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plz help me with (a) and (b) thanks Q1. (8 points) Assume that Superior Insurance Company has a life insurance product that assumes a model

plz help me with (a) and (b) thanks

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Q1. (8 points) Assume that Superior Insurance Company has a life insurance product that assumes a model that has ut = 0.02 and 8 = 0.05. All policyholders are 50 years old. a) Find the APV of a product that pays $1,000,000 at the end of the year a policyholder dies. b) Find E[Z] + 0.5 X STD(Z), rounded to the nearest dollar, of a product that pays $1,000,000 at moment of death. = c) You're considering using a generalized de Moivre's law model with w = 120 and k 1,000. You would like to calibrate a such that the APV of a one-year term insurance, paying $1 at the end of year of death, under the two models are equivalent. d) If Superior Insurance Company has 1,000 50-year pure endowments issued today to 1,000 x- year-old individuals that pay $1,000,000 each. You are given Ax:50] = 0.07 and A2:50 0.03. Using the normal approximation method, and assuming that all policyholders' time-to-death is independent, what is the 99.9th percentile to the nearest million of the PV of total claims paid? 1 = Q1. (8 points) Assume that Superior Insurance Company has a life insurance product that assumes a model that has ut = 0.02 and 8 = 0.05. All policyholders are 50 years old. a) Find the APV of a product that pays $1,000,000 at the end of the year a policyholder dies. b) Find E[Z] + 0.5 X STD(Z), rounded to the nearest dollar, of a product that pays $1,000,000 at moment of death. = c) You're considering using a generalized de Moivre's law model with w = 120 and k 1,000. You would like to calibrate a such that the APV of a one-year term insurance, paying $1 at the end of year of death, under the two models are equivalent. d) If Superior Insurance Company has 1,000 50-year pure endowments issued today to 1,000 x- year-old individuals that pay $1,000,000 each. You are given Ax:50] = 0.07 and A2:50 0.03. Using the normal approximation method, and assuming that all policyholders' time-to-death is independent, what is the 99.9th percentile to the nearest million of the PV of total claims paid? 1 =

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