Universal Life Insurance – Valuation
Universal Life Insurance – Valuation
- p – 1987 06 – Report – American Academy of Actuaries Universal Life Task Force – Preliminary Report Concerning Valuation and Nonforfeiture Provisions of Universal Life Insurance Model Regulation – ATTACHMENT TWO-B
- p495 – BACKGROUND AND SCOPE
- The Life and Health Actuarial Task Force (ATF) asked the American Academy of Actuaries Life Committee to develop amendments to the valuation and nonforfeiture provisions of the NAIC’s Universal Life Model Regulation. In a letter to John Montgomery, dated Oct. 22, 1986, Gary Dahlman, chairperson of the Academy’s Committee on Life Insurance, stated that a Universal Life Task Force (ULTF) would be created to work on this problem.
- AAA – American Academy of Actuaries – Preliminary Report – American Academy of Actuaries Universal life Task Force American Academy of Actuaries
- APPENDIX D – Sample Valuation Calculations
- This appendix contains sample valuation calculations for six universal life products. Valuations were performed using the following fuur methods: current model regulation method, GMP method, paid·up method and policy value method. For a description of these methods, see Section 4 of this report. The appendix consists of the following:
- Cover Note
- Summary of the Specifications for the Six Products
- Summary of Results
- Detailed Results for Product #1
- This appendix contains sample valuation calculations for six universal life products. Valuations were performed using the following fuur methods: current model regulation method, GMP method, paid·up method and policy value method. For a description of these methods, see Section 4 of this report. The appendix consists of the following:
- Product #6 – … This is the same as Product #5, but is a flexible premium product, so there is no traditional net single premium reserve minimum in the first few years, nor are whole life benefits guaranteed at issue through a secondary guarantee as with Product #5. Note that the GMP method reserves using 5.5% interest are substantially higher for Product #6 than for Product #5. This is because for Product #6 a large portion of the reserve is simply the account value; for Product #5 the reserve is the present value of benefits (projected at 4%, discounted at 5.5%).
- APPENDIX D – Sample Valuation Calculations
1988-1, NAIC Proceedings – LIFE AND HEALTH ACTUARIAL (EX5) TASK FORCE