Hi, I see, in examiner's report for April 2015,Q9,"The main omission that some students counted the claim expense within gross prospective reserve" even the other expenses are nor inclusive there. But in the Core reading Gross Premium Reserve includes both. For Example in "6.4 Recursive relationship between reserves for annual premium contracts" So, am I missing something or else? Thanks!
On 31 December 2013, immediately before the premium then due, the life wishes to surrender the policy. The insurance company calculates a surrender value equal to the gross prospective policy reserve, using the following basis: Mortality AM92 Ultimate Interest 6% per annum Expenses Ignore
