Question 5 Markt Giant Life Insurance Company issues a partially accelerated death benefit critical illness insurance (CII) policy to Diana, who is currently healthy and age 45. The policy is modeled using the following multiple state model: Healthy o Critically ill 1 Dead 2 Dead 3 You are given: The policy pays $25,000 upon diagnosis of a covered condition and $10,000 if the insured dies after a CII claim or $35,000 if the insured dies without a CII claim. Premiums of $300 are payable continuously while Diana is healthy. The policy expires on Diana's 65th birthday. i = 5% The following tables: 2 = 570 The following tables: -01 -02 03 -13 2 A. , , A, 45 14.99249 0.17354 0.10713 0.10927 0.28812 55 12.01687 0.26950 0.15006 0.16959 0.40842 65 8.56636 0.39881 0.17949 0.26940 0.54268 ,00 02 201 20-tP45+t 03 t 20-tP45+t 20-tP45+t 20-P45+t 11 20-tP45+t 0 0.73158 0.13689 0.11284 0.01869 0.68651 10 0.79284 0.10997 0.08436 0.01283 0.79896 Calculate the reserve at time 10, assuming Diana is in state 1 at time 10. Calculate the reserve at time 10, assuming Diana is in state 1 at time 10. A 1,402 B 1,422 1,442 D 1,462 E 1,482 Question 5 Markt Giant Life Insurance Company issues a partially accelerated death benefit critical illness insurance (CII) policy to Diana, who is currently healthy and age 45. The policy is modeled using the following multiple state model: Healthy o Critically ill 1 Dead 2 Dead 3 You are given: The policy pays $25,000 upon diagnosis of a covered condition and $10,000 if the insured dies after a CII claim or $35,000 if the insured dies without a CII claim. Premiums of $300 are payable continuously while Diana is healthy. The policy expires on Diana's 65th birthday. i = 5% The following tables: 2 = 570 The following tables: -01 -02 03 -13 2 A. , , A, 45 14.99249 0.17354 0.10713 0.10927 0.28812 55 12.01687 0.26950 0.15006 0.16959 0.40842 65 8.56636 0.39881 0.17949 0.26940 0.54268 ,00 02 201 20-tP45+t 03 t 20-tP45+t 20-tP45+t 20-P45+t 11 20-tP45+t 0 0.73158 0.13689 0.11284 0.01869 0.68651 10 0.79284 0.10997 0.08436 0.01283 0.79896 Calculate the reserve at time 10, assuming Diana is in state 1 at time 10. Calculate the reserve at time 10, assuming Diana is in state 1 at time 10. A 1,402 B 1,422 1,442 D 1,462 E 1,482