Calculate the gross monthly premium payable

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The Australian Life Insurer {ALI} sold 10.000 20-year term insurance policies at the start of 2010 to identical but independent 40-year-olds. The details of these policies were as follows: Basis: AMQE Select. Interest 4% pa. Sum insured: $100,000 payable at the end of the year of death Premiums: payable monthly in adyanoe for the life of the policy Expenses: 00% of the annual premium up front and 3% of eaoh monthly premium {starting from the ?rst one). Pro?t loading: 5% of each premium.

a} Calculate the gross monthly premium payable on these policies.

b} At the start of 2013. exactly 100 of the policyholders have died. During 2013. a further 20 policyholders died. Calculate the mortality su rplusld e?cit arising for this portfolio during 2013. Allow for future expenses and pro?ts.

Reference no: EM133051174

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