Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA > Modules 6-8
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Upload your resume securely at https://www.dwsimpson.com
to be contacted when new jobs meet your skills and objectives.


Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 08-18-2017, 05:39 PM
whatdoactuariesevendo whatdoactuariesevendo is offline
Member
SOA
 
Join Date: Nov 2016
Posts: 30
Default EOM6 Return of COI Charges

1. What does this mean? They say "the benefit" twice and it seems like they are talking about 2 different benefits because one happens at the 10th anniversary and the other happens before the 10th anniversary. I'm so confused by this sentence.

"At the tenth contract anniversary the benefit is paid and the customer will forfeit the benefit upon surrender before the tenth contract anniversary."

2. How does it help the Insurance company or insured? Since I don't know the answer to question 1, I can't even surmise a response to this yet.

Thanks!
Reply With Quote
  #2  
Old 08-18-2017, 10:58 PM
gcact gcact is offline
Member
Non-Actuary
 
Join Date: Jan 2013
Studying for ERM
College: FSU
Posts: 1,599
Default

I read it as:
At t=10 the insurance company will pay the benefit to the insured
If the insured surrenders the policy before t=10, then there is no benefit.

Does that make more sense?
Reply With Quote
  #3  
Old 08-19-2017, 04:37 PM
bigb bigb is offline
Member
Non-Actuary
 
Join Date: Jul 2010
Posts: 9,175
Default

Quote:
Originally Posted by whatdoactuariesevendo View Post

1) At the tenth contract anniversary the benefit is paid.

2) (and) The customer will forfeit the benefit upon surrender before the tenth contract anniversary.
what gcact said

They are describing the only two options available to the policyholder, splitting the sentence up might help.
Reply With Quote
  #4  
Old 08-22-2017, 12:11 PM
whatdoactuariesevendo whatdoactuariesevendo is offline
Member
SOA
 
Join Date: Nov 2016
Posts: 30
Default now that makes sense

thanks, I just couldn't get it before. The "and" confused me, because I didn't know how both of these things could happen and be talking about the same benefit. I read as the benefit is paid and not paid, what?

1. at t=10 the benefit is paid
and
2. the benefit is not paid
Reply With Quote
  #5  
Old 08-22-2017, 12:53 PM
bigb bigb is offline
Member
Non-Actuary
 
Join Date: Jul 2010
Posts: 9,175
Default

yep, mutually exclusive events taking place
Reply With Quote
Reply

Tags
eom6, proposed product changes, return of coi

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 09:12 AM.


Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.18189 seconds with 11 queries