An Econodeath Insurance Company actuary calculated the present value of the expected death claim the company will pay if it sells whole life insurance to a 30-year-old woman.This value is called the
A)net level premium.
B)gross premium.
C)net single premium.
D)life insurance policy reserve.

Question

Quizplus · Accepted Answer

The net single premium is the present value of the expected death claim that an insurance company will pay for a policy. It represents the amount that needs to be paid in a lump sum to cover the cost of the insurance benefit over the life of the policy, without considering administrative costs or profit margins.

An Econodeath Insurance Company Actuary Calculated the Present Value of the Expected