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Consider a five-year term insurance issued to a life aged 40 by a single premium, with sum insured $1 million payable immediately on death. (a)

Consider a five-year term insurance issued to a life aged 40 by a single premium, with sum insured $1 million payable immediately on death. (a) (2 points) Write down an expression for the net future loss random variable. (b) (2 points) Calculate the net single premium, assuming UDD.

 

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