Premium Calculation Principles
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Premium and Policy Value Calculation for Long-Term Insurance Coverages. 14 min read, ~2,151 words.
Equivalence principle: gives, the most tested formula in Topic 10; this premium also minimizes. Alternative form: (whole life and endowment), enabled by the identity. Portfolio percentile: adds safety loading; loading vanishes as. Gross premium:, percentage-of-premium creates the factor. Premium ordering: (term < whole < endowment). Renewal expenses (years 2 to...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 10b
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