Question

What is the formula for calculating Premium payable every year by a life aged x in a Whole life contract?

a.

Px = Ax / äx

b.

Px = Ax / äx: nך

c.

SP = Ax

d.

Px = Ax: nך / äx:tך

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).Px = Ax / äx Explanation:The formula for calculating Premium payable every year by a life aged x in a Whole life contract is Px = Ax / äx.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the formula for calculating Premium payable every year by a life aged x in a Whole life contract?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. In a Term assurance contract, what does Px represent?

View solution

Q. What is the formula for calculating Premium payable in a Pure endowment contract?

View solution

Q. In an Endowment assurance contract, what does Px:nך represent?

View solution

Q. What are some limitations of the formula method for determining premiums?

View solution

Q. What are office premiums in insurance?

View solution

Q. How is the Single Premium (SP) calculated for an Endowment assurance product considering office premiums?

View solution

Q. What is the formula for determining commission payments in insurance?

View solution

Q. What are initial expenses in insurance?

View solution

Q. How are renewal expenses calculated in insurance?

View solution

Q. What is the formula for determining the present value of initial expenses?

View solution

Q. What are claim expenses in insurance?

View solution

Q. How are claim expenses typically calculated in insurance?

View solution

Q. How are claim expenses factored into the determination of premiums?

View solution

Q. What is the primary goal of the cash flow method in determining premiums in insurance?

View solution

Q. What are the stages involved in the cash flow method for determining premiums?

View solution

Q. How is the net cash flow calculated in the cash flow method?

View solution

Q. What is the purpose of conducting profit testing in the cash flow method?

View solution

Q. What is the primary purpose of profit testing in insurance pricing?

View solution

Q. What does pricing in insurance entail?

View solution

Q. How is the cost of reserves accounted for in insurance pricing?

View solution
View All MCQs on IC 92 Actuarial Aspects of Product Development

Recommended Subjects

Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Instrumentation Transducers

Master the art of instrumentation and transducers with our specialized category....

IC38 Life Insurance Agent Exam

Prepare for success in the Insurance Institute of India (III) IC38 IRDA examination...

Optical Communication

Explore the world of high-speed data transmission with our Optical Communication...

Logical Reasoning

Enhance your logical thinking and decision-making abilities with our Logical...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Analytical Instrumentation

Dive into the world of precise measurements with our Analytical Instrumentation...

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...

Civil Engineering

Dive into the world of Civil Engineering with our specialized category. Explore the...