Question 1 Mark A new entrant to a Continuing Care Retirement Community (CCRC) is offered a choice of three different payment plans: Full Life Care, Modified Life Care, or Fee-for-Service. You are given: (1) The entry fee is the same for each plan. (11) The new entrant is healthy and is entering an Independent Living Unit. (ill) The initial monthly fee for the Full Life Care plan is F, for the Modified Life Care is M, and for the Fee-for-Service plan is S. Which of the following is most likely to be correct? M>F>S B SMF S>FM D FS > M E F>MS Question 2 Mark A life insurer issues a whole life policy of 100,000 to a healthy life age 50, with a partial waiver of premiums on sickness. You are given: I. Net premiums of P per year are payable continuously while the insured is healthy. II. Net premiums of 0.5P per year are payable continuously while the life is sick. III. The death benefit is paid immediately on death. IV. Mortality and morbidity follow the Standard Sickness-Death Model. V. i = 0.05 Calculate P. A 2,500 B 2,600 2,700 D 2,800 E 2.900