Net Cost

  • A. "Net cost formulas at present in use for participating insurance should be superseded by a sound net cost formula which would include the investment value of the premium dollar and ignore the averaging of dividends."
    • In view of the above and similar criticisms, are the traditional average net cost and average net payment illustrations still satisfactory?
    • How far should companies go in assuming a rate of interest for projected accumulations?

1962 - SOA - Digest of Discussion of Subjects of Special Interest Individual Life Insurance: Individual Life Insurance, Society of Actuaries - 4p

  • The Effects of the Proposed Changes In The Standard Valuation and Nonforfeiture Value Laws on Reserves, Surrender Values, Net Costs and Yields

1981-1, NAIC Proceedings - Task Force on Life Insurance Disclosure System – LIDS – NAIC  --- [BonkNote]