
Lecture 13
More on net premiums.
Endowments and annuities
In this lecture we will discuss further types of insurance contracts, par-
ticularly annuities, for which we will derive net premiums. We would
like, however, to caution against the impression that the calculation of
net premiums is logically as clear and straightforward as it has so far
been presented.
In reality, the sum insured is paid at a random moment τ: in Lecture
10 this random moment was either T −x for an individual person of
age x at inception of the policy, or had a somewhat more complicated
structure for a group insurance. The amount paid in prices in force at
the inception of the contract ...