Description: This note suggests a simple approximate formula for the purpose of computing a terminal reserve when only mean reserves and net premiums are known. The author provides an expression for the error in this approximate formula and an exact formula for terminal reserves in terms of mean reserves, amounts of insurance, and a set of constants. From Transactions of Society of Actuaries 1951, Vol. 3, No. 6.

Description: This is a discussion of the paper, Actuarial Note: Terminal Reserves from Mean Reserves and Net Premiums by Dale R. Gustafson. From Transactions of Society of Actuaries 1951, Vol. 3, No. 7.