北美精算师考试SOA精选真题大放送——Course8IU（第二块），高顿网校的小编在这里给奋斗在北美精算师战场上的你打招呼啦。
　　Morning Session
　　Question 5 pertains to the Case Study.
　　5. (13 points) As the product actuary for Mercury Life, you have been asked to analyze the
　　feasibility of adding an equity indexed annuity to the fixed annuity product line.
　　(a) (5 points) You are given the following product design:
　　? The index period is 6 years.
　　? The investment earnings rate is 5.5%.
　　? The first year commission is 4.0% of premium.
　　? Other expenses and profit equal 5.0% of premium.
　　? Guaranteed minimum account value is calculated using 90% of premium and
　　3.00% interest.
　　? Index account value is calculated using 100% of premium and 100%
　　participation rate guaranteed for 6 years.
　　(i) Calculate the affordable option budget. Show all work.
　　(ii) Determine changes and additions to the product design that would reduce
　　the actual option costs down to the affordable option budget.
　　(b) (1 point) Explain the impact of equity volatility on equity indexed annuity
　　pricing.
　　(c) (5 points) You are given the results from the initial pricing run:
　　Time Profit
　　0 - 25
　　1 60
　　2 0
　　3 0
　　4 42
　　5 12
　　6 - 70
　　Assume Mercury Life is willing to pay 5% for borrowed money.
　　(i) Calculate the ROI for this product using the Generalized ROI
　　Calculation Method. Show all work.
　　(ii) Assess the calculated ROI compared to Mercury Life’s profit objective.
　　(iii) Explain practical problems related to calculating ROI.
　　(d) (2 points) Evaluate the feasibility of adding an equity indexed annuity with
　　respect to Mercury Life’s target market.
　　Course 8I: Fall 2005 -6- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　Morning Session
　　6. (9 points) You are reviewing a block of flexible premium UL policies.
　　(a) Describe steps to determine the minimum cash surrender value for this type of
　　product according to the NAIC Universal Life Model Regulation.
　　(b) Your analysis reveals a widening gap between value-based reserves and cash
　　values. You believe a new experience study is needed to revise the value-based
　　reserve lapse assumptions.
　　(i) You are given:
　　? The existing lapse assumption is based on an internal study conducted
　　in 1999 of lapses of permanent life policies during the period 1996 to
　　1998, which included data from an acquisition in 1996.
　　? Current portfolio lapse data cannot distinguish between fixed and
　　flexible premium UL policies.
　　? Industry experience is trending toward lower lapse rates.
　　Explain how the key principles in studying experience to set assumptions
　　provide guidance for these specific issues.
　　(ii) Describe considerations when adjusting a best estimate experience
　　assumption with provision for adverse deviation.
　　(c) An illustration for a male, issue age 45, flexible premium UL policy indicates the
　　coverage remains level for the life of the policy assuming the policyowner
　　continues to pay the same annual premium since issue.
　　You are given:
　　Current Annual Premium $160
　　Guaranteed Maturity Premium $200
　　CRVM Net Level Premium $150
　　Valuation Net Level Premium $125
　　Guaranteed Maturity Fund at Duration 10 $900
　　Actual Fund at Duration 10 $700
　　Cash Value at Duration 10 $650
　　PV of Benefits at Duration 10 $2,500
　　45:50 a???? 13.75
　　55:40 a???? 11.25
　　Calculate the 10th year
　　(i) CRVM minimum terminal reserve.
　　(ii) Statutory gain or loss upon surrender.
　　Show all work.
　　Course 8I: Fall 2005 -7- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　Morning Session
　　7. (7 points) XYZ Life produces value-based financial statements.
　　You are given:
　　? The hurdle rate is 12%.
　　? The risk-free rate of return is 4.0%.
　　? The inflation rate is 1.5%.
　　? Beta is 2.0.
　　(a) (1 point) Describe the CAPM formula and calculate the implied rate of return on
　　average equity investments.
　　(b) (2 points) Describe validation techniques used to *uate the accuracy and
　　reliability of model office projections used in value-based financial analysis.
　　(c) (4 points) ABC Life offers the same term life insurance product as XYZ. XYZ’s
　　premiums are 5% higher than ABC’s. Both companies have the same inflation,
　　investment and hurdle rates.
　　XYZ has priced the product to achieve an IRR of 13%.
　　(i) Compare first year earnings for XYZ for the following reporting methods.
　　? US GAAP,
　　? Value-based financial reporting, and
　　? Level ROE financial reporting.
　　(ii) Determine which company would report higher first year earnings under
　　each of the reporting methods. Justify your answer.
　　Course 8I: Fall 2005 -8- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　高顿网校之为人处世：拥有梦想的人是值得尊敬的，也让人羡慕。当大多数人碌碌而为为现实奔忙的时候，坚持下去，不用害怕与众不同，你该有怎么样的人生，是该你亲自去撰写的。加油！让我们一起捍卫最初的梦想。——柳岩