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A multi-state model is being used to value sickness benefit Insurance healthy (1) sick (3) dead (d) For a policy on () you are given

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A multi-state model is being used to value sickness benefit Insurance healthy (1) sick (3) dead (d) For a policy on () you are given "1. Premiums are payable continuously at the rate of P per year while the policyholder is healthy Sickness benefits are payable continuously at the rate of B per year while the policyholder is sick ill. There are no death benefits. iv. denotes the intensity rate for transition from ito 3, where i, j =,hord w.di is the force of interest VL.Vo is the reserve at time t for an insured in state where = 3, h ord. Which of the following gives Thiele's differential equation for the reserve that the insurance company needs to hold while the policyholder is sick VW-8, +B- (VW-V) B "-VW-B-XVW - V) CV-8, +B VW-VW) - D VW-,-B-6VW->) - E VW-VB--). di

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