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Problem 3. Suppose an insurance company is selling an insurance -product with the following net future loss random variable L3 = 170000min(Tiss],30) 30000a(4) min K4

Problem 3. Suppose an insurance company is selling an insurance -product with the following net future loss random variable L3 = 170000min(Tiss],30) 30000a(4) min K4 [55] +1/4,30) (a) (3 points) Describe this insurance product: What type of product is it, how are benefits paid, size of the benefit, type of life issued to, premium size, how premiums are paid, etc. (b) (3 points) Compute E[Ly] with the answer expressed in terms of standard actuarial notation. DO NOT SOLVE. Problem 3. Suppose an insurance company is selling an insurance -product with the following net future loss random variable L3 = 170000min(Tiss],30) 30000a(4) min K4 [55] +1/4,30) (a) (3 points) Describe this insurance product: What type of product is it, how are benefits paid, size of the benefit, type of life issued to, premium size, how premiums are paid, etc. (b) (3 points) Compute E[Ly] with the answer expressed in terms of standard actuarial notation. DO NOT SOLVE

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