Modelling Extra Risk
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Premium and Policy Value Calculation for Long-Term Insurance Coverages. 14 min read, ~2,025 words.
Age rating: use age in all standard formulas. Simplest method, no new formulas; the extra risk follows the standard mortality curve shape. Constant addition to force: gives, turning every substandard calculation into a standard one at interest rate. Under constant addition: annuity = standard at; insurance; premium. Constant multiple:, no...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 10e
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