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claim expense within gross prospective reserve.

Discussion in 'CT5' started by Hemant Rupani, Sep 30, 2015.

  1. Hemant Rupani

    Hemant Rupani Senior Member

    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!
     
    Hemant Rupani, Sep 30, 2015
    #1
  2. suraj

    suraj Member

    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
     
    suraj, Sep 30, 2015
    #2
  3. Hemant Rupani

    Hemant Rupani Senior Member

    Thanks Suraj!

    I think I need focus:D ...
     
    Hemant Rupani, Oct 1, 2015
    #3

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