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
Recommended Citation
Relador, Ronaldo Z., "The computation of contingency charge for group term insurance using a stochastic model" (1993). Undergraduate Theses. 10128.
https://www.ukdr.uplb.edu.ph/etd-undergrad/10128
Document Type
Thesis