Question

What does Ax represent in commutation functions?

a.

Present value of benefit of 1 payable on death at any age after x

b.

Present value of benefit of 1 payable on survival at age x

c.

Present value of benefit of 1 payable on death at age x

d.

Present value of benefit of 1 payable on survival at any age after x

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).Present value of benefit of 1 payable on death at any age after x Explanation:Ax represents the present value of benefit of 1 payable on death at any age after x in commutation functions.

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Q. What does Ax represent in commutation functions?
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