Marine, lying in the parking lot severely beaten. Two men were bent over Weems trying to render aid, police said, but all of the beating suspects were gone. Weems was airlifted to North Mississippi Medical Center in Tupelo where he underwent emergency brain surgery, according to a family member, and was put into a medically induced coma. Knighten told AP he and Weems had gone to a Waffle House early Saturday. He said a man waved him over outside the restaurant and warned him that people were upset by the killing of 18-year-old Michael Brown in Ferguson, Missouri, and it wasn’t a safe place for whites. He went inside anyway, he said, and saw Weems arguing with some of the men. ... But Brinkley [black police chief] was hesitant to label the incident as racially motivated. He said his investigation has turned up no evidence of racial slurs, and if slurs were used, that does not automatically qualify the case as a hate crime. “And right now we are investigating it as an aggravated assault, not a hate crime. We know there’s an aggravated assault, we don’t know that the actions and the evidence will support a hate crime, but if we get enough evidence to support that then we can amend the charges at that time,” Brinkley said in a phone interview Monday.

Should have kept their noses clean imo

Revenge Beating for Michael Brown Shooting Not a Hate Crime

Thread for dudes only (srs)

Alright guys, let's get one thing straight. We ALL jerk off, whether or not we are currently in a relationship or not. (The median beatings per day is 1.420, while the mean is 5.932, thanks to some outliers). Most of us guys with the advent fast video streaming have progressed from the spank bank to magazines to whatever our mind wants using internet porn (xvideos and spankwire are my personal favorite). Seriously, anything.....:dsmile: And most of us STILL use our hands.



Well, 6 hours ago I went to the local head shop that also had a sex toy section, and for the first time, got a "masturbator" I believe is the technical term.



6 hours and 5 orgasms :taco::taco::taco::taco::taco: later, I will say right now the cheap $20 thing I bought doesn't come close to the real thing, but it beats the @%#*# out of good ol righty and lefty that you've been using since that one time in the shower.



SRS no one here is still using Windows 95, get what I'm saying dudes? Go in there, and upgrade your system. Or just amazon it like everything else.

Thread for dudes only (srs)

>1 Page Resume

Is there a certain point in one's career when he or she may have a resume that is greater than one page in length? Not for me, just curious. Say you've been an actuary for 30 years. I find it hard to believe that you can even list all your previous roles let alone have a bullet or two on them.

>1 Page Resume

screen capture or low fps video freeware

Looking for free software that has automatic intermittent screen capture and saving, OR video capture software with a very low fps setting (like .25 and lower).



I trust the gurus of AO more than I trust myself to search for something safe and decent quickly. If you have knowledge about this, thanks!



(Win 7 64)

screen capture or low fps video freeware

Finan 49.1

Let X be a discrete random variable with range {1,2,...,n} so that its pmf is given by px(j) = 1/n for 1<= j <= n. Use the MGF to find E(X) and V(X).



I came up with sum 1 to n of (1/n)e^(t/n) for the MGF. Taking the derivative and setting t = 0 gives me sum 1 to n of 1/n^2. Have I done this incorrectly?

Finan 49.1

You're a Bad Person

In lieu of your most prominent faults, there is one that towers above all others. You sit idly by as evil men prey upon others and ruin the world. You are content in your selfish little shell of nuclear family. You act in those interests to the detriment of humans as a whole. Indeed, you are willfully ignorant of great atrocities and injustices occurring all around you, and for no reason other than being a good person, doing the right thing is hard. Very hard.



You've been bribed with your McMansion and your adorable little family, with good food, good pay, good health, material things, addictions, and vices. To maintain these comforts, you see evil all around and you do nothing. You convince yourself and others that you are all divided and wholly ineffective against evil in the world.



And so evil continues to prey upon us all and you allow it. You are a bad person.

You're a Bad Person