An Econodeath Insurance Company Actuary Calculated the Present Value of the Expected

question 4

Multiple Choice

An Econodeath Insurance Company actuary calculated the present value of the expected death claim the company will pay if it sells whole life insurance to a 30-year-old woman.This value is called the

• A)net level premium.
• B)gross premium.
• C)net single premium.
• D)life insurance policy reserve.

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Definitions:

Reduction In Risk

A decrease in the uncertainty associated with the return on an investment or the outcome of an action, often pursued through diversification or insurance.

Wal-Mart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

Exxon Mobil

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

Primary Stock

Shares issued directly by a company to investors as a means of raising capital, often through an initial public offering (IPO).