SOA ILA LPMIndividual Life & Annuities — Life Product Management

Fellowship (FSA)

5 hours·≈10–12 written-answer questions·≈400 study hours

Score 0/0 · 5 MC

ILA LPM · Q1
Multiple choice
Product design & pricing (term, UL, IUL, VA, FIA)
A 10-year term product shows PV(profits) = 1.2M and PV(premiums) = 24M at the hurdle rate. The profit margin is:
ILA LPM · Q2
Written answer
Product design & pricing (term, UL, IUL, VA, FIA)
Your company proposes an indexed UL with a 10% cap and 100% participation on an S&P 500 point-to-point strategy, priced at an option budget of 4.5%. Rates fall 150 bp after pricing. (a) Explain how the option budget is funded and why it changes. (b) Recommend and justify two product actions. (c) Describe the illustration constraint that limits the response.
ILA LPM · Q3
Multiple choice
Product design & pricing (term, UL, IUL, VA, FIA)
A whole life policy has a death benefit of 100,000 and a reserve of 30,000 at the end of year 10. Calculate the net amount at risk for year 11's mortality charge (ignoring interest for the year).
ILA LPM · Q4
Written answer
Product design & pricing (term, UL, IUL, VA, FIA)
Explain why a life insurer's exposure to mortality/longevity risk differs between a term life block and a payout (income) annuity block, and describe one product design feature that mitigates longevity risk on the annuity side.