Chapter 3-

Question 1

Maximum age of 2001 CSO Table is

Answer 1

120

Question 2

Select mortality table.

Answer 2

Mortality table with first 15 years experience of insured lives

Question 3

Ultimate mortality table

Answer 3

reflects the mortality that can be expected after all influence of selection has worn off.

Question 4

Law of large numbers

Answer 4

large databases will increase likelihood of insuring accurately.

Question 5

Probability of all outcomes =

Answer 5

1

Question 6

Probability is a fraction between 0 and 1 to describe

Answer 6

the chance of outcomes.

Question 7

Probability of independent events occurring is

Answer 7

multiplying (NOT adding together) the separate possibilities.

Question 8

Smooth Rates

Answer 8

Converting raw mortality rates into useable annuity mortality rates uses graduation or smoothing techniques to provide smooth rates.