Data Set D These numbers are artificial. They represent the time at which a five-year term
life insurance policy terminates. All policies were sold at the same issue, so only the time
from issue is relevant. For some policyholders, termination is by death, for some it is by
surrender (the cancellation of the insurance contract), and for the remainder it is expiration
of the five-year period. Two separate versions are presented. For Data Set Dl (Table 11.4)
there were 30 policies observed from issue. For each, both the time of death and time of
surrender are presented, provided they were before the expiration of the five-year period.
Of course, normally we do not know the time of death of policyholders who surrender and
we do not know when policyholders who died would have surrendered had they not died.
Note that the final 12 policyholders survived both death and surrender to the end of the
five-year period.