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Q16. An insurer issues a 20-year endowment insurance policy to (40) with a sum insured of 250,000, payable at the end of the year of
Q16. An insurer issues a 20-year endowment insurance policy to (40) with a sum insured of 250,000, payable at the end of the year of death. Premiums are calculated in accordance with the equivalence principle. Mortality follows the Standard and Ultimate Life Table with i = 0.05. Assuming 10,000 identical, independent contracts, by using normal approximation, estimate the 99th percentile of the loss-at-issue random variable
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