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. 8 min read, ~1,155 words.
Prospective: (future benefits minus future premiums at attained age). Annuity ratio:, fast shortcut, no insurance values needed. Recursion:, connects consecutive reserves. Boundaries:,. FPT modified reserve: treats year 1 as term insurance; for whole life, for.
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 10c
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