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(8 points) An insurer issues a 20-year annual premium endowment insurance with sum insured $100,000 to a select life age 50. The insurer incurs

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(8 points) An insurer issues a 20-year annual premium endowment insurance with sum insured $100,000 to a select life age 50. The insurer incurs initial expenses of $1000 plus 50% of the first premium, and renewal expenses of 3 % of each subsequent premium. The death benefit is payable immediately on death. Write down the gross loss at issue random variable.

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