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1. You are given that p70 = 0.9, 2p70 = 0.8, 3p70 = 0.7. The interest rate is 20% for the first year and 25% for the second year. Find the present value of the benefits on a 2-year term insurance policy sold to two lives (70) and (71) that provides benefits upon the first death, payable at the end of the year of death. The amount of the death benefit is 1000 if the first death occurs in the first year, and 2000 if it occurs in the second year.
2. An insurance policy pays 1 unit at the moment of the second death of (x) and (y). Level premiums are payable continuously as long as either of the two is alive. Given that (x) is subject to a constant force of mortality of 0.1, (y) is subject to a constant force of mortality of (0.3) and the force of interest is a constant 0.1, what is the annual rate of premium payment?
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Never forget that even small effects can be statistically significant if the samples are large. Of 148 small businesses, 106 were headed by men and 42 were headed by women.
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