SOA ILA LPMIndividual Life & Annuities — Life Product Management

Full credibility for a mortality study is set at 1,082 deaths (90% confidence, ±5%). A block records 400 deaths. Under the square-root rule, Z is closest to:

A company's fully-underwritten term mortality is 88% of the industry table (A/E) on 400 deaths; its new accelerated-underwriting programme shows 105% A/E on 60 deaths. Recommend a best-estimate mortality assumption for each programme and explain the credibility approach, the expected slippage rationale and how you would monitor.