2. (3pt) Consider a 3-year annual level premium term life insurance on (40). The death benefit is 1000, payable at the end of the year if death occurs within 3 years. You are given: (i) Premium basis: Mortality: 940 = 0.09,941 = 0.10, 942 = 0.11 Expenses: Initial expenses and renewal expenses (payable at the beginning of each policy year) Year Per Policy Percentage of Premium 1st year 20 20% Renewal years 10 5% Settlement expense is 5. Interest: 5% annual effective. (ii) Net Premium Reserve basis: Mortality: 940 = 0.10,941 = 0.11,942 = 0.12 Interest: 4% annual effective. (a) Calculate the premium for this policy. (b) Calculate the reserve at the end of year 0, 1, 2, 3, for this policy. 2. (3pt) Consider a 3-year annual level premium term life insurance on (40). The death benefit is 1000, payable at the end of the year if death occurs within 3 years. You are given: (i) Premium basis: Mortality: 940 = 0.09,941 = 0.10, 942 = 0.11 Expenses: Initial expenses and renewal expenses (payable at the beginning of each policy year) Year Per Policy Percentage of Premium 1st year 20 20% Renewal years 10 5% Settlement expense is 5. Interest: 5% annual effective. (ii) Net Premium Reserve basis: Mortality: 940 = 0.10,941 = 0.11,942 = 0.12 Interest: 4% annual effective. (a) Calculate the premium for this policy. (b) Calculate the reserve at the end of year 0, 1, 2, 3, for this policy