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ERRATA TO

SOLUTIONS FOR THE

2001 EA-2A EXAM

 

 

Question 16:     Here is an alternative solution.  It is not clear whether we are to assume that a participant remarries if their spouse dies before death.  (There is no general condition for the exam that deals with this issue.)  Therefore, it could be reasonable to assume that the participant remarries immediately if their spouse dies.  In that case, the present value of the death benefit is:

 

                        PV = 19,904 ´ (q62 + vp62 q63 + v2 2p62 q64)

                              = 19,904 ´ [(.015)(9.80) + (.928)(.017)(9.64)

+ (.860)(.019)(9.47)]

                              = 19,904 ´ .453820

                              = 9,033

 

                        Accrued liability = 9,033 ´ .9 = 8,130

 

Note that this is also within answer range A.  It is not clear which is the more correct numerical answer.

 

Question 17:     This problem was deleted from the grading of this exam as the credit balance of $0 given in the question was as of 12/31/1999 and should have been as of 12/31/2000.  The solution has been provided as if the credit balance of $0 is as of 12/31/2000.

 

Question 24:     Since the publication of this solution manual, the Joint Board has acknowledged that choice B is the correct answer, and granted credit for either choice B or choice E.  The solution in the manual leading to the result of choice B is the correct solution to this question.