F
Fuzz001
Member
Hi. Can someone please explain to me the UPR calc ? I'm lost
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If p/h dies in month n, benefit is 7000-100n. So premium earned in month n is proportional to 70-n.
The sum of these weights over the term of the policy from n = 0 to n = 59 is
60*70-(60*59)/2=2430 (using the sum of an arithmetic progression).
After m months the proportion of risk remaining is sum(from m to 59) of (70-n)/2430.
So UPR is that times 20 euro. The examiners's report goes on to expand this and comment on an 'exact' calculation, but hopefully this wouldn't be necessary to score full marks.
The sum of these weights over the term of the policy from n = 0 to n = 59 is
60*70-(60*59)/2=2430 (using the sum of an arithmetic progression).
After m months the proportion of risk remaining is sum(from m to 59) of (70-n)/2430.
So UPR is that times 20 euro. The examiners's report goes on to expand this and comment on an 'exact' calculation, but hopefully this wouldn't be necessary to score full marks.