Profit testing for life insurance policies.Important exam questions in CM1 actuarial science скачать в хорошем качестве

Profit testing for life insurance policies.Important exam questions in CM1 actuarial science

Profit testing for life insurance policies. Linkedin   / pratap-padhi   Website https://smearseducation.com/ Join my FREE Skool Community to get all updates and support https://www.skool.com/sme-education-9... Watch my previous recordinds on CS2 Time Series 👉    • Master Time Series Forecasting:Guide to AR...   CS2 Risk Modelling and Survival Analysis 👉   • Why One Random Variable Is Not Enough for ...   👉    • What is a Stochastic Process? Easy explana...   CS1 Previous recorded videos watch 👉    • CS1 Discrete Random Variables and Probabil...   CM1 Previous recorded videos watch 👉    • CM1 Simple Interest and Discount Explained...   👉    • CM1 Y Part2 Class1- A beginner's introduct...   Timestamps 00:00 Introduction to profit testing question 00:08 Policy details. 5-year endowment insurance. Benefit structure 00:43 Death benefit and survival benefit explanation 00:57 Introduction to surrender benefit 01:05 Timeline construction. Age 55 to 60 01:44 Premium payment structure. Annual premium in advance 01:58 Premium calculation using actuarial notation 02:25 Inclusion of initial expense. 50 percent of premium 03:04 Renewal expense. 5 percent of premium 03:32 Writing correct premium equation 04:03 Actuarial annuity relation explanation 04:55 Important annuity identity and formula understanding 06:42 Final premium obtained. Premium per policy holder 07:02 Why premium remains same even if policy holders decrease 09:13 What happens during first policy year 09:36 Introduction to surrender benefit concept 10:01 Difference between surrender benefit and death benefit 10:50 Surrender benefit calculation based on number of premiums paid 12:10 Mortality and surrender probabilities explanation 13:03 Meaning of decrement in actuarial science 15:14 Dependency between death and surrender explained intuitively 17:43 Understanding surrender and mortality probability table 18:16 Profit testing table introduction 18:55 Premium income, expenses, and interest flow explanation 19:48 Reserve transfer concept introduced 20:14 Understanding balancing item and negative profit 21:11 Why claim cost is probability multiplied benefit 23:02 Why reserve must be established each year 25:43 Definition of actuarial reserve 26:20 Reserve notation and interpretation 27:19 Why reserve must be multiplied by number of surviving policy holders 29:18 Reserve adjustment based on survival and surrender 31:46 Reserve accumulation and required reserve comparison 34:47 Reserve increase calculation logic explained clearly 37:56 Introduction to profit signature 38:37 Why profit signature is different from simple profit 40:02 How cumulative survival probabilities affect profit 44:26 Step-by-step construction of profit signature table 46:00 Introduction to profit margin 46:48 Net present value of profit calculation 48:29 Expected present value of premiums calculation 50:28 Final profit margin formula explanation 50:34 Conclusion This class solves a complete Profit Testing exam question step by step, exactly in the format asked in actuarial science examinations. Profit testing is one of the most important topics in actuarial science. It connects premium calculation, expenses, reserves, surrender benefits, death benefits, and profit emergence into one structured framework. In this session, you learn how insurance companies determine whether a policy is profitable and how profit emerges over time. What you will learn in this class • How to calculate premium using actuarial present value equation • How initial expense and renewal expense affect profit • How surrender benefit affects company outgo • How death benefit and survival benefit are handled • How reserve is established year by year • Why reserve is zero at start and end but positive in between • How reserve increases and why increase in reserve is a cost • How to calculate claim cost using probability • Why claim cost is expected value, not full benefit • How to construct complete profit testing table • How profit emerges year by year • Difference between profit and profit signature • How number of policies reduces due to death and surrender • How to calculate cumulative survival probability • How to calculate profit signature • How to calculate expected present value of profit • How to calculate expected present value of premiums • How to calculate profit margin #ActuarialScience #CM1 #ProfitTesting #LifeInsurance #InsuranceMathematics #ProfitSignature #ProfitMargin #ActuarialExam #InsuranceReserves #NetPremiumReserve #EndowmentInsurance #ActuarialStudents #InsurancePricing #ActuarialTraining #CM1ExamQuestions