Actuarial – Page 11

Ratebook Universal Life is a ratebook and more, all by itself. If you say you have Universal Life, you in fact have more of a product than you probably have in your current portfolio at the present time. — Thomas F. Eason 1983 – SOA – Individual Life Insurance, Society of Actuaries – 22p Adjustable Life -…

Interest Adjusted Method C.L. TROWBRIDGE: My interest in this challenging subject goes back to my membership on the 1970 Joint Special Committee chaired by Jack Moorhead. This Committee proposed what was then known as the interest-adjusted method, which later became the basis of the NAIC approach now in effect in some 2/3 of the states.…

Cash Surrender Values My topic this morning is required cash surrender values for Universal Life products. A few of the questions I will address include: What is the status of NAIC activity in this area? What are the prospects of the NAIC adopting the current ACLI nonforfeiture proposal? As I personally do not believe that…

Cost Structure The key to our proof was to bundle the product back up and to look at the guaranteed future benefits. When we did this, we made some interesting discoveries. Perhaps the most important was that the role of the account value and mortality and interest guarantees to define what the policy’s guaranteed death…

Interest Rate Assumptions Grading Interest Rate Risk Low Interest Rate Environment New Money vs Portfolio Money Maybe he is not getting all the disclosure he needs, as far as the continuing benefit is concerned, when the interest rates change from that illustrated. The interest assumption is one that we really struggled with. — Gary P.…

Grading Where were the people that wanted to do that when we were going through the process. Folks, we’ve been talking about this for a year. We have taken input from anyone and everyone. If we had any sense that we could have had ten-year projections only, if we had any sense that we could…

Off-Track / On-Track In essence, the model regulation <Universal Life Model Regulation> assumes that at issue, all universal life policies are permanent plans. The r-ratio is meant to measure the extent to which the policy is “on track” as a permanent plan. Statutory Valuation of Individual Life and Annuity Contracts | 5th Edition Claire, Lombardi…

Policy Maturity Isn’t it more realistic to assume a customer wants to know what the cost will be if he carries that policy out to maturity? (p13) — Senator Howard W. Cannon (D-NV), Chairman of the Committee 1979 0710 and 1017 – GOV (Senate) – FTC Study of Life Insurance Cost Disclosure, Howard Cannon (D-NV) …

AGs – Actuarial Guidelines 1. Report of American Academy of Actuaries Liaison Committee Gary D. Simms, general counsel of the American Academy of Actuaries, summarized the report of the Liaison Committee (Attachment One). He indicated the purpose of the committee was to interact with the NAIC on a policy level as well as to provide…

GMF – Guaranteed Maturity Fund The guaranteed maturity fund at any duration is that amount which, together with future guaranteed maturity premiums, will mature the policy based on all policy guarantees at issue. NAIC – Universal Life Insurance Model Regulation (#585): – 22p Shane Chalke ULMR – Universal Life Insurance Model Regulation – MDL-585 –…