A life insurance contract on the life x is a couple (Coo Poo) of time-capitals Coo and Poo depending on x. The time-capital Coo is the engagement of the insurer to be paid to x and Poo is the engagement of the insured x to be paid to the insurance company (see Ch.4.2). For the moment no expense-loadings are taken into account, i.e. only net contracts are considered. In practice, Coo and Poo are positive time-capitals, i.e. time-capitals with positive amounts.
KeywordsInterest Rate Risk Premium Life Insurance Equivalence Principle Positive Amount
Unable to display preview. Download preview PDF.