Exercise 6.2 Consider a five-year term insurance issued to a select life aged 40 by a single
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Question:
Exercise 6.2 Consider a five-year term insurance issued to a select life aged 40 by a single premium, with sum insured $1 million payable immediately on death
. (a) Write down an expression for the net future loss random variable.
(b) Calculate the net single premium, assuming UDD.
(c) Calculate the probability that the contract makes a profit.
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