2004年度11月份SOA考试真题珍藏精算师Course8IC（*9节），高顿网校小编有责任提醒您认真仔细学习北美精算师。
　　Individual Insurance – Canada
　　Morning Session
　　**BEGINNING OF EXAMINATION 8**
　　INDIVIDUAL INSURANCE – CANADA
　　MORNING SESSION
　　1. (5 points) ABC Life has a career agency distribution system. ABC’s management is
　　reviewing their financing plan for new agents.
　　(a) Describe the different types of financing plans for new agents and explain the
　　advantages and disadvantages of each according to LIMRA.
　　(b) You are given the following information:
　　Year Average
　　Annualized First
　　Year Premium
　　Agent
　　Termination
　　Rate
　　Subsidy Validation
　　Schedule
　　Commission
　　1 $60,000 50% 120% $20,000
　　2 $80,000 25% 80% $25,000
　　3 $100,000 10% 40% $30,000
　　4+ $120,000 0% 0% $0
　　? Commissions are paid on annualized first year premium.
　　? Agent termination occurs at the end of the year.
　　? 6% of first year premium is priced into products to cover agent financing.
　　? The interest rate is 0%.
　　(i) Calculate the average financing cost for a new agent as a percentage of
　　first year premium for each of the first three years. Show all work.
　　(ii) Determine the number of years it will take for ABC to recover the
　　financing costs on 100 new agents. Show all work.
　　COURSE 8I: Fall 2004 -2- GO ON TO NEXT PAGE
　　Individual Insurance – Canada
　　Morning Session
　　2. (11 points) XYZ Life is *uating a block of identical special life contingent annuities
　　issued January 1, 2004 by ABC Life. You are given:
　　? Total required capital as a percentage of solvency reserves is 5%.
　　? Assumed investment interest rate on required capital is 4%.
　　? Hurdle rate is 15%.
　　? Each annuity payment is $71,280.
　　? Payments are made at the end of each year during the annuitant’s lifetime.
　　? Deaths occur at the end of the year before the annuity payment.
　　? No taxes or maintenance expenses.
　　Actual Projected
　　1/1/2004 12/31/2004 12/31/2005 12/31/2006
　　Policy count 100 75 50 25
　　Solvency reserves (‘000s) $9,864 $5,011 $1,697 $0
　　Premium (‘000s) $10,000 $0 $0 $0
　　Commission (‘000s) $400 $0 $0 $0
　　Benefits (‘000s) $0 $5,346 $3,564 $1,782
　　Investment income on
　　solvency reserves and
　　cashflows (‘000s)
　　$0 $838 $426 $144
　　(a) (3 points) With respect to Minimum Continuing Capital & Surplus Requirements
　　for Life Insurance companies and each of the following risks:
　　? Mortality
　　? Pricing interest margin
　　? Change in the interest rate environment.
　　(i) Describe the nature of the risks.
　　(ii) Calculate the minimum capital requirement at December 31, 2004 for the
　　risks. Show all work.
　　(b) (4 points) Calculate the embedded value of this block at January 1, 2004. Show
　　all work.
　　COURSE 8I: Fall 2004 -3- GO ON TO NEXT PAGE
　　Individual Insurance – Canada
　　Morning Session
　　2. (Continued)
　　(c) (3 points) You are given the following binomial distribution:
　　n q f(25) F(25)
　　100 0.25 0.0918 0.5525
　　Calculate the probability of solvency earnings exceeding $250,000 in 2004.
　　Show all work.
　　(d) (1 point) On January 1, 2005, XYZ Life buys the remaining block of 75
　　contracts.
　　Calculate the maximum amount of assets ABC transfers to XYZ assuming no
　　transaction expenses. Show all work.
　　COURSE 8I: Fall 2004 -4- GO ON TO NEXT PAGE
　　Individual Insurance – Canada
　　Morning Session
　　一个人在科学探索的道路上，走过弯路，犯过错误，并不是坏事，更不是什么耻辱，要在实践中勇于承认和改正错误。——高顿网校名言警句