Commutation

  • 1888 – Book – Life Insurance Premiums and Reserves, by Sheppard Homans – 13p
    • [Bonk:  Original 20p – can be found on GooglePlay]
  • 1959 – SOA – Interpolation Commutation Columns, Society of Actuaries – 6p

  • Commutation columns and valuation factors based on 1958 CSO mortality table. [Worldcat: One Copy available at Indiana University]

  • 1990 – LC – USAA Life Ins. Co. v. Commissioner – United States Tax court Mar 26, 1990 94 T.C. 499
    • Conceptually similar to the NLP, the GMP differs in some notable respects.
      • The GMP is calculated using universal life fund mechanics;
        • The GMP is based on policy guarantees of interest and mortality;
        • [Bonk: GMP = Guaranteed Maturity Premium]
      • the NLP uses commutation functions.
        • the NLP is based on valuation assumptions of interest and mortality.
        • [Bonk: NLP = Net Level Premium]