Question 3 10 pts An actuary in your firm has done a preliminary pricing on a continuous 10-year deferred whole life insurance with a face value of $1000. He estimated that the single benefit premium for such a policy issued to a 50-year-old is $0.05 per dollar of coverage. He also told you if the force of interest is doubled, the same policy will have a single benefit premium of $0.01 per dollar of coverage. You are asked to reprice the policy to be issued to a 50-year-old, but now as a member of a group of five hundred 50-year-olds (insured as a group). Your new pricing goal is that the premiums collected from the expected 500 policyholders will cover their death benefits 95% of the time. You assume all lives are independent, and the distribution of total actuarial present value of these policies is approximately normal. What should be the new single benefit premium per person per $1000 of benefit? For a standard normal distribution, its 95th percentile is 1.645, 97.5th percentile is 1.96 and 99th percentile is 2.326. C o $60 Question 3 10 pts An actuary in your firm has done a preliminary pricing on a continuous 10-year deferred whole life insurance with a face value of $1000. He estimated that the single benefit premium for such a policy issued to a 50-year-old is $0.05 per dollar of coverage. He also told you if the force of interest is doubled, the same policy will have a single benefit premium of $0.01 per dollar of coverage. You are asked to reprice the policy to be issued to a 50-year-old, but now as a member of a group of five hundred 50-year-olds (insured as a group). Your new pricing goal is that the premiums collected from the expected 500 policyholders will cover their death benefits 95% of the time. You assume all lives are independent, and the distribution of total actuarial present value of these policies is approximately normal. What should be the new single benefit premium per person per $1000 of benefit? For a standard normal distribution, its 95th percentile is 1.645, 97.5th percentile is 1.96 and 99th percentile is 2.326. C o $60