/~.

Chapter 7: Benefit Reserves

Benefit reserve tV:

Variance of the loss function
The expected value of the prospect.ive loss at

time t.

Continuous reserve formulas:

Vad tL] assuming EP
Prospective: t V(Ax) Ax+t - P(Ax)a.x+t

Retrospective: tti(Ax) = P(AT).'lT;t]--

Premium diff.:
Var[t L ] ass1lming EP
Paid-np Ins.:

Cost of insurance: funding of the accumu

Annuity res.: tV(A;t.) = 1
lated costs of the death claims incurred between
age ;1: and x + t by the living at t, e.g.

Discrete reserve formulas: 4E x

qT
lkx =
lX+1 P.T

ACCUilmlated differences of premiums:

~Vx - n~::nl)
Ax-;-n 0 = A~'+n
.~Vx- nVT

- ~Vr
AXTm:n-~ - Ax+m
h-payment reserves:
~V Relation between various terminal re
serves (whole life/endowment only):
hr7' A )
Ie' ~ '"ix:nl = 1
(I - m~~)(l- nV.,,+m)(l-

Exam ?vI - Contil1j2; l lcieb - LG D 8