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jmcarson
May 1st 2007, 03:43 PM
Course 3, Fall 2004, problem 31: What is the "force of failure at duration" and how is it calculated? Can't find this referenced in my Actex study manual. Thanks for any help.

FSA
May 1st 2007, 05:29 PM
I believe this is referred to as "force of decrement" in the Bowers et. al. textbook. When I was a student working on policies with multiple statuses (e.g., last to die, first to die, term to age n, or some combination) then the status was said to "fail" with the appropriate condition was met. e.g., a term status "fails" if either the insured dies within the term period or survives beyond the end of the period.

The SOA website has a detailed solution to this question (nasty looking ''''er though).

(edit: a quick look at Bowers finds the formula needed in Chapter 9, Multiple Life functions, in formula 9.4.10. The use of the word "failure" may also be found in that chapter.)

jmcarson
May 2nd 2007, 07:48 AM
Great - thanks for the help!