On 1 January 2009, a life insurance company sold a number of 10-year pure endowment policies,

each with a benefit amount of 40,000, to lives then aged 30. Level premiums are payable

annually in advance.

(i) Calculate the annual premium.

(ii) On 1 January 2010, there were 50 of these policies still in force. During 2010, one

policyholder died. Calculate the company's mortality profit for 2010.

Basis: Mortality: AM92 Select

Interest: 4% pa effective

Expenses: None

24.2 On 31 December 2009 a pension scheme had 100 members aged 75 exact, each eligible for a

pension of 10,000 pa, payable annually on each 1 January. In addition, the members were

entitled to a death benefit of 20,000 payable at the end of the year of death. No premiums were

being paid in respect of these contracts after December 2009. Given that 4 of the lives died

during 2010, calculate the mortality profit for these contracts for calendar year 2010 using the

following basis:

Mortality: PFA92C20

Interest: 4% pa

Expenses: none

(i) Express in the form of symbols, and also explain in words, the expressions 'death strain at

risk' as it applies to a single policy, and the 'expected death strain' and 'actual death

strain' for a group of policies.

(ii) On 1 January 2001 a life insurance company issued a number of annual premium policies

to a group of lives, each of whom was then aged exactly 45. All policies were for a term of

20 years and were of the following types:

(a) endowment assurances under which the sum assured was payable on survival to

the end of the term or at the end of the year of earlier death

(b) term assurances under which the sum assured was payable only at the end of the

year of death within the policy term

(c) pure endowments under which the only benefit payable is the sum assured

You are given the following data from two populations: MADEUPTOWN STANDARD POPULATION Sex Occupation Population Deaths Population Deaths Office worker 20,000 100 10,000 50 Male Manual worker 60,000 500 20,000 300 Other 20,000 250 20,000 500 Office worker 20,000 50 10,000 50 Female Manual worker 30,000 200 10,000 100 Other 50,000 900 30,000 500 Total 200,000 2,000 100,000 1,500 Calculate the directly standardised mortality rate for Madeuptown, standardising by, occupation, (b) sex, and (0) occupation and sex