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A Life Insurer's Policy Reserve Equals the Difference Between the Mathematical

Question 40

Multiple Choice

A life insurer's policy reserve equals the difference between the mathematical liability of a future death claim and the value of:


A) future premiums the insured will have to refund to its policyholders
B) future premiums the insured will pay the insurer
C) future investment earnings on premiums the insured will pay the insurer
D) all present death claims

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