Net Premium and Gross Premium Policy Values
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Premium and Policy Value Calculation for Long-Term Insurance Coverages. 19 min read, ~2,831 words.
Prospective: (future benefits minus future premiums at attained age, premium fixed at issue). Annuity ratio:, fastest exam shortcut, no insurance values needed. Recursion: connects consecutive reserves. Boundaries:,. FPT modified reserve: treats year 1 as term insurance; for whole life, for. Gross reserves can turn negative in early durations because first-year...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Example 6
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 10c
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