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Two Business Partners Carry 15 Year Term Life Insurance. The Insurer Pays 100, 000 For Each Partner Who Dies W

Posted April 29, 2009 – 4:23 pm in: term life insurance

Two business partners carry 15 year term life insurance. The insurer pays 100, 000 for each partner who dies within 15 years, and 0 for each partner who does not die within 15 years. The remaining lifetimes of the two partners are independent and each are uniformly distributed on [0, 15]. Determine the moment generating function of the total amount the insurer pays for the partners.

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One Comment

  1. Sugar Shane
    Posted April 29, 2009 at 4:23 pm | Permalink

    I think this problem is missing something. given the dist [0,15] the insurer has an infinitessimally small chance of not paying contract. so payout is always $30,000

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