高顿网校会为你每天更新北美精算师的*7考试资料大纲信息，也请关注我们的官方微博和微信！
　　11.(9points)Afinancialreviewofthetermportfoliorevealsalowerlevelofprofitability
　　fromthe5-yearleveltermproductthanoriginallyprojected.Youhavebeenaskedto
　　re-pricethe5-yearleveltermproductforyourbrokerageanddirectresponsedistribution
　　channels.
　　(a)Comparetheeffecteachofthesedistributionchannelshasonthefollowing
　　assumptions.
　　(i)Mortality
　　(ii)Lapse
　　(iii)Interest
　　(iv)Expense
　　(b)Describeelementsofcompensationusedforbrokeragedistribution.
　　(c)Thetermportfoliohasexperiencedlowerpolicypersistencythanexpected.
　　(i)Describethefactorsthataffectpersistency.
　　(ii)Recommendstepstoimprovepersistencyfortheproduct.
　　COURSE8I:Fall2004-13-GOONTONEXTPAGE
　　IndividualInsurance–Canada
　　AfternoonSession
 
　　12.(6points)XYZLifehasbeenexperiencingpoorsalesandalowerthanexpectedreturn
　　onequity(ROE)ontheirFixedPremiumIndividualUniversalLife(UL)product.The
　　followingtablesummarizestheassetsinXYZ’sportfolio:
　　AssetAmount
　　Cash$10,000
　　AAARatedBonds$0
　　AARatedBonds$0
　　ARatedBonds$1,000,000
　　BBRatedBonds$5,000,000
　　CommonStock$10,000,000
　　RealEstate$1,000,000
　　CommercialMortgages$5,000,000
　　ImpairedInvestments$0
　　Assume:
　　?CurrentMCCSRratiois150%.
　　?XYZLifeguaranteesa4%creditedrate.
　　?Overthepastfouryears,themarkethasshownasignificantreductiontoboth
　　shortandlongterminterestrates.
　　?Longtermyieldsongovernmentbondsarenowlessthan5%andareexpected
　　toremainlevel.
　　(a)(5points)XYZLifeisreviewingthesurpluspositionrelativetotheMCCSR
　　guidelinesforCanadianlifeinsurancecompanies.
　　(i)DefineeachoftheriskcomponentsthatareapplicabletoXYZLife’sUL
　　productaccordingtotheMCCSRguidelines.
　　(ii)Proposechangestotheassetportfolioandproductdesigntoreducethe
　　requiredsurplusofXYZLife.
　　(iii)ExplainhowyourproposedchangesimpacttheROEofXYZLife.
　　(b)(1point)Describetheimpactthedeclineininterestrateshashadonthe
　　prescribedinterestratescenariosusedbytheAppointedActuaryinsettingthe
　　interestrateassumption.
　　COURSE8I:Fall2004-14-GOONTONEXTPAGE
　　IndividualInsurance–Canada
　　AfternoonSession
　　Questions13and14pertaintotheCaseStudy.
 
　　13.(8points)Th*uationactuaryatSaturnLifeisconcernedaboutthemortality
　　experienceofthetermportfolio.
　　(a)AssesstheeffectofSaturn’sconversion,re-underwritingandterminationoptions
　　ontherenewalARTmortalityassumption.
　　(b)YouaregiventhefollowingadditionalinformationforSaturn’s5-yearlevelterm
　　plan:
　　?Mortalityis90%ofthe1975-80UltimateTableintheabsenceofselective
　　lapsation
　　?qx+5,t?5equals80%ofqx,t
　　?Durationfivelapserateis20%
　　?75%ofdurationfivelapsesareassumedtobeselective
　　Calculatethedurationfivemortalityrateforafemaleage40usingthe
　　conservationofdeathsprinciple.Showallwork.
　　(c)Saturn’scurrenttermvaluationmortalityassumptionisasfollows:
　　?Bestestimateequals95%ofexpectedmortality
　　?Therearenoadjustmentsforanti-selectionatrenewal
　　?Marginforadversedeviationequals3.75/ex
　　Assesstheappropriatenessoftheseassumptionsandrecommendanychanges.
　　COURSE8I:Fall2004-15-GOONTONEXTPAGE
　　IndividualInsurance–Canada
　　AfternoonSession
　　Questions13and14pertaintotheCaseStudy.
 
　　14.(6points)YouhavebeenhiredbyMercuryLifeto*uatetheirprimarymarkets.
　　(a)(1point)Describethecriteriainvolvedin*uatingpotentialtargetmarkets.
　　(b)(5points)EvaluatethesuitabilityofeachofMercuryLife’sprimarymarketsas
　　targetmarkets.
 
　　15.(5points)XYZLifeplanstoentertheterminsurancemarket.
　　(a)Describethefiveelementsthatshouldbeincludedinthecomprehensivebusiness
　　analysis,aspresentedintheLOMAtext,todecidewhethertoentertheterm
　　insurancemarket.
　　(b)ExplainwhyXYZLifewouldusereinsurancetomanagethefinancialpositionof
　　itstermportfolio.
　　COURSE8I:Fall2004-16-STOP
　　IndividualInsurance–Canada
　　AfternoonSession
　　16.(8points)Youaregiventhefollowingannuitypayments:
　　PaymentDatePaymentatPaymentDate
　　January1,2006$50,000
　　July1,2006$60,000
　　January1,2007$55,000
　　July1,2007$70,000
　　January1,2008$60,000
　　July1,2008$80,000
　　(a)DescribetheModifiedDurationmethodofdurationmatchingincludingany
　　problemsassociatedwithit.
　　(b)CalculatetheModifiedDurationoftheannuitypaymentsasofJuly1,2005,
　　basedonaninterestrateof4%.Showallwork.
　　(c)DescribetheExactMatchingmethodofdurationmatchingincludingany
　　problemsassociatedwithit.
　　(d)Non-callablebondshavebeenpurchasedtoexactlymatchtheannuitypayments
　　asofJuly1,2005usingtheExactMatchingMethod.
　　Informationaboutthebondsisshowninthefollowingtable:
　　YearstoMaturityAnnualCouponRate
　　1.54.0%
　　2.04.5%
　　2.55.0%
　　3.05.5%
　　Bondshaveaparvalueof$100.
　　Couponsarepaidsemi-annually.
　　Determinethenumberofbondswithamaturityof2yearsthatwerepurchased.
　　Showallwork.
　　(e)DescribetheHorizonMatchingmethodanditsappropriatenessfortheannuity
　　payments.
　　**ENDOFEXAMINATION**
　　AFTERNOONSESSION
　　高顿网校之精品语录：我会有这样的爱情全世界在我眼中这时分为两半：一半是她，那里一切都是欢喜，希望，光明；另一半是没有她的一切，那里一切是苦闷和黑暗。 —— 列夫托尔斯泰