You are an actuary reviewing a tentative pricing calculation for a fully discrete whole life insurance on 1000 on (60). The tentative benefit premium seems surprisingly high. You discover that an incorrect value for 460 was used. You are given: . i = 0.06 • The incorrect value of 460 = 0.10 was used. . Based on that incorrect value, 1000A60 = 405.54. • The correct value is 460 -0.01. . For all other ages, the correct mortality rates were used. • L* denotes the insurer's loss at issue random variable, assuming the tentative benefit premium is not corrected. Calculate E(L*).
