April 17th, 2009

An insurance company sells a $15,000, two-year term life insurance policy to an individual for $1,250.?

Find the expected return for the company if the probability the individual will live for the next two years is 0.93? Can anyone help?

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This entry was posted on Friday, April 17th, 2009 at 10:11 PM and is filed under Term Life Insurance Companies. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “An insurance company sells a $15,000, two-year term life insurance policy to an individual for $1,250.?”

  1. WallBaker Says:
    April 17th, 2009 at 10:11 PM

    .1.00-.93=.07
    .07*15,000=1,050
    1250-1050=200

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