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Oct 2015, Q12

C

CorkActuary

Member
I'm struggling to work out the claim expense for this question. I believe that you're multiplying (aq)[x] (for death) by the bid-offer X2 (as benefit is 200% of the bid value)... However, I'm not sure how the maturity value is calculated and hence, the overall claim expense for both Yr 1 & Yr 2...

Help!!
 
If the benefit is 200% of the bid value. That means 100% taken from unit fund & 100%(of unit fund) from non-unit fund.
And for expenses absolute amount is given already.
 
I'm repeating this module this time around and still not working out where the claim expense from the non-unit fund is being calculated from...
 
here we just need to find expected expenses.
so for Expected claim expenses.
.001201*90=0.108(P(death within 1st year)*Death claim expense)
.001557*90+.998443*55=55.054(P(death within 2st year given survived first)*Death claim expense+P(survived 2nd given survived 1st))
 
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