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Total initial exposed to risk

A

AngelFace

Member
This is related to a practice question in the ActEd Revision Notes.

Practice Q8 of Booklet 5 asks for the total initial exposed to risk for a list of lives for the year of age (50, 51). The investigation period is 1 Jan 2001 to 31 Dec 2002. Life E was born on 1 Oct 1952, entered on 1 Nov 2002, and died on 1 Dec 2002.

I always thought that Initial Exposed to Risk is restricted at censorship? I.e. the period of investigation should matter? I'd given the answer to be 2 months (1 Nov 02 to 31 Dec 02), but ActEd gave the answer of 11 months, 1 Nov 02 to 1 Oct 03 - the life's 51st birthday.

Does censorship not apply to initial ETR?
 
Hi,

Since we're dealing with Initial exposed to risk which, from my understanding, ranges from the max{time of policy entry,start of investigation,birthday of individual} till the end of the investigation only, I would say that the contribution to the initial exposed to risk is over the period [1Nov'02,31Dec'02].

Now it looks like I'm also a bit confused.

ActED tutors, please assist...

Thanks,

Goku
 
Tutors please respond

I dont think many tutors are around as I'd got a few Out of Office replies after trying to email. Could someone answer this please? Thanks.
 
my 2 cts worth

hi,

as far as i understand the materials correct, to calculate initial exposed to risk, for deaths, we do still include the time remaining from death till end of investigations.
 
That's because the question requires the initial ETR from age 50 to 51. From 1 Oct 1952, Life E is exact aged 52.

Hope it helps.
 
Actually, just re-read what I'd wrote. For some reason I remembered that ActEd gave a solution where the entry date was the member's 50th birthday, before his entry date..

Can I just confirm though, in the case that the member entered after his 50th birthday, the Total ETR and IETR for his waiting time all start at the entry date, correct?
 
Hi - sorry if this reply is too late for the September exam, but I'll try and get the record straight on this topic for future reference.

The Initial ETR is always going to be 1 year in length (for a given life and
year of age) UNLESS some POSSIBLE deaths are lost from observation. For a
life that dies during the year of age, it is impossible to lose observation
of any deaths in future (ie you know he has died, end of story). If the end of the investigation comes after the date of death (but before the end of the current year of age) that doesn't make any difference - it is irrelevant information. So in the example that Angelface quotes, the IETR carries on until the 51st birthday - 1-10-2003.

However, if you come to the end of the investigation period and the person is still alive, then you don't KNOW what happens in the rest of the year of age following the censoring date. So there is a loss of time from the IETR (which is proportionate to the length of time lost). So if this person had been alive on 31st December 02, then the total IETR would have been 2 months.
 
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