Actuary Certification Life Contingencies Flashcards
6 cards from real Actuary Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Actuary Certification Life Contingencies flashcards as text
The net premium for an n-year endowment insurance is calculated by:
Answer: Dividing the APV of benefit by the APV of an n-year life annuity-due
The net annual premium P equals the APV of the insurance benefit divided by the APV of the premium-paying annuity, here an n-year temporary life annuity-due.
The prospective formula for the net premium reserve at time t, tVx, is:
Answer: APV of future benefits minus APV of future premiums
The prospective reserve tVx = APV of future benefits − APV of future net premiums, representing the insurer's net liability at time t.
Makeham's mortality law adds which component to Gompertz's law?
Answer: A constant background (accident) hazard A
Makeham's law is μ(x) = A + Bc^x, extending Gompertz's μ(x) = Bc^x by adding a constant term A representing age-independent background mortality.
In a multiple-decrement table, the total decrement qx(τ) represents:
Answer: The probability of leaving the group from any cause
qx(τ) is the probability that a life aged x leaves the group within one year due to any of the competing causes of decrement.
The recursive formula for the terminal reserve satisfies which recursion?
Answer: (tVx + Pt)(1+i) = qx+t · b + px+t · t+1Vx
The retrospective recursion states that the reserve plus premium accumulated with interest equals the expected death benefit plus the next reserve discounted back.
Which Exam is primarily focused on life contingencies and survival models within the SOA exam sequence?
Answer: Exam MLC / Exam LTAM
The SOA's Exam MLC (now called Exam LTAM — Long-Term Actuarial Mathematics) covers life contingencies, survival models, and related topics.