The computation of contingency charge for group term insurance using a stochastic model

Date

3-1993

Degree

Bachelor of Science in Applied Mathematics

College

College of Arts and Sciences (CAS)

Adviser/Committee Chair

Rhodora O. dela Peña

Abstract

The traditional(Percentage Method Approach) contingency charge imposed by a life insurance company in the Philippines on a group of 246 members is 33.3% of the net premium. Applying a Stochastic model developed by Arnold Shapiro, using binomial distribution for death, the study obtained that the claim experience of 0 1 has the probability, Pi. = .9743. Whereas 2 d' has the probability, P2 = .0257. Pi also implies that the level of certainty that the aggregate net premium, Vo = P 12,669.00 at accumulation factor, u1 = 1.06 after one year is 97.43% adequate to pay a face amount, R = P 10,000.00 to a single claim experience at C = 0.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

Thesis

Document Type

Thesis

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