1. (40 Marks Total) An insurer issues fully discrete whole life insurance policies to 10,000 lives, each age 45 . The death benefit for each policy is $100,000. Gross premiums are determined using the equivalence principle with the following assumptions: The interest rate is 6% and mortality follows the attached exam MLC table. First Year expenses are 70% of premium and $150 per policy. Renewal Year expenses are 10% of premium and $10 per policy. Settlement expenses are $200 per policy. a) Find the gross premium for this policy calculated according to the equivalence principle. (20 Marks) 1. (40 Marks Total) An insurer issues fully discrete whole life insurance policies to 10,000 lives, each age 45 . The death benefit for each policy is $100,000. Gross premiums are determined using the equivalence principle with the following assumptions: The interest rate is 6% and mortality follows the attached exam MLC table. First Year expenses are 70% of premium and $150 per policy. Renewal Year expenses are 10% of premium and $10 per policy. Settlement expenses are $200 per policy. a) Find the gross premium for this policy calculated according to the equivalence principle. (20 Marks)