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Discrete time alternating renewal process is a very simple tool that permits solving many real life problems. This paper, after the presentation of this tool, introduces the compound environment in the alternating process giving a systematization to this important tool. The claim costs for a temporary disability insurance contract are presented. The algorithm and an example of application are also provided.SCOPUS: ar.jinfo:eu-repo/semantics/publishe

Homogeneous Discrete Time Alternating Compound Renewal Process: A Disability Insurance Application