Premium Calculation Principles
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Premium and Policy Value Calculation for Long-Term Insurance Coverages. 7 min read, ~1,065 words.
Equivalence principle: gives, the most tested formula in Topic 10. Alternative form: (works for whole life and endowment). Portfolio percentile: adds safety loading; loading vanishes as. Gross premium:, percentage-of-premium creates. Premium ordering: (term < whole < endowment).
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 10b
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