According the 2001 CSO Mortality Table,the Yearly Probability of Dying

question 5

Multiple Choice

According the 2001 CSO mortality table,the yearly probability of dying for a 40 year-old man is .00165.The present value of $1 one year from today,assuming a 5.5 percent interest rate,is .9479.What is the net single premium per $1,000 for a one-year term insurance policy sold to a man at age 40 assuming a 5.5 percent interest rate? Assume the premium is paid at the start of the year and the death benefit is paid at the end of the year.

• A)$1.56
• B)$2.45
• C)$7.18
• D)$952.81

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Definitions:

Environmental Conditions

The various physical and social conditions that surround and influence individuals or organisms.

Conscious Free Choice

The concept that individuals have the ability to make voluntary decisions and choose their actions freely, uninfluenced by external constraints.

Psychic Determinism

The psychoanalytic concept that all mental processes are not spontaneous but are determined by the unconscious or pre-existing mental complexes.

Mental Causality

The concept that thoughts, beliefs, and mental states can cause events in the physical world, including actions and behaviors.