Introduction to Actuarial Science Essay

Words: 1805
Pages: 8


Time allowed: 2 hours Total marks: 70


• Answer all questions

• You must show your working in full in all questions

• Approved calculators may be used, but all memories and user-supplied programmes must be cleared before you begin the examination.

• Some tables are provided.

• For each of the multiple choice questions write down exactly one of the symbols A,B,C or D to indicate which of the suggested answers you think is most correct.

• Marks shown are approximate.

• The Question Paper is in 8 parts. Answer each
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To be a good measure of the amount of risk in a policy

B. To be reasonably stable between policies

C. To be not easily manipulated

D. To be verifiable and easily obtained [1]

Question 10

Under which of the following contracts will investment risk to the life insurer be most significant? (You can assume the same present value of premiums will be paid to each contract).

A. A with-profit endowment assurance contract

B. A unit-linked whole life assurance contract

C. A non-profit immediate annuity contract

D. A with-profit immediate annuity contract [1]

Question 11
A “conversion option” on a contract allows the policyholder to:

A. Convert a policy to from a non-profit to a with-profits basis

B. Convert the underlying investments from one investment fund to another

C. Convert the policy to paid-up status

D. Convert the policy to another type of contract without further underwriting [1]

Question 12

Question 13
If you are contemplating two offers of employment and you want to compare the expected remuneration from each, the most important factor is:

A. The basic salary B. Opportunities for large share