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3. [10 marks] Suppose ABC Life Co sells an Accidental death and dismemberment policy. There are 4 states: State 0 = healthy and alive State

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3. [10 marks] Suppose ABC Life Co sells an Accidental death and dismemberment policy. There are 4 states: State 0 = healthy and alive State 1 = accidental dismemberment State 2 = accidental death State 3 = death due to other causes We are told that there are transition intensities as follows: u" = 0.0002 H2 = 0.0010 . 93 = 0.0200 13 = 0.0222 12 = 0.0284 Calculate 1sp40 and 15.01. 3. [10 marks] Suppose ABC Life Co sells an Accidental death and dismemberment policy. There are 4 states: State 0 = healthy and alive State 1 = accidental dismemberment State 2 = accidental death State 3 = death due to other causes We are told that there are transition intensities as follows: u" = 0.0002 H2 = 0.0010 . 93 = 0.0200 13 = 0.0222 12 = 0.0284 Calculate 1sp40 and 15.01

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