Paid out more in claims than they have collected in premium

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Reference no: EM131974178

1. Insurers can still show a profit in a given year, even if they have paid out more in claims than they have collected in premiums, due to:

Conservative mortality tables

Contingency reserves

Policy dividends

Investment earnings

2. Find the accumulated value after 3 years of an initial investment of 10,000 if:

a) i=0.18

b) i^(4)= 0.10

c) d^(4)= 0.10

d) d= 0.090

Reference no: EM131974178

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