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SOA真题北美精算师部分Course8IC——2005年考试（Part2）

来源：高顿网校 2014-08-07

　　高顿网校小编2014年8月7日早上8点就为大家编写的SOA真题北美精算师部分Course8IC——2005年考试（Part2），请查收。
　　4. (9 points) Saturn Life is developing a new variable annuity product that will provide:

　　? 50 different investment options.

　　? A variety of guaranteed death, annuity, income and withdrawal benefit options.

　　? Asset-based expenses that vary with the account value of the policy.

　　(a) Define each step in the product development process according to LOMA.

　　(b) Determine and define for this product development project the applicable:

　　(i) corporate growth strategy,

　　(ii) marketing strategy, and

　　(iii) type of innovation.

　　(c) In developing expected lapse assumptions for the new product:

　　(i) List the factors affecting lapse rates.

　　(ii) Explain how the expected lapse assumptions would be impacted by each of

　　the proposed design features, and justify your answer.

　　(d) The entire product development project is expected to cost $10 million. Saturn’s

　　variable annuity products are expected to return 1% of premium annually after-tax.

　　The projected increase in sales is:

　　Year Without New Product With New Product

　　1 10% 210%

　　2 10% 60%

　　3 10% 10%

　　Calculate the project’s break-even year. Show all work.

　　Course 8I: Fall 2005 -5- GO ON TO NEXT PAGE

　　Individual Insurance – Canada

　　Morning Session

　　Questions 4 and 5 pertain 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 – Canada

　　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) You are given:

　　? The block contains both level cost of insurance (COI) policies and yearly

　　renewable term (YRT) cost of insurance policies.

　　? The best estimate ultimate lapse rate for the level COI business is 1% with an

　　MfAD of 10%.

　　? The best estimate ultimate lapse rate for the YRT COI business is 8% with an

　　MfAD of 15%.

　　Describe the lapse component calculation of a year-end 2005 MCCSR

　　submission, including prescribed assumptions for the block.

　　Course 8I: Fall 2005 -7- GO ON TO NEXT PAGE

　　Individual Insurance – Canada

　　Morning Session
　　同王公于堂皇中显渺小，贤达则在谦虚中见伟大。—雪莱——高顿网校名人心得

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