Actuarial Science

Actuarial Science

• Wisconsin Center of Actuarial Excellence
• https://instruction.bus.wisc.edu/jfrees/UWCAELearn/Lists/MLC%20Problems/AllItems.aspx
• Learning Objective: Universal Life
  • https://instruction.bus.wisc.edu/jfrees/UWCAELearn/Exam%20Problems%20and%20Solutions/ExamMLCProblems/ProbMLC297_ED/ProbMLC297_ED.html

• Michael MATEJA: I’d like to make two points.
• First, I’m going to use the words actuarial science and say I think your charge is to provide SOP with regard to the implementation of actuarial science by the members of the profession. If I’m wrong in that regard, then maybe what I have to say would not be appropriate.
  • When regulators, in their wisdom, find ways to implement public policy and they, in effect, put down something that is not actuarial science, then I don’t think it’s your job to implement it by promoting standards.
  • What I see embedded in this sales illustration regulation is nothing like actuarial science. I would tell you to steer clear of it. We have no reason to have a standard for it.
  • You have great leverage, by virtue of your position. You can say, “No, we’re not going to tell actuaries to practice in such a way because it really doesn’t make sense.” I think you need to use that leverage at appropriate times and, in effect, could influence the conduct of the regulators.

1995 – SOA – Actuarial Standards Board (ASB): Current Hot Topics, rsa95v21n4a32 – Society of Actuaries – 18p

• 2020 – AP – Exploring Universal Life Insurance – Actuarial – 47p
  • digital.wpi.edu/concern/student_works/p2676z121?locale=en
    • Exploring_UL_Policy_Example.xlsx
    • Universal_Life_Lesson_Plan_.pptx
  • Abstract
  • This project focused on exploring Universal Life insurance by learning about its history, components, and process of reserving.
  • To conduct our research, we read several textbooks, study notes and a Valuation Manual.
  • We then created an Excel deliverable of a theoretical UL policy, created a Lesson plan about UL to teach to actuarial students, and a paper that explains the ins and outs of UL from a consumer standpoint and how the mechanics of a UL policy would work for a potential policyholder.