6. An insurance company issues a decreasing term assurance to a man aged 50 exact. The term of the policy is 10 years and the sum assured (payable at the end of the year of death) is 100,000 in year 1 and decreases by 10,000 each year. Premiums are payable quartely in advance for the term of the policy. (a) Calculate the quartely premium (to 2 decimal places). Mortality: AM92 (select at issue) Interest: 6% per annum effective Expenses: Nil [15 marks] (b) Explain why premium are normally only paid for part of the term of decreasing term assurance. [3 marks] [Total: 18 marks] 4