consider a two-decrement model where decrement 1 is withdrawal and decrement 2 is death. A fully discrete three-year term insurance is issued to a life aged 50 with the following terms:

-i =4%

-the death benefit is $150,000, payable at end of year of death

-if the policyholder withdraws in the first two years, a cash value of 30% of the total premium paid (without interest) is returned at the end of year.

-expenses are:

-Initial expenses:25% of first premium plus $1,500;

-renewal expenses:10% of subsequent premiums plus $800

-withdrawal expenses:$2000 payable at end of year of withdrawal

-claims expenses:$3000 payable at end of the year of death

-assumed mortality pattern:

x l(x 00) d(x 01) d(x 02)

50 1000 65 19

51 916 54 22

52 840 0 26

53 814 - -

The actual experience in first year is as assumed. During the second year, the experience different from assumed is as follows:

-the withdrawal probability is 0.08 and death probability is 0.02.

-Withdrawal expenses and claims expenses are both $2500

-the interest rate is 5%

Calculate 2AS, asset share at end of the second year.