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Thread: about advanced multiple life theory

  1. #1
    Actuary.com - Level I Poster
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    Question about advanced multiple life theory

    Does anyone have any idea that what kind of situation this theory will be applied? What kind of insurance policy will apply this theory?

  2. #2
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    Most common are policies that cover two insureds and pay on either the first or second death (not both). Multiple lives may be used in parternship types of situations where you have multiple partners in a business and the proceeds are used to keep the biz going in the event of one's death.

  3. #3
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    Smile

    Quote Originally Posted by ocac06
    Does anyone have any idea that what kind of situation this theory will be applied? What kind of insurance policy will apply this theory?
    __________________________________________________ ________________

    Thanks. I have two more questions. Is mutiple life theory possible to be used in the reinsurance? In addition, what kind of case will insurance company apply mutiple annuity theory? Any help will be appreciated.

  4. #4
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    Reinsurance, sure, if the direct policy is multiple and it's reinsured then the secondary contract should also be multiple.

    Multiple life annuities happen all the time... joint & survivor annuities, joint & 50% survivor. Common with most annuity forms.

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