大家用心记北美精算师考试SOA历年精要真题：Course8IU（三），内容有点多，别怕。
　　Morning Session
　　8. (4 points) Senior management would like to introduce a commission schedule that
　　eliminates vesting entirely. In return, agents will be paid higher commissions. Currently,
　　all commissions vest to agents at the time of a sale.
　　You are given:
　　Current renewal commission scale:
　　t 1 2 3
　　rt 3% 3% 3%
　　Ot 0 0 0
　　Pt 1.0 0.90 0.80
　　Proposed renewal commission scale:
　　t 1 2 3
　　rt 5% 5% 5%
　　Ot 0 0.05 0.10
　　Pt 1.0 0.95 0.90
　　where:
　　t = policy year
　　r = commissions as a percent of the gross annual premium
　　Ot = probability that premium on new business is written by agents who leave
　　before business enters policy year t
　　Pt = probability that the annual premium for the policy year t will be paid
　　? The discount rate is 3%.
　　? Expected sales under current compensation scale are $10.0 million of premium.
　　? Expected sales under proposed compensation scale are $10.5 million of premium.
　　? Expected expenses excluding commissions are 10% of premium.
　　Select the commission schedule that produces the highest net revenue for the company.
　　Show all work.
　　Course 8I: Fall 2005 -9- STOP
　　Individual Insurance – U.S.
　　Morning Session
　　9. (4 points) ABC Life is concerned about the trend of its fixed annuity sales relative to the
　　rest of the industry.
　　(a) Describe available sources of data that may be used to *uate the trend in fixed
　　annuity sales.
　　(b) Describe issues for ABC to consider in deciding whether to withdraw from the
　　fixed annuity market.
　　**END OF EXAMINATION**
　　MORNING SESSION
　　Course 8I: Fall 2005 -1- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　Afternoon Session
　　**BEGINNING OF EXAMINATION 8**
　　INDIVIDUAL INSURANCE – U.S.
　　AFTERNOON SESSION
　　Beginning with question 10
　　Question 10 pertains to the Case Study
　　10. (4 points) Mercury Life plans to enter the individual term life insurance market using a
　　brokerage distribution system.
　　(a) Assess this plan in relation to Mercury’s strengths and weaknesses.
　　(b) Assuming Mercury’s goal is to increase market share through broker
　　relationships:
　　(i) Determine the appropriate pricing objective.
　　(ii) Describe the advantages and disadvantages of this objective.
　　(c) Assuming Mercury’s goal is to increase market share through consumer
　　relationships:
　　(i) Determine the appropriate pricing objective.
　　(ii) Describe the advantages and disadvantages of this objective.
　　Course 8I: Fall 2005 -2- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　Afternoon Session
　　11. (6 points) Your company is proposing to sell a block of life insurance business to another
　　company.
　　(a) Describe factors to consider before deciding to sell the block.
　　(b) Explain reinsurance structures available to facilitate the sale of a block of life
　　insurance business.
　　(c) Describe goodwill and explain its impact on the transaction.
　　Course 8I: Fall 2005 -3- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　Afternoon Session
　　Question 12 pertains to the Case Study.
　　12. (8 points) You are given the following information with respect to Saturn Life’s term
　　insurance financial statements:
　　? Saturn uses the same definition of GAAP free cash flow and GAAP surplus as found
　　in TSA 38 Strategic Management of Life Insurance Company Surplus.
　　? Solvency-based reserves are equal to GAAP income-based reserves.
　　? After-tax investment income on required capital for 2003 is $2,750,000.
　　(a) With respect to annual GAAP ROE:
　　(i) Explain possible reasons for a non-level pattern.
　　(ii) Explain possible reasons a particular year differs from the pricing ROI.
　　(b) Calculate Saturn’s 2003 GAAP free cash flow. Show all work.
　　(c) Saturn is considering a change to YRT reinsurance from the existing coinsurance
　　arrangement.
　　You are given the following information:
　　? The YRT reinsurance is on a 90% quota share basis.
　　? The average YRT reinsurance premium on 2003 issues is $0.55 per $1000.
　　? Average first year mean reserve credit on YRT reinsurance is $0.60 per
　　$1000.
　　? Average first year mean reserve credit on coinsurance is $0.71 per $1000.
　　? There were no deaths on contracts issued in 2003.
　　Revise the 2003 pre-tax shareholder earnings assuming term policies sold in 2003
　　are reinsured under the YRT arrangement, ignoring any impact on DAC and
　　investment income. Show all work.
　　Course 8I: Fall 2005 -4- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　Afternoon Session
　　13. (13 points) Your company is proposing to offer a new flexible premium UL product in
　　the Canadian market with the following features:
　　? The introductory credited interest rate is 12% and is guaranteed for the first
　　12 months.
　　? The credited rate after the first 12 months is based on one of two options:
　　- The return on fixed income assets, or
　　- An equity index based on the S&P 500.
　　? Commission of 60% on all premiums paid in the first year.
　　? Production bonus of 100% on first year commission earned.
　　? There are no commission chargebacks.
　　? Surrender charges apply for the first 10 years.
　　? Every five years, a contingent bonus of 1% of account value is paid, provided
　　the average credited rate has exceeded 4% over the life of the policy.
　　(a) (4 points)
　　(i) Describe each of the following prohibited sales practices:
　　? Misrepresentation
　　? Twisting and churning
　　? Rebating
　　(ii) Evaluate the exposure of the proposed product to each of these practices.
　　(b) (1 point) Explain the advantages and disadvantages of flexible premium UL
　　compared to fixed premium UL.
　　(c) (4 points) Determine the impact on lapsation for policies with the fixed income
　　crediting option under a declining return scenario, assuming the credited rate is:
　　(i) The earned rate less a targeted spread.
　　(ii) The market rate less a targeted spread.
　　(d) (4 points) Explain the factors used to determine the amount of DAC amortization
　　in the first policy year for this UL product with respect to U.S. GAAP.
　　Course 8I: Fall 2005 -5- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　Afternoon Session
　　14. (12 points) ABC Life currently sells a guaranteed, 10-year level premium term product
　　in the U.S. market. After the initial 10-year period, coverage is annually renewable.
　　Recent sales results have been disappointing. ABC is developing an indeterminate
　　premium version to replace the current product. Under the new design, premium rates
　　will be guaranteed for the first two years of the contract.
　　(a) Describe the types of product innovations as outlined in LOMA.
　　(b) With respect to indeterminate premium term products:
　　(i) Describe the product design.
　　(ii) Explain the advantages and disadvantages compared to a guaranteed
　　premium product design from the company’s perspective.
　　(c) ABC has no mortality experience for an indeterminate premium product.
　　Describe factors ABC needs to consider in using its own existing mortality data to
　　set the mortality assumption used to price the new product.
　　(d) Describe the following methods of calculating reserves for renewable term
　　products:
　　(i) Unitary method.
　　(ii) Contract Segmentation method.
　　Course 8I: Fall 2005 -6- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　Afternoon Session
　　15. (8 points)
　　(a) Describe the following methods of matching assets and liabilities.
　　(i) Exact matching,
　　(ii) Duration matching,
　　(iii) Horizon matching, and
　　(iv) Product cash flow matching.
　　(b) You are given:
　　Time Liability Cash Flow
　　1 25
　　2 25
　　3 100
　　4 100
　　5 0
　　6 0
　　Calculate the modified duration and convexity of the liability cash flows using an
　　interest rate of 7%. Show all work.
　　(c) The investment department suggests an asset portfolio with modified duration
　　equal to the liability cash flow modified duration, with the following asset cash
　　flows:
　　Time Asset Cash Flow
　　1 4.68
　　2 0.32
　　3 234.07
　　4 0.32
　　5 0.00
　　6 10.72
　　(i) Evaluate the effectiveness of using the proposed asset portfolio to
　　immunize the liability cash flows.
　　(ii) Describe ways to improve the asset and liability matching for this
　　portfolio.
　　Show all work.
　　Course 8I: Fall 2005 -7- GO ON TO NEXT PAGE
　　Individual Insurance – U.S.
　　Afternoon Session
　　16. (5 points) You are given:
　　Cash Claims Paid by Year of Incurral
　　Incurral Year
　　Calendar Year 2000 2001 2002 2003 2004
　　2000 5
　　2001 10 6
　　2002 4 12 7
　　2003 3 7 14 7
　　2004 1 2 2 13 6
　　End of Year Claim Reserve
　　Incurral Year
　　Calendar Year 2000 2001 2002 2003 2004
　　2000 15
　　2001 10 16
　　2002 8 5 17
　　2003 5 4 6 18
　　2004 4 3 5 6 17
　　(a) Describe the common tests of claim reserve adequacy.
　　(b) Evaluate the sufficiency of the claim reserves. Show all work.
　　Course 8I: Fall 2005 -8- STOP
　　Individual Insurance – U.S.
　　Afternoon Session
　　17. (4 points) A U.S. insurance company has historically sold only whole life insurance.
　　Sales have been declining steadily over the last few years. Senior management expects to
　　introduce a universal life product that provides the customer with more flexibility.
　　(a) Describe features of a universal life product that provide flexibility to the
　　customer.
　　(b) The following product design is proposed:
　　? The premium load is 15%.
　　? The guaranteed interest rate is 5.00%.
　　? A surrender charge applies for 5 years.
　　? The policy fee is $5 per month.
　　? Unscheduled premium payments are not permitted.
　　? There are no riders.
　　? The policy loan interest rate is equal to the current interest rate.
　　? The guaranteed interest bonus is 1% beginning in year 11.
　　Evaluate the proposed design and recommend any changes.
　　**END OF EXAMINATION**
　　AFTERNOON SESSION
　　高顿网校之金玉良言：不是每个人都应该像我这样去建造一座水晶大教堂，但是每个人都应该拥有自己的梦想，设计自己的梦想，追求自己的梦想，实现自己的梦想。梦想是生命的灵魂，是心灵的灯塔，是引导人走向成功的信仰。有了崇高的梦想，只要矢志不渝地追求，梦想就会成为现实，奋斗就会变成壮举，生命就会创造奇迹。——罗伯·舒乐