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:

Permacath

A type of long-term, central venous catheter used primarily for long-term hemodialysis.

Hemodialysis

A process whereby blood is passed through a thin membrane and exposed to a dialysate solution to remove waste products.

Efferent Arteriole

A blood vessel that carries blood away from the glomerulus of the kidney after filtration has occurred.

Glomerulus

The microscopic cluster of capillaries within the Bowman’s capsule of the nephron.